4.2 Assess Market Rates and Analyze the Cost of Child Care

To establish subsidy payment rates that ensure equal access, Lead Agencies must collect and analyze statistically valid and reliable data and have the option to conduct either a (1) market rate survey (MRS) reflecting variations in the price to parents of child care services by geographic area, type of provider, and age of child, or (2) an ACF pre-approved alternative methodology, such as a cost estimation model, which estimates the cost of care by incorporating both data and assumptions to estimate what expected costs would be incurred by child care providers and parents under different scenarios. All Lead Agencies must analyze the cost of providing child care through a narrow cost analysis or pre-approved alternative methodology. Prior to conducting the MRS or pre-approved alternative, Lead Agencies must consult with the State Advisory Council on Early Childhood Education and Care (designated or established pursuant to the Head Start Act (42 U.S.C. 9837b(b)(1)(A)(i)) or similar coordinating body, local child care program administrators, local child care resource and referral agencies, and other appropriate entities; and organizations representing child care caregivers, teachers, and directors. Prior to conducting the MRS or pre-approved alternative methodology, Lead Agencies must consult with the State Advisory Council on Early Childhood Education and Care (designated or established pursuant to the Head Start Act (42 U.S.C. 9837b(b)(1)(A)(i)) or similar coordinating body, local child care program administrators, local child care resource and referral agencies, and other appropriate entities; and organizations representing child care caregivers, teachers, and directors. Note: Any Lead Agency considering using an alternative methodology instead of a market rate survey to set payment rates, is required to submit a description of its proposed approach to OCC for pre-approval in advance of developing and conducting the alternative methodology. Advance approval is not required if the Lead Agency plans to implement both an MRS and an alternative methodology to set rates at a percentile of the market rate, but a Lead Agency conducting a limited market rate survey and using it to inform their cost model would need pre-approval for this approach. In its request for ACF pre-approval, a Lead Agency must provide details on the following elements of their proposed alternative methodology: • Overall approach and rationale for using proposed methodology • Description of stakeholder engagement • Data collection timeframe (if applicable) • Description of the data and assumptions included in the methodology, including how these elements will yield valid and reliable results from the model • Description of how the methodology will capture the universe of providers, and reflect variations by provider type, age of children, geographic location, and quality 4.2.1 Completion of the market rate survey or ACF pre-approved alternative methodology Did the Lead Agency conduct a statistically valid and reliable MRS or ACF pre-approved alternative methodology to meet the CCDF requirements to assess child care prices and/or costs and determine payment rates? Check only one based on which methodology was used to determine your payment rates. a. [x] Market rate survey. i. When were the data gathered (provide a date range; for instance, September – December 2023)? October through December 2022 b. [ ] ACF pre-approved alternative methodology. i. [ ] The alternative methodology was completed. ii. [ ] The alternative methodology is in process. If the alternative methodology was completed: When were the data gathered and when was the study completed? Describe any major differences between the pre-approved methodology and the final methodology used to inform payment rates. Include any major changes to stakeholder engagement, data, assumptions or proposed scenarios. If the alternative methodology is in progress: Provide a status on the alternative methodology and timeline (i.e., dates when the alternative methodology activities will be conducted, any completed steps to date, anticipated date of completion, and expected date new rates will be in effect using the alternative methodology). c. Consultation on data collection methodology. Describe when and how the Lead Agency engaged the following partners and how the consultation informed the development and execution of the MRS or alternative methodology, as appropriate. iii. State Advisory Council or similar coordinating body: Due to the technical nature of the work, the Lead Agency requested that the Oregon Child Care Research Partnership at Oregon State University create a Market Price Study advisory committee that included center and home-based child care providers, unions, Lead Agency and ODHS staff, and child advocates. The Early Learning Council as part of its engagement on Oregon's CCDF Plan provided guidance to the Lead Agency on the rate setting and the Market Rate Study, with a particular focus on ensuring that methodology for rate setting and Market Rate Study ensures equal access for rural communities. Local child care program administrators: Child care program administrators, including a center director and an owner operator of a family child care program, were included on the Market Price Study advisory committee. iv. Local child care program administrators: Child care program administrators were included on the Market Price Study advisory committee. v. Local child care resource and referral agencies: Child care resource and referral programs are instrumental in developing the protocol for data collection and collecting data for the Market Price Study. vi. Organizations representing child care caregivers, teachers, and directors from all settings and serving all ages: The child care provider union for licensed family child care - the American Federation of State, Municipal and County Employees - were consulted on data collection methodology. The union for license-exempt child care providers, SEIU 503, was also consulted. vii. Other. Describe: Members of the Oregon Child Care Research Partnership group, represented by researchers and staff from multiple agencies, and other early learning partners, were consulted on methodology. d. An MRS must be statistically valid and reliable. An MRS can use administrative data, such as child care resource and referral data, if it is representative of the market. Please provide the following information about the market rate survey: i. When was the market rate survey completed? 3/10/2023 ii. What was the time period for collecting the information (e.g., all of the prices in the survey are collected within a three-month time period)? October through December 2022. iii. Describe how it represented the child care market, including what types of providers were included in the survey: The study universe includes all child care facilities in the priced child care market. The majority of family, friend, and neighbor caregivers have a prior relationship with the parent; thus, if they do charge a price, it is not established at arm’s length; the price is likely to be influenced by the prior relationship. The vast majority of family, friends, and neighbors are not part of the priced child care market. Also excluded from the priced market were parent co-ops, programs that do not charge parents a fee, such as Head Start, and programs using sliding-scale fee structures. The Child Care Resource and Referral (CCR&R) database, Find Child Care Oregon, managed by Oregon’s CCR&R Central Coordination at Western Oregon University remains Oregon’s most current, comprehensive, and reliable data source for market prices. The statewide CCR&R database of child care facilities is an aggregate of data from 15 local CCR&R agencies representing all counties in Oregon. CCR&Rs are regional entities funded by the Early Learning Division to recruit and retain child care businesses, both home and center-based, to help build the supply of high-quality child care across Oregon. Each CCR&R is contracted to provide services in one of 15 regions. Most local CCR&Rs are housed within a larger parent agency, such as a community action program or a community college. All Oregon CCR&Rs are members of Central Coordination of the Oregon Child Care Resource & Referral, which provides statewide leadership and collaboration through responsive technical assistance and Find Child Care Oregon database management. Given that almost all centers and small and large home-based care are captured in the Child Care Resource and Referral (CCR&R) database, this database was used for the 2022 Market Price Study. The Early Learning Division's Office of Child Care licensing database was not considered because it is not designed to capture facility price data, although it was merged with the CCR&R database prior to data collection and analysis to ensure that all facilities were included. The licensing database was also utilized post-data collection by the university researchers to confirm data were current and accurate. The Oregon Department of Human Services (ODHS) provider database contains data on facilities that serve families who receive ODHS child care subsidies. Some of these providers are enrolled with a CCR&R and/or regulated by the Office of Child Care. Many ODHS listed providers, however, provide care only for family members or friends who receive ODHS subsidies for child care. These facilities probably would not otherwise provide care or do not meet the arm’s length criteria, and thus, are not part of the priced child care market. In contrast to licensing and ODHS provider databases, the majority of facilities in the CCR&R database offer care in the priced child care market. The CCR&R database was also used in the 1992, 1994, 2000, 2002, 2004, 2006, 2008, 2010, 2012, 2014, 2016, 2018, and 2020 Oregon market price studies and has proven to be an accurate source of complete price data across Oregon communities. iv. What databases are used in the survey? Are they from multiple sources, including licensing, resource and referral, and the subsidy program? Child Care Resource & Referral database, Find Child Care Oregon. v. How does the survey use good data collection procedures, regardless of the method for collection (mail, telephone, or web-based survey)? Data are valid if they measure what they are intended to measure. The market price study findings are considered valid to the extent that the facilities from which price data are collected represent all facilities with child care prices. Factors that affect the representativeness of market price study findings include response rate, completeness of data, geographic representativeness, and currency of the data. On each of these validity indicators, the CCR&R 2022 database was assessed to be valid. Specifically: Response Rate. Of the total 4,780 facilities that were active as of December 2022, 4,048 (85%) met the definition of a priced child care market. Of those defined as market care, 3,111 (77%) provided full-time price data. Of those with full-time prices, 88% had usable prices that had been updated within a six-month period for a final sample size of 2,752 providers. This is a similar response rate to past years and aligns with best practice recommendations. Data Completeness. Data were very complete with limited missing data for critical variables for facilities that met the definition of a priced child care market. For example, of the sample of market care facilities (4,048), price data were reported for 77% of the facilities. Approximately 23% had no price data, including facilities (such as Head Start programs) who do not directly charge consumers and thus have no prices to report. Other facilities refuse to submit prices for a variety of reasons. Reasons for refusals include complicated, variable pricing structures, or preferring to discuss prices directly with parents. Geographic Representativeness. The CCR&R database included facility price information gathered across all 36 Oregon counties. By any measure, the geographic detail and sample size are adequate to represent the population of Oregon facilities who offer care in the priced child care market. Data Currency. Price and capacity data were updated by the state’s CCR&Rs from October ￿ December 2022. Price data were based on the current prices that facilities offered in the marketplace at that current point in time. Of facilities with full-time price data, 86% met a standard of three-month currency and 87% met the standard of six-month currency that is used in this report. The CCR&R database provides data that is relevant to policy decision-making and facilitates comparison of market prices over time. Use of the CCR&R database provides a financially feasible source of price data that is large enough and comprehensive enough to reliably produce prices at both local and state levels. CCR&R data have been used in previous market price surveys both in Oregon and in other states. Consistency in data source facilitates comparing market prices over time. Use of existing datasets, such as the CCR&R database, decreases the costs and thus increases the feasibility of periodic data collection and analysis. Further, the CCR&R staff are well connected with their communities which leads to more accurate data collection, such as knowing how to best get ahold of different facilities (e.g., phone vs. email) and having staff who speak multiple languages to communicate with facilities. Additionally, the CCR&R database reflects the complexity of the child care market. Less complexity would oversimplify the market and the findings. However, complexity is often confusing. It falls to the analysis to ensure that findings related to key policy variables can be easily understood and interpreted. More information can be found within the 2022 Market Price Study analysis located at https://health.oregonstate.edu/sites/health.oregonstate.edu/files/early- learners/pdf/research/2022_oregon_market_price_study_-_main_report.pdf vi. What is the percent of licensed or regulated child care centers responding to the survey? 58.00 vii. What is the percent of licensed or regulated family child care homes responding to the survey? 80.00 viii. Describe if the survey conducted in any languages other than English: The data were collected by the CCR&Rs who have staff who speak multiple languages. 82% of the responses were collected in English, 14% in Spanish, 3% in Russian and <1% in other languages (Arabic, Cantonese, Mandarin, Chinese, Somali, and Vietnamese. ix. Describe if data were analyzed in a manner to determine price of care per child: The price per child care slots was calculated by weighting the reported prices by facility capacity. To estimate facility capacity, the maximum number of children desired by the facility is used rather than regulated capacity, as many programs do not enroll to their legal capacity. Total age-group capacity was defined as the total capacity for a given age group-infants, toddlers, preschool-age, school-age school year, or school-age summer. For center and large home-based care, age group capacity was used to weight care prices. Weighting prices by capacity was most important for centers, which varied extremely by size. Total age group capacity data for were used because: (1) it was possible to collect data on total age group capacity for centers and large home-based care and (2) age group capacity used in conjunction with the prices of that age group most accurately reflected weighted priced for that particular age group. For center and large home-based care with missing age capacity data, age group capacity was estimated by calculating the proportion of total capacity from the available age group capacity data. For small home-based providers, total capacity regardless of age of child served, was used to weight care prices. Unlike center and large home-based care that are licensed for a set capacity for each age group, small home-based providers are licensed for a total capacity (with some restrictions such as not more than two children under age two.) x. Describe if data were analyzed from a sample of providers and if so, how the sample was weighted: Given the adequate response rates across the state, the universe of providers was analyzed, and sampling weights were not used. e. Price variations reflected. The market rate survey data or ACF pre-approved alternative methodology data must reflect variations in child care prices or cost of child care services in specific categories. i. Describe how the market rate survey or pre-approved alternative methodology reflected variation in geographic area (e.g., county, region, urban, rural). Include information on whether parts of the State or Territory were not represented by respondents and include information on how prices or costs could be linked to local geographic areas. The 2022 Market Price Study identified the geographic distribution of prices across the state. Oregon Department of Human Services (ODHS) seeks to set its allowable maximum subsidy rates so that families eligible for child care subsidies have access comparable to other families in the general population. The Child Care Development Fund (CCDF) Final Rule benchmark for equal access is defined as subsidy rates that are set at the 75th percentile of the market price within a geographically defined area. To estimate variation prices the following steps were taken: Step 1 - to determine which age group prices were most representative of all age group prices. Using small home-based, center, and large home-based care data for each zip code area, a combined average price for infant, toddler, and preschool age care was calculated and compared to the average prices for each separate age group. Toddler prices were found to be closest to the combined price, and most representative of all age group prices. Thus, toddler prices were selected as the basis for grouping zip codes by price data. Toddler prices were also used as the basis for grouping price data in previous studies. Step 2 was to determine the predominant mode (hourly, daily, weekly, monthly) used by facilities for each type of care. Selecting the predominant mode by type of care is important because it produces the largest sample size in which to conduct the cluster analysis. Monthly was the prominent pricing mode for all types of care in 2022, see Methodological Issues section for more information. Thus, the cluster analysis used monthly prices for all types of care and age groups. Step 3 involved calculating the 75th percentile for toddler prices in each zip code area using small home-based, center, and large home-based toddler price data using price data weighted by child care slots to get a ￿slot price’. This data was used to run the cluster analysis in a statistical software program. Various clusters and cluster methods were performed, and results were evaluated for the best model fit. Based on the results of the analyses, three clusters (1-3) were selected for small home-based care and four clusters (1-4) for center and large home- based care. Higher number clusters represent higher prices and vice versa for lower cluster numbers. Step 4 used the results from Step 3 to determine the range of prices, by type of care, for each of the clusters. The cluster procedures were repeated for infant and preschool-age group prices to compare to the toddler price results determined in step 3 to validate the toddler price clusters. Once the zip codes were divided into preliminary clusters by type of care and age group, a series of tests and visual inspection of maps was done to make sure that, based on price data, the updated clusters appeared valid or if adjustments were needed. Step 5. Finally, a critical step was to smooth the clustering toward geographical consistency. Price consistency within geographic boundaries (ex. cities/towns) was desired to avoid ￿islands￿ of price discrepancy in most cases given that child care markets are made up of parents and providers who have access to one another. Step 6 was to review the geographic price clusters with the advisory committee. Upon approval, these clusters were then used as the basis for all subsequent price analyses. As described earlier, an analysis of prices by zip code was used to identify similar child care markets across geographies. The result was the identification of three clusters (1 ￿ lowest prices to 3 ￿ highest prices) for small home-based providers, and four clusters (1 ￿ lowest prices to 4 ￿ highest prices) for centers and large home-based care. ii. Describe how the market rate survey or pre-approved alternative methodology reflected variation in type of provider (e.g., licensed providers, license-exempt providers, center-based providers, family child care home providers, home based providers). As described in the steps in the section above, the steps to define the price variation by geography were estimated separately for each type of care. This allowed priced to be disaggregated by the type of care so as to test how prices vary not only by geography, but also by the type of care. iii. Describe how the market rate survey or pre-approved alternative methodology reflected age of child (e.g., infant, toddler, preschool, school-age): As described in step 1 of section I, variation in prices by the age of child was examined in step 1 by type of care, and again in step 4, when cluster analyses were run across age groups. iv. Describe any other key variations examined by the market rate survey or ACF pre- approved alternative methodology, such as quality level: The Rate Area Findings Report (formerly known as the Supplement Report) has been produced to support making the transition from geographically grouping prices based on the current three subsidy rate areas to grouping prices in the clusters that appear to better represent the current market. This report describes how child care prices vary by age group, type of care, and Oregon’s current subsidy rate areas. Analyzing data by the existing three rate areas allows us to compare 2022 market prices with the maximum payment rates currently used by the Oregon Department of Human Services (ODHS). This report illustrates that the three rate areas are no longer a valid representation of how market prices group geographically as provider pricing practices have changed. This report is to be sued as a tool alongside the 2022 Marke Price Study Report, which used statistical clustering to define price cluster across the state. More information can be found here. https://health.oregonstate.edu/sites/health.oregonstate.edu/files/early- learners/pdf/research/2022_oregon_market_price_study_-_rate_area_report.pdf 4.2.2 Cost analysis If a Lead Agency does not complete a cost-based pre-approved alternative methodology, they must analyze the cost of providing child care services through a narrow cost analysis. A narrow cost analysis is a study of what it costs providers to deliver child care at two or more levels of quality: (1) a base level of quality that meets health, safety, staffing, and quality requirements, and (2) one or more higher levels of quality as defined by the Lead Agency. The narrow cost analysis must estimate costs by levels of quality; include relevant variation by provider type, child’s age, or location; and analyze the gaps between estimated costs and payment rates to inform payment rate setting. Lead agencies are not required to complete a separate narrow cost analysis if their pre-approved alternative methodology addresses all of the components required in the narrow cost analysis. Describe how the Lead Agency analyzed the cost of child care through a narrow cost analysis or pre-approved alternative methodology for the FFY 2025–2027 CCDF Plan, including: a. How did the Lead Agency conduct a narrow cost analysis (e.g., a cost model, a cost study, existing data or data from the Provider Cost of Quality Calculator)? The Oregon Department of Early Learning and Care (the Lead Agency), contracted with Prenatal to Five Fiscal Strategies (P5FS) to update the state’s child care cost model. The Oregon Child Care Cost Model uses a similar methodology to the Provider Cost of Quality Calculator but is customized to the state context. The original model was developed under a contract with the Center for American Progress and P5FS and was used to inform Oregon’s FY 2022-2024 CCDF State Plan Narrow Cost Analysis. b. In the Lead Agency’s analysis, were there any relevant variations by geographic location, category of provider, or age of child? The Oregon Child Care Cost Model includes variations for provider type, covering licensed child care centers, registered family homes, certified family homes, license-exempt homes and license-exempt centers. The model also includes variation by age of child, aligned with Oregon’s licensing definitions, and variation by program size. The model does not include geographic variation in the cost estimate due to the data sources for key cost drivers (salaries and benefits) being defined at a single statewide level. Salary data collected when the cost model was developed in 2021 found no significant variations in teacher salaries by region and the higher salary data used in the model is also defined only at a single statewide level. c. What assumptions and data did the Lead Agency use to determine the cost of care at the base level of quality (e.g., ratios, group size, staff compensations, staff training, etc.)? The Oregon Child Care Cost model uses Oregon’s child care licensing regulations as the definition of the base level of quality (or regulated subsidy regulations for license-exempt settings). The study team who supported development of the original model reviewed the regulations and identified the key cost drivers associated with meeting each standard. These key cost drivers were discussed with the Technical Work Group when the model was originally developed and informed by data collection with Oregon child care providers. These assumptions were reviewed again prior to updating the model for this plan cycle with a Technical Workgroup comprised of the Lead Agency, P5FS, and Oregon State University (OSU) research partners. In the model, Oregon’s Administrative Rules set forth by the Child Care Licensing Division are used to determine the ratio and group size assumptions, the required training, and the materials and physical space required to meet the needs of children in the program. The base-level staffing model for centers is based on the typical staffing model identified through provider surveys and interviews conducted when the model was originally developed and meets Oregon's regulations. Annual training/professional development is included at 15 hours per teaching staff member per year in licensed programs. In license- exempt programs, 3 hours per year per person is included for training/professional development. Default data from the PCQC is used to determine values for nonpersonnel expenses, including classroom materials. Occupancy costs are based on 35 square foot per child of indoor space (as required by Oregon licensing rules) and an additional 30 square foot per child to account for shared space in the building. Nonpersonnel expenses in license-exempt programs are based on data collected during the original 2021-2022 study, adjusted for inflation. Salary assumptions at the base level of quality are informed by data collected by the Lead Agency’s licensing division in 2022 and analyzed by OSU. This data provides a minimum and maximum hourly pay for lead teachers in Certified Center programs. These values were built into a salary scale developed by P5FS and OSU to inform the model, with minimum values aligned with initial steps in Oregon’s Professional Development Registry and maximum values aligned with the higher steps. Salaries for other positions in the program were calculated up or down from the lead teacher salary, based on data collected by P5FS across several states, including Oregon, to account for the varying responsibilities of different positions in the program. In the family child care setting, an annual salary is built into the model for the provider/owner. While many home-based providers do not pay themselves a salary, the Oregon Child Care Cost Model includes a salary to ensure the cost estimates for home- based care incorporate the need for provider/owners to make a living, and not rely solely on what is left over after all expenses have been paid. In the Oregon model, the provider/owner in a certified or registered home receives the same hourly rate as a lead teacher in a center, but the annual salary is based on a 55-hour work week, for a total of 2,860 hours per year. This is based on data collected from providers for the original model about the number of hours per week the program is open and the hours they work. In license-exempt homes, the provider/owner earns minimum wage based on 40 hours per week. Benefits are included at the base level in the model for licensed providers, in recognition of the need for providers to offer a competitive compensation package. At the base level, the model includes 10 days paid sick leave and 10 days paid leave as well as a contribution to health insurance, matching the original Oregon cost model and align with national defaults. Paid time off is accounted for as a cost in the model by including the cost of a floater or substitute to cover while the employee is on leave. The cost of the employer contribution to health insurance is based on 2022 data (most recent available) from the Kaiser Family Foundation for the average employer contribution to employee health insurance in Oregon. These benefits apply in both the licensed child care center and licensed home-based models. Default scenarios were created for each setting and vetted by the Technical Workgroup. In the center-based programs, the default scenario includes 4 classrooms, serves infants, toddlers, preschoolers, and school-age children, and has a total capacity of 68 at the base level and 66 at the higher-quality level. The certified family home setting uses a default capacity of 14 children, including 5 school-age children. The registered family home setting uses a default capacity of 10 children, including 4 school-age children. The license- exempt home uses a default capacity of 3 children. d. How does the Lead Agency define higher quality and what assumptions and data did the Lead Agency use to determine cost at higher levels of quality (e.g., ratio, group size, staffing levels, staff compensation, professional development requirements)? A Lead Agency can use a quality improvement system or other system of quality indicators (e.g., accreditation, pre-Kindergarten standards, Head Start Program Performance Standards, or State-defined quality measures). The Oregon Child Care Cost Models use quality standards for Baby Promise and Preschool Promise as the definition of higher quality in licensed programs. For the original model, the cost model study team reviewed the standards for Baby Promise and Preschool Promise and identified the key cost drivers associated with meeting these standards. These key cost drivers were discussed with the original Technical Work Group and agreement was reached on the default assumptions that would be included in the model. These assumptions were reviewed again by the Technical Workgroup prior to updating the model for this plan cycle. The following adjustments are made in the model to account for higher quality: The group size for preschoolers is reduced from 20 at licensing to 18 under Preschool Promise. Other ratio and group size assumptions remain the same. An additional 20 hours of professional development is included annually for all staff and an additional 5 hours per month for home-based providers participating in a Focused Child Care Network. The cost of a floater or substitute is included to cover the time that staff are engaged in professional development. Two family-teacher conferences annually are included at the Baby/Preschool Promise level. The model includes time for the teacher to prepare and lead the conference, with the cost of a floater or substitute included to maintain ratios/group size while the teacher is leading a conference. Planning release time is included to provide teachers with dedicated time to plan lessons and analyze data. For lead teachers in a child care center and provider/owners in a home- based program, 1.5 hours per day is included in the model. An additional 0.5 hours per day is included for assistant teachers. The cost of this time is accounted for through a substitute or floater to cover the classroom while the teachers are engaged in planning. The cost of a developmental screening is included for all children at the higher quality level, based on data from the PCQC. The cost model also includes higher salaries at the Baby Promise and Preschool Promise level. This recognizes the need to increase compensation to recruit and retain educators with higher credentials and experience. The Preschool Promise guidelines include a target salary scale which all providers participating in the program are expected to work towards. This salary scale is included in the cost model and represents a 32-50% increase on salaries under the base scenario, depending on the job position. In license-exempt settings, the higher-quality definition is based on requirements for these programs to receive the enhanced rate offered by the Lead Agency. Under this scenario, license-exempt providers must complete additional training requirements. In the cost model this is realized as an additional 6 hours per year for training/professional development. e. What is the gap between cost and price, and how did the Lead Agency consider this while setting payment rates? Did the Lead Agency target any rate increases where gaps were the largest or develop any long-term plans to increase rates based on this information? The Lead Agency used the Oregon Child Care Cost Model to estimate the true cost to provide licensed child care and to meet higher quality standards as defined by Baby Promise and Preschool Promise. The tables linked below show the gap between Oregon's current CCDF payment rates and the estimated cost of care, based on the cost model at both the base level and the higher-quality level. The tables show the gap at both Group Area A rates and Group Area B rates, with separate tables for certified centers, certified family homes, registered family homes, license-exempt centers and license-exempt family homes. Because the cost model provides statewide costs, the results are also compared to an average subsidy rate. Costs and subsidy amounts are based on full-time care for infants, toddlers, and preschoolers. School-age costs are based on 60% attendance over the course of a year (accounting for before/after school only during school year) and are therefore compared to the part-time subsidy rate. Oregon's rate-setting is determined through a Collective Bargaining process with our child care provider unions to ensure equity and accountability in subsidy rates. The tables available on DELC's website (https://www.oregon.gov/delc/about- us/pages/state-plans.aspx) present the results of the narrow cost analysis, with comparisons of the monthly cost of care to the current subsidy rates. Note, the gap indicates by how much subsidy is under/over the cost of care. A negative gap number noted with parenthesis indicates the subsidy rate is less than the estimated cost of care. A positive gap number indicates the subsidy rate is more than the estimated cost of care. In looking at the statewide cost of care and the average subsidy, the findings are as follows for the base level of health and safety and quality requirements: Certified Centers (meeting licensing standards) Infants: -$427 per month Toddlers: -$258 per month Preschool: -$85 per month School Age: -$24 per month License-Exempt Centers (meeting enhanced rate standards): Infants: -$293 per month Toddlers: -$146 per month Preschool: +$6 per month School Age: -$26 per month Certified Family Homes (meeting licensing standards): Infants: +$21 per month Toddlers: -$76 per month Preschool: -$218 per month School Age: +$7 per month Registered Family (meeting licensing standards): Infants: -$309 per month Toddlers: -$388 per month Preschool: -$437 per month School Age: -$61 per month License-exempt homes (meeting enhanced rate standards): Infants: -$60 per month Toddlers: -$134 per month Preschool: -$181 per month School Age: -$ per month Rates are determined through a collective bargaining agreement with union-represented child care providers. The next bargaining session is set to occur in the winter/spring of 2025. Oregon is currently working towards implementing alternative methodology for subsidy rate setting, to complement the market rate survey. The narrow cost analysis results provide an initial insight into the true cost of care and the subsidy rates necessary to cover this cost. 4.2.3 Publicly available report on the cost and price of child care The Lead Agency must prepare a detailed report containing the results of the MRS or ACF pre- approved alternative methodology and include the Narrow Cost Analysis if an ACF pre-approved alternative methodology was not conducted. The Lead Agency must make this report widely available no later than 30 days after completion of the report, including posting the results on the Lead Agency website. The Lead Agency must describe in the detailed report how the Lead Agency took into consideration the views and comments of the public or stakeholders prior to conducting the MRS or ACF pre-approved alternative methodology. a. Describe how the Lead Agency made the results of the market rate survey or ACF pre-approved alternative methodology report widely available to the public by responding to the questions below. i. Provide the date the report was completed: 3/10/2023 ii. Provide the date the report containing results was made widely available (no later than 30 days after the completion of the report): 4/11/2023 iii. Provide a link to the website where the report is posted and describe any other strategies the Lead Agency uses to make the detailed report widely available: https://health.oregonstate.edu/early-learners/research/oregon-child-care- market-price-study-2022 iv. Describe how the Lead Agency considered partner views and comments in the detailed report. Responses should include which partners were engaged and how partner input influenced the market rate survey or alternative methodology: The market price study advisory committee included 20 individuals representing state agency partners, university partners, advocacy organizations, child care providers, and central and local CCR&R directors and staff. The committee was formed during the summer before the 2022 data collection process and met to review and provide input into the data collection process in early fall 2022. The committee then met again during the data collection process (late fall 2022) to discuss data collection progress and worked together to develop supports to improve response rates and communicate challenges and successes from the field. The committee then met again in winter 2023 to review final dataset, celebrate success of high response rate, and provide input on which results need to be included in the final report and how to communicate results so report is a useful tool for all decision-makers. Finally, a fourth meeting was held in early Spring 2023 to review and provide input into the final report draft and gather reflections on the process to inform future Market Price Study efforts. The Lead Agency makes the Market Price Study widely available by sharing it in our monthly Child Care Update newsletter as well as sharing the report at the Bi- weekly Early Learning Advocates meetings and at Provider Information sessions. We also share the link to the Market Price Study on the Lead Agency website.