What's happening
This bill requires New York to implement a cost estimation model for child care and regularly report the actual costs incurred by providers.
Why it matters
Provides a more accurate picture of child care costs by requiring the state to use a detailed cost estimation model, rather than relying solely on market rates, potentially highlighting gaps between what providers spend and what they are reimbursed.
Mandates that the model considers key cost drivers like salaries, benefits, facility costs, and regulatory compliance—ensuring that funding decisions are based on real operational expenses, not just average prices.
Requires regular consultation with stakeholders (including providers and resource agencies) and uses up-to-date, statistically valid data collection, increasing transparency and credibility in the reporting process.
Introduces biennial public reporting on actual provider costs, broken down by setting, age group, and quality level, enabling lawmakers, advocates, and the public to track trends and advocate for policy changes aligned with real-world data.
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Who cares
Headline styles
Track True Child Care Costs
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.562
- Reported and committed to finance
- Referred to children and families
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7773
IN SENATE
February 18, 2020
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Children and Families
AN ACT to amend the social services law, in relation to implementing a cost estimation model for child care
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 5, 6, 7 and 8 of section 410-x of the social services law are renumbered subdivisions 6, 7, 8 and 9 and a new subdivision 5 is added to read as follows:
5. (a) For each group for which the office of children and family services determines a separate payment rate pursuant to subdivision four of this section, and at the same frequency, such office shall utilize a cost estimation model to determine the actual cost providers incur when providing child care. The cost estimation model shall identify and take into account cost drivers including but not limited to employee salary and benefits, enrollment levels, facility costs and compliance with statutory and regulatory requirements. Where a quality rating system or any quality indicators are being utilized, the cost estimation model shall also take into account the cost of providing services at each level of quality.
(b) In developing such model the office of children and family services shall consult with stakeholders including, but not limited to, representatives of child care resource and referral agencies, child care providers and any state advisory council established pursuant to 42 U.S.C.S. § 9831 et. seq., as amended. The cost estimation model shall be statistically valid, using complete and current data and rigorous collection methods.
§ 2. Section 410-z of the social services law, as added by section 52 of part B of chapter 436 of the laws of 1997, is amended to read as follows:
§ 410-z. Reporting requirements. 1. Each social services district shall collect and submit to the [department] office of children and family services, in such form and at such times as specified by the [department] office of children and family services, such data and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02784-04-0
S. 7773 2
information regarding child care assistance provided under the block grant as the [department] office of children and family services may need to comply with federal reporting requirements.
2. The office of children and family services shall prepare a report detailing the actual cost providers incur when providing child care in each setting, as determined by the cost estimation model established in paragraph (a) of subdivision five of section four hundred ten-x of this title. The report shall detail cost data for each setting, age group, care provided to children with special needs, and any other grouping for which a separate cost estimation is conducted. Such data shall include:
(a) the level of quality care as determined by a quality rating system or any quality indicators utilized by the state;
(b) a description of the major cost drivers for providing care; and
(c) a comparison of the costs of child care for each grouping to the market rate determined by the office of children and family services pursuant to subdivision four of section four hundred ten-x of this title.
The report shall be submitted to the governor, the speaker of the assembly and the temporary president of the senate by June first, two thousand twenty-two and June first of every other year thereafter. The office of children and family services shall post the information contained in the report on its website.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the social services law, in relation to implementing a cost estimation model for child care
Purpose or general idea of bill
To provide data on the actual costs of providing child day care.
Summary of specific provisions
Section one would require the Office of Children and Family Services (OCFS) to utilize a cost estimation model to determine the actual costs of providing day care in each setting, age group and for each level of quality provided.
Section two would require OCFS to issue an annual report to the Gover- nor, 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 three would set an effective date of 180 days after enactment.
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 childcare, 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 childcare providers remain stable. Therefore, this legislation moves one step forward in creating a more robust and better quality child care system.
Prior legislative history
2019: S.245A (Kennedy)/A.580 (Jaffee) Vetoed by Governor 2017-2018: S.1455(Avella)/A.290 (Jaffee) 2015-16: A.9900-A (Jaffee)
Fiscal implications for state and local governments
Undetermined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.