This bill aims to modernize reimbursement rates for the Working Connections Child Care Program in Washington State to better reflect the costs of providing high-quality child care. The legislature recognizes the challenges faced by working families in accessing affordable child care and the low wages earned by child care workers. To address these issues, the bill proposes to maintain the current baseline reimbursement rate while transitioning to a cost of quality child care rate model. This model, developed in consultation with child care providers, will ensure that reimbursement rates are based on living wages and the actual costs of providing quality care.

The bill amends RCW 43.216.828 to require that child care subsidy base rates achieve, at a minimum, the 85th percentile of the market based on the most recent market rate survey. It also mandates that the Department of Children, Youth, and Families utilize the cost of quality child care rate model to recommend subsidy rates that adequately compensate providers. Key factors to be considered in this model include staff salaries, benefits, family engagement activities, and professional development supports. Additionally, the bill stipulates that recommendations for rate enhancements to support special populations must be reviewed every three years. Importantly, the provisions of this act will not affect collective bargaining agreements negotiated under existing laws until July 1, 2027.

Statutes affected:
Original Bill: 43.216.828
Substitute Bill: 43.216.828