New EEC Data Shows Ongoing Need for Stabilization Grants for Early Education and Care Sector
With the Massachusetts Legislature in the process of finalizing the FY23 budget, Neighborhood Villages is urging lawmakers to prioritize the needs of children, families, and employers of the Commonwealth by investing the maximum amount possible in the early education and care system. In particular, we’re advocating for the continued funding of Commonwealth Cares for Children (C3) Stabilization Grant Program and have asked that the Massachusetts Legislature fund the program at the $250 million figure currently proposed in the state’s Senate budget.
Since it began in July 2021 amid the COVID-19 pandemic, the C3 Stabilization Grant Program has supported thousands of early education and care programs across the Commonwealth with crucial direct-to-provider grants. These grants had a nearly immediate impact on the early education and care field: within months, they stabilized the sector’s capacity, prevented program closures, and enabled investments in quality and educator pay.
The extension of these grants is critical to keeping child care programs open, ensuring access for children, and supporting socially vulnerable communities.
New results from a survey by the Massachusetts Department of Early Education and Care (EEC) show the continued need for these funds and the crucial support they’ve provided the sector. The responses from nearly 5,700 providers demonstrated the following:
Grants were used to support workforce expenses and operations costs:
Providers spent more than 65% of grant funds on existing payroll and benefits, COVID-related debt, and other operational expenses such as rent, mortgage payments, utilities, insurance, and facilities.
Group and School Age (GSA) providers spent, on average, about half of grant funds on existing payroll and benefits, while Family Child Care (FCC) programs spent, on average, about half of their grant funds on rent, mortgage, utilities, facilities maintenance, and personal protective equipment.
Providers invested more than 20% of grant funds on salary and benefits increases, educator bonuses, professional development, mental health supports, and new supplies.
Grants were used to raise salaries over the past year, in order to retain the workforce; however, staffing remains a serious challenge:
About 85% of GSA providers and 40% of FCCs raised salaries since July 2021.
Twenty-three percent (23%) of GSA providers reported that unfilled staff openings have prevented them from being able to enroll to their full licensed capacity.
Without continuation of C3 grant funding, more than 80% of GSA providers and 42% of FCCs reported that they would have to reduce compensation and/or defer salary increases.
Grants supported a majority of providers who serve vulnerable children:
Sixty-five percent (65%) of all grant recipients accepted families with subsidies.
C3 Stabilization Grants are critical for preventing child care program closures:
Sixty-three percent (63%) of GSA providers and 52% of FCC providers reported that they would have to raise tuition if grant funding is not renewed.
Data suggests that, should the C3 Stabilization Grant Program not be renewed, programs serving high Social Vulnerability Index communities will be particularly at risk. (Thirty-two percent [32%] of providers that do not currently participate in Massachusetts’ child care subsidy program are in socially vulnerable communities.)
The ongoing benefits of the C3 Stabilization Grant Program demonstrate the transformative result that capacity-oriented public funding has on strengthening the early education and care system. The success of the C3 stabilization grants stands as clear evidence that direct-to-provider grant funding intended to partially cover programs’ operations costs, including labor costs, is a strong model for long-term sector finance reform that can significantly improve quality, access, and equity. That’s why we are urging the extension of this program as a critical step toward a future in which Massachusetts' early education and care providers have the public resources they need – and children and families have the care they deserve.
To access our fact sheet on this topic, click here.