West Virginia’s commitment to early childhood education is reflected in its tiered reimbursement program for child care. This system, managed by the West Virginia Department of Health and Human Resources, is designed to reward child care programs that exceed basic licensing standards, aiming to elevate the quality of care across the state. But what statement about Virginia’s child care subsidy program is true? Actually, it’s West Virginia, not Virginia, and the key truth is that the program uses a tiered system to incentivize higher quality care through increased subsidy payments. Let’s delve into the specifics of this program, its structure, and the realities faced by providers and families in West Virginia.
How West Virginia’s Tiered Reimbursement System Works
The foundation of West Virginia’s subsidy program is its tiered reimbursement structure. This system applies to various types of child care providers, including licensed child care centers, family child care facilities, and family child care homes. The tier level directly influences the amount of subsidy a program receives.
- Tier I: This is the base level. All licensed child care centers automatically qualify as Tier I providers and receive the standard Tier I reimbursement rates.
- Tier II & Tier III: Programs aspiring to provide higher quality care can apply for Tier II or Tier III status. Achieving these higher tiers requires meeting specific quality benchmarks across several key areas:
- Curriculum quality and effectiveness
- Program management and administration
- Professionalism and staff qualifications
- Positive interactions and relationships between staff and children
- Family and community engagement
- Health, safety, and nutritional practices
- Focus on child growth and development
- Child observation and assessment methods
Meeting these criteria allows programs to access higher reimbursement rates, intended to support the increased costs associated with providing enhanced care.
Reimbursement Rates by Tier and Provider Type
The tiered reimbursement rates in West Virginia vary based on the age of the child and the type of child care provider. Tier II and Tier III programs receive additional daily amounts per child, per full day of care, on top of the Tier I base rates. Specifically, Tier II programs receive an extra $2.00, and Tier III programs receive an additional $4.00 per child, per day. Crucially, to reach Tier III, providers must achieve national accreditation from recognized bodies like the National Association for the Education of Young Children (NAEYC) or the Council on Accreditation (COA).
To illustrate these differences, consider the following tables outlining the reimbursement rates:
Table 1. Tiered Reimbursement Rates for Child Care Centers
| Rate Type | Infant (0-24 Months) Day | Toddler (25-36 Months) Day | Pre-School (37-59 Months) Day | School-Age (60 Months & Up) Day |
|---|---|---|---|---|
| Tier I | $32 | $30 | $28 | $25 |
| Tier II | $34 | $32 | $30 | $27 |
| Tier III – National Accreditation | $36 | $34 | $32 | $29 |
Source: West Virginia Department of Health and Human Resources
Table 2. Tiered Reimbursement Rates for Family Child Care Facilities
| Rate Type | Infant (0-24 Months) Day | Toddler (25-36 Months) Day | Pre-School (37-59 Months) Day | School-Age (60 Months & Up) Day |
|---|---|---|---|---|
| Tier I | $27 | $25 | $25 | $25 |
| Tier II | $29 | $27 | $27 | $27 |
| Tier III – National Accreditation | $31 | $29 | $29 | $29 |
Source: West Virginia Department of Health and Human Resources
Table 3. Tiered Reimbursement Rates for Family Child Care Homes
| Rate Type | Infant (0-24 Months) Day | Toddler (25-36 Months) Day | Pre-School (37-59 Months) Day | School-Age (60 Months & Up) Day |
|---|---|---|---|---|
| Tier I | $25 | $22 | $22 | $20 |
| Tier II | $27 | $24 | $24 | $22 |
| Tier III – National Accreditation | $29 | $26 | $26 | $24 |
Source: West Virginia Department of Health and Human Resources
Challenges and Realities of the Subsidy Program
While the tiered system is a positive step towards quality improvement, West Virginia’s child care providers have voiced concerns about the adequacy of the subsidies. A significant challenge is that the increased reimbursement for higher tiers may not fully cover the expenses associated with meeting those elevated standards. Providers argue that the financial incentive is not strong enough to truly motivate widespread pursuit of Tier II and Tier III status, particularly given the stricter regulations and operational complexities involved.
This financial strain leads to a situation where some child care programs operate at a Tier III quality level in practice but remain officially categorized as Tier I providers. These programs choose not to apply for the higher tiers because navigating the complex regulations and accreditation processes is deemed too burdensome relative to the incremental financial benefit.
The Cost Gap and Infant Care
The financial gap between subsidy rates and the actual cost of quality care is substantial. For instance, the estimated gap between the state subsidy and the cost of center-based infant care in West Virginia can be as high as $533 per month per child. This is further exacerbated by the fact that infant care is significantly more expensive to provide than preschool care (70% more expensive in West Virginia), while subsidies for infant care are only marginally higher (approximately 14% higher).
Organizations like Opportunities Exchange have highlighted this “cost gap,” estimating that for a small child care center meeting minimum licensing, the annual gap can be around $260 per preschool child and a staggering $3,800 per infant or toddler. This underscores the critical need for reimbursement rates that accurately reflect the true cost of delivering quality care, especially for the youngest children.
Impact of Federal Funding and the Census
West Virginia’s child care subsidy program is significantly supported by the federal Child Care and Development Block Grant (CCDBG). CCDBG funding enables states to offer subsidies to low-income families with children under 13, helping them access child care while they work, attend educational programs, or participate in job training. A primary goal of CCDBG is to ease the financial burden of child care for working families and promote economic self-sufficiency.
However, national data indicates that in West Virginia, only a small fraction of eligible low-income children (around 6.6%) are actually served by the subsidy program. This suggests a significant unmet need and potential barriers to access.
The allocation of CCDBG funds to states is partly determined by census data, specifically the population of children under 5 and under 13. Therefore, the accuracy of the U.S. Census count is crucial for West Virginia’s child care funding. Given West Virginia’s projected population decline, an undercount could negatively impact future CCDBG allocations, further straining the state’s child care system.
The Child Care Cliff Effect
Another critical issue affecting families and the effectiveness of the subsidy program is the “child care cliff effect.” This phenomenon occurs when families receiving child care subsidies experience an abrupt and complete loss of benefits as their income slightly exceeds the eligibility threshold. While co-payments for subsidized care gradually increase with income, the sudden removal of the subsidy creates a financial shock, making child care unaffordable and potentially forcing parents to leave the workforce or decline better-paying jobs.
Unlike some states that have implemented policies to mitigate the cliff effect through gradual subsidy reduction or higher exit income limits, West Virginia currently does not have such measures in place. While access to subsidies for eligible families in West Virginia is reportedly good once qualified, the lack of a “gradual phase-out” mechanism can act as a disincentive for career advancement and economic mobility for low-income families.
Conclusion
In conclusion, West Virginia’s tiered reimbursement system for child care subsidies represents a commendable effort to promote quality. Therefore, a true statement about West Virginia’s child care subsidy program is that it utilizes a tiered reimbursement structure to provide higher payments to programs meeting more stringent quality standards. However, the program faces significant challenges, including insufficient reimbursement rates that may not adequately cover the costs of higher quality care, a substantial “cost gap,” particularly for infant care, and the detrimental effects of the child care cliff effect. Addressing these challenges is crucial to ensuring that West Virginia’s child care subsidy program effectively supports both providers in delivering quality care and families in accessing affordable and reliable child care, ultimately contributing to the state’s overall economic and social well-being.
