Res. No. 720
Resolution calling on the New York State Legislature pass, and the Governor to sign, S.1709/A.711 requiring the Office of Children and Family Services to use a cost estimation model to calculate Child Care Assistance Program reimbursement payments to providers
By Council Member Gutiérrez
Whereas, New York State’s Child Care Assistance Program (CCAP) allows eligible families to receive low-cost child care so parents can work or pursue an education while their children receive care in a safe and nurturing environment; and
Whereas, CCAP is part of the federal Child Care Development Fund program and is regulated by the federal and State governments, administered by local governments across the State, and funded jointly by federal, State, and local governments; and
Whereas, Of New York State’s approximately 460,000 households with children under the age of six, just under half, about 210,000 households, are eligible for CCAP; and
Whereas, CCAP uses a market rate survey, involving a study of the prices or fees child care programs typically charge and families typically pay for a given type of child care setting (center-based programs or home-based programs), care by age group (infants, toddlers, preschool, or school-age care), and per unit of care (per week, full-day, half-day, or hour), to set subsidy base payment rates for child care programs; and
Whereas, The market rate survey methodology is flawed for two key reasons: it does not account for inevitable future changes in price, and it captures prices that are only attainable by paying child care staff low wages; and
Whereas, Furthermore, market rate surveys look backward at what costs were during a specific period, and lock future payments at a level that makes them unresponsive to market or economic changes; and
Whereas, Most importantly, the prices child care programs charge often do not reflect the true cost of providing child care that meets regulatory health and safety standards, and never meets the cost of quality child care; and
Whereas, A survey of family child care providers in New York City conducted by the Center for New York City Affairs found that on average the maximum CCAP voucher rate was 28 percent and 36 percent lower than a baseline estimate of the true cost of child care; and
Whereas, This creates significant downward pressure on wages in home-based settings, as the report further found that the median take-home pay for a home-based provider in the city is only $6.01 per hour; and
Whereas, An alternative methodology for setting CCAP reimbursement rates is cost estimation modeling, which accounts for both the market price of child care and the costs providers shoulder to offer quality services, helping to more accurately reflect the true cost of providing care; and
Whereas, Eight states and Washington, D.C. have implemented or are currently transitioning to a cost estimation model as a more accurate way to determine child care provider payment rates; and
Whereas, Developing a cost estimation model is a way to account for all factors that affect the business of child care: rent and utilities, staffing requirements and ratios, compensation and benefits, local costs of living, and more; and
Whereas, Importantly, cost estimation models are adjustable, allowing administrators to understand how changes in key drivers of program quality, such as staffing, affect overall costs; and
Whereas, New York State Senator Samara G. Brouk and Assembly Member Sarah Clark introduced S.1709 and A.711 respectively, which would require the Office of Children and Family Services to utilize a cost estimation model to set the CCAP payment rate for child care providers; and
Whereas, Cost estimation modeling can begin to address the systemic failures facing the child care system by allocating funding based on what providers need, not what they have been able to survive on in the past; now, therefore, be it
Resolved, That the Council of the City of New York calls on the New York Legislature to pass, and the Governor to sign, S.1709/A.711 requiring the Office of Children and Family Services to use a cost estimation model to calculate Child Care Assistance Program reimbursement payments to providers.
KS
LS 26132
10/29/2026 11:03 AM