BILL NUMBER: S1709
SPONSOR: BROUK
 
TITLE OF BILL:
An act to amend the social services law, in relation to implementing a
cost estimation model for child care
 
SUMMARY OF PROVISIONS::
Section 1 requires the Office of Children and Family Services (OCFS) to
utilize a cost estimation model to determine the actual costs of provid-
ing day care in each setting, age group and for each level of quality
provided.
Section 2 requires OCFS to issue a one-time report to the Governor, the
Speaker of the Assembly and the Temporary President of the Senate
detailing the results of the cost estimation conducted pursuant to
section one.
Section 3 sets an immediate effective date.
 
JUSTIFICATION::
Every two years, the Office of Children and Family Services (OCFS)
conducts a market rate survey among licensed, registered and legally-ex-
empt child care providers. The survey collects data on what child care
providers are charging for child care. The data collected is then used
to set a payment rate to providers for subsidized care. While useful in
setting rates, the market rate survey does not necessarily reflect the
actual costs of providing child care. Child care providers have many
fixed costs such as maintaining adequate staff, complying with building
codes-as well as regulatory and licensing requirements; yet they can
only charge what the market is willing to pay. When corresponding subsi-
dy rates are not high enough, the quality of child care sometimes
suffers as providers struggle to make ends meet.
This bill would require that a cost estimation model be utilized for
each category of care for which a market rate is determined. A cost
estimation model can provide valuable data on the actual cost of provid-
ing child care, not just what price is charged to parents. Such informa-
tion can then be used to determine the adequacy of the rate paid to
providers, as well as inform policy decisions to ensure child care
providers remain stable. Therefore, this legislation is one step forward
in creating a more robust and better quality child care system.
 
FISCAL IMPACT ON THE STATE:
To be determined.
 
LEGISLATIVE HISTORY::
2020: S7773 Committed to Rules.
2022: S3903A Amended and recommitted to Children and Families.
2024: S9715 Referred to Children and Families.
 
EFFECTIVE DATE::
This act would take effect immediately.

Statutes affected:
S1709: 410-x social services law, 410-z social services law