BlogOSSE Expands Child Care Assistance and Increases Reimbursement Rates

October 2, 2023

OSSE Expands Child Care Assistance and Increases Reimbursement Rates

By Audrey Kasselman

 

Under 3 DC applauds the Office of the State Superintendent of Education (OSSE) for keeping their word on increasing eligibility for assistance to reach more DC families and increasing subsidy reimbursement rates for child care providers across programs, independent of their current quality rating. Increased subsidy reimbursements to providers will allow them to cover their costs, grow, improve and innovate their programs to better meet the early learning needs of our youngest residents. 

As directed by the Birth-to-Three For All DC law, OSSE expanded eligibility for child care assistance to families of three earning up to $74,580 and families of four earning up to $90,000. Mayor Bowser’s office estimates that this expansion will make an additional 2,200 children under the age of 5 eligible for the program.  

Increased Subsidy Reimbursement Rates for All Providers

OSSE increased this year’s subsidy (or assistance) reimbursement rates across all quality designations for early childhood education providers. Providers will see meaningful increases in the reimbursement they receive from the child care assistance program for DC families compared to the last fiscal year. Providers can use these additional funds to create more high-quality programming, hire more staff and increase staff pay. The rates increased the most for infant and toddler providers from last year to this year. See the high-level summary tables below for more details on the percentage increases. 

Developing FY22 to FY23 Change
Child Development Center Infants/Toddlers 27% increase
Preschoolers 17% increase 
Out-Of-School Time 7% increase
Child Development Home Infants/Toddlers 29% increase
Preschoolers 30% increase
Out-Of-School Time 20% increase

 

Progressing FY22 to FY23 Change
Child Development Center Infants/Toddlers 23% increase
Preschoolers 13% increase 
Out-Of-School Time 6% increase
Child Development Home Infants/Toddlers 20% increase
Preschoolers 20% increase
Out-Of-School Time 17% increase

 

Quality/High Quality FY22 to FY23 Change
Child Development Center Infants/Toddlers 14% increase
Preschoolers 4% increase 
Out-Of-School Time 2% increase
Child Development Home Infants/Toddlers 15% increase
Preschoolers 10% increase
Out-Of-School Time 15% increase

 

Daily Child Care Copayments Reduced for DC Families

Many families who participate in the assistance program pay a portion of the cost for their child(ren) to attend their early learning program(s). Compared to last year, most of this year’s daily copays have been reduced. For example, families of four who earn from $15,000 to $30,000 will have a copay of zero dollars. Families of three or four with two children, who earn $64,636-$90,000 will pay less than 6 percent of their yearly income. This means a family of four with two children earning $90,000 will pay $3,984 annually for child care–significantly less than the $25,480 average (per infant) for center-based private pay child care in the District or the $20,449 average (per toddler) for home-based care

These copayments are ahead of what is called for in the District of Columbia’s Birth-to-Three Law for this fiscal year, and are trending toward 2027 requirements.

See the table below for more details on what percentage of their income families participating in the child care subsidy program can expect to pay this year.

% of FPG % of Annual Income
Family Size 3 4
Time Full Time
Children in care First Second Combined First Second Combined
0-50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
51-60% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
61-70% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
71-80% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
81-90% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
91-100% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
101-110% 1.08% 0.38% 1.46% 0.45% 0.16% 0.61%
111-120% 1.26% 0.44% 1.70% 0.52% 0.19% 0.71%
121-130% 1.43% 0.50% 1.94% 0.59% 0.21% 0.80%
131-140% 1.61% 0.57% 2.17% 0.66% 0.23% 0.90%
141-150% 1.78% 0.63% 2.41% 0.74% 0.26% 1.00%
151-160% 1.95% 0.69% 2.64% 0.81% 0.29% 1.10%
161-170% 2.13% 0.75% 2.88% 0.88% 0.31% 1.20%
171-180% 2.31% 0.82% 3.12% 0.96% 0.34% 1.29%
181-190% 2.48% 0.87% 3.35% 1.03% 0.36% 1.39%
191-200% 2.65% 0.94% 3.59% 1.10% 0.39% 1.49%
201-210% 2.83% 1.00% 3.82% 1.17% 0.41% 1.58%
211-220% 3.01% 1.06% 4.06% 1.24% 0.44% 1.68%
221-230% 3.18% 1.12% 4.30% 1.32% 0.46% 1.78%
231-240% 3.35% 1.18% 4.54% 1.39% 0.49% 1.88%
241-250% 3.53% 1.24% 4.77% 1.46% 0.52% 1.98%
251-260% 3.70% 1.30% 5.00% 1.53% 0.54% 2.07%
261-270% 3.79% 1.33% 5.12% 1.57% 0.55% 2.12%
271-280% 3.84% 1.36% 5.20% 1.59% 0.56% 2.15%
281-290% 3.89% 1.37% 5.27% 1.61% 0.57% 2.18%
291-300% 3.95% 1.39% 5.34% 1.64% 0.58% 2.21%
301-310% 4.00% 1.41% 5.42% 1.66% 0.59% 2.25%
311-320% 4.06% 1.43% 5.49% 1.68% 0.59% 2.28%
321-330% 4.11% 1.45% 5.56% 1.70% 0.60% 2.31%
331-340% 4.22% 1.49% 5.71% 1.75% 0.62% 2.36%
341-350% 4.33% 1.53% 5.85% 1.79% 0.63% 2.43%
351-360% 4.44% 1.56% 6.00% 1.84% 0.65% 2.49%
361-370% 4.55% 1.60% 6.15% 1.88% 0.66% 2.55%
371-380% 4.73% 1.67% 6.39% 1.96% 0.69% 2.65%
381-390% 4.91% 1.73% 6.64% 2.03% 0.72% 2.75%
391-400% 5.09% 1.79% 6.88% 2.11% 0.74% 2.85%
401-410% 5.36% 1.89% 7.25% 2.22% 0.78% 3.00%
411-420% 5.63% 1.98% 7.61% 2.33% 0.82% 3.15%
421-430% 5.63% 1.98% 7.61% 2.33% 0.82% 3.15%

 

Collapsing the Quality Tiers

For this upcoming year, OSSE made adjustments to provide subsidy reimbursements at similar levels across Developing, Progressing and Quality/High-Quality Programs, with a slight boost for Quality/High-Quality Programs. This is a more equitable approach to ensure that all providers, at minimum, have the funds to meet the full cost of providing quality care and that no quality tier is significantly disadvantaged in terms of reimbursement rates. While OSSE’s rationale for flattening the quality tier based funding formula is that it does not actually require more funding to deliver higher quality programming, the agency’s updated approach maintains a slight rate advantage for Quality/High-Quality programs to continue to incentivize early learning programs to strive to improve their quality. See the tables below which illustrate how reimbursement rates differ between High Quality and Progressing programs (center and home) and between Quality and Developing programs (center and home). 

 

High Quality vs. Progressing Child Development Center

High Quality

Full-Time Traditional FY23

High Quality

Full-Time

Traditional

FY22 – FY23 % Change

Progressing

Full-Time Traditional FY23

Progressing 

Full-Time Traditional

FY22-FY23

% Change

High Quality

Full-Time

NonTraditional FY23

High Quality

Full-Time NonTraditional

FY22 – FY23 % Change

Progressing

Full-Time NonTraditional FY23

Progressing

Full-Time NonTraditional

FY22-FY23 % Change

Infant and Toddler $107.24 14.2% increase $98.65 23.3% increase $134.05 14.2% increase $123.31 23.3% increase
Infant and Toddler Special Needs $125.47 6.9% increase $118.38 9.2% increase
Pre-School $66.81 3.6% increase $63.00 12.6% increase $83.51 3.6% increase $78.75 12.6% increase
Pre-School Before and After $66.81 3.6% increase $63.00 12.6% increase
School-Age Before and After $36.74 1.9% increase $36.74 1.9% increase $45.92 1.9% increase $45.92 1.9% increase
School-Age Before or After $36.74 1.9% increase $36.74 1.9% increase
Pre-School and School-Age Special Needs $77.14 2.3% increase $75.60 1.6% increase

High Quality vs. Progressing – Child Development Home

High Quality

Full-Time Traditional FY23

High Quality

Full-Time

Traditional

FY22 – FY23 % Change

Progressing

Full-Time Traditional FY23

Progressing 

Full-Time Traditional

FY22-FY23

% Change

High Quality

Full-Time

NonTraditional FY23

High Quality

Full-Time NonTraditional

FY22 – FY23 % Change

Progressing

Full-Time NonTraditional FY23

Progressing

Full-Time NonTraditional

FY22-FY23 % Change

Infant and Toddler $91.75 15% increase $84.28 20.4% increase $114.68 15% increase $105.35 20.4% increase
Pre-School $58.50 10.6% increase $53.04 19.6% increase $73.12 10% increase $66.30 19.6% increase
Pre-School Before and After $58.50 10.6% increase $53.04 19.6% increase
School-Age Before and After $32.20 15% increase $32.20 15% increase $40.25 15% increase $40.25 15% increase
School-Age Before or After $32.20 15% increase $32.20 15% increase

Quality vs. Developing Child Development Center

Quality

Full-Time Traditional FY23

Quality

Full-Time

Traditional

FY22 – FY23 % Change

Developing

Full-Time Traditional FY23

Developing

Full-Time Traditional

FY22-FY23

% Change

Quality

Full-Time

NonTraditional FY23

Quality

Full-Time NonTraditional

FY22 – FY23 % Change

Developing

Full-Time NonTraditional FY23

Developing

Full-Time NonTraditional

FY22-FY23 % Change

Infant and Toddler $100.66 14.2% increase $98.65 27.4% increase $125.82 14.2% increase $123.31 27.4% increase
Infant and Toddler Special Needs $120.79 5.3% increase $118.38 9.2% increase
Pre-School $64.28 3.6% increase $63.00 16.9% increase $80.35 3.6% increase $78.75 16.9% increase
Pre-School Before and After $64.28 3.6% increase $63.00 16.9% increase
School-Age Before and After $36.74 1.9% increase $36.74 1.9% increase $45.92 1.9% increase $45.92 1.9% increase
School-Age Before or After $36.74 1.9% increase $36.74 1.9% increase
Pre-School and School-Age Special Needs $77.14 2.3% increase $75.60 .2% increase

Quality vs. Developing – Child Development Home

Quality

Full-Time Traditional FY23

Quality

Full-Time

Traditional

FY22 – FY23 % Change

Developing

Full-Time Traditional FY23

Developing

Full-Time Traditional

FY22-FY23

% Change

Quality

Full-Time

NonTraditional FY23

Quality

Full-Time NonTraditional

FY22 – FY23 % Change

Developing

Full-Time NonTraditional FY23

Developing

Full-Time NonTraditional

FY22-FY23 % Change

Infant and Toddler $86.00 15% increase $84.28 28.8% increase $107.50 15% $105.35 28.7% increase
Pre-School $54.12 10% increase $53.04 29.9% increase $67.65 10% increase $66.30 29.9% increase
Pre-School Before and After $54.12 10% increase $53.04 29.9% increase
School-Age Before and After $32.20 15.4% increase $32.20 15% increase $40.25 15% increase $40.25 15% increase
School-Age Before or After $32.20 15.4% increase $32.20 15% increase

 

Audrey Kasselman

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