BILL NUMBER: S3245
SPONSOR: BRISPORT
 
TITLE OF BILL:
An act to amend the social services law and the education law, in
relation to the provision of universal child care; to amend chapter 493
of the laws of 2017 amending the social services law relating to estab-
lishing a child care availability taskforce to evaluate the need for and
availability of child care throughout the state, in relation to the
effectiveness thereof; to amend the state finance law, in relation to
establishing certain funds to provide for the establishment and funding
of universal child care; to repeal certain provisions of the social
services law relating thereto; and making an appropriation therefor
 
SUMMARY OF PROVISIONS:
Section one establishes the name of the legislation as the "Universal
Child Care Act."
Section two sets forth the legislative findings.
Section three modifies the scope and duties of the child care task force
established under section 390-k of the social services law, so that the
task force shall develop an implementation framework for a phased-in
rollout of a universal child care system, using state and federal
resources, and shall also make annual budget recommendations to the New
York State legislature regarding the funding that is necessary to
achieve a truly free and universal system.
Section four amends subsection eight of section 390 of the social
services law, to modify and update the manner in which the Office of
Children and Family Services notifies the public of the availability of
child care services.
Section five amends subdivision one of section 410 of the social
services law, to allow public welfare officials to participate in a
system of free and universal child care.
Section six amends subdivision two of section 410-b of the social
services law regarding the manner in which the Office of Children and
Family Services implements federal funding for child care.
Section seven adds a new subdivision five to section 410-x of the social
services law, to require a new cost estimation model for the payment of
child care costs.
Section eight amends section 410-z of the social services law to require
the Office of Children and Family Services to prepare a report regarding
the actual cost providers incur in providing child care pursuant to the
previous section.
Section nine amends subdivision one and paragraph (b) of subdivision
five of section 410-c of the social services law, to increase state
reimbursement rates to counties, cities, and towns that provide child
care services, and to allow for further capital expenditures in areas
that constitute child care deserts.
Section ten amends subdivision eight of section 410-w of the social
services law to require New York State to cover certain child care
co-payments.
Section eleven amends subdivision 410-x of the social services law to
require New York State to cover certain child care co-payments.
Section twelve adds a new subdivision nine to section 410-x of the
social services law, requiring social services districts to establish
differential payment rates for providers who care for children experi-
encing homelessness, or who care for children during non-traditional
hours, with New York State covering these additional costs.
Section thirteen amends subdivision one of section 410 of the social
services law to remove administrative requirements regarding work and
immigration status.
Section fourteen repeals paragraph (b) of subdivision three of section
410 of the social services law, and reletters paragraphs (c) and (d).
Section fifteen amends subdivisions one and two of section 410-bb of the
social services law to declare the New York legislature's desire to,
move towards a free and universal child care system, with salary and
benefits for workers at parity with that of public school teachers.
Section sixteen amends subdivisions one and two of section 410-v of the
social services law, to increase reimbursement rates from New York State
to social services districts, and make all reasonable efforts to supple-
ment federal block grant funding with state funding to provide universal
coverage within a period of four years.
Section seventeen amends subdivisions one and two of section 410-x of
the social services law, to require outreach and support to ensure that
eligible families who need child care receive support, and that any
eligibility determinations required by federal law are the least
restrictive and most efficient available, in order to avoid placing
undue burdens on families applying for assistance.
Section eighteen amends subdivision two of section 410-u of the social
services law, to specify that the state block grant for child care shall
be used to increase child care worker salaries, and to specify that New
York State shall make all reasonable efforts to ensure child care cover-
age for families who are not eligible for federal funding.
Section nineteen amends section 410-cc of the social services law to
specify that start up grants are to be used to serve areas that current-
ly constitute child care deserts.
Section twenty amends section 101 of the education law to establish an
"office of early childhood education," which is tasked with coordinating
with the Office of Children and Family Services to ensure that the
implementation of funding for Universal Pre-K and 3-K For All programs
are phased in in a manner that complements and supports child care
providers within the state and provides equitable wages, benefits, and
working conditions for child care workers, pursuant to the guidance
established by task force established under section 390-k of the social
services law.
Section twenty one amends section two of chapter 493 of the laws of 2017
amending the social services law relating to establishing the child care
availability task force, in order to extend its term through the year
2025.
Section twenty two adds new section 99-oo, 99-pp, and 99-qq to the state
finance law, requiring the creation of a child care workforce stabiliza-
tion fund, a child care transitional reimbursement rate fund, and a
child care infrastructure development fund.
Section twenty three appropriates five billion dollars towards the
development of a universal child care system in New York State.
Section twenty four sets forth the effective date of the legislation.
 
JUSTIFICATION:
New York's child care infrastructure is in crisis: many parents have no
access to affordable or quality care and many child care providers are
forced to live in or near poverty. Decades of treating and funding child
care as a private service rather than vital public infrastructure has
left the system on the verge of collapse. Although some piecemeal
approaches and temporary solutions have kept New York's child care
system on life support, many child care centers have already been forced
to close, and parents are struggling to access the child care they need.
Today, where child care is still available, it is largely due to a
dramatically underpaid workforce overwhelmingly made up of women - espe-
cially Black women and women of color - who are paid wages that leave
the majority in or near poverty. The COVID-19 pandemic has only made
matters worse, exacerbating the many vulnerabilities of our child care
system.
Resolving the underlying causes of New York's child care crisis requires
careful attention to detail, and the participation of all relevant
stakeholders across New York State. Accordingly, this legislation has
been carefully drafted to take into account the input of parents, child
care providers, union leaders, advocates, and experts across the state.
It has also been drafted with the input and insights of the Child Care
Availability Task Force, which was convened in 2018 and issued its final
report and recommendations in 2021. There is wide agreement that New
York needs to pursue a "dramatically different approach to child care"
and move instead towards a truly universal system, where child care is
free at the point of service and educators are paid sufficient wages,
much like our public school system.
Accordingly, this legislation makes substantial programmatic changes to
New York's child care system and makes significant investments in build-
ing out New York's child care infrastructure to set New York on a clear
path to building a universal child care system. It also ensures that the
"Universal Pre-K" and "3-K For All" programs are implemented in a manner
that does not leave behind providers who care for children under the age
of three, who have been particularly hard hit by the present child care
crisis.
One of the primary concerns regarding the present child care system is
that its workforce is dramatically underpaid. Much of the child care
workforce lives in poverty with 65t of child care providers receiving
such low wages that they are eligible for social safety net programs
such as food stamps or Medicaid. Many professionals either do not enter
the field at all, or are forced to leave it for higher paying jobs at
places like fast food chains or telemarketing companies. This is not
only an injustice, but also a tremendous vulnerability for our child
care system because the understaffing problem leads to further shortages
of available child care. Accordingly, in order to attract and maintain
an adequate workforce, this legislation creates a new "child care work-
force stabilization fund" that directly raises wages. It also makes
further adjustments to state law in order to move New York towards a
system where child care workers are properly recognized as educators,
and achieve wages that that are at parity with those of public school
teachers.
Another primary concern regarding the present child care system is that
our current system of means-tested subsidies imposes severe burdens on
those who can least afford it. In some regions, a family of four, with
two parents each working forty hours per week for minimum wage, will not
qualify for subsidies, and sending their children to a child care center
will cost 55.4% of their income. The lack of adequate subsidies is
particularly problematic because, in New York State, one year of tuition
for infant care at a child care center is more than double the cost of
tuition at a SUNY comprehensive four-year college. Accordingly, this
legislation requires substantial investments to guarantee child care
subsidies for high-quality and culturally responsive child care that
meets the needs of all children. The Child Care Availability Task Force
correctly noted that, although "the state's use of federal stimulus
funds has helped to suppress the damage, it alone is insufficient to
rebuild the child care system." New York needs to make its own invest-
ments, and this money will be well-spent: researchers estimate that for
every $1 invested in early care and education in New York State, $1.86
is generated in additional spending within the state.
This legislation further recognizes that the way we pay our child care
providers within New York State is deeply flawed. Current subsidies are
based on a "market rate survey" system that dramatically under-values
the cost of high-quality child care. Accordingly, this legislation would
shift New York away from the current "market rate survey" system, and
towards a new cost estimation model that more accurately compensates
providers for the true cost of care. This legislation further estab-
lishes a "transitional reimbursement rate" fund so that New York can
immediately offer more adequate compensation, pending the implementation
of such a new system.
In order to truly build out a universal child care system that goes
beyond the current means-tested and market-based solutions, New York
will need to make significant investments over time and build out its
infrastructure to meet the needs of the 64% of New Yorkers who live in
child care deserts, where the demand for child care far exceeds local
capacity. Accordingly, this legislation further creates a new "child
care infrastructure development fund," and modifies New York's system of
distributing startup funds, so that New York can build its current
capacity.
Finally, as a matter of ongoing oversight, this legislation expands the
scope and duties of the Child Care Availability Task Force, so that this
group which has demonstrated its expertise and developed substantial
institutional knowledge - will oversee a four-year transition towards a
universal child care system, making annual budget recommendations and
guiding the interactions between the Office of Children and Family
Services and the New York State Education Department. This legislation
will further create a new "office of early education," which will
further coordinate the implementation of funding for Universal Pre-K and
3-K For All programs so that they are implemented in a manner that
complements and supports child care providers within New York State.
 
PRIOR LEGISLATIVE HISTORY:
2021-22: S.7595
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to section 390-k of the social services law made by section
three of this act shall not affect the repeal of such section and shall
be deemed repealed therewith; provided, however, that the amendments to
subdivision 8 of section 410-w of the social services law made by
section ten of this act and the amendments to subdivision 6 of section
410-x of the social services law made by section eleven of this act
shall not affect the expiration of such subdivisions and shall be deemed
to expire therewith; and provided, further, that the amendments made to
subdivision 1 of section 410 of the social services law made by section
thirteen of this act shall take effect on the same date and in the same
manner as chapter 694 of the laws of 2022, takes effect.

Statutes affected:
S3245: 390 social services law, 390(8) social services law, 410 social services law, 410(1) social services law, 410-z social services law, 410-x social services law, 410-cc social services law, 101 education law