Requires the office of children and family services to utilize a cost estimation model when determining the actual cost providers incur when providing child care; requires the office to prepare a report detailing such.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A711
SPONSOR: Clark
 
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 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 2 would require 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 1.
Section 3 would set 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:
TBD
 
LEGISLATIVE HISTORY:
2023-24: A.1885 (Clark) - Referred to Ways and Means
2021-22: A.7468-A (Clark) - Referred to Ways and Means
2019-20: A.580 (Jaffee) - Vetoed by Governor
2017-18: A.290 (Jaffee) - Passed Assembly
2015-16: A.9900-A (Jaffee) - Passed Assembly
 
EFFECTIVE DATE:
This act would take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
711
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. CLARK, HEVESI, SEAWRIGHT, GONZALEZ-ROJAS, JACK-
SON, SIMON, DAVILA, ZINERMAN, LUPARDO, KELLES, GALLAGHER, STIRPE,
McMAHON, MAGNARELLI, BRONSON, MAHER, ZACCARO, BICHOTTE HERMELYN --
read once and referred 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 Assem-bly, do enact as follows:
1 Section 1. Section 410-x of the social services law is amended by
2 adding a new subdivision 5-a to read as follows:
3 5-a. (a) For each group for which the office of children and family
4 services determines a separate payment rate pursuant to subdivision four
5 of this section, and at the same frequency, such office shall utilize a
6 cost estimation model to determine the actual cost providers incur when
7 providing child care. The cost estimation model shall identify and take
8 into account cost drivers including but not limited to employee salary
9 and benefits, enrollment levels, facility costs and compliance with
10 statutory and regulatory requirements. Where a quality rating system or
11 any quality indicators are being utilized, the cost estimation model
12 shall also take into account the cost of providing services at each
13 level of quality.
14 (b) In developing such model the office of children and family
15 services shall consult with stakeholders including, but not limited to,
16 representatives of child care resource and referral agencies, child care
17 providers and any state advisory council established pursuant to 42
18 U.S.C.S. § 9831 et. seq., as amended. The cost estimation model shall be
19 statistically valid, using complete and current data and rigorous
20 collection methods.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02587-02-5
A. 711 2
1 § 2. Section 410-z of the social services law, as added by section 52
2 of part B of chapter 436 of the laws of 1997, is amended to read as
3 follows:
4 § 410-z. Reporting requirements. 1. Each social services district
5 shall collect and submit to the [department] office of children and
6 family services, in such form and at such times as specified by the
7 [department] office of children and family services, such data and
8 information regarding child care assistance provided under the block
9 grant as the [department] office of children and family services may
10 need to comply with federal reporting requirements.
11 2. The office of children and family services shall prepare a report
12 detailing the actual cost providers incur when providing child care in
13 each setting, as determined by the cost estimation model established in
14 paragraph (a) of subdivision five-a of section four hundred ten-x of
15 this title. The report shall detail cost data for each setting, age
16 group, care provided to children with special needs, and any other
17 grouping for which a separate cost estimation is conducted. Such data
18 shall include:
19 (a) the level of quality care as determined by a quality rating system
20 or any quality indicators utilized by the state;
21 (b) a description of the major cost drivers for providing care; and
22 (c) a comparison of the costs of child care for each grouping to the
23 market rate determined by the office of children and family services
24 pursuant to subdivision four of section four hundred ten-x of this
25 title.
26 The report shall be submitted to the governor, the speaker of the
27 assembly and the temporary president of the senate by June first, two
28 thousand twenty-seven. The office of children and family services shall
29 post the information contained in the report on its website.
30 § 3. This act shall take effect immediately.