The state budget-writing Joint Finance Committee recommends an increase to funding for the state's childcare subsidy program, aimed at supporting care providers.
JFC’s budget mark up adds $5.1 million to the state’s appropriation to its purchase of care program, funding a 10% rate increase for childcare care providers serving the zero to five age groups in the state program.
Previously, the recommended budget plans increased the rate of reimbursements for only 0-2 year olds.
These increases come after Delaware’s Association for the Education of Young Children spoke out about concerns that the state was increasing eligibility for its child care subsidy program without increasing support for child care businesses to handle the increase.
Jamie Schneider, Executive Director of DEAEYC said, "increasing demand by increasing eligibility... is absolutely a really great policy decision if you pair it with stabilizing operational costs."
The plans were not voted on Wednesday, as the JFC introduced the additional reimbursement. State Senator Trey Paradee (D-Dover), the JFC chair, said they’ll flesh out details during Thursday and Friday's budget as mark up.
But he expects, "providers will be pretty happy with everything that we've done in that space."
That plan also expands who can qualify for purchase of care to families making at or under 225% of the federal poverty level, compared to the current 200%. It lengthens the enrollment benefit cliff from 300% of the federal poverty rate to 325%, meaning that qualifying households will have a longer runway before being removed from the purchase of care program. The JFC's markup also looks to increase the reimbursement to providers for children with disabilities.
DEAEYC said in a statement that it wants more communication from the current governor's administration, and that providers want to feel looped in about changes coming down the pipeline.
Schneider called this, "a huge change from the previous administration."
But her organization is supportive of the 10% reimbursement rate increase for 0-5 year olds.
The additions the JFC is looking at come after the Meyer administration highlighted importance of expanded early childcare access during his State of the State address in January. The added funding it's likely to vote on adds to the more than $25 million investment for purchase of care advertised then.
