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Market Rate Study Fiscal Committee January 7, 2013

Market Rate Study Fiscal Committee January 7, 2013. Federal Requirement. In an effort to ensure equal access to low-income families, federal law requires CCDF Lead Agencies to conduct a Market Rate Study at least every two years. In Massachusetts, EEC is the CCDF Lead Agency.

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Market Rate Study Fiscal Committee January 7, 2013

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  1. Market Rate StudyFiscal CommitteeJanuary 7, 2013

  2. Federal Requirement • In an effort to ensure equal access to low-income families, federal law requires CCDF Lead Agencies to conduct a Market Rate Study at least every two years. • In Massachusetts, EEC is the CCDF Lead Agency. • The purpose of the Market Rate Study is to demonstrate that child care subsidy rates are adequate to ensure that eligible children have equal access to comparable child care services provided to children whose families do not receive any financial assistance for child care. • EEC last completed a Market Rate Study in 2010-2011.

  3. Intended Result of the Market Rate Study • The resulting data and findings from the 2012-2013 Market Rate Study has at least two purposes: • give EEC an updated basis upon which to review its present subsidy rate structure • make recommendations to the Board of Early Education and Care and the State Legislature for any necessary adjustments to its rate schedules and funding levels. • It is therefore critical that the study data and analysis about the distribution of child care rates and the findings about market rates be credible and withstands strict methodological scrutiny.

  4. Market Rate Study Scope of Work • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • Among other tasks, the Contractor must design a methodology that answers the following research questions: • What is the distribution of child care daily published prices (e.g., mean, standard deviation, range, quartiles), statewide and within each of the regional market areas, by type of care and age group? • Are there advantages to using a weekly rate versus a daily rate • Does the establishment of several part weekly rates allow EEC to set rates that reflect actual services more accurately than a full and part day rate? • Does zip code / county level data indicate that reimbursement regions currently in place should be changed to better reflect the market for early education and care services? • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

  5. Market Rate Study Scope of WorkContinued • The Contractor will review market prices by zip code and by the EEC administrative regions and any proposed sub-regional geographic areas approved by EEC for each of the following types of care: • For family child care, EEC seeks rates for children of different ages, from infants to school age. Family child care providers may charge different rates based on the ages of the children in care. Consequently, EEC is requesting that the Contractor review and, if necessary, help revise a study that allows family child care providers to state their rates based on the age groupings they use for infants, toddlers, preschoolers, and school age. • For Small or Large Group, non-school aged child care, EEC seeks rates for three age groups: (i) infants (0 to 15 months); (ii) toddlers (16 to 33 months); and (iii) preschool children (34 months to the age the child is eligible to enter first grade). • For Small or Large Group, school age child care, EEC seeks rates for school age children who are cared for in a center-based or a “school-based” setting. A school age child is defined as a child up to 13 years of age (or up to 16 years of age if the child has special needs) who is enrolled in either public kindergarten or a higher grade. • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

  6. Market Rate Study Scope of WorkContinued • The Contractor will be required to convert the weekly rate data to the closest daily rate equivalent in order to standardize rates across programs by ensuring that the survey accounts for the following situations: • The Contractor must collect full-time rates and part-time rates on a weekly basis (5 days per week). Full-time care is care provided for 6 to 10 hours per day. Part-time care is care provided for less than 6 hours per day. • The Contractor must ensure that information obtained from family child care providers is requested at the child level rather than by prototype (e.g., rate for Child X versus published rate for any preschooler in care). • The survey must gather information about the number of parents who are actually paying the providers’ published rate versus a discounted rate. • For school-age child care, the Contractor must, at a minimum, analyze separate data on providers’ before-school, after-school and vacation (i.e., full-day) weekly and daily rates. • The Contractor must ensure that the published rates do not include a provider’s transportation costs. • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

  7. Market Rate Study SOW Vendor Release • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick • Public Consulting Group was selected to conduct the Market Rate Study in conjunction with MASS211. • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

  8. Public Consulting Group • Commissioner Killins met with PCG to kick off the project on • October 15, 2012. • EEC has provided PCG with the needed data to draw the sample to be used for the study, and PCG has begun work. • PCG will be working with Mass211 to collect the data for the study. • PCG has provided EEC with draft communications to providers as well as drafts of the survey and call script. PCG has met with Mass 211 and has begun training their staff on how to collect the survey data via telephone surveys. EEC and PCG will be mailing and emailing out letters to programs and family child care providers in the next few weeks. • Data collection will begin on January 7, 2013 and end on • February 22, 2013. • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

  9. MASS211 • MASS211 is: • a statewide information and referral call center managed by United Way of Tri-County • reached by dialing 211 from anywhere in the state • part of the statewide network of community-based child care resource and referral agencies (CCR&Rs). • EEC contracts with Mass 211 to provide information and referral serviced and to help families access early education and care services statewide. • Mass 211 works with EEC to ensure that high quality resources and services that children need to grow and learn are accessible to every family. • Mass 211 Specialists are available 24/7 to assist parents and guardians find licensed child care providers and to learn about financial assistance for eligible families. • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

  10. Current Status • EEC staff have continued to have regular communication with PCG to discuss surveys and communication with the providers. • The general email through the Commissioner’s Mailbox announcing the Market Rate Study was sent out in mid-December. • PCG has also sent out letters to the sample providers. PCG has conducted a pilot test of the surveys using providers from each setting type that will be involved in the market rate study. The providers who tested the survey provided good feedback and some modifications were made but overall the surveys remained unchanged. • PCG has been working closely with Mass211 and held the data collection training webinar on January 3 from 1-3pm. • PCG is also working to schedule the first Advisory Group meeting. • PCG is meeting the timeline for the schedule of this project. • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

  11. Timeline • 3/15/13: PCG submits draft report to EEC • 4/1/13: PCG submits Final Report to EEC • 4/1/3 – 6/30/13: • Contractor is available to analyze market rate data prepared by EEC at the zip code / city / county levels and advise EEC about the practicality and feasibility of amending reimbursement rate areas.EEC staff have continued to have regular communication with PCG to discuss surveys and communication with the providers. • Contractor is available to make formal presentations to explain results and methodology to EEC, EEC’s Board of Directors, elected officials, and other interested parties on an as-needed basis. • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

  12. Next Steps: 2011 Study • Additional research questions were raised in the 2011 RFP, during the kick-off meeting, and by board committees. In response, the following additional analyses were planned at the conclusion of the 2011 study: • Analysis of Local Price Variations – Analyze the extent to which prices vary among towns within EEC regions. Rely on zip-code level price data collected in 2008 and update with 2010 price data. • Analysis of Practitioner Wage Data – Analyze the extent to which wages vary across different segments of the early childhood and out-of-school-time workforce. Limited to analysis of extant secondary data in the new Professional Qualifications Registry. • In response to the above, smaller studies were done on absentee policies, local child care prices, and work force education and salary. Recommendations from these studies must be reviewed. • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

  13. Center Based Prices by Age The most recent Massachusetts Market Price Child Care Survey shows that even with the implementation of the infant rate for all infants and toddlers, we will not be close to reimbursing at the federally suggested level of the 75th percentile. In every instance below, current rates do not reach the 50th percentile.

  14. Family Child Care Prices By Age The most recent Massachusetts Market Price Child Care Survey shows that even with the implementation of the infant rate for all infants and toddlers, we will not be close to reimbursing at the federally suggested level of the 75th percentile. In every instance below, current rates do not reach the 50th percentile

  15. Fiscal Committee Responsibility • As stated in the RFR, PCG will make recommendations to the Board of Early Education and Care and the State Legislature for any necessary adjustments to its rate schedules and funding levels. • Prior to the delivery of the PCG Market Rate Study Report, the Fiscal Committee should review the recommendations from the 2011 report and the three subsequent studies that were completed. • Following the delivery of the 2013 recommendations, the Fiscal Committee should: • Review the recommendations to provide an appraisal the Board. • Assess the recommendations in light of the proposed rate increase in the FY14 aspirational budget. • Create a strategy to offer to the Board how and when we can make an effort to secure additional funding. • Other? • A Scope of Work (SOW) was released on September 5, 2012, seeking responses by October 1, 2012. • The following consultants were selected as eligible respondents to this Scope of Work based on their current inclusion on the Research Vendor List: • Augenblick, Palaich, & Associates • Kenley Branscome • Linda Mills, Mills Consulting Group • Erin Oldham, Glenwood Research • Jill Reynolds, Public Consulting Group, Inc. • Rod Southwick

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