The District of Columbia ’ s Child Care and Development Fund ( CCDF ) began using a cost of quality approach to set subsidy rates in 2018 , and until 2021 it was the only state or district utilizing this methodology ( as of this writing , New Mexico and Virginia have joined it ). In the District , the implementation of alternative methodology for rate setting , instead of the market rate , resulted in higher payment rates for all providers in all types of care settings , compared to setting rates at even the highest percentile of the market-rate survey . The alternative methodology approach encourages quality by basing child care rates on the actual operating costs of delivering quality child care . 39
Additionally , recent developments in the district illustrate an approach that provides short-term financial relief for providers with a goal to develop long-term compensation reform . In January 2022 , after more than a decade of successful organizing , the
district advanced pay parity for infant-toddler teachers with
recent recommendations from the Early Childhood Educator Equitable Compensation Task Force . The recommendations included short-term direct payments of $ 10,000 to $ 14,000 to eligible educators to meet their immediate needs while the foundation for compensation reform is being built .
The district ' s Early Childhood Educator Task Force will provide implementation recommendations on increased employee compensation for all early childhood workers . The district determined that the two funding mechanisms it currently has in place ( child care subsidies and grants ) are not workable for distributing funds to the entire workforce . It recommended developing a new payment mechanism . The task force should also consider monitoring and enforcement mechanisms to ensure that payments made to providers translate into increased staff pay . 40 These are necessary mechanisms to raise pay while minimizing the burden on child care providers . There will also be needed technical assistance and support to help providers implement the compensation scale .
This permanent , publicly funded compensation program is designed to ensure that early educators are paid salaries comparable to educators of older children . The district is also are offering free or low-cost health insurance to eligible staff at licensed child care facilities .
41 Eligibility is not based on income or immigration status , but a person must be an employee and not a contractor of a child care provider .
42 Both programs are funded by the district ' s
Pay Equity Fund , a permanent , dedicated funding source for compensation initiatives in early childhood education .
In the long term , a program-level funding formula will include a salary scale that offers parity for educators across settings with their K-8 counterparts . This is possible because of
public funds dedicated for early childhood pay equity , highlighting the importance of a local revenue strategy . Beginning in October 2023 , the Office of the State Superintendent of Education will shift to distributing funds to child development facilities ; facilities that accept funds will be required to pay eligible child care professionals wages that reflect the recommendations of the Early Childhood Pay Equity Task Force . OSSE will continue to engage early childhood stakeholders in the coming months to inform the design , implementation and launch of the program for fiscal year 2024 and beyond .
39 Jeanna Capito , Jessica Rodriguez-Duggan , Simon Workman , “ Understanding the cost of quality child care in New Mexico : A cost
estimation model to inform subsidy rate setting ,” ( Prenatal to Five Fiscal Strategies , 2021 )
40
Compensation Scale for the DC Child Care Workforce : As Required by Birth-to-Three for All DC Act . OSSE , October 2021 .
41
2022 COST OF QUALITY CHILD CARE LEGISLATIVE REPORT 32