Overview

In this report, the Commission on Early Childhood Care and Education provides recommendations related to copayments, parental work requirements, and attendance expectations for the Child Care Subsidy Program (CCSP) and Mixed Delivery (MD) Grant Program.

Summary of Findings:

Before providing specific recommendations, it is important to note how the current context has shaped the Commission’s efforts this year. As part of its historic investment of over $1 billion in early childhood care and education (ECCE), Virginia sustained all existing ECCE slots and established waitlists for CCSP and MD as of July 1, 2024 to capture unmet parent demand and preference. Those waitlists have grown significantly to more than 12,000 children as of November 1, 2024 including more than 5,200 infants and toddlers, 3,600 preschoolers and 3,200 school-age children. This rapid growth and high level of parental demand means that CCSP and MD slots are more valuable and also scarce. Addressing these waitlists for actual, eligible working families with birth-to-five children is the top priority of the Commission and may require greater action and policy changes than if there was no scarcity.

1. Consensus On Family Copayments:

• To maximize limited ECCE funds, the Commission agrees that reasonable increases to family copayments should be considered but not to exceed the federal regulatory cap of 7% of household income.

• Different approaches can be used for different income levels; there was strong agreement that Virginia should consider setting a lower rate for families that are in the most need under 100% FPL.

• There was strong consensus that slots that are made available as a result of higher family copayments must be used for birth-to-five children on the waitlist. Data shows that increasing family contributions would enable Virginia to open up to 3,000 new slots for working families in FY26 with the existing state funding.

• Virginia must also ensure that increasing copayments does not have an overly negative impact on private providers. If private providers cannot efficiently collect copayments from families because they are too high or the system is too complicated, this policy shift could have the unintended consequence of reducing parent choice and reducing private small business participation.

2. Consensus On Parental Work Requirements (Job Search):

• The Commission agreed that reasonable limits on how long a parent can search for work (e.g., 90 days) helps ensure that slots go to those families and children who need them most. This would align Virginia with the federally-allowed job search limit of 90 days.

• There should be flexibility for families facing extraordinary circumstances and formal guidance is needed to ensure flexibility is provided in partnership with the local Department of Social Services office in the appropriate circumstances.

• There was strong consensus that slots that are made available as a result of changes to job search requirements must be used for birth-to-five children on the waitlist.

3. Consensus On Attendance Expectations:

• Data analysis reviewed by the Commission showed that additional data related to tracking attendance is needed. Virginia is currently implementing a new statewide attendance tracking system for CCSP. Private providers need predictable revenue, and the Commission is hopeful the new attendance tracking system streamlines attendance and payment processing.

• Children who attend ECCE regularly benefit more and limited slots should go to those working families who ensure their children attend on a consistent basis.

• Research shows that developing sound attendance practices in early childhood helps improve attendance in K-12 and the Commission acknowledged the importance of incenting these practices prior to kindergarten, even as Virginia shifts to pay-by-enrollment as required by new federal regulations.

• Virginia cannot add any slots with attendance policy changes but can ensure full maximization of existing slots – especially for full day, full year programs – by strengthening attendance guidance, monitoring and reporting. The Commission noted that this is especially important when there is such a sizable waitlist of working families who would fully use the slots.