Market Rate Study
Fiscal Committee
January 7, 2013
Federal Requirement
2

In an effort to ensure equal access to low-income families, federal law
requires CCDF Lead Agencies to conduct a Market Rate Study at least
every two years.

In Massachusetts, EEC is the CCDF Lead Agency.

The purpose of the Market Rate Study is to demonstrate that child
care subsidy rates are adequate to ensure that eligible children have
equal access to comparable child care services provided to children
whose families do not receive any financial assistance for child care.

EEC last completed a Market Rate Study in 2010-2011.
Intended Result of the Market Rate Study
3

The resulting data and findings from the 2012-2013 Market Rate
Study has at least two purposes:
 give EEC an updated basis upon which to review its present
subsidy rate structure
 make recommendations to the Board of Early Education and Care
and the State Legislature for any necessary adjustments to its
rate schedules and funding levels.

It is therefore critical that the study data and analysis about the
distribution of child care rates and the findings about market rates be
credible and withstands strict methodological scrutiny.
Market Rate Study Scope of Work




A Scope of Work (SOW) was released on September 5, 2012, seeking
responses
October
1, was
2012.
A Scope ofby
Work
(SOW)
released on September 5, 2012, seeking
responses by October 1, 2012.
Among other tasks, the Contractor must design a methodology that
answers
the following
research
questions:
The following
consultants
were selected
as eligible respondents to this
Scope of Work based on their current inclusion on the Research
Vendor
List:

What
is the distribution of child care daily published prices (e.g.,
mean, standard deviation, range, quartiles), statewide and
within each Palaich,
of the regional
market areas, by type of care and
 Augenblick,
& Associates
age group?
 Kenley Branscome
 Linda Mills, Mills Consulting Group

Are there advantages to using a weekly rate versus a daily rate
 Erin Oldham, Glenwood Research
 Jill Reynolds, Public Consulting Group, Inc.

Does the establishment of several part weekly rates allow EEC to
 Rod Southwick
set rates that reflect actual services more accurately than a full
and part day rate?

4
Does zip code / county level data indicate that reimbursement
regions currently in place should be changed to better reflect the
market for early education and care services?
Market Rate Study Scope of Work
Continued



The Contractor will review market prices by zip code and by the EEC
administrative
regions
and
any
proposed
sub-regional5,geographic
A Scope of Work
(SOW)
was
released
on September
2012, seeking
areas
approved
by EEC1,for
each of the following types of care:
responses
by October
2012.
 following
For family
child care,
EEC
seeks rates
for children
of different
The
consultants
were
selected
as eligible
respondents
to this
frombased
infants
school
age. inclusion
Family child
care
providers
Scopeages,
of Work
onto
their
current
on the
Research
may
charge different rates based on the ages of the children in
Vendor
List:
care. Consequently, EEC is requesting that the Contractor review
and, if necessary, help revise a study that allows family child
 Augenblick, Palaich, & Associates
care providers to state their rates based on the age groupings
 Kenley
Branscome
they use
for infants, toddlers, preschoolers, and school age.
 Linda Mills, Mills Consulting Group

Oldham,
Research
 Erin
For Small
orGlenwood
Large Group,
non-school aged child care, EEC
 Jill
Reynolds,
Public
Consulting
Group,
Inc.
seeks rates for three age groups:
(i) infants
(0 to 15 months);
(ii) toddlers
(16 to 33 months); and (iii) preschool children (34
 Rod
Southwick
months to the age the child is eligible to enter first grade).

5
For Small or Large Group, school age child care, EEC seeks
rates for school age children who are cared for in a center-based
or a “school-based” setting. A school age child is defined as a
child up to 13 years of age (or up to 16 years of age if the child
has special needs) who is enrolled in either public kindergarten
or a higher grade.
Market Rate Study Scope of Work
Continued



The Contractor will be required to convert the weekly rate data to the
rate(SOW)
equivalent
in order to
across
Aclosest
Scope daily
of Work
was released
onstandardize
September rates
5, 2012,
seeking
programs by
by October
ensuring1,that
the survey accounts for the following
responses
2012.
situations:
The
following
consultants
selected
as eligible
respondents
to this

The Contractor
mustwere
collect
full-time
rates and
part-time rates
Scopeon
of aWork
based
on (5
their
current
inclusion
on the care
Research
weekly
basis
days
per week).
Full-time
is care
Vendor
List:
provided for 6 to 10 hours per day. Part-time care is care






6
provided for less than 6 hours per day.
Augenblick, Palaich, & Associates
Kenley
Branscome
The Contractor
must ensure that information obtained from
family
child
care
providers Group
is requested at the child level rather
Linda
Mills,
Mills
Consulting
than
by prototype
(e.g.,
rate for Child X versus published rate for
Erin
Oldham,
Glenwood
Research
any preschooler in care).
Jill Reynolds, Public Consulting Group, Inc.
Rod
TheSouthwick
survey must gather information about the number of parents
who are actually paying the providers’ published rate versus a
discounted rate.

For school-age child care, the Contractor must, at a minimum,
analyze separate data on providers’ before-school, after-school
and vacation (i.e., full-day) weekly and daily rates.

The Contractor must ensure that the published rates do not
include a provider’s transportation costs.
Market Rate Study SOW Vendor Release

A
Scope
of Work
(SOW) was
released
onas
September
5, 2012, seeking
The
following
consultants
were
selected
eligible respondents
to this
responses
by October
1, their
2012.current inclusion on the Research
Scope
of Work
based on
Vendor List:

The following consultants were selected as eligible respondents to this
Scope
of Work based
on their
current inclusion on the Research
 Augenblick,
Palaich,
& Associates
Vendor
List:Branscome
 Kenley
Linda Mills, Mills Consulting Group
Augenblick,
& Associates
Erin Oldham,Palaich,
Glenwood
Research

Kenley
Branscome
 Jill Reynolds, Public Consulting Group, Inc.

Mills, Mills Consulting Group
 Linda
Rod Southwick
 Erin Oldham, Glenwood Research
 JillConsulting
Reynolds, Group
Public was
Consulting
Group,
Inc. the Market Rate
Public
selected
to conduct
 Rod
Southwick with MASS211.
Study
in conjunction




7
Public Consulting Group







8
Commissioner Killins met with PCG to kick off the project on
A
Scope 15,
of Work
October
2012.(SOW) was released on September 5, 2012, seeking
responses by October 1, 2012.
EEC has provided PCG with the needed data to draw the sample to be
The following
consultants
were
as eligible respondents to this
used
for the study,
and PCG
hasselected
begun work.
Scope of Work based on their current inclusion on the Research
Vendor List:
PCG will be working with Mass211 to collect the data for the study.
 Augenblick, Palaich, & Associates
PCG has provided EEC with draft communications to providers as well
Kenley
as drafts
of Branscome
the survey and call script. PCG has met with Mass 211

Linda
Mills,
Mills Consulting
and has begun training
their staffGroup
on how to collect the survey data
via
surveys.
EEC and
PCG will be mailing and emailing out
 telephone
Erin Oldham,
Glenwood
Research
letters
programs
and family
child Group,
care providers
in the next few
 Jillto
Reynolds,
Public
Consulting
Inc.
weeks.
 Rod Southwick
Data collection will begin on January 7, 2013 and end on
February 22, 2013.
MASS211


MASS211 is:
AScope
of Work information
(SOW) was released
on September
5, 2012, seeking
a statewide
and referral
call center managed
by
responses
October
1, 2012.
UnitedbyWay
of Tri-County
reached by dialing 211 from anywhere in the state
The
consultants
selected
as eligible respondents
to this
 following
part of the
statewidewere
network
of community-based
child care
Scoperesource
of Workand
based
on their
current
inclusion on the Research
referral
agencies
(CCR&Rs).
Vendor List:





9
EEC contracts with Mass 211 to provide information and referral
 Augenblick,
Palaich,
& Associates
serviced
and to help
families
access early education and care services
statewide.
 Kenley Branscome
 Linda Mills, Mills Consulting Group
Mass
211Oldham,
works with
EEC to Research
ensure that high quality resources and
 Erin
Glenwood
services
that children
need
to grow Group,
and learn
are accessible to every
 Jill Reynolds,
Public
Consulting
Inc.
family.
 Rod Southwick
Mass 211 Specialists are available 24/7 to assist parents and
guardians find licensed child care providers and to learn about
financial assistance for eligible families.
Current Status






10
EEC staff have continued to have regular communication with PCG to
discuss
communication
with
providers.
A Scopesurveys
of Workand
(SOW)
was released
on the
September
5, 2012, seeking
responses by October 1, 2012.
The general email through the Commissioner’s Mailbox announcing
the
Rate
Study was
sentselected
out in mid-December.
The Market
following
consultants
were
as eligible respondents to this
Scope of Work based on their current inclusion on the Research
Vendor
PCG hasList:
also sent out letters to the sample providers. PCG has
conducted a pilot test of the surveys using providers from each
setting
type that Palaich,
will be involved
in the market rate study. The
 Augenblick,
& Associates
providers
who
tested the survey provided good feedback and some
 Kenley
Branscome
modifications were made but overall the surveys remained
 Linda Mills, Mills Consulting Group
unchanged.
 Erin Oldham, Glenwood Research
 Jill Reynolds, Public Consulting Group, Inc.
PCG has been working closely with Mass211 and held the data
 Rod Southwick
collection
training webinar on January 3 from 1-3pm.

PCG is also working to schedule the first Advisory Group meeting.

PCG is meeting the timeline for the schedule of this project.
Timeline





3/15/13: PCG submits draft report to EEC
A Scope of Work (SOW) was released on September 5, 2012, seeking
responses
by October
2012.
4/1/13: PCG
submits1,
Final
Report to EEC
The
following
consultants were selected as eligible respondents to this
4/1/3
– 6/30/13:
Scope of Work based on their current inclusion on the Research
Vendor List:

Contractor is available to analyze market rate data prepared by
EEC at the zip code / city / county levels and advise EEC about
 Augenblick,
Palaich,
& Associates
the practicality
and feasibility
of amending reimbursement rate
 Kenley
Branscome
areas.EEC staff have continued to have regular communication
with PCG
discuss
surveysGroup
and communication with the
 Linda
Mills,toMills
Consulting
providers.
 Erin
Oldham, Glenwood Research



11
Jill Reynolds, Public Consulting Group, Inc.
Contractor
is available to make formal presentations to explain
Rod
Southwick
results and methodology to EEC, EEC’s Board of Directors,
elected officials, and other interested parties on an as-needed
basis.
Next Steps: 2011 Study


12
Additional research questions were raised in the 2011 RFP, during the
kick-off
and by was
board
committees.
In response,
the seeking
A Scopemeeting,
of Work (SOW)
released
on September
5, 2012,
following
analyses
were planned at the conclusion of the
responsesadditional
by October
1, 2012.
2011 study:

The following consultants were selected as eligible respondents to this

Analysis
Local
Variations
– Analyze
extent to
Scope
of Work of
based
on Price
their current
inclusion
on thethe
Research
which
Vendor
List:prices vary among towns within EEC regions. Rely on zipcode level price data collected in 2008 and update with 2010
price data.
 Augenblick, Palaich, & Associates
 Kenley Branscome

Analysis of Practitioner Wage Data – Analyze the extent to
 Linda Mills, Mills Consulting Group
which wages vary across different segments of the early
 Erin
Oldham,
Research workforce. Limited to analysis
childhood
andGlenwood
out-of-school-time
 Jill
Reynolds,
Public Consulting
Inc.
of extant
secondary
data in theGroup,
new Professional
Qualifications
Registry.
 Rod
Southwick

In response to the above, smaller studies were done on absentee
policies, local child care prices, and work force education and salary.
Recommendations from these studies must be reviewed.
Center Based Prices by Age
The most recent Massachusetts Market Price Child Care Survey shows that
even with the implementation of the infant rate for all infants and toddlers,
we will not be close to reimbursing at the federally suggested level of the
75th percentile.
In every instance below, current rates do not reach the 50th percentile.
Region
Western
Central
N.E.
Metro
S.E.
Boston
13
Age Group
Infant
Toddler
Preschool
Infant
Toddler
Preschool
Infant
Toddler
Preschool
Infant
Toddler
Preschool
Infant
Toddler
Preschool
Infant
Toddler
Preschool
50 th
75 th
EEC Rate
Percentile Percentile
$47.90
$43.20
$33.40
$49.20
$44.20
$33.40
$54.95
$49.55
$35.65
$59.50
$52.85
$36.70
$48.00
$44.20
$33.40
$54.55
$48.40
$36.70
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
52.00
49.00
36.00
53.50
50.00
40.00
70.00
62.00
48.04
75.00
70.60
57.80
50.00
47.00
39.00
65.00
60.00
45.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
64.60
58.20
44.00
65.80
60.00
51.00
80.00
73.80
57.00
84.00
81.76
66.51
58.40
54.00
46.00
79.00
76.11
60.00
EEC
Market
Access
Rate
31%
12%
7%
13%
17%
11%
5%
4%
3%
10%
7%
6%
17%
8%
7%
15%
13%
5%
Family Child Care Prices By Age
The most recent Massachusetts Market Price Child Care Survey shows that
even with the implementation of the infant rate for all infants and toddlers,
we will not be close to reimbursing at the federally suggested level of the
75th percentile.
In every instance below, current rates do not reach the 50th percentile
Region
Western
Central
N.E.
Metro
S.E.
Boston
14
Age Group
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
Infant
Toddler
Over Age Two
50 th
75 th
EEC Rate
Percentile Percentile
$30.10
$30.10
$26.40
$31.80
$31.80
$26.40
$31.50
$31.50
$27.85
$34.35
$34.35
$27.85
$31.80
$31.80
$26.40
$31.50
$31.50
$27.85
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
35.00
32.00
32.00
40.00
40.00
36.00
35.50
40.00
35.00
57.50
56.00
55.00
40.00
40.00
40.00
35.00
34.00
30.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
37.00
35.00
35.00
48.00
45.00
44.00
50.00
50.80
50.00
65.00
65.00
66.00
50.00
45.00
45.00
40.00
40.00
35.00
EEC
Market
Access
Rate
29%
43%
9%
13%
20%
10%
35%
34%
22%
4%
5%
1%
13%
19%
3%
28%
37%
16%
Fiscal Committee Responsibility


As stated in the RFR, PCG will make recommendations to the Board of
Early
Education
Carewas
andreleased
the State
necessary
A Scope
of Workand
(SOW)
onLegislature
Septemberfor
5, any
2012,
seeking
adjustments
its rate1,schedules
and funding levels.
responses byto
October
2012.

Prior
to the delivery
of thewere
PCG selected
Market Rate
Study respondents
Report, the Fiscal
The following
consultants
as eligible
to this
Committee
should
review
the recommendations
from
2011 report
Scope of Work
based
on their
current inclusion on
thethe
Research
and
the List:
three subsequent studies that were completed.
Vendor

Following
the delivery
of the
2013 recommendations, the Fiscal
 Augenblick,
Palaich,
& Associates
Committee
 Kenley should:
Branscome

Review
the Mills
recommendations
to provide an appraisal the Board.
 Linda
Mills,
Consulting Group




15
Erin Oldham, Glenwood Research
Assess
the recommendations
light ofInc.
the proposed rate
Jill
Reynolds,
Public ConsultinginGroup,
increase in the FY14 aspirational budget.
Rod Southwick

Create a strategy to offer to the Board how and when we can
make an effort to secure additional funding.

Other?