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Reason(s) for non-compliance: • The Lead Agency's market rate survey was not developed and conducted within two years of the date of submission of the CCDF Plan and therefore does not certify the percentiles reported in their CCDF Plan are based on the most recent MRS or ACF pre- approved Alternative Methodology, as required by 98.45(c)(1) and 98.45(f)(2)(i). (Plan Questions 4.2.1ai and 4.3.2b) • The Lead Agency does not sufficiently address the methodology used to complete the narrow cost analysis or estimated cost of care, the variations in analysis, assumptions and data included in the methodology, or consideration of higher-quality care, as required by 98.45(f)(1)(ii). (Plan Questions 4.2.2a, 4.2.2b, 4.2.2c, and 4.2.2d) • The Lead Agency’s payment rates for infants in center-based care, infants in family child care homes, preschoolers in center-based care, and preschoolers in family child care homes are not sufficient to ensure equal access, as required by 98.45(a). (Plan Question 4.3.2a) Overall Target Completion Date: 09/30/2025 Action Step Number Action Step Description Target Completion Date 1 (1st Bullet) The Lead Agency's market rate survey was not developed and conducted within two years of the date of submission of the CCDF Plan and therefore does not certify the percentiles reported in their CCDF Plan are based on the 05/30/2025 most recent MRS or ACF pre-approved Alternative Methodology, as required by 98.45(c)(1) and 98.45(f)(2)(i). (Plan Questions 4.2.1ai and 4.3.2b): MSDE is reviewing the final Market Rate Survey (MRS) and Narrow Cost Analysis (NCA) provided by Prenatal to Five Fiscal Strategies for accuracy. 2 (1st Bullet) The Lead Agency's market rate survey was not developed and conducted within two years of the date of submission of the CCDF Plan and therefore does not certify the percentiles reported in their CCDF Plan are based on the most recent MRS or ACF pre-approved Alternative Methodology, as required by 98.45(c)(1) and 98.45(f)(2)(i). (Plan Questions 4.2.1ai and 4.3.2b): MSDE will then share results of the draft report with leadership and other supporting agencies (Governor’s office), in preparation of posting the information as required, once all parties agree on the results and implications. 08/29/2025 3 (1st Bullet) The Lead Agency's market rate survey was not developed and conducted within two years of the date of submission of the CCDF Plan and therefore does not certify the percentiles reported in their CCDF Plan are based on the most recent MRS or ACF pre-approved Alternative Methodology, as required by 98.45(c)(1) and 98.45(f)(2)(i). (Plan Questions 4.2.1ai and 4.3.2b): MSDE will make amendments to the State Plan based on the MRS and NCA. Then post the report as required. 09/30/2025 4 (2nd Bullet) The Lead Agency does not sufficiently address the methodology used to complete the narrow cost analysis or estimated cost of care, the variations in analysis, assumptions and data included in the methodology, or consideration of higher-quality care, as required by 98.45(f)(1)(ii). (Plan Questions 4.2.2a, 4.2.2b, 4.2.2c, and 4.2.2d): MSDE is reviewing the final Market Rate Survey (MRS) and Narrow Cost Analysis (NCA) provided by Prenatal to Five Fiscal Strategies for accuracy. 05/30/2025 5 (2nd Bullet) The Lead Agency does not sufficiently address the methodology used to complete the narrow cost analysis or estimated cost of care, the variations in analysis, assumptions and data included in the methodology, or consideration of higher-quality care, as required by 98.45(f)(1)(ii). (Plan Questions 4.2.2a, 4.2.2b, 4.2.2c, and 4.2.2d): MSDE will then share results of the draft report with leadership and other supporting agencies (Governor’s office), in preparation of posting the information as required, once all parties agree on the results and implications. 08/29/2025 6 (2nd Bullet) The Lead Agency does not sufficiently address the methodology used to complete the narrow cost analysis or estimated cost of care, the variations in analysis, assumptions and data included in the methodology, or consideration of higher-quality care, as required by 98.45(f)(1)(ii). (Plan Questions 4.2.2a, 4.2.2b, 4.2.2c, and 4.2.2d): MSDE will make amendments to the State Plan based on the MRS and NCA. Then post the report as required. 09/30/2025 7 (3rd Bullet) The Lead Agency’s payment rates for infants in center-based care, infants in family child care homes, preschoolers in center-based care, and preschoolers in family child care homes are not sufficient to ensure equal access, as required by 98.45(a). (Plan Question 4.3.2a): MSDE is reviewing the final Market Rate Survey (MRS) and Narrow Cost Analysis (NCA) provided by Prenatal to Five Fiscal Strategies for accuracy. 05/30/2025 8 (3rd Bullet) The Lead Agency’s payment rates for infants in center-based care, infants in family child care homes, preschoolers in center-based care, and preschoolers in family child care homes are not sufficient to ensure equal access, as required by 98.45(a). (Plan Question 4.3.2a): MSDE will then share results of the draft report with leadership and other supporting agencies (Governor’s office), in preparation of posting the information as required, once all parties agree on the results and implications. 08/29/2025 9 (3rd Bullet) The Lead Agency’s payment rates for infants in center-based care, infants in family child 09/30/2025 care homes, preschoolers in center-based care, and preschoolers in family child care homes are not sufficient to ensure equal access, as required by 98.45(a). (Plan Question 4.3.2a): MSDE will make amendments to the State Plan based on the MRS and NCA. Then post the report as required.