Page 6

www.prenatal5fiscal.org 4 of a weekly family share ranged from $0 for families making 150 percent or less of the federal poverty level to $200 per week for families making 350 percent of FPL.vii Act 45 of 2021 called for further exploraDon of opDons for expanding access to Vermont CCFAP subsidies, with progressively increasing income eligibility increases and a cap on the family share payment of no more than 10 percent of family income.viii The Vermont Joint Fiscal Office commissioned a financing study that provided recommendaDons and cost esDmates.ix The study, conducted by RAND, esDmated that the CACFP subsidy rates, as of 2021, were far below the true cost of providing quality child care with a well-compensated workforce, with the gaps largest for licensed centers serving infants and toddlers, and for registered homes. In 2023, the state legislature mandated several policy changes related to Vermont’s child care subsidy system via Act 76. Specifically, these changes included phased increases to the state reimbursement rates for child care programs parDcipaDng in Vermont’s CCFAP. The first phase, effecDve July 2, 2023, created a simplified rate schedule that is intended to beFer reflect the cost of providing child care and also delinked payment rates from a program’s STARS raDng, a change that could provide lower-rated programs with more resources to improve quality. The CCFAP reimbursement rate for 5-STARS programs in June 2023 became the base rate for all programs in July 2023. Base rates in licensed centers increased between $109 and $146 per week per child, ranging from $275 for full-Dme school-age care to $349 for infant full-Dme. Base rates for registered family child care homes increased between $70 and $81 per week per child, with rates ranging from $200 for school-age care to $225 for infant care. In the second phase, beginning December 17, 2023, these rates increased by 35 percent and the state started paying the state rate regardless of the providers' published private pay tuiDon rate. AddiDonally, in July 2024, registered home providers will receive a further increase of between $51 and $83 per week per child. Table 1 below details the rates before Act 76 and the subsequent increases. Overall, the rates as of December 17, 2023, represent an increase of between 102 percent and 145 percent from the rates before Act 76, providing significant addiDonal resources to providers who serve subsidy-eligible children. Table 1: Vermont CCFAP Payment Rates Age Group Licensed Center Registered Home Base Payment Ratex (prior to Act 76) State Capped Ratexi 7/2/23 State Rate 12/17/23 Base Payment Rate (prior to Act 76) State Capped Rate 7/2/2023 State Rate 12/17/23 State Rate 7/1/2024 Infant $210 $349 +$139 $471 +$122 $145.38 $225 +$79.62 $304 +$79 $387 +83 Toddler $201.92 $328 +$126.08 $443 +$115 $141.35 $211 +$69.65 $285 +$74 $364 +79 Preschool $179.21 $325 +$145.79 $439 +$114 $129.23 $210 +$80.77 $284 +$74 $361 +77 School-age $166.33 $275 +$108.67 $371 +$96 $121.15 $200 +$78.85 $270 +$70 $321 +51 Note: rates are weekly, for full-2me care. For full rate details see h:ps://outside.vermont.gov/dept/DCF/Shared%20Documents/CDD/Act76/CCFAP-Rate-Increase-Per-Act-76.pdf AddiDonal policies enacted through Act 76 include increasing eligibility to 400 percent FPL in April 2024 and then 575 percent of FPL in October 2024, disallowing applicaDon and waitlist fees for Vermont CCFAP-eligible children and paying CCFAP based on enrollment. Previously, programs were reimbursed based on aFendance – if a child did exceed the number of allowed absences, the program did not receive payment or received a reduced payment, while holding a space for that child.