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)? Data was gathered between March 20, 2022 through May 9, 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: For the Market Rate Survey completed in 2022 the Department consulted with the Wyoming Early Childhood State Advisory Council (SAC) to inform the scope of the project and process for gathering market price data. The Department incorporated the feedback, regarding verbiage of the questions and order of the questions, provided into the scope of work and process for the market price survey. iv. Local child care program administrators: For the Market Rate Survey completed in 2022, the Department consulted with local child care program administrators to inform the scope of the project and the process for gathering market price data. The Department incorporated the feedback, regarding verbiage of the questions and order of the questions, provided into the scope of work and process for the market price survey. v. Local child care resource and referral agencies: For the Market Rate Survey completed in 2022, the Department is the statewide Child Care Resource and Referral agency and consequently the Child Care Resource and Referral staff was a member of the survey development team, to develop the scope of the project and the process for gathering market price data. The Department incorporated the feedback provided into the scope of work and process for the market price survey. vi. Organizations representing child care caregivers, teachers, and directors from all settings and serving all ages: For the Market Rate Survey completed in 2022, the Department consulted with other stakeholders including caregivers, teachers and directors, to develop the scope of the project and the process for gathering market price data. The Department incorporated the feedback provided into the scope of work and process for the market price survey. vii. Other. Describe: n/a 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? 5/9/2022 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)? Data was gathered between March 20, 2022 through May 9, 2022. iii. Describe how it represented the child care market, including what types of providers were included in the survey: PCG contacted all licensed child care providers across the State from all zip codes and categories of licensed care and asked uniform questions to each respondent, which ensured consistency. The solicited responses were gathered from multiple ways of sending emails to providers, employing an outbound call to contact providers, providing a toll free number to providers to call in themselves to take the survey over the phone, and posting information about the survey on the Department’s website. The response rate was 55.80% of all providers in the state. PCG estimated with the number of responses that there was a 3.897% percent of error in data assuming 95% confidence level. iv. What databases are used in the survey? Are they from multiple sources, including licensing, resource and referral, and the subsidy program? Wyoming Child Care Licensing System v. How does the survey use good data collection procedures, regardless of the method for collection (mail, telephone, or web-based survey)? These surveys were drafted by DFS and PCG and after receiving final approval, the surveys were built into an online survey collection tool which served as the primary portal for gathering completed surveys. Once the surveys were built into the online tool, DFS distributed an initial email announcement to the statewide provider community with a URL link to access the survey beginning March 28, 2022. Between March 28 through May 9, 2022. PCG and DFS promoted the survey through various means, including: ● Sending emails to providers who had not yet completed the survey. ● Employing an outbound call team to contact providers who had not yet completed the survey and offering them the opportunity to take the survey over the phone. During this time, the call team made over 1,000 calls to the provider community. Other correspondence provided a toll-free number for providers to call-in themselves to take the survey over the phone. ● Offering all providers a $50 Visa gift card for the completion of their Market Rate Survey, and an additional $50 gift card for completion of the Cost of Care survey. Gift cards were distributed in June 2022. ● Posting information about the survey and the survey link on the DFS website and other mediums. vi. What is the percent of licensed or regulated child care centers responding to the survey? 58.20 vii. What is the percent of licensed or regulated family child care homes responding to the survey? 53.70 viii. Describe if the survey conducted in any languages other than English: n/a ix. Describe if data were analyzed in a manner to determine price of care per child: n/a x. Describe if data were analyzed from a sample of providers and if so, how the sample was weighted: n/a 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 Rate Survey was conducted statewide and included all zip codes to reflect all geographic areas of the state. 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). The 2022 Market Rate Survey targeted all types of licensed child care providers across the state. iii. Describe how the market rate survey or pre-approved alternative methodology reflected age of child (e.g., infant, toddler, preschool, school-age): The 2022 Market Rate Survey solicited information from licensed child care providers serving children birth to 13 years. iv. Describe any other key variations examined by the market rate survey or ACF pre- approved alternative methodology, such as quality level: n/a 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)? As a separate vehicle for collecting data, a cost of care form was developed and associated with the main, licensed provider survey for providers to take separately and provide additional cost information to the state on the provision of child care. PCG contacted all licensed child care providers across the State from all zip codes and categories of licensed care and asked uniform questions to each respondent, which ensured consistency. The solicited responses were gathered from multiple ways of sending emails to providers, employing an outbound call to contact providers, providing a toll free number to providers to call in themselves to take the survey over the phone, and posting information about the survey on the Department’s website. b. In the Lead Agency’s analysis, were there any relevant variations by geographic location, category of provider, or age of child? Public Consulting Group contacted all licensed child care providers across the State from all zip codes and categories of licensed care and asked uniform questions to each respondent, which ensured consistency. A total of 341 providers responded to the market rate survey. However, only 133 Providers, 63 Center Based, 28 Family Child Care Centers, and 41 Family Child Care Home Based completed the optional Cost of Care Form. This represents only 39% of the survey responses. It was insufficient to accurately reflect the statewide average cost of care. 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 Department does not have a QRIS or quality rating system, so every provider was considered to be providing the base level of quality; however, the Department did not use the cost of care in determining rates. Rates were based on the Market Rate Study. 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). Wyoming does not have a QRIS, but Wyoming identifies professional development as a measure for quality. The Wyoming STARS vendor spends significant time identifying, reviewing and approving many different options for providers, directors and staff to meet the health and safety requirements and are frequently updating the information available to providers, directors and staff. Educators are regularly offered individual as well as group facilitation to determine specific professional learning goals which leads to quality programs which offer authentic, intentional and developmentally appropriate learning environments for children. Direction and support are offered to those who are seeking furthering their education through higher education. Educators were also offered access to a training calendar which provided information on training access to relevant core knowledge areas in areas that support the CDA. The Lead Agency also provides information to educators about financial assistance available to them to further their professional development and career pathway. Educators are regularly offered infant toddler credentials through the funding and direction of the Lead Agency. The Department in conjunction with Wyoming STARS and Wyoming Department of Workforce Services partner to provide quality professional development opportunities for child care providers which includes provision of face-to-face training, identification of on- line training opportunities and financial support for participation in approved training. 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? Department did not use the cost of care in determining rates. Rates were based on the Market Rate Study. Additionally, the narrow cost analysis response rate was too low to accurately reflect the statewide true cost of care. 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: 6/27/2022 ii. Provide the date the report containing results was made widely available (no later than 30 days after the completion of the report): 6/27/2022 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://dfs.wyo.gov/services/family-services/child-care/ 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: Following the initial analysis of the data collected from the 2022 Market Rate Survey, revisions were made after the Department reviewed the report and the Market Rate Survey was released within 60 days of the revisions. In addition, the Department received feedback from other stakeholders, including providers and early childhood advocates, which was used to make technical adjustments to the survey before and during implementation of the survey. These same entities did not provide feedback regarding the detailed report.