Early-childhood providers warn tiered reimbursement and cuts will worsen infant-toddler services
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Summary
Birth-to-3 agencies, family-childcare providers and nonprofit advocates told the committee that proposed tiered reimbursement and reductions to the GAAP gap payment would not cover true costs, risk provider exits, and further reduce access to early intervention and Care for Kids subsidies.
Providers and advocates representing Birth-to-3 and family-childcare programs testified that the governor's proposed FY27 adjustments leave the system unstable and will reduce access to early intervention in the state.
The testimony focused on three linked concerns: (1) the birth-to-3 rate study showed current reimbursement falls short of the true cost of services and needs updating, (2) the governor's proposed tiered reimbursement structure would tie higher rates to new credentialing that few providers currently meet, and (3) the statutory general administrative payment (GAAP) and a $1,000,000 line were at risk of reduction. "We urge you to reject the new tiered reimbursement structure," said Emmy Franklin of the Connecticut Community Nonprofit Alliance, echoing several provider directors.
Why it matters: Birth-to-3 is federally mandated; providers noted there is no legal wait list yet staffing shortages mean lower service intensity and fewer hours delivered. Several witnesses said that tying increases to multi-year credentialing would reduce immediate revenue for most agencies and that reinstating the $200 GAAP per eligible child and restoring the $1,000,000 reduction are necessary to preserve operations.
Care for Kids and family childcare: Family-childcare providers and advocates described a months-long wait list for Care for Kids and business losses when eligible families cannot be brought on immediately. "Because of the wait list I have empty spaces I cannot fill, and that means loss of income," said family-childcare provider Maria Amado.
What happened next: Committee members heard extensive, aligned testimony calling for restoration of GAAP, avoiding a tiered structure as a condition of rate increases, and more funding to eliminate the Care for Kids wait list. No formal action or vote occurred at the hearing.
Next steps: Providers asked the Appropriations Committee to add funds to birth-to-3 and DSS budget lines consistent with the state's own cost study, to restore gap payments and to decouple rate increases from the proposed tier credentials.