The State of Early Care & Education and Child Care

A report submitted by the Early Learning Division to the Legislative

Task Force on Access to Quality Affordable Child Care

December 2019

The State of Early Care & Education and Child Care Assistance in Oregon

Table of Contents

I. Introduction to Purpose of Child Care and Essential Issues of Access, Affordability, Quality and Supply .......................................... 1 Cost of child care for parents .................................................................4 Compensationofproviders ...................................................................4 Supply of child care ................................................................................4 Impact of quality ....................................................................................5

II. Overview of Key Components of Oregon’s Early Care and Education Subsidy Programs .............................................................. 6

III. Administration ................................................................................... 9

IV. Funding ............................................................................................... 9 Over70%ofOregon’sEarlyCareandEducationisfinanced directly by parents .................................................................................9 Oregon’spublicinvestmentdrawsheavilyonfederalrevenue ..........10

V. Eligibility and Children Served ......................................................... 12 ERDC .....................................................................................................12 ERDCpolicychoices .............................................................................15 EligibilityforPreschoolPromise,OregonHeadStart Pre-Kindergarten/HeadStart,EarlyHeadStartandBabyPromise .....16

VI. Parental Copayments ....................................................................... 18 ERDC .....................................................................................................18 Copaymentsforotherearlycareandeducationprograms ................18

VII. Who Delivers Services and Hours of Operation .............................. 19 Providertypesandtypicalhoursofoperations ..................................19 Childcarelicensingandregulation ......................................................20 Additionalprogramstandards .............................................................21

VIII. Rate Setting and Payment Mechanisms for Programs .................... 22 ERDCPaymentRates ............................................................................22 ProviderratesforPreschoolPromise,OregonHeadStart Prekindergarten/HeadStart,EarlyHeadStartandBabyPromise ......23 PaymentMechanisms ..........................................................................23

IX. Professional Development and Approach to Quality ...................... 24 Workforceoverview .............................................................................24 ChildCareResource&ReferralAgencies,theOregonRegistry andSpark .............................................................................................27 AdditionalSupportforQualityImprovementand professionaldevelopment ...................................................................28

Endnotes ................................................................................................... 28

The Early Learning Division is submitting the follow report to the legislative Task Force on Access to Quality Affordable Child Care as instructed by HB 2346. This report is the first of three reports that are due to the Task Force and covers the current programs, policies, funding, and populations served by child care subsidies in Oregon. The report also addresses the professional development opportunities, accreditation and licensing standards and recruitment efforts for child care providers.i

i TheEarlyLearningDivisionisworkingwiththeOregonStateUniversityOregonChildCareResearchPartnershiptoconducttheadditionaltwostudiesrequiredunderHB2346:(1) Study and prepare a report on the supply ofanddemandforchildcarebygeographyandhouseholddemographicinformation,includingage,raceandethnicityandlanguagespokeninthe home.(2) Study and prepare a report on the barriers to accessingexistingchildcaresubsidies,includingconductingvoluntaryinterviewsorsurveysoffamiliesthathaveaccessedchildcaresubsidiesinthepast,familiesthataccesschildcaresubsidiespresentlyandchildcarecaseworkersorproviderswhohaveassistedfamilieswithaccessingchildcaresubsidies.ReportsonthesetwostudiesareduetotheTaskForceonJune30,2020.

I. Introduction to Purpose of Child Care and Essential Issues of Access, Affordability, Quality and Supply

ChildcareplaystwocentralrolesforOregon’sfamilies:itenablesfamiliestoworkandsupportstheearlylearningandschoolreadinessofyoungchildren.

Is there a difference between child care and early care and education?

Theearlychildhoodcommunitydoesnotmakeadistinctionbetweenchildcareandearlycareandeducation.EarlyCareandEducationencompassesnonparentalcarebirthtokindergartenentry,aswellasbeforeandafterschoolcarethroughage12.Earlycareandeducationencompassesthecarethatoccursoutsideachild’shome,includingchildcarecenters,familychildcarehomes,preschoolprograms,andHeadStart/EarlyHeadStartprograms.

Inthisreport,thetwotermsareusedlargelyinterchangeably.Whentheterm“childcare”isused,itwillmostlybeusedtorefertoearlycareandeducationprogramsthatareprimarilyfinancedbyparent’stuitionorparentalfees.

Family, Friend and Neighbor Care, Small

and Large Family Child Care Homes

Head Start Centers

Early Care & Education is delivered across a variety of settings. This is why it is known as “mixed-delivery” system.

Child Care Centers, Community-Based Organizations, Including

Culturally-Specific Organizations Public Schools

YetOregon’scurrentsystemofearlycareandeducationisfailingtomeeteitheroftheseneeds.Familiesacrossthestatestruggletofindstable,qualitychildcarethatmeettheirneedsandwhentheycanfindit,itisoftenatacostthatimposesincrediblefinancialburdenonoftenalreadyoverburdenedfamilies.Oregonbusinessesarealsoreportingtheimpactofqualitychildcareontheirbottomline,astheystruggletofindemployeesorastheeffectofunstable,lowqualitychildcarearrangementscausesworkerstomissdaysandloseproductivity.

Altogether,thesechallengeshaveadirectandlastingimpactonchildren.Familiesareoftenforcedtosettleforlower-qualityearlychildhoodexperiences,ortomovechildrenfromonecarearrangementtothenext,underminingtheattachmentsbetweenchildrenandcaregiversthataresoimportantfordevelopmentandsocial-emotionalhealth.Andwhilehigh-qualityearlycareandeducationprogramshelpchildrendevelopthesocial-emotional,languageandcognitiveskillsthatwillhelpthemsucceedinschool,low-qualitycaredoesnothavetheselastingpositiveoutcomesandhasbeenassociatedwithnegativeimpactsonbehavior.

The State of Early Care & Education and Child Care Assistance in Oregon Oregon Department of Education Early Learning Division • December 20191


Accesstoquality,affordableearlycareandeducationisanissueofequity.Zipcode,incomeandrace/ethnicityarepowerfulpredictorsofwhetherchildrenandtheirfamiliesexperienceconditionsthatareoptimalforyoungchildren’sdevelopment,includingaccesstohigh-qualityearlycareandeducation.Breakingthelinkbetweentheseinheritedfactorsandlifeoutcomescanonlyhappenifwechangethecircumstancesoffamilies,whichmeanschangingthedistributionofopportunities.Acrossthecountry,familieswithhigherincomesparticipateinearlycareandeducationprogramsathigherratesandinvestmoreintheseprograms.DisparitiesinaccesstohighqualityearlycareandeducationcontributetothedisparitiesinoutcomesandopportunitiesthatareseeninK-12.Closingthegapsinaccesstoearlycareandeducationwillensurethatmorechildrenarriveatkindergartenreadytosucceed.

Figure 1. Equity and Access

Accesstoearlycareandeducationisanequityissue

Zip Code, income,andrace/ethnicityarepowerfulpredictorsofachildandfamily’saccesstohigh-qualityearlycareandeducation

Figure 2. Oregon children under five: percent of population and percent in poverty by racial/ethnic group

Thereareover236,000childreninOregonundertheageoffive,withalmosthalfofthosechildrenlivinginlow-incomefamiliesearninglessthan200%oftheFederalPovertyLine(FPL),$42,660forafamilyofthree.

Racial and economic disparities emerge early.

% of population % in poverty

American Indian/Alaska Native

Asian Black Multi WhiteNative Hawaiian/Pacific Islander

Hispanic


Figure 3. Income distribution for Oregon families with children under 5

Nearlytwothirdsofchildreneitherhavebothparentsorasingleparentemployed.iForthesefamilies,earlycareandeducationisanecessity;formanyofthesefamiliesnopublicresourcesareavailabletounderwritefamilypaymentsortosupportearlycareandeducationprogramquality.Recentresearchdemonstratesthataccesstostable,affordablequalitychildcare,inadditiontothepositiveimpactsonschoolreadiness,alsoincreaseslaborforceparticipationofwomenandincreasestheearningsofwomenoveralifetime.ii

Thefirstfiveyearsoflifeareaperiodofrapidbraindevelopmentandtheexperiencesthatchildrenreceiveduringthiscriticalperiodhavealifetimeimpact.Thus,children’searlycareandeducationhasaprofoundimpactonchildren’sdevelopmentandtheiracquisitionofsocial-emotional,languageandcognitiveskills,allofwhicharecriticaltotheirschoolandlifesuccess.

Figure 4. Synapse formation in the developing brain

Accesstoearlycareandeducationisnotenough.Thequalityofearlycareandeducationmatters.Researchdemonstratesthequalityofcareimpactschilddevelopmentandschoolreadiness.Thisistrueforinfantsandtoddlers,aswellaspreschoolers.Earlycareandeducationprofessionalswhohaveaknowledgeofchildren’ssocial-emotional,language,andcognitivedevelopment,andareabletoprovidechildrenwithwarm,supportiveandresponsiveinteractionsthatmeetthemattheirstageofdevelopment,andsupporttheirincreasedcompetenceinthesekeysareas,promotemorepositiveoutcomesandincreasethelikelihoodthatchildrenwillsucceedinschool.

The science of child development underscores the importance of the first 2,000 days of childhood.

Source:AjayChaudry,ChristinaWeilandandTarynMorrissey.“Acomprehensiveplanforbirth-to-fiveearlychildhoodcareandeducationservicesinOregon.”September2019.


Inorderforearlycareandeducationtobothsupportfamilies’abilitytoworkandtopromotepositivechilddevelopment,itmustbeaccessibleandaffordable,available,andofhighquality.Parentsneedchildcarethatisaccessible:itmustbeconvenientlylocatedtowheretheyliveandwork,fittheirworkschedule,andberesponsivetotheirhomelanguageandculture.Familiesneedtobeabletoaffordit.Thesupplyofchildcaremustbesufficientsothatthereareenoughchildcareslotsforeachagetomeetthedemandofparents.Parentsalsowantchildcarethatishighquality,safe,healthy,culturally/linguisticallyresponsive,andsupportsthedevelopmentoftheir child.

However,therealityinOregonandacrossthenationisthatchildcarecoststoomuchforparents;paystoolittletoproviders;isoftenoftoolowquality;andevenwhenparentscanaffordit,theyhavetroublefindingit.

Cost of child care for parentsAccordingtothe2018ChildCareMarketRateStudyfromOregonStateUniversity,themedianmonthlypriceofchildcareforapreschoolagechildwas$870andforaninfant$1,211.Atanannualizedpriceof$14,532,thecostoffull-timecareforaninfantsignificantlyexceedsthe$10,366chargedbyOregonStateUniversityforin-statetuition.Whiletherearewidevariationsinthepriceofchildcarebetweenregionsandwithinmarkets,thefinancialburdenonfamiliesisreal.Childcarecanoftenbethesinglelargesthouseholdexpense,evensurpassingthecostofhousing.

Table 1. Monthly child care and housing costs in Oregon

Monthly Median Income – 2 Parent Household $4,512

Child Care (averagecostperinfant–centerpermonth)

$1,211

Housing (FairMarket2-bedroomaptpermonth)

$1,028

Food (USDA“low-cost”foodplanpermonth)

$700

Remaining available $1,573

For a family making median income with just 1 infant in care, child care, housing, and food costs are nearly 70% of the monthly household budget.

Compensation of providersWhilethecostofchildcareistoohighformanyfamilies,childcareremainsafinanciallyprecariousbusinesswithlowprofitmarginsandlowwagesforchildcareproviders.Themedianwageforanearlycareandeducationteacherworkinginacenterrangesbetween$12and$17.05perhour.iiiHomebasedproviderstypicallyearnfarless.Aconsequenceoflowprofitmarginsandlowwagesishighturnover.Eachyear,asignificantnumberofearlycareandeducationbusinessesshuttheirdoorsandprovidersleavethefield.AccordingtoestimatesfromOregonStateUniversity,oneoffourmembersoftheearlycareandeducationworkforceleavestheprofessioneachyear.Thishighturnoverratedisruptscontinuityofcareforchildren,forcesfamiliestoscrambletofindnewarrangementsandcontributestotheoveralldeficitinthesupplyofchildcare.Thelowlevelsofcompensationalsohaveanegativeimpactonquality,makingitmorechallengingtoencourageadditionaltrainingoreducation,especiallywhentheadditionaltrainingandeducationwillnotbematchedwithcommensurateincreases in salaries.

Supply of child careOregon’sfamilies,businessesandcommunitiesarereportingashortageintheavailabilityofchildcare,particularlycareforinfantsandtoddlers.ArecentstudyfromOregonStateUniversityconfirmsthesereportsiv Usingthenationallyadopteddefinitionofachildcaredesertasanyareawithfewerthanoneregulatedearlycareandeducationslotforeverythreechildren,theOSUresearchersmappedthesupplyofchildcareacrossOregon.Forallchildrenundertheageoffive,theyfoundthatonlyninecountiesinOregondidnotmeetthedefinitionofachildcaredesert,andeverycountyinOregonwasadesertforinfantandtoddlercare,withfewerthanonechildcareslotforeveryeightinfantsand toddlers in the state.


Map 1. Percent of Oregon Young Children with Access to Regulated Child Care Slot by Age

0-2 year olds

3-5 year olds

0-2yearoldsincludeschildrenbirththroughage2.

3-5yearoldsincludeschildren3throughtheendofage5.

Slotsaredefinedasregulatedchildcareslots,includingCertifiedCenters,CertifiedFamily,andRegisteredFamilyProviders.

Data sources: Access to child care is calculated by taking the Estimated Supply of Child Care in Oregon as of January 2018 (Analysis by Oregon Child Care Research Partnership, Oregon State University using data collected by 211 and the CCR&R system), and dividing it by the population of children in the county who fall in the age group (2017 Annual Population Report Tables, Portland State University Population Research Center).

Impact of QualityWith90%ofbraindevelopmenttakingplacebeforetheageoffive,thequalityofearlyexperiencesmatter.High-qualitycareprovidesdevelopmentallyappropriateexperiencethatareinteractiveandstimulatelearning.Childrenwhoparticipateinhigh-qualitycarehavefewerbehavioralissuesandperformbetterinschool.Low-qualitycarehasbeenassociatedwithnegativeimpactonchildren’sdevelopmentandbehavior.MuchofthechildcareintheUnitedStateshasbeenevaluatedasbeingofmediumorlowquality.vThequalityofcareisinsignificantpartaresourceissue.Lowwagesresultinhighturnoveranddiscourageinvestmentsinprofessionaldevelopmentandeducation.Childcareprogramsoftenhavelimitedaccesstotechnicalassistanceandprofessionaltrainingthatsupportsthepracticeofcontinuousqualityimprovement.

II. Overview of Key Components of Oregon’s Early Care and Education Subsidy Programs

HouseBill2346requirestheprovisionofinformationonseveralkeycomponentsofOregon’schildcaresubsidyprograms.Therearefiveprimarysubsidyprograms:EmploymentRelatedDayCare(ERDC),PreschoolPromise,OregonHeadStartPre-Kindergarten(OPK)/HeadStart,EarlyHeadStart,andBabyPromise–discussedinthisreport.

ERDC:TheEmploymentRelatedDayCareprogram(ERDC)isthelargestprograminOregonprovidingsubsidestoparentstooffsetthecostofchildcareservinganaverageof7,385familiesand14,890childreneachmonth.vi TANF andtheJOBSprogramalsoprovidesubsidesforchildcarefortheirparticipantstosupporttraining,educationandjobsearchactivities.ERDCoperatesasafederal/statepartnershipwhosepurposeistoimprovechildoutcomesand support parental employment. Federal dollars come intheformofablockgrantthroughtheChildCareandDevelopmentFundthatprovidesstatestheabilitytoshapeachildcaresubsidyprogramtofitstateneeds.Stateshavekeypolicyleverswithwhichtheydeterminewhogetsservedwithwhattypesofservicesandforhowlong.

Preschool Promiseisahigh-qualitymixeddeliverypreschoolprogramfundedbythestate.Itisdeliveredthroughelementaryschools,HeadStartprograms,reliefnurseries,licensedcenterandhome-basedchildcareprograms,educationservicedistricts,andcommunitybasedorganizations.ThePreschoolPromiseprogramservesapproximately1,300of40,000eligiblechildrenages3to4,whosefamilieshaveincomesupto200%oftheFederalPovertyLevel.Nearly25%ofslotsaredeliveredthroughK-12schoolsandHeadStartgrantees.Providersoffercomprehensivepreschoolserviceswithinstructionalhoursequivalenttofull-daykindergarten.Comprehensiveservicesincludechildlevelassessments,parent/teacherconferences,screeningsandreferralstoconnect children and families to community resources. All programsmustfollowresearch-basedstandardsthatareassociatedwithpositiveoutcomesforchildren.

Oregon Head Start Pre-Kindergarten (OPK)isastatewideprogrambasedonthefederalHeadStartmodelthatservesapproximately8,000ofthe20,000eligiblechildren,inadditiontothenearly4,000servedbyfederalHeadStartfunds.TheOregonHeadStartPre-Kindergarten(OPK)providespreschooleducation,childhealthand

nutrition,andfamilysupportservicesthroughoutthestatetochildrenagesthreetofiveyearsinfamiliesatorbelow100percentofthefederalpovertylevel.OPKisdeliveredthroughavarietyofgranteesincludingschools,non-profits,andinstitutionsofhighereducation.Thepurposeoftheprogramistoprovidechildrenwiththeskillsnecessarytobesuccessfulinschool,assistfamiliesinunderstandingtheneedsoftheirchildren,andencouragefamiliestobeinvolvedintheirchild’seducation.Childrenandfamiliesarereferredtoandhelpedwithobtaininghealth,dentalandmentalhealthandothersocialservices.OPK/HeadStartisavailableinall36countiesinOregonwith21programsreceivingfederalandstatefundsandsevenprogramsreceivingstatefundsonly.

Early Head Start (EHS) isthebirthtoagethreecompanionprogramtoHeadStart.EHSprovidescomprehensiveservicestochildrenunderagethreeandexpectantmotherslivingatorbelowthefederalpovertylevel.Theservicesareacriticallinkforchildrentogainnecessaryskillstobesuccessfulinschool,toassistfamiliesinunderstandingtheneedsoftheirchildren,andtoencouragefamiliestobeinvolvedintheirchild’seducation.Theprogramsprovideservicesfocusedonthewholechild,includingearlyeducationaddressingcognitive,developmental,andsocio-emotionalneeds;medicalanddentalscreeningsandreferrals;nutritionalservices;mentalhealthservices;parentengagementactivities;andreferralstosocialserviceprovidersfortheentirefamily.Currently,thereare2,217enrolledslots,64ofwhicharefundedbythestate.

Baby Promiseisanewstrategytohelpstabilizeandbuildthesupplyofqualitycareforinfantsandtoddlers.WorkingwithChildCareResource&ReferralAgencies(CCR&Rs),thestatewillcontractdirectlywithprovidersforcareforinfantsandtoddlersfromfamiliesearninglessthan200%FPL.Thesecontractswillbebasedontherealcostofprovidingqualityinfantandtoddlercareandhelp


providefinancialstabilityforproviders,reducingturnoverinthefield.BabyPromiseproviderswillparticipateinprofessionaldevelopmentfocusedonthecareofinfantsandtoddlersandreceivesupportstostrengthenbusinesspractices.ThreeCCR&Rswereselectedforthepilotandwillbeworkingwith42providerstoserve230children.LikePreschoolPromise,thefullrangeoflicensedearlycareandeducationprograms,includingfamilychildcarehomes,childcarecentersandEarlyHeadStartgrantees,willbeeligibletoparticipateinBabyPromise.Duringthe2019session,theOregonLegislaturepassedHB2024whichprovidesapermanentstatutoryframeworkforBabyPromise.

The Oregon Student Child Care Grant Programwasestablishedtoassistparentsenrolledinpostsecondaryeducationobtainsafe,dependablecarethatsupportstheirchildren’sdevelopmentwhileattendingapost-secondaryeducationinstitution.Oregonresidentundergraduateswithachildorlegaldependent12yearsofageandunderorifoverage12,withcircumstancesrequiringdependentcareareeligible.Students(theparent)mustbeattendingschoolfulltime.Grantfundsaredistributedtothestudentbythepost-secondaryinstitutionaspartofthefinancialaidpackage.Itisthestudent’sresponsibilitytopaythechildcareprovider.Duringthe2017-19biennium,$950,544wasallocatedforthisgrantprogram,enabling83studentstoreceivestudentchildcaregrantduring2018-19academicyear.Thegrantprogramhistoricallyrunsoutoffundsandcannotservethenumberofstudentswhosubmitapplicationsandqualify.(Because this is a grant directly to the student, it is not included in the chart below.)

Table3introducesthesekeycomponentsofadministration,funding,child/familyeligibility,childrenserved,parentdelivery,providers,licensing,generalhoursofoperation,ratesetting,andproviderfinancingmechanism.Thefollowingsectionsofthereportprovidemoredetailedinformation.Additionally,HouseBill2346specifiesinclusionofinformationonprofessionaldevelopmentopportunitiesandrecruitmentofearlycareandeducationproviders.ThisinformationisdiscussedinSectionIX.

The Student Success Act: A historic investment in early care & education

TheStudentSuccessActcreatesanewEarlyLearningAccounttofundinvestmentsfocusedonchildrenundertheageoffiveandtheirfamilies:$200millionperyear(oratleast20%oftheoverallSSAinvestmentof$1billion)willserve15,000childrenbirthtofiveyearsoldincludinginthefollowingways:

Table 2. Use of Student Success Act for early care and education

ECE Program Purpose FundingChildren Served

OregonPrekindergarten(OPK):EarlyHeadStart(PN-3)

•Providehigh-qualityinfant/toddlereducationtochildreninpoverty(<$26K/yearforafamilyof4)

$22.3 1,189

OPK:HeadStart(3-5)

•ExpandexistingOPKslotstobefull-day,includeteachersalaries,andduration

•Providehigh-qualitypre-kindergartentochildreninpoverty

•Providecomprehensivehealth,nutrition,andothersupportstochildrenandfamiliesinpoverty

$44.4Upto2,658

PreschoolPromise(3-5)•Providehigh-qualitypre-kindergartentochildreninlow-incomefamilies

$30.8 2,565

Oregon Department of Education Early Learning Division • December 20197The State of Early Care & Education and Child Care Assistance in Oregon

Table 3. Overview of Oregon’s early care and education subsidy programs

Early Care & Education Subsidy Programs in Oregon (2019-2021 biennium)

Employment Related Day Care

(ERDC)Preschool Promise

Oregon Head Start Pre-Kindergarten (OPK)/

Head Start

Early Head Start

Baby Promise

Administration DHS ELD ELD ELD ELD

Funding All dollar amounts in millions

$66.5(state)

$116.3(federal)$37.1(state)*

$156.4(state)*

$122.4(federal)

$1.7(state)*

$64.2(federal$11(federal)

Who’s eligible

Childrenthroughage12withworkingparentswithincomebelow185%FPL

Three-andfour-yearchildren from families withincomesbelow200%FPL

Three-andfour-yearchildrenfromfamilieswithincomesbelowtheFPL

Expectantmothers and children under theageofthreefrom families withincomesbelowFPL

Children under theageofthreefromfamilieswithincomebelow200%FPL

Children served 14,890 1,300*

12,500

8,100(state)*

4,400(federal)

2,217

64(state)*

2,139(federal)

230–projected for 2020

Percent eligible served 15% 3.25%* 62.5%* 8%* N.A.–in pilot phase

Parent Copayment? Yes No No No No

Who can deliver services?

• Family members• Licensed-exempt

providers• Licensedchildcare

family homes and centers

• Licensedchildcarefamily homes and centers

• OPKproviders&federalHeadStartgrantees

• Publicschools

• federalHeadStartgrantee• stateOPKgrantee

• federalHeadStartgrantee

• stateOPKgrantee

• Licensedchildcare family homes and centers

• OPKproviders&federalHeadStartgrantees

• Publicschools

When is a child care license not required?

• Family members orcaringforthreeoffewerunrelatedchildren

• Servicesofferedbygovernmentagency

• Schoolageandpreschoolprogramsoperatingfourorfewerhoursperday



• Preschoolprogramsoperatingfourorfewerhours per day



General hours of operation

Mostprovidersoperate full year and hours that meet needs toworkingparents(e.g.,7am–6pm).There are some providerswhoalsoprovideevening,nightandweekendcare.

Equivalentofkindergartenschoolday and school year hours

• ThestandardOPK/HeadStart hours are minimum of 3.5hoursperdayand160days per year

• SomeOPK/HeadStartcontractwithERDCforextendedhoursanddays

• Student Success Act Funds includeresourcesforOPKprogramstoextendtheirhoursofduration

Minimumof1,380hoursofyear

SeeERDC

Rate setting for programs

PercentageofMarketPriceStudy CostModel CostModel CostModel CostModel

Payment Mechanisms for Program

Vouchers&Contracts Contracts Contracts Contracts Contracts

*does not include new investments from Student Success Act


III. Administration

FourofthefiveprogramsareadministeredbytheEarlyLearningDivisionandoneisadministeredbytheDepartmentofHumanServices.ThefourprogramsthatareadministeredbytheELDincludePreschoolPromise,OregonHeadStartPre-Kindergarten(OPK)/HeadStart,EarlyHeadStart,andBabyPromise.ThefederalgovernmentalsocontractsdirectlywithHeadStartandEarlyHeadStartandprovidersmonitoringandoversighttothosegrantees.EmploymentRelatedDayCare(ERDC)isadministeredbytheDepartmentofHumanServices.ForERDC,thefederalfundsarereceivedbytheEarlyLearningDivisionastheleadCCDFagencyandthentransferredtoDHSthroughanInteragencyAgreement.TheDepartmentofHumanServicesisresponsiblefordeterminingfamilies’eligibility,calculatingcopayments,calculatingproviderpaymentsandissuingproviderpayments.LicensedchildcareprovidersreceiveregularhealthandsafetyinspectionsconductedbytheOfficeofChildCareoftheEarlyLearningDivision.Non-relativelicenseexemptproviders(mostlyprovidersservingthreeorfewerchildren)receivingsubsidies(referredtoas“RegulatedSubsidyProviders”)alsoreceiveannualhealthandsafetyinspectionsconductedbytheEarlyLearningDivision’sOfficeofChildCare.

IV. Funding

Over 70% of Oregon’s Early Care and Education is Financed Directly by Parents

WhilethecostofK-12educationislargelypubliclyfunded,thisisnotthecaseforearlycareandeducation.Outoftheapproximately$1.3billionthatisspentannuallyinOregononearlycareandeducation,about72%–around$920million–comesstraightoutofthepocketsofparents.Thepercentageofcostofearlycareandeducationthatisborndirectlybyparentsintheformoftuitionandfeeshelpsexplainwhychildcareconsumessuchalargepartoffamilies’budgetsandwhyearlycareandeducationprogramslackresourcestosupportquality.

Figure 5. Parent, federal and state government investment in early care and education in Oregon

Source:OregonChildCareResearchPartnership,OregonStateUniversity,2018


While the public share represents about a third of the totalinvestment,thesesubsidiesplayanimportantroleinaddressingaffordability,access,supplyandqualityoftheearlycareandeducationprogramsavailabletofamiliesinOregon.

Oregon’s public investment draws heavily on federal revenue

Oregonreliesuponseveralfederalfundingstreamsaspartofitsfundingforearlycareandeducation.About19%ofOregon’sinvestmentinearlycareandeducationisfederal.TheseincludethefederalHeadStartandEarlyHeadStartprograms,aswellastheChildCareandDevelopmentFund(CCDF).

AsignificantportionofthefederalinvestmentisthroughtheChildCareandDevelopmentFund(CCDF).CCDFisasystem approach that requires states to address all aspects ofearlycareandeducation,includingaccess,affordability,supplyandquality.CCDFrequirementsapplybothtostatesubsidyprogramsandbroadaspectsofthesystem,includinglicensing,professionaldevelopmentandqualityimprovements.OneoftherequirementsisforstatestosubmitaCCDFplanthatrequiresdescriptionsofalloftheseelementsandthatmustbeapprovedbythefederalOfficeofChildCare.InOregon,theEarlyLearningDivision,astheCCDFleadagency,isresponsiblefordeveloping,submitting,andimplementingthestateplan.TherearesevenpurposesoftheCCDF,whichare:

(1)Toalloweachstatemaximumflexibilityindevelopingchildcareprogramsandpoliciesthatbestsuittheneedsofchildrenandparentswithinthatstate

(2)Topromoteparentalchoicetoempowerworkingparentstomaketheirowndecisionsregardingthechildcareservicesthatbestsuitstheirfamily’sneeds

(3)Toencouragestatestoprovideconsumereducationinformationtohelpparentsmakeinformedchoicesaboutchildcareservicesandtopromoteinvolvementbyparentsandfamilymembersinthedevelopmentoftheirchildreninchildcaresettings

(4)Toassiststatesindeliveringhigh-quality,coordinatedearlychildhoodcareandeducationservicestomaximizeparents’optionsandsupportparentstryingtoachieveindependencefrompublicassistance

(5)Toassiststatesinimprovingtheoverallqualityofchildcareservicesandprogramsbyimplementingthehealth,safety,licensing,training,andoversightstandards established in this subchapter and in state lawincluding]stateregulations

(6)Toimprovechildcareanddevelopmentofparticipatingchildren

(7)Toincreasethenumberandpercentageoflow-incomechildreninhigh-qualitychildcaresettings.vii

Statesarerequiredtosetasideaminimumof9%offundstosupportqualityand3%offundstoimprovethesupply and quality of care for infants and toddlers.viiiAfterthesesetasides,andinkeepingwithamountspermittedtobespentonadministration,atleast70%offundsmustbeusedfordirectservices,whichtypicallytranslateintoinvestmentsinprogramssuchasERDCandBabyPromisethatbenefitlow-incomechildren.KeyCCDFprovisionsaddressthefollowingareas:

•Activitiestoimprovethequalityofcare

•CCDFPlan

•Consumerandprovidereducation

•Criminalbackgroundchecks

•Eligiblechildren

•Eligiblefamilies

•Eligibleproviders

•Establishingpriorities

•Familycostsharing

•Healthandsafety

•Licensingofproviders

•Limitonadministrativecosts

•Minimumfordirectservices

•Minimumexpendituresonquality

•Parentalchoice

•Paymentmethods

•Providerpaymentrates

Oregonisprojectedtoreceive$189.8millioninCCDFoverthe2019-21biennium.TheELDtransfers$116.3millionofthosefundstotheDepartmentofHumanServicesfortheEmploymentRelatedDayCare(ERDC)


subsidyprogram.TheseCCDFfundsarecombinedwithanadditional$63.5millioninstateGeneralFundforatotalbiennialfundingof$181.8millionforthestateCCDFchildcaresubsidyprogram,ERDC.The$73.5millionretainedbytheELDsupportschildcarelicensing,backgroundchecksandregistrationforchildcareproviders,theearlychildhoodprofessionaldevelopmentsystem,includingthe13regionalChildCareResource&Referralagencies,childcarequalityimprovementinitiativessuchasSpark,andtheBabyPromiseQualityInfantToddlerCarepilot.

WhilestatesdohaveconsiderablediscretionastohowtospendCCDFandhowtostructuretheirchildcaresubsidyprograms,theCCDFdoescomewithanumberofrequirementsandguidance.In2014,CongressreauthorizedthelegislationthatprovidesfundsforCCDF.Thesechangeswerearticulatedinthe2016CCDFRule.The2016Ruleincludesnewmandatesforquality,training,eligibility,backgroundchecks,amongotheritems.Itrequiresforthefirsttimethatlicenseexemptchildcareprovidernotrelatedtothechild,butparticipatinginthechildcaresubsidyprogram,receiveannualon-sitehealthandsafetyinspections.InOregon,providersservingthreeoffewerchildrenareexemptfromstatechildcarelicensingrequirement,asareprogramsservingpreschoolagechildren(three-andfour-year-olds)andschoolagechildren(olderthanfive)forfourorfewerhoursperdayandprogramsthatareundertheauspicesofagovernmentalentity.Statesarealsonowrequiredtoprovidetwelvemonthsof“protectedeligibility”forfamilieswhoreceivechildcaresubsidiespaidforwithCCDF.Thisnewprovisionismeanttoaidchilddevelopmentandsupportfamiliesbyincreasingcontinuityofcareandreducinginstabilityincarearrangementsforfamilies.

In2018,CongresssignificantlyincreasedfundingforCCDF.Thisincreasehastranslatedinto$26millioninadditionalfundingforOregonperyear.Oregonisusingthesenewfundstostrengthenitschildcarelicensingsystem,offsetthecostofthefingerprintingandtrainingrequirements,increasesupportsfortheregionalChildCareResource&Referralsystem,pilotBabyPromiseandaddnewincentivesforprovidersofferingnon-standardhoursofcareforERDCfamilies.ThemostsignificantportionofthosefundswenttoincreasethemaximumreimbursementrateforchildcareprovidersservingERDCfamilies.


V. Eligibility and Children Served

ERDC

Availablefederalandstateresourcesareinsufficienttomeetthedemandforsubsidizedcare.Oregoncurrentlyservesanestimated15%ofchildreneligibleforservicesundercurrentERDCeligibilityrules.Howstatesmanagetheselimitedresourcesdetermineswhowillbeserved,howmanyparentsandchildrenwillbeserved,andthetypeandqualityoftheservicestheyreceive.StatesmanageaCCDFchildcaresubsidyprogramthroughdecisionsmadeonkeypolicylevers.Examplesincludereducingeligibilityorproviderpaymentsorincreasingcopaymentsinordertoservemorechildrenortoreduceexpenditures.

InFederalFiscalYear2018Oregon,providedERDCto19,737(unduplicated)childrenandanadditional2,653childrenreceivedchildcaresubsidiesthroughtheTANFprogram.OfthechildrenservedbyERDC,31%wereinfantsandtoddlers(undertheageofthree),25%preschoolage(three-andfour-year-olds)and44%schoolage(olderthanfive).

Figure 6. Age of Children Served by ERDC

Acrossallchildren,50%(11,121)ofchildrenservedwereidentifiedasatleastonerace/ethnicitycategoryotherthanWhite.68%ofchildrenwereidentifiedasWhite,however18%ofthosechildrenalsoidentifiedasapersonofcolor(i.e.,mixedrace/ethnicity).Withinthepopulationofchildrenofcolor,50%identifiedasLatino/Hispanic,3%Asian,28%AfricanAmerican/Black,7%AmericanIndian,and2%PacificIslander.Geographically,themajorityofchildrenliveinmetrocounties(87%),withthehighestnumberofchildreninMultnomah(25%),Washington(14%),Lane(11%),andMarion(10%)counties.Theremaining13%offamiliesliveineithermicro(11%)ornoncore(2%)counties.SeeTable4belowforcountyestimates.


Source:OregonChildCareResearchPartnership,2019

Table 4. Number of unique children served by ERDC by count in federal fiscal year 2018

County Freq. Percent Region

Baker 82 0% noncore

Benton 145 1% metro

Clackamas 1,237 6% metro

Clatsop 119 1% micro

Columbia 230 1% metro

Coos 265 1% micro

Crook 79 0% micro

Curry 73 0% micro

Deschutes 591 3% metro

Douglas 482 2% micro

Gilliam 3 0% noncore

Grant 29 0% micro

Harney 7 0% noncore

HoodRiver 75 0% micro

Jackson 1,173 6% metro

Jefferson 164 1% noncore

Josephine 367 2% metro

Klamath 231 1% micro

Lake 2 0% noncore

Lane 2,220 11% metro

Lincoln 113 1% micro

Linn 456 2% metro

Malheur 158 1% micro

Marion 2,119 11% metro

Morrow 27 0% micro

Multhomah 4,813 24% metro

Polk 429 2% metro

Sherman 1 0% noncore

Tillamook 52 0% noncore

Umatilla 374 2% micro

Union 158 1% micro

Wallowa 11 0% noncore

Wasco 118 1% micro

Washington 2,828 14% metro

Wheeler 1 0% noncore

Yamhill 501 3% metro

Oregon Total 19,733



ERDCreceivesafixedamountoffundingforeachbiennium.Programadministratorsmustbecarefultoensurethatthecostoftheprogramdoesnotexceedtheallocatedfunds.ThisrequiresDHStomonitorthecaseloadtomakesureitisatasustainablelevelgiventheavailableresources.Whenthecaseloadexceedsthissustainablelevel,areservationlist(orwaitlist)isimposed.Evenwhenthereisreservationlist,familieswhomeetcertaincriteria–suchasfamilieswhoaretransitioningoutofTANF–areeligibleforERDCwithoutgoingonthereservationlist.Familieswhodonotmeetthesecriteriawaituntilthereisanopeningandareselectedfromthereservationlistbasedonthedatethattheywereadded,withthefirsttoapplyasthefirstselected.Oregonusedareservationlistbetween2010and2016.AsofMarch2018,ERDCenrollmenthasbeenwithnoreservationlistinplace.

Priortothe2007legislativechangesinOregonERDCpolicies,servingasmanychildrenaspossiblewasastatepriority.Asconcernsaboutshortspellsofparticipationinthesubsidyprogram(mediansubsidyspellsof3-4months)andlowproviderpaymentratesemerged(aslowas26thpercentileofthe2006MarkerPriceStudy),the2007legislaturemadesubstantivechangesinERDCpolicies.Asaresult,theprogramgrew,subsidyspellswereslightlylongerandproviderpaymentswerehigher.Budgetcutsin2010ledtoreducedenrollmentsandtheimplementationofareservationlist.Thenin2014CongressrevisedtheChildCareandDevelopmentBlockGrant,thelegislationwhichauthorizesCCDFandthefederalOfficeforChildCarefollowedwiththe2016revisedCCDFRule.TheRuleaimedtoincreasethestabilityofsubsidizedchildcareandincreasetheemphasisonsafetyandqualityofthiscare.Keypolicieswerechangedbutresourceswerenotincreasedsufficientlytoprovidetheseimprovedservicestothesamenumberofchildren.In2015,theOregonlegislatureallocatedadditionalstatefundstotheERDCprogramtohelpmeettheneedcreatedbythe2014CCDFReauthorization.Whilethiswasasignificantincreaseinstatefunding,itwasnotsufficienttomeetthefullneedscreatedbythereauthorization.Ascanbeseeninthefollowinggraphic,thenumberofchildrenservedbythechildcaresubsidyprogramhasdeclinedovertimebuthasbeenfairlystableforthelastfiveyears.

Figure 7. Number of Oregon children served by ERDC




ERDC Policy Choices Eligibility

Federal requirementsCCDFrulemandatesthatstatessetinitialeligibilityatlessthan85%ofStateMedianIncome(SMI)or$59,495forafamilyofthree,whichisequivalenttoapproximately291%oftheFederalPovertyLeveliv.CCDFrulefurtherrequiresthattobeeligible,achildbirthtoage13(unlessdisabled)mustresidewithaparentorparentsx responsible for the care,controlandsupervisionofthechildandwhoare(a)workingorattendingajobtrainingoreducationalprogramor(b)receiving,orneedstoreceive,protectiveservices.Statesareprovidedwithflexibilitytodefinework,trainingoreducationastheyseefit.InOregon,workisdefinedtomeanatleastonecaretakermustreceiveincomefromemployment,includingself-employment,orthroughpaidworkexperience,paidpracticumassignmentsandfederalworkstudyaspartofaneducationprogram.Therearenorequiredminimumworkhours.Inatwo-parentfamily,anunemployedparentisexpectedtocareforachildunlessadisabilitypreventsdoingso.Consistentlyover90%ofsubsidyparticipantsaresingleparents.Statesaretophase-outassistancewhenincomeincreasesabovetheSMIthresholdatthetimeofredeterminationbutremainsbelowthefederalthresholdof85%oftheSMI. Federal guidanceThefederalOfficeofChildCareencouragesstatestoestablishprocessestotakeintoaccountirregularfluctuationsinearningsoccurringsuchasabsencefromemploymentduetoextendedmedicalleaveorchangesinseasonalworkschedule,orifaparentenrolledintrainingoreducationalprogramistemporarilynotattendingclassbetweensemesters.Duringaphase-outperiod,statescouldadjustcopaymentsforfamiliestocreateagradualshiftinhowfamiliesmustadjusttheirbudgettocoverthefullcostofcareoncetheyarenolongerreceivingasubsidy,butshouldconsiderhowtodothisinawaythatminimizespaperworkandreportingburdensonworkingfamilies.

Figure 8. Employment Related Day Care participation by income (as percent of federal poverty line)

Oregon current practiceInOregon,thelegislaturesetstheincomeeligibilityandexitlimits.InorderforafamilytoenrollinERDC,theirincomemustnotexceed185%FPL.However,oncetheyhaveenrolledintheprogram,theycanstayenrolleduntiltheirincomeexceeds85%ofSMIor250%ofFPL(the“exit”eligibility),whicheverishigher.Oregonincludesallincomereceivedbytheimmediatefamilymemberslivinginthehouseholdexcepttransferincomeorearnedincomeofchildrenandfostercare/guardianshippayments.Grossincomereceivedthroughself-employmentisalloweda50%deductionorfullcostdeduction.Increasesinincomeoccurringduringtheeligibilityperioddonotneedtobereportedunlesstheincomerisesabovethe85%SMIor250%FPLwhicheverishigher(exitincomelimit).ERDCcasesthatremaineligibleabove85%SMIbutunder250%FPLarepaidthroughOregonGeneralFundsxi.Oregonserveschildrenbirth

Source:DepartmentofHumanServices,2019

throughage12(orthroughtheageof17ifchildhasspecialneed).Thechildmustresidewithaparentwhoisworking.Incertaincases,OregonallowsCCDFassistanceforeducationandtrainingparticipationalone,withoutaworkrequirement.

Post-secondarystudentswhomeetthestandardincomeandworkeligibilityrequirementsforERDCandareenrolledintheprogramcanalsohavechildcarefortheirclassrelatedhourscoveredsolongastheirclasshoursdonotexceedtheirworkhours.

Length of Eligibility Period

Federal requirementsDisruptionsincarearrangementshavebeenshowntobeharmfulforchildren.Inrecognitionofthis,the2014CongressionalReauthorizationputsignificantemphasisonpoliciesthatsupportcontinuityofcareforthechild.TheCCDFrulerequirestatestosetaminimum12-montheligibility re-determinationperiod,regardlessofchangesinincome(aslongasincomedoesnotexceedthefederalthresholdof85%SMI)ortemporarychangesinparticipationinwork,training,oreducationactivities.Statesmaynotterminateassistancepriortotheendofthe12-monthperiodif:afamilyexperiencesatemporaryjoblossorabsencefromemploymentduetoextendedmedicalleaveorchangesinseasonalwork,or;ifaparentenrolledintrainingoreducationalprogramistemporarilybetweensemestersandnotattendingclass.Thelevelofsupports,includingchildcarehourscanbeincreasedduringthecertificationperiod,butnotdecreased.

Federal guidanceThefederalruleallowsstatestheoptiontoterminatesubsidyassistancepriortore-determinationifaparentlosesemployment.However,assistancemustbecontinuedforatleastthreemonthstoallowforjobsearch.Timeinadditiontothreemonthsmaybeallowedifanemployerverifiestheemployeewillbecalledbacktoworkafteralayoff.Therulegivesstatestheflexibilitytoconsiderachild’sdevelopmentalneedsandfamilycircumstances,splitworkschedules,breaksbetweeneducationcourses,andsleeptimeforparentswhoworkmultiplejobsorhavenontraditionalworkhours.

Oregon current practice Oregonbegantoimplement12-montheligibilityperiodsand3-monthjobsearchpolicyinOctober2015.ERDCenrollmentwillbeterminatedpriortotheendofthetwelvemontheligibilityperiodiftheparenthasapermanentlossofemployment.Apermanentlossmeansthecaretakerdoesnotplantoreturntotheiremployer,andareturntoworkdatewasnotgiventotheemployee.Fortemporaryjoblosses,whereareturntoworkdateisestablished,theworksearchperiodisextendedtotheverifiedreturndate.Clientsaregivenuptothreefullmonthsforapermanentjoblosswithwaivingthecopaymenttolocatenewemployment.WhennewemploymentisnotreportedtoDHSbytheendoftheclient’sworksearchperiodthecaseisclosed.Aworksearchnotificationletterwithemploymentresources,aremindertoreportnewemploymentandthecaseclosuredateisautomaticallymailedtotheclientwhenapermanentjoblossisreported.Asecondletterisautomaticallymailedtothe client in the closure month.

Eligibility for Preschool Promise, Oregon Head Start Pre-Kindergarten/Head Start, Early Head Start and Baby PromiseAlloftheseearlycareandeducationprogramsaretargetedtospecificagerangesandincomelevels.BothPreschoolPromiseandOPK/HeadStartservethree-andfour-year-olds.PreschoolPromiseserveschildreninthisagerangefromfamiliesupto200%FPLandOPK/HeadStartfamiliesup100%FPL.BabyPromiseandEarlyHeadStartfocusoninfantsandtoddlers(EarlyHeadStartalsoservesexpectantmothers),withBabyPromiseupto200%FPLandEarlyHeadStart100%FPL.PreschoolPromise,OPKandEarlyHeadStartdonotrequireparentstobemeetawork,trainingoreducationalhoursrequirements.CurrentlyfamilieshavemultiplepointsofentryintotheELD


administeredprograms,whicharedifferentthanthepointofentryintoERDC.TheEarlyLearningDivisionwillbeworkingwiththeEarlyLearningHubstodevelopcommunity-basedstrategiesforcoordinatedenrollmentforearlycareandeducationprogramsadministeredbyELD.Oncefamilieshavebeendeterminedeligible,theycannotloseeligibilityduringtheprogramyear.Thetablebelowsummarizestheapproach.

Table 5. Eligibility provisions

Preschool Promise

Oregon Head Start Pre-Kindergarten/

Head StartEarly Head Start Baby Promise

Child age of eligibility

3 and 4 years old

3 and 4 year oldsInfants and 2 year olds;expectant

mothers

Infants and 2 year olds

Parental work/training requirement

none none none SameasERDC

Family income Upto200%FPL Upto100%FPL Upto100%FPL Upto200%FPL

Length of enrollment period

Fortwoprogramyears

Fortwoprogramyears

Forentireageperiod

Programyear

Eligibility determination

ELDcontractedproviders





VI. Parental Copayments

ERDCFederal requirement TheCCDFrulerequiresstatesestablishandperiodicallyreviseasliding-feescaleforCCDFfamiliesthatvariesbasedonincomeandthesizeofthefamilytodetermineeachfamily’scopayment.Thefederalpolicyalsoallowsstatestowavecopaymentsinanumberofcircumstances,includingforpopulationsthatCCDFhasdesignatedasvulnerableandparticularlystrugglingtoaccesschildcare.SomestateswaivethecopaymentforfamilieswhoearnlessthantheFederalPovertyLine($21,330forafamilyofthree).

Federal guidanceThefederalOfficeofChildCarerecommendsthatcopaymentamountsnotexceed7%offamilyincome.OCCallowsstatestoconsiderotherfactorswhendeterminingcopayment.

Oregon current practice Thefamily’scopaymentisdeterminedbycalculatingapercentageofthefamily’sincomeatinitialcertification.Theformulatakesintoaccountfamilysizeaswellasincome.Thecopaymentmaynotincreaseduringthe12-monthcertificationperiodduetowageincreasesorjobchangesxii.Ifacopaymentexceedsthecostofcare,theparentisdeterminedtobeineligibleforparticipationinERDC.Thereareanumberofsituationswherethecopaymentiswaived.

•AuthorizedWorkSearchduringlapseofemploymentxiii •HeadStartcontractedslotsxiv •WorkingTANFfamiliesreceivingchildcarefundedthroughCCDFxv

FamiliesreceivealowercopaymentwhentheyuseaSparkratedproviderasfollows:the$27copaymentisreducedto$0,copaymentsof$28to$200arereducedby$20amonth,copaymentsof$201ormorearereducedby10%.SparkisOregon’squalityratingandimprovementsystem.

OfthosefamilieswithreportedincomeinFY2018,approximately92%percentpaidacopayment.Forfamiliesthatwereassessedacopayment,theaveragecopaymentwas12.8%offamilyincome.ForthelowestincomefamiliesreceivingERDC(below50%ofFPL),copaymentsare$27permonth.Asfamilyincomerises,sodocopayments.Whenfamilyincomeapproaches185%FPL($39,460forafamilyofthree),copaymentsrisesignificantlyabovethe7%federalguidelinetoabout25%oftheirincomepermonth.Thisisabout$656forafamilyoftwoupto$1,719forafamilyofeightormore.

Copaymentcollectionisnotmonitoredandsomeprovidersmaynotalwaysbecollectingthecopayment(inpartorfull)fromfamilies.Providerscanalsocollectthedifferencebetweenwhattheychargeandwhatthestatepays,sotheactuallyparentpaymentcouldbehigher.(SeesectionVIII.)

Figure 9. Oregon current family monthly copayment schedule by family income

Copayments for other early care and education programsPreschool Promise, OPK/Head Start, Early Head Start and Baby Promise do not charge a copayment.


Source:AjayChaudry,ChristinaWeilandandTarynMorrissey.“Acomprehensiveplanforbirth-to-fiveearlychildhood care and educationservicesinOregon.”September2019


VII. Who Delivers Services and Hours of Operation

Provider types and typical hours of operationsOregoniscommittedtoamixed-deliverysystemthatincludeslicensedexemptcare,familychildcare,center-basedcare,HeadStartsandschools.Whilealloftheprogramsdrawuponthemixeddeliverysystem,differentprogramsdrawupondifferentpartsofit.ERDCincludesfamilymembers,licensedexemptproviders,licensedfamilychildcarehomesandcenters.Providersareexemptfromlicensingiftheyservethreeorfewerunrelatedchildren,areapreschoolorschoolageprogramservingchildrenforfourorfewerhoursperday,orarerunbyagovernmentagency,includingpublicschools.PreschoolPromiseincludeslicensedfamilychildcarehomesandcenters,HeadStarts,andschools.OregonHeadStartPre-Kindergarten/HeadStartandEarlyHeadStartarerunbyOPK/HeadStartgrantees.HeadStartprogramsaregenerallysubjecttolicensingandmayvoluntarilylicenseiftheyareundertheauspicesofapublicagencysuchasaschool.BabyPromiseusesthesamecategoriesofmixed-deliveryprovidersasPreschoolPromise.

ERDCandBabyPromiseareorientedtoworkingfamiliesthatrequireservicesacrosstheyearandsupporttheirworkhours.Thehoursofservicesfortheseprogramsaredeterminedbytheneedsoffamilies.Thatmeansthattheseprogramsprovideservicesforthefullyearorforthefulllengthofhoursneededbyworkingfamilies.Italsomeansthatfamiliescanselectproviderswhooffercareduringnon-standardhours.Findingproviderswhooffernon-standardshourscanbechallenging.Non-standardhoursofcarearemostoftenprovidedbyfamilymembers,familychildcareandlicenseexemptproviders.

Therewere2,949providerscaringforachildreceivinganERDCsubsidyinanaveragemonthinFederalFiscalYear(FFY)2018.Overthefull12monthsofFFY2018,4,140providersparticipatedinERDC.Oftheseproviders,47%wereregulatedand53%werenotregulated.Anotherwaytounderstandtheroleofprovidersinthesubsidysystemistoaskwhatpercentageofchildrenreceivedregulatedandunregulatedcare.Someproviders(e.g.,centers)careforlargenumbersofchildren,andotherproviders(e.g.,relatives)careforsmallnumbersofchildren.Thus,thepercentageofprovidersregulatedornotregulatedwillbedifferentwhenweaskwhatpercentageofchildrenarewithregulatedornotregulatedproviders.InanaveragemonthinFFY2018,73%ofchildrenwereinregulatedcarewhile27%wereinunregulatedcare.ComparisonwithdataforFFYs2105-2016,thesefindingsshowanincreaseinthepercentageofregulatedprovidersandofthepercentofchildrenwitharegulatedprovider.

PreschoolPromise,OPK/HeadStartandEarlyHeadStarttypicallyoperateforspecifichoursthataredeterminedbothinregulationandbyleveloffunding.Thatmeansthattheseprogramsoftendonotprovideservicesforthefullyearorforthefulllengthofhoursneededbyworkingfamilies.PreschoolPromiseprovidersarerequiredtoofferaminimumoftheequivalentofkindergartenschooldayandschoolyearhours.StandardOPK/HeadStarthoursareaminimumof3.5hoursperdayand160daysperyear.SomeOPK/HeadStartcontractwithERDCforextendedhoursanddays.StudentSuccessActFundsincluderesourcesforOPKprogramstoextendtheirhoursofduration.

Alternative Hour Care Incentive Payment Program

ManyofthefamiliesservedbyERDCdonotworkatraditionalninetofiveMondaythroughFridayschedule.Eveningandweekendhourshavebecomeincreasinglycommonforlow-wageworkers.Findingchildcarethatfitswiththesenon-standardhourscanbeevenmorechallenging.

Inrecognitionofthischallenge,theDepartmentofHumanServicespilotedanenhancedpaymentprogramsforprovidersservingERDCfamiliesduringthesenon-standard hours. The pilot ran from January toSeptemberof2019andinvolved768providers.Providerscouldqualifyfor$250foreachchildwithatleast20hoursofalternativehourcareprovidedpermonthor$500foreachchildwithatleast40hoursofalternativehourcare.Alternativehourcarewasdefinedascareprovidedbetween7pmand6amorcareprovidedonaSaturdayorSunday.DHSiscurrentlyanalyzingdataontheeffectivenessofthisincentiveprogram.


Child care licensing and regulationAsdescribedabove,manyoftheprovidersparticipatinginthesubsidizedearlycareandeducationsystemaresubjecttolicensing.Eventhoseprogramsthatarelegallyexemptfromlicensingmayhavesomeregulatoryrequirements,suchaspreschoolorschoolagecentersthatenrollchildrenforfourhoursorlessandrequiredtobecomeaRecordedProgram.RecordedProgramsmustconductbackgroundchecksforstaffwhohavecontactwithchildren.ProviderswhoareservingthreeorfewchildrenandnotservingERDCfamiliesarenotsubjecttoanyregulationormonitoring,anddonothavetoregisterwiththestate.

Licensingestablishesbasichealthandsafetystandardsandexpectations.Licensingstandardsvarybylicensingcategory.Oregonrecognizesthreecategoriesoflicensedprograms:registeredfamilychildcare,certifiedfamilychildcareandcertifiedcenter.Seethetable6belowformoreinformationoneachoftheselicensingcategories.

ProviderswhoworkinlicensedfacilitiesmustpassacriminalbackgroundcheckandbeenrolledintheCentralBackgroundRegistry.Minimumstafftrainingandqualificationsarespecifiedbylicensingtypeandfocusonhealthandsafety,withsomerequirementsforchilddevelopment.

TheEarlyLearningDivisionhaslaunchedayear-longrevisionprocessforitschildcarelicensingrules.Thegoalofthisrevisionprocessistoensurethatrulesarestreamlined,inplainlanguage,alignedacrosslicensingcategories,andfocusedonrequirementsthatmostimpacthealth,safetyandpositivechilddevelopment.

Table6explainsthedifferentcategoriesofregulationandlicensing,howmanychildrentheseprogramscanserve,thebasicregulatoryrequirementsandtherelationshiptoERDC.

Table 6. Licensing and regulation categories

Child Care Type

License Exempt Licensed

Recorded Programs

Regulated Subsidy Provider

Registered Family Child Care

Certified Family Child Care

Certified Child Care Center

What are the care options?

Preschoolprogramsthat operate four hours or less per dayandschool-ageprogramsthataren’trequiredtobelicensed.

Providerseligiblefor state subsidy reimbursement,butare not required to be licensed. Includes family,friendsandsomeprogramwithlimited hours.

Home-basedchildcareprogramwithupto10children.

Home-basedchildcareprogramwithup to 16 children.

Center-basedchildcareprogramwithnumber of children determinedbyfloorspace and number ofstaff.

Is this type of care regulated?

RecordedPrograms:• complywithbackgroundchecks

RegulatedSubsidyProviders:• meet health

and safety standards(on-siteinspections)

• complywithbackgroundchecks

• areregularlymonitored

• participateinongoingtraining

Licensedchildcare:• meethigherhealth,safetyandprogramstandards(on-siteinspections)

• complywithbackgroundcheckswithOfficeofChildCare• areregularlymonitored• participateinongoingtraining

https://oregonearlylearning.com/providers-educators/become-a-provider/license-exempt-childcare/

https://oregonearlylearning.com/providers-educators/become-a-provider/licensed-childcare/

https://oregonearlylearning.com/providers-educators/become-a-provider/license-exempt-childcare/#recorded


https://oregonearlylearning.com/providers-educators/become-a-provider/license-exempt-childcare/#regulatedsubsidy


https://oregonearlylearning.com/providers-educators/become-a-provider/licensed-childcare/#rf


https://oregonearlylearning.com/providers-educators/become-a-provider/licensed-childcare/#cf


https://oregonearlylearning.com/providers-educators/become-a-provider/licensed-childcare/#cert



Child Care Type

License Exempt Licensed

Recorded Programs




Certified Child Care Center

Which are eligible to accept subsidy dollars?

No.Unlessprogramsmeet requirements forregulatedsubsidy.

ThesetypesofcarecanacceptsubsidypaymentsaslongastheyarelistedwithDepartmentofHumanServices.

Which are licensed?

No.Theseprogramsarerecordedwiththe State.

No.

Licensedchildcare:• keepattendancerecords• haveplannededucationalactivities• haveaguidanceanddisciplinepolicy• haveadailyroutine/schedule• arecertifiedtohandlefoodpreparation• aretrainedinfirstaidandCPR• aretrainedinchildabuseandneglect• participateinongoingtrainingonchilddevelopmenthearth

and safety

Source:oregonearlylearning.com/providers-educators/become-a-provider

Additional program standards

PreschoolPromise,OregonHeadStartPre-Kindergarten,EarlyHeadStart,andBabyPromisehaveadditionalprogramrequirements.PreschoolPromiseincludesadditionalqualityandcurriculastandardsrelatedtoitsgoalsofschoolreadiness.Forexample,leadteachersareexpectedtohavebachelor’sdegreeandcourseworkinearlychildhood,alongwith20hoursofon-goingtrainingannually.TheHeadStartPerformanceStandards,whichgovernbothfederallyfundedHeadStartgranteesandOregonHeadStartPre-KindergartenprogramsandEarlyHeadStart,alsoincludeadditionalqualityandcurricularstandardsassociatedwithitsgoalsofschoolreadiness.ThefederalHeadStartPerformanceStandardsrequirehomevisitswithfamilyandtheprovisionofcomprehensivehealthandfamilysupportservices.BabyPromisealsorequiresadditionalqualitystandardsassociatedwithitsgoalsofschoolreadiness,aswellasparticipationinprofessionaldevelopmentactivitiesfocusedonthedevelopmentneedsofinfantsandtoddlers.ERDCdoesnothaveadditionalprogramsrequirementsbeyondthose already discussed.

https://oregonearlylearning.com/providers-educators/become-a-provider/license-exempt-childcare/

https://oregonearlylearning.com/providers-educators/become-a-provider/licensed-childcare/











https://oregonearlylearning.com/providers-educators/become-a-provider/

https://oregonearlylearning.com/providers-educators/become-a-provider/

VIII. Rate Setting and Payment Mechanisms for Programs

ERDC Payment Rates Federal requirement CCDFrulerequiresthatpaymentratesaresufficienttoensureequalaccessforeligiblefamiliestochildcareservicescomparabletothoseprovidedbyfamiliesnotreceivingCCDFassistance.StatessetmaximumpaymentratesandprovidersarenotpaidmorethantheirusualchargestofamilieswhoarenotparticipatingintheERDCprogram,unlesstheyhaveahigherlevelofdocumentedqualitythroughthestate’schildcarequalityimprovementinitiative,Spark.Thus,providersonlychargethestate’smaximumrateiftheirusualchargesfornon-ERDCfamiliesareequaltoorexceedthestate’smaximumrate.

TheCCDFrulerequiresstatestoconductamarketratesurvey(MRS)reflectingvariationsinthepriceofchildcarebygeographicarea,typeofprovider,andageofchildand/oranalternativemethodology,suchasacostestimationmodelthatalsoreflectsvariationbygeographicarea,typeofprovider,andageofchild.Statesmusttakeintoaccountcostofcarewhensettingpaymentrates.Statesmustreevaluatetheirratesevery3yearsbasedonamarketrate/pricestudythatoccursnomorethantwoyearsbeforesubmissionoftheCCDFstateplan.

Federal guidanceThefederalOfficeofChildCareencouragesstatestosetthemaximumreimbursementrateatthe75th percentileofthemarketrate/pricestudy;thatis,therateishighenoughtoprovideparentsaccessto75%ofthechildcareslotsintheparent’scommunity.[i.e.,iftherewerea100childcareprovidersinacommunityandtheywerelinedupfromlowesttohighestprice,thechildcaresubsidyshouldbesufficientforafamilytoselectanyofthefirst75providers.]

OCCencouragesStatestoprovidetieredpaymentwithasufficientratedifferencebetweentierstosupporthigherquality.

Stateshavetheoptiontoallowproviderstochargeparentsadditionalamountsabovetherequiredcopaymentininstanceswheretheprovider’spriceexceedsthesubsidypayment.xvi

Alternative Methodology for Rating Setting

The2014CCDFReauthorizationallowsstatestouseanAlternativeMethodology,suchascostestimation,asacomplementorsubstitutetoaMarketRateStudy.TheuseofAlternativeMethodologyinlieuofamarketratesurveymustbeapprovedinadvancebythefederalAdministrationforChildrenandFamiliesaspartofastate’sCCDFPlandevelopmentandreview.

Costestimationallowsthestatetodeterminethecostofactuallydeliveringcareatvariouslevelsofquality.Thisalsoallowsstatestosupportqualitybypayingprogramsatasufficientleveltoachievebenchmarksofquality.Costestimationmodelstypicallylookatthefollowingfactors:

•Staffsalariesandbenefits•Trainingandprofessionaldevelopment•Curriculaandsupplies•Groupsizeofchildrenandstaff-childratios•Enrollmentlevels•Programsize•Facilitycosts(rentormortgageandutilities)

TheDistrictofColumbiahasappliedforandbeenapprovedtouseanAlternativeMethodologybasedoncostestimation.Anumberofstatesarealsoexploringthisoption.


Oregon current practice Inordertoidentifypricesbygeographicarea,typeofprovider,andageofchild,Oregonconductsthe“MarketPriceStudy”(MPS).Thestudyisadvisedbyacommitteethatincludesprogramadministrators,ChildCareResource&Referral(CCR&R)programs,AFSCME,researchersandstafffrommultipleagenciesandotherearlylearningstakeholders.TheMPSexaminesthepricesthatchildcareproviderscharge.TheobjectiveofthesurveyistounderstandwhatprovidersarechargingthegeneralpopulationforchildcareservicesinordertoinformratesettingthatwillallowfamiliesreceivingERDCequalaccesstothefullrangeofchildcareavailabletofamiliesnotreceivingsubsidies.DatasourcesincludeELDlicensingdatamergedwiththeCCR&Rstatewidedatabaseinordertocapturethefullchild care supply.

Basedonthe2018marketpricestudy,thepercentofslotsthatcouldbepurchasedwiththevalueofthepaymentratesdecreasedfrom76percentto65percentbetween2016and2018.

However,asnotedearlier,OregonreceivedasignificantincreaseinfederalCCDFin2018.Thesefundswereusedinparttoincreasethemaximumreimbursementrates.AsofJanuary2019providerreimbursementratesareatornear(within$40permonth)the75%foralltypesandagesofcare.Atthesametime,thestatemergedratesforgeographicareaC,themostruralofthethreegeographicareasusedintheMPS,withratesforareaBinordertoaddressthelowpaymentratesforOregon’smostruralcommunities.

Oregondoesallowproviderswhosefeesexceedthemaximumratetochargeparentsthedifferencebetweentheirusualfeeandthemaximumrateinadditiontothefamily’scopayment.Thispolicymakesitpossibleforproviderswithhigherfeestoparticipateinthesubsidyprogram.xviiAtthesametime,thispolicycanhavetheeffectofincreasingfamilycopayments.

Provider rates for Preschool Promise, Oregon Head Start Pre-Kindergarten/Head Start, Early Head Start and Baby PromiseFortheothersubsidizedearlycareandeducationprograms,paymentsratesareestablishedthroughmodelingthecostoftheservicesthatthestateiscontractingwiththeprovidertodeliver.

Payment MechanismsTherearetwofinancingmechanismsusedtorenderpaymentstoproviders.Onemechanismisvouchers.VouchersareavailableonlyforERDC.Forvouchers,onceafamilyisdeterminedeligible,theyseekoutanearlycareandeducationproviderwhomeetsanyrequirementssetbyERDC.Onceenrolled,theproviderispaidmonthlybyDHSbasedonthefamily’scontinuedeligibilityforERDC.Thefamilyisresponsibleforpayingthecopaymentdirectlytotheprovider.IftheparentleavesERDCormovestheirchildtoadifferentprovider,thepaymentstops. The second mechanism is contracts. Contracts arethesolemechanismforPreschoolPromise,OregonHeadStartPre-Kindergarten/HeadStart,EarlyHeadStartandBabyPromise.ContractsarealsousedincertainspecificcircumstancesinERDC.ThefirstisforTeenParentprograms.ThesecondtargetsOregonPre-Kindergarten(OPK)participantswhoinordertomeetemploymentdemandsneedhoursofcareinadditiontothosetypicallyprovidedbytheOPKprovider.DHScontractswithasmallnumberofOPKprogramsandEarlyHeadStartPartnershipgranteesthatprovidetheseextrahoursofcare.

Contractsaregenerallywithamultiplicityofproviderstoensureparentchoiceandgeographicallyreach.Contractsarealsousedtoensurethatservicesareavailableforspecificpopulationsorspecifictypesofcare.Forinstance,contractsareusedwithTeenParentprogramstoensurethatchildcareisavailableon-siteinhighschoolssoyoungmotherscancontinuewiththeireducation.BabyPromiseisusingcontractstotargetinfantandtoddlercare,andinthosecontractsrequiringadditionalprofessionaldevelopmenttoraisequality.

Contracts,becausetheygiveprovidersmorestabilityoffunding,maybeaparticularlyusefultoolforbuildingthesupplyofearlycareandeducation.ThisroleforcontractedpubliclyfundedslotsinbuildingsupplyissupportedbytheOregonChildCareDesertsreport.TheOregonStateUniversityanalysisincludedbothprivateandpubliclyfunded(contracted)earlycareandeducationslots.Whentheresearchersremovedthepublicfundedslotsforthreeandfour-year-olds,itsignificantlyincreasedthenumberofcountiesthatwerechildcaredeserts.Moreover,theresearchersfoundthatformanycommunitiesinOregon,particularlythemoreruralones,publiclyfundedslotsrepresentedasignificantpercentoftheearlycareandeducationavailableinthecommunity.


IX. Professional Development and Approach to Quality

Workforce OverviewGrowingattentiontotheimportanceofearlylearninghasheightenedawarenessoftheimportanceandvalueoftheearlycareandeducationworkforce.Theindividualswhospendtheirdaysworkingdirectlywithchildrenarethemostimportantingredientforthesuccessofearlylearningprogramsinpromotingschoolreadiness.In2018therewereapproximately24,000individualsworkingdirectlywithchildreninregulatedearlycareandeducationprogramsacrossOregon.Seventy-sevenpercentoftheseproviderswereworkinginchildcarecenters,another14%inlargechildcarehomesand9%insmallhome-basedchildcare.30%ofthisworkforceidentifiesasapersonofcolorandabout15%oftheworkforcespeaksaprimarylanguageotherthanEnglish,withthegreatestlinguisticdiversitywithsmallhome-basedproviders,where34%oftheworkforcespeaksaprimarylanguageotherthanEnglish.About36%oftheprovidersworkingincentershaveabachelor’sdegreeorhigherwiththisnumberdroppingdownto24%inlargehome-basedchildcareand11%insmallhomes.xviii

Educationandtrainingrequirementvarybytheauspicesofearlycareandeducationprograms,withPreschoolPromiserequiringleadteachershaveabachelor’sdegreeandreceivetwentyhours ofon-goingtrainingperyeartoRegulatedSubsidyProviderswithnoeducationalrequirementsandeighthours oftrainingeverytwoyears.(seetable7byprogram).




Table 7. Preservice qualifications and on-going training by provider/program type

Provider/Program Type Preservice requirements & qualifications On-going Training


Provider must complete prior to provision of services:•Introductiontochildcarehealth&safety•Trainingonrecognizingandreportingchildabuseandneglect•Firstaid&Infant/childCPR

Ongoing training:8hourseverytwoyearswithatleast6hoursinchilddevelopment


Provider must complete prior to licensing:•IntroductiontoRegisteredFamily(twopart)•Firstaid•Infant/childCPR•FoodHandler’s•Trainingonrecognizingandreportingchildabuseandneglect•OCChealthandsafetytraining•OCCSafeSleeptraining

Ongoing training:10hourseverytwoyearswithatleast6hoursinchilddevelopment


Provider qualifications:•Oneyearofteachingexperienceinasettingsuchaschildcarecenterorpreschool;or

•Oneyearasaregisteredfamilychildcare;or•Completionof20credits(semestersystem)or30credits(quartersystem)oftrainingatacollegeoruniversityinearlychildhoodeducationorchilddevelopment;or

•StepeightintheOregonRegistry.

Provider must complete prior to licensing:•Firstaid•Infant/childCPR•FoodHandler’s•Trainingonrecognizingandreportingchildabuseandneglect•OCChealthandsafetytraining•OCCSafeSleeptraining

Ongoing training:15hoursannuallywithatleast8hoursinchilddevelopment



Certified Center Child Care

Teacher qualifications:•20credits(semestersystem)or30credits(quartersystem)oftrainingatacollegeoruniversityinspecificareasdependingontheagegroupincare;or

•Aoneyearstateornationallyrecognizedcredentialintheagegroupincare;or

•Oneyearofteachingexperienceinagroupcaresettingsuchasachildcarecenterorpreschool;or

•SixmonthsteachingexperienceinagroupcaresettingANDcompletionof10credits(semestersystem)or15credits(quartersystem)asacollegeoruniversity;or

•StepeightintheOregonRegistry.


Ongoing training:15hoursannuallywithatleast8hoursinchilddevelopment

Preschool Promise

Teacher qualifications:•B.A.withearlychildhoodcoursework(waivers available)


Ongoing training:20hoursannually

OPK/Head Start

Teacher qualifications:•B.A.withearlychildhoodcoursework(waivers available)





Early Head Start

Teacher qualifications: •MinimumofaChildDevelopmentAssociate(CDA)credentialwithcourseworkinECEwithafocusoninfantandtoddlerdevelopment



Baby Promise

Teacher qualifications:InfantToddlerChildDevelopmentAssociate’s(CDA)oranAssociate’sdegreeinEarlyChildhoodEducation;orOregonRegistryStep7orhigherwithtrainingorequivalentcourseworkinearlychildhooddevelopmentwithafocusoninfantandtoddlerdevelopment

Providermustcompletepriortolicensing:•Firstaid•Infant/childCPR•FoodHandler’s•Trainingonrecognizingandreportingchildabuseandneglect•OCChealthandsafetytraining•OCCSafeSleeptraining

Ongoing training:ProfessionalDevelopmentPlanand20hoursannually

Child Care Resource & Referral Agencies, the Oregon Registry and Spark

Oregon’s13regionalChildCareResource&Referral(CCR&Rs)agenciesprovideabackbonefortraining,coachingandothersupportsforqualityforalloftheearlycareandeducationworkforceandprogramsdiscussedinthisreport.ThethirteenCCR&Rswillreceiveabout$16millioninfundingoverthe2019-21biennium,allofwhichisfromthefederalCCDF.Thefundsareusedtoprovidetrainingandprofessionaldevelopment,promoteretentionofahighquality,culturallyandlinguisticallyresponsiveearlycareandeducationworkforceandtorecruitnewproviders.TheCCR&RsarestaffedwithQualityImprovementSpecialiststoassistearlyeducatorswiththeirprofessionalgoals.EveryCCR&RnowhasatleastoneInfantandToddlerSpecialist.TheyalsosupportFocusedChildCareNetworks,acohort-basedmodelofprofessionaldevelopmenttosupportsmallhome-basedchildcareproviders.TheOregonLegislatureallocated$1.8millionfortheFocusedChildCareNetworksforthe2019-21biennium.

TheEarlyLearningDivisioncontractswithPortlandStateUniversity’sOregonCenterforCareerDevelopmentinChildhoodCareandEducationtosupporttheOregonRegistry.TheOregonRegistryisOregon’sCareerLatticeSystemfortheearlycareandeducationworkforce.Itiscomprisedof12stepsservingasaframeworkforearlycareandeducationprofessionaldevelopmentandsupportingcareeradvancement.Theregistrydatabasetracksthetraininghours,collegecoursework


anddegreesthatthemembersoftheearlycareandeducationworkforcehavecompletedandassignsthemanappropriateStep.Staffoflicensedchildcarefacilities,PreschoolPromise,OPK/HeadStartandEarlyHeadStart,andBabyPromiseareallrequiredtoenrollintheOregonRegistry.

SparkisOregon’svoluntaryQualityRatingandImprovementSystem,launchedin2013andrevisedin2018,andcurrentlyopentolicensedfamilychildcarehomes,childcarecenters,PreschoolPromise,OPK/HeadStart,EarlyHeadStartandBabyPromiseprograms.Sparkincludesallagegroups,andhasspecificprovisionstosupportschoolagecare.SparkhelpsimprovethequalityofchildcareinOregonbyrecognizing,rewardingandbuildingonwhatearlylearninganddevelopmentprogramsarealreadydoingwell.Theprogramhasbeenstreamlinedandisnowableto:

•Offercoaching,professionaldevelopmentandresourcestohelpearlylearningandcareprogramsprovidedevelopmentallyappropriateexperiencesandtokeepimprovingthequalityofthecaretheyprovideto children.

•Connectfamiliestoqualityearlylearningandcareprograms.

ERDCproviderswhoparticipateinSparkareeligibleforenhancedpaymentsonanon-goingbasis.BeingaratedprogramallowsaprogramtoreceiveamonthlybonuspaymentontopoftheirDivisionofHumanServicesreimbursement rates and reduces the copayment for familiesreceivingthesubsidy.

TheSpark2018revisionsmadesignificantchangesincluding:

•Reducingbarriersforprogramsservingchildrenfurthest from opportunity

•Changingparticipationrequirementsthatwilloffersupportforqualityimprovementstomoreprograms

•Reducingthenumberofstandards•Focusingmorestandardsonadult-childinteractions•Recognizingexperience,diverselanguagesandotherwaysprofessionalsarequalified

•Providingmoreonlineresourcesandsupport

Additional Support for Quality Improvement and Professional DevelopmentAspartofparticipatinginPreschoolPromise,OregonHeadStartPrekindergarten/HeadStart,EarlyHeadStartandBabyPromise,providershavespecificresourcesintheircontractsdedicatedtoqualitysupportsandadditionalprofessionaldevelopment.ProgramssuchasOregonHeadStartPre-Kindergarten/HeadStartalsohaveaccesstoadditionaltechnicalassistanceandqualityimprovementopportunities.Insomeareas,EarlyLearningHubsareplayingaroleinsupportingqualityimprovementsforPreschoolPromiseproviders.

In2019,thelegislatureallocated$12.5millionfromtheEarlyLearningAccountforthesecondyearofthebienniumtosupporttheprofessionaldevelopmentoftheearlylearningworkforce.ThelegislaturealsorequiredtheEarlyLearningDivisiontosubmitareportbyJanuary15,2020onthecurrentearlylearningprofessionaldevelopmentsystemandrecommendationsforhowthe$12.5millioninnewfundsshouldbeusedtobestaddresstheneedsoftheearlycareandeducationworkforce.

(Endnotes)i U.S.CensusBureau,AmericanCommunitySurvey(ACS),B23008,2016ii TarynW.Morrissey,“Childcareandparentallaborforceparticipation:A

reviewoftheresearch.”Review of Economics of the Household, 2017.iii “OregonEarlyLearningWorkforce:SixYearsBeyondBaselineComparison

of2012and2018,”OregonChildCareResearchPartnership,OregonStateUniversity.September2019.

iv “Oregon’sChildCareDeserts:MappingSupplybyAgeGroup,MetropolitanStatusandPercentageofPubliclyFundedSlots.”MeganPratt,MichaellaSektnanandRobertaWeber,”OregonStateUniversity.January2019.

v KatieHammandCarmelMartin,“ANewVisionforChildCareintheUnitedStates.”CenterforAmericanProgress.September2015.

vi https://www.oregon.gov/DHS/ASSISTANCE/Pages/data-pa.aspx vii https://www.acf.hhs.gov/sites/default/files/occ/child_care_and_

development_block_grant_markup.pdfviii HannahMatthews,KarenSchulman,JulieVogtman,ChristineJohnson-

StaubandHelenBlank,“ImplementingtheChildCareDevelopmentBlockGrantReauthorization:AGuideforStates.”NationalWomen’sLawCenter.June2017.

ix NCCPIncomeConverterhttp://www.nccp.org/tools/converter/x Parentmeansaparentbyblood,marriageoradoption,legalguardian,or

otherpersonstandinginlocoparentisxi OAR461-155-0150xii OAR461-150-0090,461-150-0060xiii OAR461-160-0040(5)(b)xiv OAR461-135-0404xv OAR461-135-0415(1)xvi https://ccdf-fundamentals.icfcloud.com/alternative-methodologyxvii For current rates see https://www.oregon.gov/DHS/ASSISTANCE/CHILD-

CARE/Pages/Rates.aspxxviii “OregonEarlyLearningWorkforce:SixYearsBeyondBaselineComparison

of2012and2018,”OregonChildCareResearchPartnership,OregonStateUniversity.September2019.

https://health.oregonstate.edu/sites/health.oregonstate.edu/files/early-learners/pdf/research/oregon-early-learning-workforce-2018-report.pdf



https://www.oregon.gov/DHS/ASSISTANCE/Pages/data-pa.aspx

https://nwlc.org/wp-content/uploads/2017/06/final_nwlc_CCDBGUpdate2017.pdf




https://ccdf-fundamentals.icfcloud.com/alternative-methodology

https://www.oregon.gov/DHS/ASSISTANCE/CHILD-CARE/Pages/Rates.aspx

https://www.oregon.gov/DHS/ASSISTANCE/CHILD-CARE/Pages/Rates.aspx





A report submitted by the Early Learning Division to the

Legislative Task Force on Access to Quality Affordable Child Care

[email protected]

The State of Early Care & Education and Child Care Assistance in Oregon

December 2019

Documents

The State of Early Care & Education and Child Care