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Massachusetts childcare costs surge 14 to 29 percent prompting financial assistance review

December 18, 2024 | Department of Early Education and Care, Executive , Massachusetts


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Massachusetts childcare costs surge 14 to 29 percent prompting financial assistance review
Notable cost increases for early education programs in Massachusetts have emerged as a significant concern during the Board of Early Education and Care meeting held on December 18, 2024. The discussion highlighted that the cost of center-based care has surged by 14% to 26% from 2022 to 2024, depending on the age group and region. Family childcare programs also saw a rise, with costs increasing by 12% to 19%.

The meeting underscored that these cost hikes are primarily driven by increased compensation for staff, which rose by 7% to 9%, and facility expenses, which soared by 28% to 29%. Food costs have also escalated, averaging an additional $1,000 per year. These figures raise concerns about the sustainability of childcare services and the financial burden on families across the Commonwealth.

The board reviewed the current Child Care Financial Assistance (CCFA) rates, noting that many rates remain significantly below the updated cost of care. For instance, rates for infants in the Northeast and Southeast regions are below 70% of the necessary costs, while rates in Western and Central Massachusetts hover between 70% and 80%.

In response to these challenges, the board discussed funding allocations, including $20 million earmarked for subsidized early education and care, alongside an additional $2.5 million specifically for center-based providers. However, the latter funding excludes family childcare, complicating the financial landscape for these essential services.

The meeting concluded with a commitment to continue monitoring costs and adjusting financial assistance rates to better reflect the realities of childcare expenses, ensuring that families and providers receive the support they need. The board's ongoing efforts aim to create a more equitable and sustainable early education system in Massachusetts.

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Scribe from Workplace AI
Scribe from Workplace AI