Committee urged to adopt cost‑of‑quality childcare measures to better target subsidies

Appropriations Committee · February 18, 2026

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Summary

A briefing and provider testimony urged the committee to require DCYF to include a cost‑of‑quality childcare study in its biannual market rate report so subsidy policy reflects provider operating costs and quality benchmarks.

Committee staff briefed members on engrossed substitute Senate Bill 5,500, which would require the Department of Children, Youth, and Families to include a "current cost of quality childcare" study and a cost estimation model developed with the early educator design team in its biannual report to the legislature. Jordan Clark said the change responds to federal MRS (market rate survey) rules and seeks to better reflect geography, provider type and child age in cost estimates.

Child care advocates and providers testified in support. Jennifer Ziegler of Child Care Aware of Washington said the market-rate survey "didn't give you that full picture" and that incorporating design‑team elements will provide better data for funding decisions. Desiree Hall, a center owner and design‑team member, said the tool is "co‑created with providers like me" and urged the committee to "please honor the work" of providers by passing SB 5,500. Kira Bauer, who runs culturally based preschools in Spokane, described operating benchmarks, saying payroll should account for "approximately 55 to 60% of the total revenue" and that small margins are necessary to reinvest in quality.

Clark noted a modest fiscal impact to DCYF—about $15,000 annually to add survey questions and analysis. Supporters said the change is primarily a data and reporting reform to help the state set subsidy base rates that reflect the true cost of providing high‑quality care.