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EEC presents two FY25 reimbursement scenarios to narrow gap with cost of care
Summary
EEC staff laid out two options for distributing $20M (plus a $2.5M center-based supplemental) for childcare reimbursement increases: Option 1 favors targeted increases to rates farthest below cost-of-care; Option 2 gives a slightly larger across‑the‑board COLA. Staff recommended Option 1 but the board will vote in early 2025 after stakeholder feedback.
The Department of Early Education and Care presented two options for using FY25 appropriations to increase childcare financial assistance reimbursement rates, aiming to bring rates closer to the updated 2024 cost-of-care estimates.
Commissioner Kershaw told the board the FY25 budget includes $20,000,000 for subsidized early education and care and family childcare providers, plus an additional $2,500,000 in a supplement restricted to center-based providers. "Because we're in FY25, these funds are effective July 1 last year," she said, noting any adjustments…
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