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Legislature funds pre‑K expansion and tightens subsidy billing in HB 2689
Summary
The oversight board heard DCYF describe a $170 million Ballmer Group gift for state pre‑K (ECAP) expansion, center rate increases effective July 1, and HB 2689 changes to attendance/billing that will change subsidy billing, require provider training and add auditing staff for implementation.
DCYF told the oversight board that this legislative session produced major changes to early learning funding and subsidy rules that agencies and providers will need to implement in the coming months.
Secretary Tana Sen highlighted an additional $170,000,000 annual investment to the state pre‑K program (ECAP) from the Ballmer Group, intended to expand slots and school‑based options. “It was pretty amazing when I was signing the MOU for $170 million,” Sen said, thanking private partners.
Assistant Secretary Nicole Rose walked the board through the changes in House Bill 2689 that affect subsidy billing and provider payments: a tiered attendance policy (payments tied to 1–8 days, 9–15 days, and full authorization after 16+ days), a pause on expansion of Working Connections eligibility (maintained at 60% of state median income), and a center‑rate update that will average about a 22% increase for many center rates on July 1, 2025. Rose said DCYF has funding in the budget for implementation activities — change management, provider billing training, and updates to subsidy billing guides — and will work with providers to reduce administrative burden.
Board members asked how the changes will affect provider capacity and family choice; DCYF said eligibility thresholds remain unchanged and that rate increases are intended to better align subsidy rates with market surveys. The department signaled it will provide multiple provider webinars and technical assistance during rollout.
