Slide 1 (Presentation Title): State of Early Education in Massachusetts Presentation to the Board of Early Education and Care

Slide 1 (Presentation Title): State of Early Education in Massachusetts

Presentation to the Board of Early Education and Care

October 14, 2014

Thomas L. Weber, Commissioner

Slide 2: Presentation Overview

• Why Early Education Matters

• Early Education Makes Good Sense

• A Bold Step in Massachusetts

• Access to Quality Programs for Outcomes

• Reflecting on a Decade

• Challenges to Further Progress

• Moving Forward Together and Next Steps

Slide 3: Why Early Education Matters

• Massachusetts students continue to lead their peers on national and international measures of student achievement.

• However, Governor Patrick recognizes that there are still persistent achievement gaps that disproportionally affect students in lower-income communities, English language learners, students with disabilities and students of color.

• Closing the achievement gap is one of the central pillars of the Patrick-Murray Administration’s strategy to educate all students and create a top-tier, competitive workforce

• Third grade literacy proficiency is an important predictor of a child’s future academic success.

• Providing access to high-quality early education programs is a vital component of addressing the achievement gap. 

Slide 4: The Achievement Gap Begins Early

• Vocabulary gaps by household occupational status can be seen early

• By 36 months:

• Children in professional families know 1,116 words

• Children in working class families know 749 words

• Children in families receiving welfare know 525 words.

• Statewide MCAS results for third-graders (Sept. 2014):

• 32% scored below proficient in Mathematics

• 43% scored below proficient in English-Language Arts

Slide 5 Why Should the Public Care About Early Ed?

In addition to benefits to children/students (strategy to close achievement gap and promote school readiness), investment in early ed yields:

• Benefits to government and society:

  • Reduced public costs for:

    • Remediation

    • Rehabilitation/incarceration

    • Need for future public assistance

• Benefits to workforce and families:

  • Assists with economic self-sufficiency

    • Obtaining/maintaining employment

    • Increased competencies through two-generational model of parent/child education and development

  • Supports business retention through availability of educated/qualified workforce

Slide 6 Investing Early Makes Economic Sense

• Research suggests greater ROI the earlier the investment

• Investment in early ed yields positive return in savings on education, crime and welfare spending; increased taxes on earnings*

• Investment of $15K/child returned total public benefit of $195K/child*

• Data source:

*From “Lifetime Effects: The High/Scope Perry Preschool Study Through Age 40 (pp. 194–215), by Lawrence J. Schweinhart, Jeanne Montie, Zongping Xiang, W. Steven Barnett, Clive R. Belfield, & Milagros Nores, 2005, Ypsilanti, MI: High/Scope Press. © 2005 by High/Scope ® Educational Research Foundation. Available at: http://www.highscope.org/file/Research/PerryProject/specialsummary_rev2011_02_2.pdf

Slide 7: A Bold Step

• The Commonwealth established the Massachusetts Department of Early Education and Care in 2005

• First agency of its kind in the nation

• Department was created to develop a more effective and
  coordinated early education and care system

• Merged the Office of Child Care Services with the Early Learning Services division of the (former) Department of Education (now the Department of Elementary and Secondary Education)

Slide 8 The Department of Early Education and Care

We license programs, provide financial assistance, and much more!

Family engagement

Licensing/investigations

Quality

Mental health

Infants/toddlers

Workforce development

Universal PreKindergarten (UPK)

Safety/Background Records Checks

Slide 9: Building the House: System for Success

Our state has instituted a solid framework for building a high-quality, accessible system of early education and care for children and families.

Central to these connections is EEC’s partnership with families and communities as EEC recognizes and values that families are their child’s first teacher.

Key EEC stakeholders include:

EEC Board

Governor, Executive Office of Education, Department of Elementary and Secondary Education

Department of Higher Education

Legislature

EEC Advisory Council

Public School Districts

Provider working team

SEIU 509

MADCA, MAP, MASSCAP

Head Start State Collaboration Office

Mass Head Start Association

Child Care Resource and Referral Agencies

Coordinated Family and Community Engagement networks

Educator/Provider Support networks

This list is not meant to be all-inclusive. We know that there are unaffiliated, independent providers not represented by some of the membership organizations shown here

• 
  The majority of EEC’s funding is actually federally-sourced through revenue claiming ($416.7M).
  
• 
  EEC’s total budget for FY15 is $535M.
  
• 
  FY15 General Appropriations Act (GAA) by line item:
  
• 
  3000-1000, Administration, 13,365,851
  
• 
  3000-1050, EEC Assessment, $385,000
  
• 
  3000-2000, Access Management, $6,503,861
  
• 
  3000-3050, Supportive Care, $79,730,057
  
• 
  3000-4040, Birth through Preschool expansion, $15,000,000
  
• 
  3000-4050, DTA Related Child Care, $133,477,330
  
• 
  3000-4060, Income eligible child care (does not include FY14 Prior Appropriation Continued), $241,894,678
  
• 
  3000-5000, Grants to Head Start, $9,100,000
  
• 
  3000-5025, K1 Classroom Grant Program, $1,000,000
  
• 
  3000-5075, UPK, $7,500,000
  
• 
  3000-6075, Mental Health, $750,000
  
• 
  3000-7040, EEC Contingency Contract Retained Revenue, $200,000
  
• 
  3000-7050, Services for Infants and Parents, $18,464,890
  
• 
  3000-7070, Reach Out and Read, $700,000
  
• 
  15990-0042, CBC Reimbursement Rate Reserve, $6,573,571
  
• 
  Total: $534,645,238
  
• 
  An estimated $33M in Ch. 70 state funding supports approximately 20,000 children in public preschool classrooms.
  

Slide 12: EEC State Budget History

FY07: $495.97M

FY08: $537.23M

FY09: $553.43M

FY10: $505.35M

FY11: $508.59M

FY12: $495.18M

FY13: $479.14M

FY14: $503.25M

FY15: $543.74M

Total amounts are adjusted for prior appropriations continued into the next fiscal year.

• 
  We have also sought federal funding to help our programs attain and maintain high quality levels, and to help families in need to access these programs.
  
  • 
    $23.97 million CCDF discretionary obligation through the American Recovery and Reinvestment Act of 2009 (ARRA)
    
    • 
      Funds served additional children and families as well as new families, and supported program quality improvements
      
  • 
    $50M Early Learning Challenge grant to strengthen the state’s comprehensive early childhood system (2012-15)
    
    • 
      Grant is supporting program quality improvements
      
    • 
      Goal is to ensure that all children, especially those who are high needs, have a solid foundation for school and life success
      
• 
  Massachusetts is applying for $60M in funding through the federal Preschool Expansion Grant program Request ($15M per year x 4 years)
  
  • 
    Increase the quality of preschool programs and related services, and their effectiveness in terms of child outcomes
    
  • 
    Increase number of 4 year-olds enrolled in high quality preschool
    

Slide 14: Formal Programs: Who EEC Serves

Department of Children and Families (DCF) Child Care

• 
  Families are referred based on open protective service cases
  
• 
  Type: Contracted slots
  
• 
  Served: 7,000 in Aug
  
• 
  Placement List: 800
  

• 
  Families are referred based on participation in employment services program
  
• 
  Type: Vouchers
  
• 
  Served: 14,700 in Aug
  
• 
  Immediate Access
  

• 
  Financial assistance for low-income families with a service need, on a first come/first served basis.
  
• 
  Type: Vouchers & Contracted slots
  
• 
  Served: 34,000 in Aug
  
• 
  Waiting List (28,000 all ages)
  

Slide 16: Reach of Current Subsidy System

Children Enrolled in Early Education Program through EEC subsidy:

Current monthly caseload:

Infant: 3,148

Toddler: 9.028

Preschool: 17,941

School Age: 27,459

Total: 57,576

Data is from August 2014 billing

Universe of children of same age groups and eligiblity categories in Massachusetts: 1,330,163
Slide 17: How Far We Have Reached Over Time

• 
  Transitional Child Care (subsidies for DTA involved families) held steady from 15,847 in FY10 to 15,882 in FY14 (average number of children served monthly.)
  
• 
  Supportive Child Care (subsidies for DCF involved families) increased slightly from 6,158 in FY10 to 6,180 in FY14 (average number of children served monthly.)
  
• 
  Income Eligible Child Care (subsidies for low-income families) increased from 29,118 in FY10 to 30,629 in FY14 (average number of children served monthly.)
  
• 
  In addition, EEC served 3,083 new children in FY14 through $15M waitlist remediation funding. EEC expects to serve an additional 2,500 with this same amount in FY15.
  

Slide 18: Other Children Served Through Publicly Funded Early Education

We can account for at least another 70,000 children birth to grade 12 who are supported through public (state and federal dollars.

• 
  Public School District PreK (2.9 – 5 years old): 28,189*(1)
  
• 
  Early Head Start, Head Start (0-5 years old): 14,000**
  
• 
  Afterschool/Out of School Time Quality (K- Gr.12): 11,300***
  (State grant through ESE, funds may support partnerships with EEC-licensed programs)
  
• 
  21^st Century Community Learning Centers (K- Gr.12): 17,000****
  (State grant through ESE, funds may support partnerships with EEC-licensed programs)
  

Current Subsidized: 56K

IE Waitlist: 28K

Potentially eligible CCDF <85% SMI

Total: 247K

Data source:

Estimates of Child Care Eligibility and Receipt for Fiscal Year 2009” ASPE Issue Brief, August, 2012. http://aspe.hhs.gov/hsp/12/childcareeligibility/ib.cfm

For Income Eligible Child Care:

• 
  There are two levels of income eligibility:
  
  • 
    Household income up to 50% of the State Median Income (SMI) at initial assessment; and
    
  • 
    Household income up to 85% of the SMI at each subsequent reassessment.
    
• 
  Families with special needs are allowed to enter at up to 85% of the SMI and remain in care up to 100% of the SMI.
  

The high cost of child care in Massachusetts is not just a challenge for low-income families.

Graph shows two lines -- one for child care costs and another for real median household income.

Slide 21: Child Care Costs Versus Other Expenses

Slide 22: Affordability of Child Care in Massachusetts

• 
  Massachusetts is the 6^th least affordable state in the nation for preschool center-based child care
  
• 
  At an average annual cost of $12,176 for a 4-year-old to attend a center-based program, child care is:
  
  • 
    44.1% of the median income for a family headed by a single mother
    
  • 
    11.2% of median income for
    a married couple
    

Other options in Massachusetts for access to preschool (0-5 years):

• 
  Head Start (mostly federally-funded)
  
  • 
    Federal poverty guidelines
    
  • 
    $15,130 or less household income for family of two
    
  • 
    Ages 3-5 years old
    
• 
  Early Head Start
  
  • 
    Same as above
    
  • 
    Ages 0-3
    
  • 
    Not available in all communities
    
• 
  Public school districts
  
  • 
    May charge (if not special needs)
    
  • 
    Not available in all districts
    
  • 
    Not always full day or full year
    
• 
  Community based programs that fundraise and offer own scholarships or sliding fee scale.
  

Slide 24: Higher Quality for Best Outcomes

• 
  Dual focus on educator qualifications as part of increased program quality
  
• 
  Key mechanisms:
  
  • 
    Launch of the
    Quality Rating and Improvement System
    
  • 
    Educator/Provider Support networks
    
  • 
    Expansion of UPK programs
    
  • 
    Guidelines and Standards for Infants/Toddlers,
    ELA and Math PreK, STE PreK, and Dual Language Learners
    
  • 
    Child Care Quality Fund (“Invest in Children” license)
    
  • 
    Professional Qualifications Registry
    

Slide 25: Moving Towards Higher Education/Qualifications

• 
  Early Childhood Educators’ scholarship launched 2005
  
• 
  1^st year, $1M, 612 approved; current $3.2M, 1,042 approved
  
• 
  $1M one-time supplement through RTTT-ELC
  
• 
  Program once supported up to 9 courses/year, but with increased demand max funding now reduced to 3 courses per year
  
  • 
    Funding for summer courses has not been available for the last couple of years.
    
• 
  Accreditation, UPK and QRIS all have requirements on minimum number of educators who must possess a college degree
  
• 
  Time to achieve degree at rate of 3 courses/year on scholarship:
  
  • 
    6-7 years for Associate’s Degree
    
  • 
    13 years for a Bachelor’s Degree
    

Slide 26: Moving to Higher Levels of Quality

As programs meet higher standards in each category, they progress upward in overall level in the QRIS.

Level 1: Health and Safety Practices

Level 2: Commitment to Quality

Level 3: Focused Development

Level 4: Full Integration
Slide 27: Retaining and Compensating the Workforce

• 
  Increasing program quality through higher standards includes increased requirements for early educators’ qualifications (e.g., college degrees)
  
• 
  Current compensation structure for family/center-based early educators does not match that for public (preK) school educators.
  
  • 
    Family child care provider median salary: $25,001 - $27,500*
    
  • 
    Center-based educator median salary: $22,501 - $25,000*
    
  • 
    Public school educator avg. starting salary in MA: $40,462**
    
• 
  An estimated 30% of the family/center-based early educator workforce attrits annually.***
  
• 
  Salaries and benefits are the most significant operation costs for programs
  

Preparing the Early Education and Care Workforce: The Capacity of Massachusetts’ Intuitions of Higher Education, 2005.

Slide 28: Quality Means Safety and Security

• 
  Background checks and license sanctions are key means of ensuring compliance with EEC safety requirements and protecting the children in licensed programs
  
• 
  Since the launch in February 2014, EEC has fingerprinted 16,000 employees working for EEC- licensed or funded programs
  
  • 
    These individuals first cleared a BRC consisting of a Criminal Offender Record Information (CORI) check, DCF abuse/neglect check, and Sex Offender Registry Information (SORI) check
    
• 
  EEC also employs licensing enforcement actions as warranted, including: sanctions, cease and desist orders, emergency suspensions, license/certification revocations, and refusals to renew/issue license
  
  • 
    The number of licensing enforcement actions has doubled in the last five years
    

Slide 29: Notable Accomplishments

Creation of EEC (FY05)

Early Childhood Educators Scholarship program launched (FY06)

Universal Pre-Kindergarten (UPK) Program launched (FY07)

Professional Development Calendar posted online (FY08)

Workforce Task Force Review and Report (FY08)

Updates to program licensing regulations (FY10)

Professional Qualifications Registry established (FY10)

Guidelines and Standards for early education and care (FY10-14)

Quality Rating and Improvement System (QRIS) launched (FY11)

“Brain Building in Progress” Campaign launched (FY11)

$50 million federal Early Learning Challenge (ELC) Grant award (2012-2015)

Enhancements to background records checks (BRC) (FY13)

Rate increases for subsidized providers of early education and care (FY14, FY15)

Capital fund for early education and care facilities (FY14)

Initial design of a differential licensing model (FY14)

NGA Birth to Third Grade Strategy with ESE and DHE (FY14)

Legislative commission review on EEC administration and operations (FY14)
Slide 30: Challenges

• 
  Increasing Access - Income Eligible, Supportive
  
• 
  Improving Affordability
  
• 
  Supporting Quality Agenda
  
  • 
    Workforce Development
    
  • 
    Compensation
    
• 
  Infrastructure
  
  • 
    Information Technology
    
  • 
    Cross-Sector Alignment
    
  • 
    Staffing, including high licensor caseloads
    
    • 
      273:1 for family child care providers
      
    • 
      90:1 for center-based providers
      

Slide 31: Questions for Consideration

What is working well?

What does the ideal system look like?

What do you want to change?

How can we make meaningful progress in realizing better outcomes for more children/families?

What is the most effective way to do this?
Slide 32: Appendix

Map of select communities in Massachusetts

Education savings: $7,303

Taxes of earnings: $14,078

Welfare savings: $2,768

Crime savings: $171,473

Total public benefit: $195,621

Costs: $15,166

$12.90 return per dollar invested

From “Lifetime Effects: The High/Scope Perry Preschool

Study Through Age 40 (pp. 194–215), by Lawrence J. Schweinhart, Jeanne Montie, Zongping Xiang, W. Steven Barnett, Clive R. Belfield, & Milagros Nores, 2005, Ypsilanti, MI: High/Scope Press. © 2005 by High/Scope ® Educational Research Foundation. Available at: http://www.highscope.org/file/Research/PerryProject/specialsummary_rev2011_02_2.pdf

Massachusetts Census Data (2010)

Infant: 143,376

Toddler: 149,085

Preschool: 150,131

School Age: 632,479

School Age (special needs): 255,092

Total: 1,330,163

Total programs* statewide: 10,078 (July 2014)

West: 1,824

Central: 1,903

Metro Boston: 2,287

Northeast: 2,386

Southeast 1,718

*Includes family child care and group/school age child care only.
Does not include Residential programs or placement agencies.

Program setting:

Family Child care, 51,357

Small group and school age: 246

Large group and school age: 171,255

Total licensed capacity: 222,858
Slide 36: Appendix D: Subsidized Child Care Providers Types

• 
  Voucher Providers:
  
  • 
    Individual provider (both family and center-based) enters into an Agreement with the local Child Care Resource and Referral agency.
    
  • 
    Agreement focuses on billing requirements, and reinforces regulations on subsidized care and licensing/health and safety requirements.
    
  • 
    Contracted Providers:
    
  • 
    EEC competitively procures contracts with child care providers throughout the Commonwealth to secure capacity in potentially hard to reach areas and provide a fixed distribution (maximum award)
    
  • 
    Types of contracted care:
    
    • 
      Income Eligible
      
    • 
      Teen Parent
      
    • 
      Homeless
      
    • 
      Supportive (Families are DCF-involved )
      
  • 
    Contracts are awarded to center-based lead agencies or family child care systems
    
  • 
    For family child care systems, FCCs provide administrative supports, training and home visiting at a rate of ~$10/day for each child placed in an affiliated family child care home.
    

Slide 37: Appendix E: Priority Access Programs

• 
  Transitional Assistance Families (DTA)
  
  • 
    Child care voucher for families receiving Transitional Aid to Families with Dependent Children (TAFDC) cash assistance and participating in the Employment Services Program, or
    
  • 
    Child care voucher for families in the 12 month period after close of TAFDC benefits
    
• 
  Supportive Child Care (DCF)
  
  • 
    Child care for families who are receiving or at risk of receiving, protective services through the Department of Children and Families.
    
  • 
    Includes foster care; a physical, mental, emotional or medical condition; or participation in a drug treatment or rehabilitation program
    
• 
  Homeless Child Care
  
  • 
    For families residing in homeless shelters affiliated with the Department of Housing and Community Development (DHCD); or domestic violence shelters and substance abuse shelters affiliated with DCF.
    

Slide 38: Appendix F: Household Income Limits

Income Limits for Family of Four

50% SMI Maximum income level at initial assessment- general: $52,273 annual, $4,356 monthly

85% SMI Maximum income level at initial assessment – special needs, and 85% SMI maximum income level at reassessment – general: $88,863 annual, $7,405 monthly

100% SMI Maximum income level at reassessment – special needs: $104,545 annual, $8,712 monthly

A family of four with a household income of $2,560 per week would be subject to the following co-payment structure:

Daily fee (full Time): $9

Weekly fee (full time): $45

Daily fee (part time): $4.50

Weekly fee (part time): $22.50

The state reimburses early education and care providers for enrolling children in their program through a voucher or contract.

• 
  Providers who accept vouchers:
  
  • 
    EEC reimburses the child care resource and referral agency, who in turn pays the provider or their lead agency
    
• 
  Providers who have a contract:
  
  • 
    EEC reimburses them for the actual number of children billed, not to exceed the maximum obligation of the contract
    
• 
  Reimbursement rates are based on region, program type and age group.
  
  • 
    There is an add-on rate for Teen Parent, Homeless, and Supportive (DCF) child care
    
• 
  Biennially, EEC conducts a market rate survey to compare the subsidized rates against the private pay rates.
  

Slide 42 Appendix J1: Subsidized Care Rate Vs. Private Pay Rate

Data Source: Massachusetts 2012 Market Price Survey. May 2013

Out of school

Slide 44 Appendix J3: Subsidized Care Rate Vs. Private Pay Rate

Center-based infant care
EEC rate vs. 75 percentile of market rate

Region	EEC Rate	50th Percentile	75th Percentile
Western	$47.90	$51.93	$55.75
Central	$49.20	$55.00	$59.50
Northeastern	$54.95	$68.40	$76.00
Metro	$59.50	$75.00	$85.86
Southeastern	$47.90	$55.00	$64.58
Boston	$54.55	$66.51	$75.36

Slide 45 Appendix J4: Subsidized Care Rate Vs. Private Pay Rate

Center-based toddler care

EEC rate vs. 75 percentile of market rate

Region	EEC Rate	50th Percentile	75th Percentile
Western	$43.20	$47.25	$53.50
Central	$44.20	$50.80	$58.75
Northeastern	$52.85	$62.35	$70.00
Metro	$52.85	$70.20	$80.70
Southeastern	$44.20	$50.00	$58.95
Boston	$48.40	$60.00	$71.40

Slide 46: Appendix J5: Subsidized Care Rate Vs. Private Pay Rate

Center-based preschool care: EEC rate vs. 75 percentile of market rate

Region	EEC Rate	50th Percentile	75th Percentile
Western	$33.40	$38.00	$44.06
Central	$33.40	$41.00	$45.50
Northeastern	$36.70	$47.00	$59.70
Metro	$36.70	$58.55	$67.77
Southeastern	$33.40	$42.00	$51.00
Boston	$36.70	$47.20	$56.40

Slide 47: Appendix K: Improving Quality in the System

2.) Safe, Healthy Indoor and Outdoor Environments

3.) Workforce Qualifications and Professional Development
a. Designated Program Administrator Qualifications, Professional Development
b. Program Staff Qualifications and Professional Development

4.) Family and Community Engagement

5.) Leadership, Management and Administration
a. Leadership, Management and Administration
b. Supervision