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EEC outlines C3 adjustments, timeline for formula and workforce expectations
Summary
EEC staff updated the board on Commonwealth Cares for Children (C3), reviewed field feedback on the equity adjustment and announced that statute now requires programs receiving C3 to attest willingness to enroll children with CCFA; the department will propose a formal formula for public comment and seek board action this fall.
Department staff updated the Board of Early Education and Care on the Commonwealth Cares for Children (C3) program, current field feedback and next steps for a formal funding formula required by new statute.
Jocelyn Bowne’s team noted that C3 — which the department has been transitioning from federal pandemic stabilization to a permanent state program — is level-funded at $475 million in FY26 proposals. Staff said they are being cautious about immediate, large changes to preserve program stability while working to refine eligibility, fund-use expectations and the equity adjustment formula.
Ellen Zong, childcare operations and financing strategy specialist, said statute now requires programs receiving C3 to demonstrate a willingness to enroll children with Child Care Financial Assistance (CCFA). EEC plans to add an attestation to the C3 application stating that programs will accept CCFA children if space exists; staff said existing data show 69% of C3 programs already participate in CCFA and 83% of nonparticipating programs indicated they were willing or undecided about participating.
The department is also considering stronger expectations that a portion of C3 funding be used for workforce compensation. Staff presented survey data showing most center-based programs already invest more than 50% of C3 funds in payroll and benefits; they proposed a 50% workforce-investment benchmark for fund use, noting a minority (about 155 programs in the center-based dataset) would need to change fund allocations to meet that benchmark.
Staff described equity-adjustment options: redefining some municipalities (for example, gateway cities) as uniformly low-opportunity rather than relying solely on census-tract-level COI (Concentrated Opportunity Index) calculations; creating graduated adjustments within Tier 2 so programs receive different adjustments based on the share of CCFA or non-CCFA scholarship children they serve; and incorporating private scholarship and employer-sponsored tuition supports into the equity calculation.
The department also plans ongoing data collection — monthly recertifications, expanded November/May questionnaires and biannual workforce and expenditure surveys — to inform formula refinements. A formal formula is required by statute; EEC staff said they plan to bring a redlined proposal to the board this fall, open it for public comment and seek board action for promulgation before the end of the calendar year, with changes for FY26 to be cost-neutral given current budget assumptions.
Board members pressed for clarity on which programs would need to shift expenditures to meet a 50% workforce benchmark and requested more granular data on the 155 programs below the 50% threshold. Staff said they may call the board into session over the summer to meet statutory timelines and to ensure adequate public engagement during the regulatory process.
