parents currently billed private-pay tuition rates , the cost of child care is already a disproportionate burden : A family in Washington currently spends about 35.5 % of its income to send two children to child care — well beyond the federal standard of affordability of 7 % of income for a comparable family . 26 The task force recommends further analysis to identify effective mechanisms to raise wages for all child care workers , to be implemented in parallel to the subsidy rate increase . See recommendations number 2 and number 3 , below .
Relief payments should be available in FY 2023 through FY 2025 , or until implementation of a wage supplement system for the entire child care workforce occurs ( see Recommendation 3 ).
Stabilization grants were a temporary fix applied to a long-term structural issue . Washington must act now to address this funding disparity . In Washington , stabilization grants funded through American Rescue Plan Act ( ARPA ) kept many businesses afloat during the pandemic . 27 Before stabilization grants , DCYF provided three rounds of COVID-19 grants using stimulus funds . DCYF also used stimulus funds to expand eligibility for child care subsidies , reduce subsidy co-pays and increase subsidy base rates . All stimulus funds are now either spent or dedicated to initiatives underway .
The task force recognizes what P5FS notes : That the pandemic affected all parts of the system , not just publicly funded programs , and that child care plays a vital role in the economy . Washington can build upon the approaches used in other states to supplement provider wages . States such as Alabama used ARPA funds to pay child care staff up to $ 3,000 in quarterly bonus payments , and the District of Columbia recently announced a plan for short-term direct payments of $ 10,000 to $ 14,000 until a long-term payment mechanism can be identified and implemented . Policymakers should also consider strategies for retaining Early Achievers coaches , who are a fundamental part of Washington ’ s quality system .
In the 2023-25 biennial budget , the Legislature should provide funding for the DCYF to develop recommendations and implementation plans to deliver wage supplements and benefits to the child care workforce , all in partnership with providers , parents , and stakeholders . By Dec . 1 , 2023 , DCYF should submit an interim progress report to the Office of the Governor and the Legislature . By Sept . 1 , 2024 , DCYF should submit recommendations and implementation plans to the Office of the Governor and the Legislature .
As noted in recommendation 1 , it is possible that significantly raising subsidy rates to cover the cost of quality care without simultaneously increasing wages for all child care workers will put pressure on private-pay providers to increase their rates , thus making care even less affordable for private-pay families . Raising subsidy rates alone could also disrupt the private market by causing providers who do not currently accept subsidies to lose staff to programs who can offer higher subsidized wages . To avoid these potential
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2022 COST OF QUALITY CHILD CARE LEGISLATIVE REPORT 15