Neighborhood Villages Applauds Major Investments in Early Education Sector by Governor Healey and House
Governor Healey included $475 million for operations grants in FY24 budget; House included $68 million for operations grants in FY23 supplemental budget
BOSTON, MA (March 1, 2023) - Today, Neighborhood Villages — a nonprofit that advocates for solutions to the greatest challenges faced by the early education sector — applauded Massachusetts Governor Maura Healey and the Massachusetts House of Representatives for making significant investments in direct-to-provider operations grants for the early education and care sector as part of their respective budget actions.
Amongst key investments in early education and care including raising the reimbursement rate for child care subsidies and expanding access to financial assistance for lower-income families, Governor Healey also included $475 million for operations grants in her FY24 budget announced today. Governor Healey’s investment in these grants complements the House’s commitment of $68 million in its supplemental budget for the remainder of FY23. These grants, initially introduced as a pandemic response initiative, have proven essential to the field’s viability. The Senate has also repeatedly demonstrated support for these essential investments in early education and care.
Lauren Kennedy, co-president of Neighborhood Villages, issued the following statement:
“We applaud Governor Healey and the House for prioritizing critical funds for the early education and care sector. These investments will help expand access for families, enhance affordability, and increase educator wages across the sector.
“We are particularly pleased to see prioritization of family access to child care, financial assistance, and sustained funding for direct-to-provider operations grants. Operations grants, while initially designed for stabilization during the pandemic, have proved essential to the field’s short and longer-term viability. Data has shown that they are vital to the sector’s ability to protect against regression and embark on a path towards stability and growth.
“Funding for operations grants is a win for everyone — for educators, families, children, and the economy — and should be considered the future of child care financing if we want a healthier, more stable early education and care system across the Commonwealth.
“We look forward to continuing our work with the Administration, the House, and the Senate in their commitment to addressing the child care crisis in Massachusetts.”
Background on Operations Grants
Over the last year and a half, the Commonwealth Cares for Children (C3) grant program has supported more than 7,100 early education and care programs across the Commonwealth – including 4,500 family child care (FCC) providers and 2,600 center-based providers. These direct-to-provider operations grants have been highly effective: data from more than 6,000 grant recipients demonstrate the foundational role that operations grants have played – and will continue to play – in sustaining Massachusetts’ early education and care sector.
Some data from grant recipients includes:
751 providers (more than 12% of all providers in MA), inclusive of 556 FCC providers, reported that they would have to close if operations grants ceased.
As a result of receiving grants funds, 83% of center-based providers and 41% of FCC providers allocated grant funds to staff compensation.
With the help of C3 funds, more than 25% of all providers were able to defer planned tuition increases.
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About Neighborhood Villages
Neighborhood Villages, founded in 2017 by Lauren Kennedy and Sarah Muncey, is a Boston-based systems-change non-profit that advocates for early education and care policy reform and implements scalable solutions that address the biggest challenges facing providers and the families who rely on them. For more information, visit https://www.neighborhoodvillages.org/our-work.