4.5 Supply Building

Building a supply of high-quality child care that meets the needs and preferences of parents participating in CCDF is necessary to meet CCDF’s core purposes. Lead Agencies must support parent choice by providing some portion of direct services via grants or contracts, including at a minimum for children in underserved geographic areas, infants and toddlers, and children with disabilities. 4.5.1 Child care services available through grants or contracts Does the Lead Agency provide direct child care services through grants or contracts for child care slots? [ ] Yes, statewide. Describe how the Lead Agency ensures that parents who enroll with a provider who has a grant or contract have choices when selecting a provider: [ ] Yes, in some jurisdictions, but not statewide. Describe how many jurisdictions use grants or contracts for child care slots and how the Lead Agency ensures that parents who enroll with a provider who has a grant or contract have choices when selecting a provider: [x] No. If no, describe any Lead Agency plans to provide direct child care services through grants and contracts for child care slots: DCDEE will develop an implementation plan for the use of grants and contracts for child care slots, but will temporarily request a waiver. In the 2024-2025 SFY DCDEE contracted with Southwestern Child Development Commission to provide business services to 18 Family Child Care programs by awarding grants to expand or establish licensed slots. If no, skip to question 4.5.2. i. If yes, identify the populations of children served through grants or contracts for child care slots (check all that apply). For each population selected, identify the number of slots allocated through grants or contracts for direct service of children receiving CCDF. [ ] Children with disabilities. Number of slots allocated through grants or contracts: [ ] Infants and toddlers. Number of slots allocated through grants or contracts: [ ] Children in underserved geographic areas. Number of slots allocated through grants or contracts: [ ] Children needing non-traditional hour care. Number of slots allocated through grants or contracts: [ ] School-age children. Number of slots allocated through grants or contracts: [ ] Children experiencing homelessness. Number of slots allocated through grants or contracts: [ ] Children in urban areas. Percent of CCDF children served in an average month: [ ] Children in rural areas. Percent of CCDF children served in an average month: [ ] Other populations. If checked, describe: ii. If yes, how are rates for slots funded by grants and contracts determined by the Lead Agency? 4.5.2 Care in the child’s home (in-home care) The Lead Agency must allow for in-home care (i.e., care provided in the child’s own home) but may limit its use. Will the Lead Agency limit the use of in-home care in any way? [x] Yes. [ ] No. If yes, what limits will the Lead Agency set on the use of in-home care? Check all that apply. i. [ ] Restricted based on the minimum number of children in the care of the in- home provider to meet the Fair Labor Standards Act (minimum wage) requirements. Describe: ii. [ ] Restricted based on the in-home provider meeting a minimum age requirement. Describe: iii. [ ] Restricted based on the hours of care (i.e., certain number of hours, non- traditional work hours). Describe: iv. [ ] Restricted to care by relatives. (A relative provider must be at least 18 years of age based on the definition of eligible child care provider.) Describe: v. [ ] Restricted to care for children with special needs or a medical condition. Describe: vi. [ ] Restricted to in-home providers that meet additional health and safety requirements beyond those required by CCDF. Describe: vii. [x] Other. Describe: It may be necessary in some situations to authorize payment for services for a child in his/her own home when one of the following situations exists: 1. A child is in DSS custody and resides in a licensed foster home and the foster parent operates a licensed family child care home. 2. A child is in DSS custody and is placed in the home of a relative and the relative operates a licensed family child care home. 3. A child and parent/responsible adult reside in the home with another adult household member who operates a licensed family child care home and the parent/responsible adult is not the owner or operator of the family child care home.4. A child whose parent/responsible adult is in the Armed Forces and has selected the licensed family child care home provider to be the child's guardian while he or she is deployed. 5. A child whose parent/responsible adult is incarcerated and has given the licensed family child care home provider custody (physical and/or legal)and/or power of attorney. 4.5.3 Shortages in the supply of child care Lead Agencies must identify shortages in the supply of child care providers that meet parents’ needs and preferences. What child care shortages has the Lead Agency identified in the State or Territory, and what is the plan to address the child care shortages? a. In infant and toddler programs: i. Data sources used to identify shortages: Infant and Toddler Feasibility & Cost Study. Child Care Resource and Referral and Smart Start agencies collect data on and from child care programs including enrollment, capacity, availability, hours and types of care provided, and routinely shares that information with the state and families. NC DCDEE also works with specifically focused partner agencies to identify areas where capacity and supply may be limited and where families have different and varying needs that may or may not be met by the available child care community. NC DCDEE sponsors several quality enhancement contracts and has also been able to increase the amount of funds in child care subsidy services, which all help to address child care shortages and enhance parental access and choice. ii. Method of tracking progress: In regard to tracking, CCR&Rs use a statewide data system that is handled by family support specialists across the state in order to ensure a statewide, consistent operation, and each region submits data into this technology system. In addition, child care programs also have access to update their data in a DCDEE approved Consumer Education and Referral Database. CCR&R agencies make regular calls for intensive follow up to document information to ensure that our supply and demand data is accurate. This data is analyzed by regions on a monthly basis or more frequently as needed. CCR&R staff conduct vacancy checks on an as-needed basis when care is limited. CCR&R staff conduct comprehensive data quality reviews at least semi-annually to ensure the data is accurate and complete. iii. What is the plan to address the child care shortages using family child care homes In the 2022 Birth-Five Needs Assessment Update, a recommendation was made to increase the subsidy rates (including those for infants and toddlers) to reflect the true cost of providing high-quality child care for both programs operating in centers and in family child care homes. It is important to note that the CCR&R Family Child Care Home Program is continuing to collaborate with local, state, and national organizations. Its purpose is to retain and build new family child care programs across the state and to build program quality through business and operations professional development and mentors. iv. What is the plan to address the child care shortages using child care centers? Through the PDG B-5 Renewal Grant, DCDEE partnered with Child Trends to conduct an Infant-Toddler Feasibility and Cost Study to inform the design and cost modeling for a potential infant-toddler child care program. With study complete and findings and recommendations available, DCDEE will embed teacher education recommendations into current infant-toddler contracts. There are also plans to advocate for increased subsidy rates (including those for infants and toddlers) to reflect the true cost of providing high-quality child care for both programs operating in centers and in family child care homes . DCDEE will work with the NC Center for Afterschool Programs (NCCAP) to pilot a statewide analysis to better understand the supply, demand, challenges, needs, and current practices in licensed and unlicensed school age care. NC CAP is in the process of an analysis of 21 counties with non-CCDF funding. b. In different regions of the State or Territory: i. Data sources used to identify shortages: Child Care Resource and Referral and Smart Start agencies collect data on and from child care programs including enrollment, capacity, availability, hours and types of care provided, and routinely shares that information with the state and families. NC DCDEE also works with specifically focused partner agencies to identify areas where capacity and supply may be limited and where families have different and varying needs that may or may not be met by the available child care community. NC DCDEE sponsors several quality enhancement contracts and has also been able to increase the amount of funds in child care subsidy services, which all help to address child care shortages and enhance parental access and choice. ii. Method of tracking progress: In regards to tracking, CCR&R agencies use a statewide data system that is handled by family support specialists across the state in order to ensure a statewide, consistent operation, and each region submits data into this technology system. In addition, child care programs also have access to update their data in a DCDEE approved Consumer Education and Referral database. CCR&R agencies make regular calls for intensive follow up to document information to ensure that our supply and demand data is accurate. This data is analyzed by regions on a monthly basis or more frequently as needed. CCR&R also staff conduct vacancy checks on an as-needed basis when care is limited. CCR&R staff conduct comprehensive data quality reviews at least semi- annually to ensure the data is accurate and complete. iii. What is the plan to address the child care shortages using family child care homes? The Preschool Development Grant, Birth-Five 2024 Needs Assessment & Strategic Plan addendum outlined recommendations to address child care deserts and shortages in family child care homes based on geographic regions. Should funding become available, DCDEE will consider building upon existing efforts to enhance family child care networks to offer training and mentoring opportunities, peer support, access to substitutes, and business and administration support. DCDEE will also identify and provide additional technical assistance and professional development tailored to FCCHs’ needs through the Child Care Resource & Referral system. Additional targeted funding, should it be made available, may support for start-up grants, specifically for FCCHs, will provide adequate funding levels to support the acquisition of supplies, furniture, and educational materials/curriculum to operate a high-quality child care program. The Needs Assessment findings suggest that providers may not be familiar with the licensing and regulatory system; engaging community members to identify these providers and providing training on the licensing system would be a critical step in increasing access to family child care homes. DCDEE will work with state and local partners to determine system mechanisms to support FCCH providers in understanding county and home owners’ association regulations as they may impact their ability to open and operate a high-quality child care business. In response to the General Assembly Session Law 2023-134 Section 9D.8, n.d. for the NC Department of Health and Human Services, Division of Child Development to administer a pilot program that provides business and financial assistance in creating new in-home child care programs and sustaining existing in-home child care programs in this State. DCDEE has recently awarded Southwestern Child Development Commission a single award of 525,000 from July 1, 2024 ￿ June 30, 2025 to administer a pilot program that provides business and financial assistance in creating new in-home child care programs and sustaining existing in-home child care programs in this State. The pilot aims to increase family child care quality across the state, increase provider knowledge about business best practices and ability to implement identified practices, increase access to high-quality childcare, for infants and toddlers and non-English speaking families. DCDEE will monitor project progress through ongoing programmatic and data reporting, regular project updates, and quarterly meetings to review and access qualitative and quantitative data and share successful strategies, challenges, and key findings. iv. What is the plan to address the child care shortages using child care centers? DCDEE may explore opportunities to collaborate with state-system partners to provide free training and startup funding to individuals interested in opening a child care center or family home, particularly in rural areas and existing deserts. c. In care for special populations: i. Data sources used to identify shortages: Child Care Resource and Referral and Smart Start agencies collect data on and from child care programs including enrollment, capacity, availability, hours and types of care provided, and routinely shares that information with the state and families. NC DCDEE also works with specifically focused partner agencies to identify areas where capacity and supply may be limited and where families have different and varying needs that may or may not be met by the available child care community. NC DCDEE sponsors several quality enhancement contracts and has also been able to increase the amount of funds in child care subsidy services, which all help to address child care shortages and enhance parental access and choice. ii. Method of tracking progress: In regards to tracking, CCR&R agencies use a statewide data system that is handled by family support specialists across the state in order to ensure a statewide, consistent operation, and each region submits data into this technology system. In addition, child care programs also have access to update their data in a DCDEE approved Consumer Education and Referral database. CCR&R agencies make regular calls for intensive follow up to document information to ensure that our supply and demand data is accurate. This data is analyzed by regions on a monthly basis or more frequently as needed. CCR&R staff also conduct vacancy checks on an as-needed basis when care is limited. CCR&R staff conduct comprehensive data quality reviews at least semi- annually to ensure the data is accurate and complete. Additionally, CCR&R staff conduct enhanced referrals for families with special circumstances including, but not limited to, children with disabilities, language barriers, and shift care. This includes contacting programs to ensure availability of special accommodations. iii. What is the plan to address the child care shortages using family child care homes? The Preschool Development Grant, Birth-Five 2024 Needs Assessment & Strategic Plan addendum outlined recommendations to address child care deserts and shortages in family child care homes serving special populations. DCDEE may consider exploring program waivers that would eliminate differential subsidy rates for FCCH providers that offer specialized care, infant care, and/or services for families that require 2nd and 3rd shift care to expand access in high need areas of the state. DCDEE may also examine the cultural sensitivity of the Early Childhood Environment Rating Scale as a universal evaluation instrument for rating early childhood settings and possibly explore the use of alternative measures. DCDEE will also explore design and delivery of training and technical assistance targeted to support FCCH and center providers. The training and technical assistance will focus on how FCCH and center providers can effectively serve special populations such as children with special needs, infants and toddlers, families in rural areas, and families who work non-traditional hours. iv. What is the plan to address the child care shortages using child care centers? DCDEE will explore design and delivery of training and technical assistance targeted to support FCCH and center providers. The training and technical assistance will focus on how FCCH and center providers can effectively serve special populations such as children with special needs, infants and toddlers, families in rural areas, and families who work non-traditional hours. 4.5.4 Strategies to increase the supply of and improve quality of child care Lead Agencies must develop and implement strategies to increase the supply of and improve the quality of child care services. These strategies must address child care in underserved geographic areas; infants and toddlers; children with disabilities, as defined by the Lead Agency; and children who receive care during non-traditional hours. How does the Lead Agency identify any gaps in the supply and quality of child care services and what strategies are used to address those gaps for: a. Underserved geographic areas. Describe: According to the Center for American progress, in 2019 44% of all North Carolina residents lived in a child care desert (compared to 51% of the national average). The Center for American Progress also noted that rural populations in North Carolina (54%) are more likely to reside in a child care desert. The PDG B-5 Needs Assessment found that access to child care was challenging for families living in rural communities, and that family child care homes are often preferred as they may be located closer to places of employment or provide care in closer proximity in areas where transportation may be challenging. While there are many benefits to family child care homes, a report produced by the Southwestern Child Development Commission found that in June 2020, 13 counties (all of which are located in rural communities) did not have a family child care home. One strategy to address the limited number of Family Child Care Homes across the state and specifically in rural areas is to increase the supports for FCCHS. DCDEE used ARP funds to support a FCCH Subsidy Pilot which paid higher subsidy rates for six months, a pay by enrollment policy, and payment rates stratified by star-rating and true cost of care. The pilot report provides data which can be used to share with legislatures to support an increase in rates for FCCHS. Also, to increase the supply of Family Child Care Homes the Division has contracted with Southwestern Child Development Commission, one of the Child Care Resource and Referral Lead Agencies, to provide business practice supports, technical assistance for new programs and community engagement support to In-home Family Child Care operators. Services provided through this contract will be open to all 100 counties in North Carolina. Additionally, center-based child care often experience challenges in opening and operating a sustainability business in rural communities due to lower populations of children and challenges with enrollment. Center based business trainings were added to CCR&R core trainings to address these challenges. As part of the budget bill, NC General Statute 110-86(2) defining family child care homes (FCCH) and NC General Statute 110-91(7)(b) regarding FCCH capacity was revised. The bill allows for increased capacity options. Increasing capacity is a strategy to increase the number of FCCHs and an incentive for FCCHs to remain open. DCDEE has a strategy to develop an alternative methodology for determining rates that is based on cost of quality and not the market rate. DCDEE has plans to develop a cost calculator that provides both cost and quality. DCDEE has plans to petition legislature for additional funding to address child care deserts. Improve statewide cross-sector early childhood data quality, collection, analysis, and use to support programs’ data-based decision making, including providing technical assistance for data collection and management and creating resources on how to use data to inform practice. P. 25 of Strategic Plan. Work with other entities, including the Division of Child and Family Well-Being as well as the NC Homeless Education Program to begin implementing the Action Plan for Early Childhood Homelessness Support System. https://ncchildcare.ncdhhs.gov/Portals/0/documents/pdf/A/Action_Plan_Early_Childhood _Homelessness_Support_REPORT.pdf b. Infants and toddlers. Describe: Leveraging the Preschool Development Grant, Birth-Five (PDG B-5) Renewal Grant and Child Care Development Block Grant funds, since March 2022, DCDEE has partnered with Child Trends to conduct the Infant-Toddler Feasibility & Cost Study. The purpose of this study is to inform the development of a high-quality Birth to Three Early Learning Pilot program designed to provide comprehensive child development and family support program to low-income at-risk children birth through age three and their families. As part of this work, Child Trends conducted a market demand study and administered a parent survey to examine key attributes of the current supply (in year 2022) and demand (in year 2021) for infant/toddler child care among potentially eligible families. When examined together, supply and demand data can be used to better understand, within areas of high potential demand, the existing level of supply. If there is a high concentration of high-quality (4 or 5 STAR rated license) licensed centers and family child care (FCC) homes, the implementation strategy in these counties may be to expand the capacity of existing programs. In counties where there are few high-quality centers and FCC homes, the implementation strategy could focus on supporting the existing providers to obtain higher levels of quality or on increasing the number of licensed providers in these areas. Supply & Demand Findings from the Infant-Toddler Feasibility & Cost Study: Child Trends is in the process of producing a final report for the Infant-Toddler Feasibility & Cost Study which includes a summary of the market demand study, summary of data collected from parents participating in a survey, and a summary of findings across three core factors: Potential Demand, Potential Supply and deeper analysis of the Child Care Subsidy Program Supply and Demand. It is suggested that if a future Infant-Toddler program is offered in both centers and homes, FCC providers might need additional supports to increase to a 4- or 5-STAR rated program. As part of the budget bill, NC General Statute 110-86(2) defining family child care homes (FCCH) and NC General Statute 110-91(7)(b) regarding FCCH capacity was revised to increase the capacity of FCCHs. DCDEE petitioned the NC Legislature in 2024 to invest $95 million to establish a statewide minimum subsidy rate. This "statewide floor" will address geographic disparities in child care subsidies, protecting counties with currently higher rates. By ensuring a minimum subsidy across the state, based on the statewide average to address geographical inequities and protect counties with currently higher rates. We can better support vulnerable populations, including infants, toddlers, and child care in rural areas. Increasing subsidy rates is crucial to sustaining these essential services. DCDEE plans to continue to support the statewide Birth to Three Quality Initiative which includes the provision of specialized technical assistance (coaching, mentoring and training) for the early care and education workforce in classrooms serving children birth to three. Develop early childhood competencies and assessments to determine skill attainment. These competencies shall be based on the latest findings from the National Academy of Sciences report, ￿Transforming the Workforce for Children from Birth through Age 8,￿ and the newly revised 44 competencies from the National Association for the Education of Young Children (NAEYC). In addition , findings from the current PDG project, ￿Coaching Towards Mastery Phase 2 ￿ Develop and Disseminate Early Education Competency Resources & Measurement Tools,￿ are being leveraged to inform the proposed new QRIS competency evaluation standards for North Carolina’s QRIS modernization. This project drew upon multiple competency measures and frameworks, including: • CDA • Power to the Profession • Transforming the Workforce Knowledge & Competencies • NC Pre-K Teacher Evaluation Process Rubric • BK Teacher Education Standards • SWCDC ECE Apprenticeship competencies • UNCG Infant Toddler Workforce Competencies Inventory • ACES • ERS • CLASS Lastly, DCDEE proposed in the 2024 Preschool Development Grant, Birth-Five (PDG B- 5)Renewal Grant Application to leverage funds to coordinate the planning, implementation and evaluation of a coordinated competency-based professional development framework system. Phase 3 of Coaching Towards Mastery will entail developing a framework and rubric to measure early educator competencies, dissemination of training modules to communicate competencies in alignment with QRIS professional standards, and piloting of tools in the field and to measure impact and quality improvement. c. Children with disabilities. Describe: In 2020, the Center for American Progress conducted a national study on families’ child care experiences when they had children 0-5 with disabilities and found that a larger proportion of parents with disabled children experience difficulty finding care due to barriers including a lack of available slots (Novoa, 2020). Citation: Novoa, Cristina. The Child Care Crisis Disproportionally Affects Children With Disabilities. Center for American Progress. (January 29, 2020) Accessed June 20, 2024. https://www.americanprogress.org/article/child-care-crisis-disproportionately-affects- children-disabilities/ Looking specifically at North Carolina, the 2020 Birth-Five Needs Assessment reported that over 40,000 children birth to five with a diagnosed disability were served in 2017 through the Individuals with Disability Education Act (IDEA) programs. The 2022 Birth-Five Needs Assessment Update found that in 2020, North Carolina served 19,174 infants, toddlers, and preschoolers with disabilities through IDEA ￿ a 48 percent decline likely attributable to the COVID-19 pandemic. Almost 9,000 children (birth to age three) with a developmental delay or established medical condition received early intervention services through the NC-Infant -Toddler Program (NCITP) in 2020. The NCITP, funded by IDEA Part C, served 2.49 percent of infants and toddlers in 2020. The Preschool Exceptional Children’s Program, funded by IDEA Part B Section 619, served 4.14 percent of children ages three to five in 2020. Both percentages are significantly less than previous years. Disaggregated by race and ethnicity, most young children served by IDEA were white (51%), followed by Black (23%), and Hispanic (18%), a trend consistent with national data and in alignment with North Carolina’s population. In their report for the Infant-Toddler Feasibility & Cost Study, Child Trends recommended that the early care and learning system can offer universal early intervention screening following by appropriate supports as well as targeted resources for families of children with special needs. Targeted supports are necessary to help families access information on services and in navigating a complex system of multiple providers (e.g., caregivers, doctors, therapists). Parents participating in the study reported challenges associated with managing and coordinating multiple appointments with providers, and in sharing information among and between the various service providers. A solution presented by the parent panel members was providing required services for children with a disability or special need within the child care setting. To move toward these recommendations DCDEE plans to partner with the Division of Child and Family Well-Being (IDEA Part C- Infant/Toddler) and the Department of Public Instruction (IDEA Part B) to convene a council to advise the lead agency on ways to implement the recommendations and additional strategies to improve the supply and quality of care for children with disabilities. As part of the budget bill, NC General Statute 110-86(2) defining family child care homes (FCCH) and NC General Statute 110-91(7)(b) regarding FCCH capacity was revised. The new bill allows for increased capacity. d. Children who receive care during non-traditional hours. Describe: Families who need affordable care- especially during non-traditional hours- often choose family child care homes. The North Carolina Division of Child Development and Early Education reported that as of 2020, 1,407 children were served in family child care homes compared to 809 children cared for in centers during non-traditional work hours (NC CCR&R Statewide Family Child Care Home Initiative, 2020). Updated 2022 data from DCDEE shows that family homes are more likely to be licensed to provide care during non-traditional hours (2nd and 3rd shift) than child care centers. For example, 73.82% of family child care homes are licensed to care for children during 2nd shift whereas only 19.93% of centers are licensed to do the same. While this data does not guarantee that these programs offer care during these hours, they at least have this option. DCDEE's strategy to increase the supply/improve the quality of child care with non- traditional hours is to provide additional supports to Family Child Care Home providers. These supports include a statewide Family Child Care position within the CCR&R; Family Child Care start up grants; specialized business and other FCC technical assistance; increased professional development opportunities, including opportunities to participate in communities of practice; peer mentors and Family Child Care Home specialized consultants. e. Other. Specify what population is being focused on to increase supply or improve quality. Describe: Other populations underserved by the early care and education system are Hispanic/Latino families and immigrant families, and children with disabilities. Only 26% of all child care programs in North Carolina have a staff person who speaks a language other than English, and 90% of these staff speak Spanish (Child Care Services Association, 2022a). In North Carolina, 11.8% of the population speak a language other than English at home and while 7.53% of that 11.8% speak Spanish, many other households also speak Chinese, French, Arabic, Vietnamese and more. This data demonstrates a demand for bilingual child care providers. To increase supports for bilingual families, Child Trends outlined recommendations to inform the design of an infant-toddler early learning program. These recommendations include developing outreach materials in multiple languages and disseminating them in multiple communication channels. Additionally, the system may consider partnering with community-based organizations that serve Spanish- speaking and immigrant families to support outreach. DCDEE can also develop a promotional campaign on its high-quality early care and learning services in multiple languages disseminated in communication channels to best reach diverse families. As many Spanish-speaking and immigrant families learn about service through work of mouth from trusted networks, DCDEE can partner with community-based organizations serving families in these communities to promote, inform and enroll families in programs and services. 4.5.5 Prioritization of investments in areas of concentrated poverty and unemployment Lead Agencies must prioritize investments for increasing access to high-quality child care and development services for children of families in areas that have significant concentrations of poverty and unemployment and do not currently have sufficient numbers of such programs. Describe how the Lead Agency prioritizes increasing access to high-quality child care and development services for children of families in areas that have significant concentrations of poverty and unemployment and that do not have access to high-quality programs. According to the 2022 Birth-Five Needs Assessment Update, ￿nearly 22% of North Carolina’s children birth to age five are living in households with incomes below the federal poverty level and therefore need supports to meet basic needs.￿ Additionally, data from 2020 and 2021 show that families have continued to face economic hardships during which 25% of families were behind on rent, 41% of families with children were worried about eviction, 19% of children were food insecure, 47% of surveyed families missed a full day of work due to inadequate child care, and 37% of surveyed families had problems finding a job due to child care issues. The Needs Assessment determined that access to early care and learning has continued to be a challenge, and particularly challenging for diverse families, including families of color, families living in rural areas, families with tribal affiliation, and families of infants and toddlers. The following are strategies DCDEE are exploring to continue or begin implementing to increase access to high- quality child care and development services for children and families that have significant concentrations of poverty and unemployment. Subsidy: Since 1990, North Carolina has provided families with the opportunity to receive subsidies to offset the cost of child care. The Subsidized Child Care Assistance Program uses state and federal funds to provide subsidized child care services to eligible families through a locally administered state-supervised voucher system. Annually, each county receives a combination of state and federal funding from DCDEE to provide subsidies. Families earning up to 200% of the federal poverty level ($55,500 for a family of four), working, attempting to find work, or enrolled in school or a job training program are eligible. Most families, including those receiving TANF, Work First Family Assistance, are required to pay a percentage, 10% if applicable, of their child care costs through a parent copayment based upon their gross monthly income. Unfortunately, recent market rates fail to represent the true cost of care, particularly for infants and toddlers, disincentivizing providers from participating in the Child Care Subsidized Assistance Program creating barriers for families to access care. DCDEE continued to increase market rates are set for North Carolina's most economically distressed counties to incentivize programs to enroll in subsidy. Ultimately, DCDEE will work with system partners to develop strategies to expand access to the subsidized child care assistance program with providers reimbursed at a rate in alignment with what it costs to provide high-quality early care and learning. Vulnerable population: DCDEE contracts with Early Years from the Child Care Resource and Referral network to conduct technical assistance and training related to supporting families experiencing homelessness. The technical assistance includes the eight-module series, Supporting Families Experiencing Homelessness, by the National Center on Parent, Family and Community Engagement, completion of the Self-Assessment Tool for Early Childhood Programs Serving Families Experiencing Homelessness and completion of a tool-based action plan. Early Years provides information to families regarding child care subsidies through an enhanced referral program which provides families consumer education (detailed information on child care options, NC star rated license system and what to look for when selecting a child care program); financial assistance guidance (eligibility and application process for child care subsidy, NC Pre-K, Head Start); vacancy confirmation; warm handoffs (help families connect with child care programs); and language support (families receive services in their preferred language). Quality Rating and Improvement Systems: The Quality Rating and Improvement System (QRIS) can distinguish between low- and high- quality programs and can help children access higher quality early learning experiences; however, North Carolina’s 2022 Birth-Five Needs Assessment found that access to high-quality early care and learning programs is currently inequitable. It was determined that high-quality options were far more limited in under-resourced communities where many low-income families and families of color live. To help correct these inequities, the QRIS can be revised to better serve and support the early care and learning programs requiring considerations about what is measured, how it is measured, and how the information is used to increase access to high-quality programs. Currently, North Carolina is in the process of modernizing and revising its QRIS. DCDEE is support the Child Care Commission and early childhood system partners in analyzing the QRIS through an equity lens to ensure it is operates from a strengths-based approach for child care providers. With input put from those leaders, providers and families participating in the system, these revisions are considering the inclusion of additional factors and measures, such as family engagement and teacher-child interactions as key quality standards. Data Systems: Based on findings and recommendations from the 2022 Birth-Five Needs Assessment Update, DCDEE will seek to enhance data systems to better collect information on the number of children served in early care and learning programs, children waiting to access care, the early childhood workforce, including demographic information such as geographic location, language, and race and ethnicity. This data will provide valuable information to allow DCDEE to better identify inequities in families accessing high-quality programming. This data will guide DCDEE and state partners in designing policies, rules and plans for funding the child care system to increase equitable access to high-quality services. Citation: McKnight, K., Spinetti, M., Chavis, E., Lawrence, N., Snyder-Fickler, E., Yorkery, B., Morgan, C., Alban, C., Carr, R., and Thomason, L.. ￿North Carolina Statewide Birth to Five Needs Assessment Update.￿ Final Report. The Hunt Institute: Center for Child and Family Policy, Duke University. (November 10, 2022): 1-214. Accessed June 18, 2024. https://ncchildcare.ncdhhs.gov/Portals/0/documents/pdf/B/Birth- Five_Needs_Assessment_Update_2022.pdf?ver=SjIhmZK0pjY-aU-ow8-5zA%3d%3d 5 Health and Safety of Child Care Settings Child care health and safety standards and enforcement practices are essential to protect the health and safety of children while out of their parents’ care. CCDF provides a minimum threshold for child care health and safety policies and practices but leaves authority to Lead Agencies to design standards that appropriately protect children’s safety and promote nurturing environments that support their healthy growth and development. Lead Agencies should set standards for ratios, group size limits, and provider qualifications that help ensure that the child care environment is conducive to safety and learning and enable caregivers to promote all domains of children’s development. CCDF health and safety standards help set clear expectations for CCDF providers, form the foundation for health and safety training for child care workers, and establish the baseline for monitoring to ensure compliance with health and safety requirements. These health and safety requirements apply to all providers serving children receiving CCDF services – whether the providers are licensed or license-exempt, must be appropriate to the provider setting and age of the children served, must include specific topics and training on those topics, and are subject to monitoring and enforcement procedures by the Lead Agency. CCDF-required annual monitoring and enforcement actions help ensure that CCDF providers are adopting and implementing health and safety requirements. Through child care licensing, Lead Agencies set minimum requirements, including health and safety requirements, that child care providers must meet to legally operate in that State or Territory. In some cases, CCDF health and safety requirements may be integrated within the licensing system for licensed providers and may be separate for CCDF providers who are license- exempt. This section addresses CCDF health and safety requirements, Lead Agency licensing requirements and exemptions, and comprehensive background checks. When responding to questions in this section, OCC recognizes that each Lead Agency identifies and defines its own categories of care. OCC does not expect Lead Agencies to change their definitions to fit the CCDF-defined categories of care. For these questions, provide responses that best match the CCDF categories of care.