1 Income Eligible Re-Procurement Board of Early Education and Care January 14, 2009

2 Background Information Income Eligible Program The Income Eligible program provides financial assistance to more than 30,000 children from birth to age 13 (age 16 for children with special needs) Financial assistance provides families with access to a mixed system of providers through vouchers, grants and contracts Schools and independent family child care providers do not currently participate in the contract program Contract portion of the program covers nearly 12,000 children, approximately 40% of Income Eligible caseload Recent changes related to 9c budget cuts will shift a significant number of CPC grant-funded slots into this contract bid

3 Background Information Income Eligible Contract Spending in Context (Fiscal Year 2009) * Includes contracts for supportive care, teen parents and homeless families. ** Assumes $24 million in slots funded by the Community Partnerships for Children (CPC) grant program are converted into Income Eligible contracts.

4 Income Eligible Re-Procurement Goals Comply with state procurement laws Make policies and practices more equitable Ensure consistent and stable placements Support stability of the early education system Focus on the highest need areas Strengthen program quality Continue building a thriving system

5 Current Context for Contract Bid Strategic Considerations & Constraints New contract bid is critical opportunity to introduce strategic changes to strengthen provider quality and streamline administrative policies Current constraints place limitations on policy options: Uncertain fiscal climate, with no new funding Timing of future strategic policy initiatives – e.g. QRIS Providers facing significant fiscal and operational shifts EEC managing multiple initiatives with limited capacity Proposed contract would incrementally implement strategic changes by phasing them in during the life of the contract

6 Highlights of Proposed Contract Proposed contract would have an initial term of three years, with two options to renew during which EEC could phase in strategic policy changes related to provider quality Would focus on strengthening quality of contracted providers, by: Selecting providers based on quality evaluation criteria Phasing in accreditation requirement for contract providers Aligning contract requirements with QRIS Would continue existing eligibility criteria for contracts, but create a limited demonstration project to test feasibility of contracting directly with schools and family child care homes in areas with access challenges Would streamline administrative and reporting requirements Would ensure stability of placements for families by maintaining contract resources in the communities where they currently exist and maintaining the current level of contract slots by age group, while targeting future expansion funding in communities and age groups with the highest need

7 Contract Duration Facilitating Implementation of Strategic Changes Contract would have an initial term of three years that could be extended for two additional two-year terms Contract term would facilitate implementation of strategic changes, by allowing EEC to implement new standards and policies during the first and second renewals Both QRIS and revised standards for family child care systems could be incorporated into the contract during the contract renewal process Allows EEC to continue collaborative development of strategic policy innovations – e.g., QRIS - but also assures their future integration with the contract program

8 Contract Eligibility Criteria Maintaining Existing Criteria & Testing Alternatives Proposed contract would maintain existing eligibility criteria, which would require providers to: Operate on a full-day (10 hours per day) and full-year schedule (260 days per year) Follow EECs child care financial assistance policies Meet all EEC licensing requirements Would also continue to require family child care homes to be affiliated with a family child care system in order to have access to state contract slots Would create a limited demonstration project to test the feasibility of contracting directly with schools and family child care homes in communities with access challenges

9 Contract Eligibility Criteria Demonstration Project – Schools & Family Child Care Participation in demonstration project focused on high-need communities with limited capacity The project would have the following eligibility requirements: CategoryRequirement LicensingMust be licensed and in good standing or licensed-exempt Schedule of OperationsMust provide care (or access to care) on a full-day & full-year schedule Financial Assistance Policies Accreditation Must follow EEC financial assistance policies – e.g., waiting list & parent fees Must be accredited by NAEYC, NAFCC or comparable accrediting body All other program and administrative requirements would be the same Project would be limited to five school sites and five family child care homes

10 Strengthening Provider Quality Selecting Providers Using Quality Evaluation Criteria To assure best quality, each bidder will respond to a series of narrative and data questions covering the following areas: Program Characteristics – Accreditation, staff qualifications, screening and assessment practices, curriculum practices, and other structural program characteristics – e.g., comprehensive services Provider Experience – Experience with EEC systems, provider licensing history and fiscal compliance history Collaborations & Partnerships – Collaborations and partnerships designed to improve program quality, streamline services, promote shared services or create economies of scale Evaluation teams will review each bid and award points based on the content and quality of the responses in each area, with priority points provided if certain criteria are met – e.g., accreditation

11 Strengthening Provider Quality Phasing in Accreditation Requirement Would award additional evaluation points to providers who are accredited or in-process of accreditation Would require all center-based contracted providers to be accredited or enrolled as a candidate for accreditation by 2012 (equivalencies for school-age and family child care) Goal would be to have all contracted providers accredited by the end of the contract period Contract would provide funding or access to funding for accreditation fee support

12 Strengthening Provider Quality Aligning with Quality Rating & Improvement System Contract term would facilitate the implementation of QRIS standards among contracted providers without delaying procurement timeline QRIS standards are currently being developed through a collaborative process and will be piloted starting in Standards will not be complete in time to be included in the initial contract in 2009 The structure of the contract term would allow EEC to align contracts with the QRIS as it is developed

13 Procurement Timeline