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MSDE recommends income-based sliding scale for subsidized full-day pre-K, cites lower family costs
Summary
Maryland State Department of Education staff told the State Board that an income-based sliding scale (Option 4) would be the least expensive for most tier-2 families, reducing out-of-pocket costs and aligning with a federal proposed 7% cap on childcare co-payments.
Maryland State Department of Education officials presented modeling of four sliding-scale options for subsidized full-day prekindergarten and recommended Option 4 — a family-income-based approach that caps a family’s share of pre-K costs as a percentage of income. MSDE staff said the model used 2022 federal poverty guidelines and a $13,003 per-pupil pre-K cost to compare outcomes across household income ranges.
MSDE researcher Matthew Duque told the State Board the four options included three that tied family share to a percentage of per-pupil cost (with varying banding levels) and a fourth that tied family share directly to a percent of household income. “For most of the tier-2 income window, Option 4 is the least expensive option for families,” Duque said, citing aggregate model results showing roughly $7.3 million in family contributions under Option 4 versus about $9 to $9.6 million under the other options.
Assistant State Superintendent Justin Dayhoff and others said the modeling focused on tier-2 households (incomes between 301–600% of the federal poverty level) because tier-1 families (≤300% FPL) are already eligible for full-cost coverage under the Blueprint. Dayhoff noted one advantage of Option 4 is that it better cushions lower-income households near the tier cutoffs and that the Administration for Children and Families has proposed capping childcare co-payments at 7% of income — a policy that would align with Option 4.
Board members asked how the approach would treat families with multiple young children, how local education agencies would collect varying fees, and whether some families could see higher costs under a change. MSDE staff said family-size effects are captured in federal poverty level calculations and that local education agencies would be responsible for collecting any local share or supplemental fees. Staff recommended statewide stakeholder engagement before any final adoption and said the department would provide tools (for example, a family calculator) and technical assistance to LEAs.
The presentation was informational; no vote to adopt a specific scale was requested at the meeting. MSDE said it will continue outreach with LEAs, providers and families before returning with a formal recommendation.
