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EEC details FY25 C3 formula changes, enrollment proration and new equity tiers after $475M appropriation
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Summary
The department told the board that Commonwealth Cares for Children (C3) is funded at $475 million for FY25 and will be codified in statute; staff outlined a revised per‑slot funding formula with enrollment‑based proration, consolidated base rates, new equity tiers and a 1% cap on funding to any large for‑profit operator.
Department of Early Education and Care staff told the board on Sept. 11 that Commonwealth Cares for Children (C3) is funded at $475,000,000 in the FY25 budget and has been codified in state statute, and they laid out a set of administrative and formula changes intended to transition the program from emergency stabilization to an ongoing operational grant.
Agency presenters said the revised formula will pay programs on a per‑slot basis that multiplies a consolidated base rate (which incorporates staffing expectations) by license capacity and then applies an equity adjustment. To limit payment fluctuations, the department will calculate enrollment using a 12‑month historical lookback and prorate grants for programs with average enrollment below specified thresholds (75% for centers; at least an average of 3 children for family child care).
The department also described three equity tiers: Tier 1 (programs that fill at least 25% of licensed capacity with children receiving childcare financial assistance, Head Start programs, or programs in low‑opportunity areas) will receive a multiplier of 3; Tier 2 programs (serve at least one child receiving assistance or offer substantial non‑EEC scholarships) will receive a multiplier of 2.5; Tier 3 programs receive no additional adjustment. Presenters said the equity adjustment consolidates prior signals and will require new application data and documentation.
Budget language also requires a cap: for‑profit umbrella organizations that run more than 10 sites collectively cannot receive more than 1% of the C3 funds without a possible waiver; staff said they identified seven umbrella organizations that would be affected and are evaluating impacts. The department plans to set consistent monthly payments for the rest of the fiscal year, require quarterly recertification, continue monthly reporting as needed to compute annual averages, and keep quarterly intake windows for newly licensed programs.
Agency staff emphasized predictability and administrative transparency as primary goals and said additional data dashboards will be developed to show geography, enrollment and program characteristics. The new application and formula questions will be introduced in October with the revised formula launching in November. The board will review any FY26 formula changes as required by budget language.
