DCYF readies 2025 cost‑of‑quality and market‑rate survey; $50 participation incentive announced

State officials outlined the 2025 cost‑of‑quality care and market‑rate survey to Provider Supports Subcommittee members and urged providers to participate, saying the survey informs subsidy rates and future cost‑of‑quality rate proposals.

Matt Judge, DCYF federal initiatives and collaboration administrator, said the work will combine market‑rate information and a cost‑of‑quality analysis that captures the cost of personnel (including a living wage standard recommended by providers using the MIT living wage) and non‑personnel overhead such as rent, utilities and insurance. He described the methodological shift that the state received federal approval to pursue: jurisdictions can set subsidy base rates through a market‑rate survey or an alternative cost‑of‑quality methodology.

Judge said DCYF has revised the draft survey after provider testing and will deploy outreach materials beginning Sept. 29; a Western Washington University team will administer the survey and DCYF will mail letters and postcards. To increase participation, DCYF will provide a $50 gift card to participating providers — down from a $100 incentive used in 2024 due to funding limits — and will contact nonresponding providers during follow‑up.

The survey will include updated questions on non‑personnel overhead and permit providers to enter compensation information in multiple formats (annual salary or hourly). DCYF staff emphasized improved wording and the inclusion of certified providers in outreach. Judge said data from the 2024 survey currently underpins some family‑home rates, and that the legislature scheduled a center‑rate increase (to the 85th percentile of 2024 market rates) effective July 1, 2026.

Judge described the federal requirement that states use the most recent market‑rate data when setting subsidy base rates and noted that Washington is currently not fully aligned with the most recent data for center rates; the 2025 study and the June 1, 2026 report are intended to address that timing.

What providers should do: DCYF asked providers to look for survey notices beginning Sept. 29, follow the QR link or mailed letter, and share the information broadly; the agency will monitor returns and adjust outreach if particular regions or provider types are underrepresented.

Ending: DCYF said the final report is due to the legislature on June 1, 2026, and urged providers to participate so the data reflects provider costs across regions and program types.