For years family child care providers have said they don’t get paid enough by the state of California to cover the costs of their businesses. Their fight for better pay and benefits, a two-decades-old effort, is reaching a fever pitch. 📝 JeanneKuang
last year described as a “market failure.” That in turn results in chronic shortages of child care for parents.
The same report recommended the state adopt a new method for calculating reimbursement rates that is based on real costs like the ones the firm calculated, rather than surveys of daycare rates. It has drawn support from both business and labor:urging the state to implement the recommendations was signed this year by the Service Employees International Union and the California Chamber of Commerce.
“Providers are gaining ground in negotiations towards pay increases and basic benefits — but we have yet to see a fair and just contract offer from the state.”No new payment method has been developed yet, though the state this year restarted the working group to advise on overhauling rates. Because the current rates are so low, a new model could be dramatically more expensive for the state. In some cases, providers may have to be paid three or four times what the state currently covers.
Eric Peterson, director of client services and policy at Bananas, an Oakland agency that helps families find child care and subsidies to pay for it, sat on the working group that commissioned the cost report.“Everybody knows… we can’t pay the true cost of care in a year,” he said. “The intent is to acknowledge the true cost and find a schedule to get there.”
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