Harrisburg, PA - The Department of Human Services’ Office of Child Development and Early Learning (OCDEL) today released the 2022 Market Rate Survey (MRS) Report, which assesses costs of care incurred by child care providers and payments made by families in care. The survey is used to set base reimbursement rates for Child Care Works (CCW), Pennsylvania’s subsidized childcare program.
“Childcare providers and the broader early childhood education sector have operated in a challenging, tumultuous environment over the last three years, and through this, they have shown their commitment to the children and families they serve,” said Department of Human Services Acting Secretary Val Arkoosh. “The survey provided a basis to inform Pennsylvania’s financial investment in our childcare providers and workforce who play such a foundational role to our broader economy, and we must continue this support moving forward.”
The MRS Report was conducted by the Institute of State and Regional Affairs (ISRA) at Penn State Harrisburg, to collect and analyze data on the childcare industry in Pennsylvania. A set of diverse data collection methods was used to gather information on private pay tuition rates, staffing, payments and fee practices, facility types, and food offerings at local programs.
CCW base rates are set according to a federally-recognized market rate survey conducted every three years. The results of the surveys assist states in determining an appropriate level of reimbursement offered to providers participating in subsidized childcare programs, and to keep parity with what providers charge for services. The report released today covers the most recent survey completed in 2022. This new data reflects the challenging operating environment that childcare providers have navigated through the pandemic and accompanying economic challenges.
In February, the Shapiro Administration announced that base rates would be increased after an initial review of data from the 2022 MRS found that increases to provider operational costs caused base rates to fall below the 60th percentile. American Rescue Plan Act funding was used to support reestablishing rates at the 60th percentile. Governor Shapiro’s 2023-24 Budget proposes $66.7 million to continue this enhanced investment supporting access to care and the childcare providers who are dedicated every day to helping children and families.
For more information on childcare in Pennsylvania, visit www.findchildcare.pa.gov.
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