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_ 224 Item Details($) Appropriations($) ITEM 125.10. First Year Second Year First Year Second Year FY2025 FY2026 FY2025 FY2026 1. Adjustments to CCSP reimbursement rates for school age children and the appropriateness of continuing to provide services through CCSP to school age children. Such review must also include an update on the current structure of publicly-funded out-of-school time learning and extracurricular programs and should evaluate how to: (i) maximize public dollars while ensuring parent choice; (ii) quantify impact and return on investment including evaluating cost and cost factors in comparison to birth-to-five programming; (iii) strengthen quality of afterschool and summer options and whether a statewide measurement system is needed; (iv) identify out-of-school time deserts; and (v) develop innovative approaches to reduce deserts, better support working parents, and ensure sustainability. In conducting this review, the Commission shall consult representatives of school divisions, 21st Century Learning grantees, private childcare providers, Virginia Partnership for Out-of-School Time, local Parks and Recreation entities, the YMCA, Communities in Schools, Boys and Girls Clubs, and other non-profit organizations that provide out-of-school time programming. 2. Approaches to maximize state and federal resources by adjusting income eligibility requirements to reflect regional costs of living variations. The Commission shall provide a report on its recommendations to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by December 1, 2025. J. The Employee Child Care Assistance Pilot Program (the Pilot Program) is established for the purpose of providing matching funds in order to incentivize employers to contribute to the child care costs of their employees. The Pilot Program shall be administered by the Virginia Early Childhood Foundation (the Foundation). The Foundation shall establish such guidelines and procedures as it deems necessary for the administration of the Pilot Program, subject to the following conditions and requirements: 1. To participate in the Pilot Program, an employer shall agree to make child care contributions to an eligible mixed delivery provider on behalf of the employee and shall provide any other information deemed necessary by the Foundation. The Foundation shall issue a state match directly to an eligible mixed delivery provider, or to a third-party administrator, that has entered into an agreement with a participating employer. 2. The Foundation shall, in consultation with the Early Childhood Care and Education Commission, establish guidelines for the pilot program. Such guidelines shall: (i) limit eligibility for state contributions for slots serving households with income at or below 85 percent of the state median income; (ii) establish a schedule of expected family copayments not to exceed 5 percent of household income for households with income at or below 300 percent of the federal poverty level and between 5 percent and 10 percent of family income for households with incomes above 300 percent of the federal poverty level and below 85 percent of the state median income; and (iii) provide that the state match does not exceed 40 percent of the cost of the slot remaining after application of family copayments. 3. Pilot Program funds shall be provided on a first-come, first-served basis. The Foundation is encouraged to prioritize participation of small businesses and serving a variety of employers and employees representing each Ready Region. 4. The Foundation may combine the Pilot Program with or incorporate the Pilot Program into a program or initiative related to the Mixed Delivery Program provided that such a combination allows for the maximization of funds used for the purposes in this item. 5. The Foundation shall provide a report to the General Assembly by September 1 each year on the effectiveness and impact of the program. 6. Any balances appropriated for the Pilot Program that are unexpended on June 30, 2025, June 30, 2026 and June 30, 2027, shall not revert to the general fund but shall be reappropriated for expenditure for the same purpose until June 30, 2028. 7. For the purpose of the Pilot Program, "Eligible mixed delivery provider" means a child day center or family day home that has been selected or identified to deliver mixed delivery services through a local agreement with the relevant regional entity established pursuant to subsection D of § 22.1-289.05 of the Code of Virginia, "Employer" means an employer with at least one employee who works in the Commonwealth in each of 20 or more calendar weeks in I VETO ITEM 125.10.J. ON PAGE 216 AND PAGES 224-225 /s/ Glenn Youngkin 5-2-25