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DCYF launches 2025 market-rate and cost-of-quality survey; report due June 1, 2026
Summary
DCYF released the 2025 cost-of-quality and market-rate survey Oct. 1 to gather provider rates and operating costs that will inform child care subsidy base rates; the report is due June 1, 2026, and DCYF aims for about a 50% provider response rate.
The Department of Children, Youth, and Families (DCYF) deployed its 2025 market-rate and cost-of-quality survey Oct. 1 to collect provider charges and operating-cost data that will inform the state’s child care subsidy base rates.
“Under federal rules, states must conduct a market-rate survey or an alternative method for the Child Care and Development Fund,” Matt Judge, federal initiatives and collaboration administrator, told ELAC. “The legislature put it into law that we base our subsidy base rates on the market rate. The survey we are doing right now gives us the ability to go either way depending on what the legislature tells us.”
Why it matters: the survey’s results will be used to set Working Connections Child Care subsidy base rates that aim to avoid disincentivizing providers from serving subsidized children. DCYF officials said the state has federal approval to adopt an alternative cost-of-quality methodology, but the legislature currently requires rates be set by market-rate results.
Key points from the presentation:
- Deployment and timeline: DCYF released the survey Oct. 1, followed by physical letters with QR codes; Western Washington University is administering the survey. DCYF plans reminder postcards, email reminders and phone follow-ups; providers can complete the survey online (Qualtrics), by phone, or by spreadsheet for multi-site providers. DCYF anticipates drafting the report in January and completing internal review ahead of publication on June 1, 2026, per a legislative requirement.
- Response goals and incentives: DCYF staff said a 50% provider response rate historically has been a positive benchmark; initial participation exceeded 100 responses on day one. A $100 stipend offered on the prior survey will likely be reduced this round because the legislature did not appropriate funds for incentives.
- What the survey measures: the instrument collects market charges by child age and region, whether providers accept subsidies and any barriers they face, and operating-cost data (rent, utilities, personnel costs and quality-enhancement costs such as planning time and professional development). DCYF staff described the cost model as centering living-wage assumptions for staff and supports such as planning time and curriculum materials.
- Special populations and exclusions: licensed providers and DCYF-certified tribal programs that allow licensing-like certification are included; programs that are “certified for payment only” with substantially different licensing models are not surveyed. Licensed family-home rates are currently negotiated through collective bargaining between SEIU Local 925 and DCYF and were described as being set so they remain competitive with market charges; center rates are scheduled to transition to 2024 market-rate survey levels on July 1, 2026.
Provider concerns raised during the meeting included the low private-market rates for family homes, technical barriers for family-home providers who lack reliable internet, school-age provider participation issues in prior surveys and requests for clearer plain-language questions in the survey. DCYF said it revised the survey after provider testing to clarify questions on classroom-based versus family-home reporting, staff-pay formats and rent/space-cost items.
How providers can respond: DCYF and survey partner Western Washington University sent emails with a survey link and physical letters with QR codes. Providers who need assistance can request phone completion and technical help through the university’s support line.
Discussion versus decision: the meeting recorded discussion and clarifying Q&A but no formal changes to rate policy. DCYF staff confirmed that the legislature’s directive to use market-rate data remains in effect; switching to a cost-of-quality model would require legislative action despite federal approval to adopt the alternative methodology.
Next steps and follow-up items: DCYF will continue outreach and monitoring of response rates, provide participation updates to ELAC and related advisory groups at month-end, and complete the mandated report for release June 1, 2026.
