Directs the commissioner of the office of children and family services to conduct a study to evaluate the costs associated with the provision of child day care services; requires a report to be issued on or before July 1, 2017 to the governor, the temporary president of the senate, the speaker of the assembly, the chairperson of the senate committee on children and families and the chairperson of the assembly committee on children and families.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9638
SPONSOR: Jaffee
 
TITLE OF BILL:
An act directing the commissioner of the office of children and family
services to conduct a study to evaluate the costs associated with the
provision of child day care services
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to understand the actual cost of providing
child day care in New York State, as well as the cost of child day care
as it relates to quality of care.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill requires the Commissioner of the Office of Chil-
dren and Family Services to contract with an external research organiza-
tion to evaluate the cost of providing child day care in New York State,
as well as the costs associated with child day care at each ratio level
of Quality Stars New York. The study would include, at a minimum, child
day care centers, group family day care homes and family day care homes,
and would take into consideration certain factors influencing costs. The
study would be provided to the Governor and Legislature on or before
July 1, 2012.
Section two sets an effective date of immediately.
 
JUSTIFICATION:
State and Federal law require the level of child care assistance a fami-
ly receives he adequate to ensure equal access to child care as those
families not receiving subsidies. Every two years, the Office of Chil-
dren and Family Services contracts with a market rate firm to conduct a
survey of regulated child care providers. The payment rate is then set
at the 75th percentile of the market, based on the data collected, which
is the level of payment the Federal government has determined is suffi-
cient to provide equal access. Despite this process, some child care
providers have expressed that the results of the market rate survey do
not adequately represent the real cost of providing child care.
The State relies on this tool to set subsidy levels, and it is critical
that the rate reflect the true cost of care in order to ensure that
payment rates are sufficient. The study required by this bill will eval-
uate the actual cost of providing child care, outside the parameters of
the market rates survey. Such information will help guide the State in
determining whether the rates set are sufficient in meeting the goal of
equal access for low-income earning families, as required by State and
Federal law.
 
PRIOR LEGISLATIVE HISTORY:
None
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Immediate
STATE OF NEW YORK
________________________________________________________________________
9638
IN ASSEMBLY
March 24, 2016
___________
Introduced by M. of A. JAFFEE -- read once and referred to the Committee
on Children and Families
AN ACT directing the commissioner of the office of children and family
services to conduct a study to evaluate the costs associated with the
provision of child day care services
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. 1. The commissioner of the office of children and family
2 services shall contract with an external research organization to
3 conduct a child care cost study to evaluate the cost of providing child
4 day care in New York State. The study shall also evaluate the cost of
5 child day care related to each level of rating under the Quality Stars
6 NY Initiative.
7 (a) The type of settings included in the study shall be subject to
8 funds available but include, at a minimum, child care day care centers,
9 group family day care homes and family day care homes.
10 (b) The methodology used in the study shall take into account factors
11 influencing costs, including but not limited to: geographical region,
12 type of setting, age of children served, qualifications of staff, educa-
13 tional curriculum, the number of children served and staff to child
14 ratios.
15 (c) Data collected shall provide information on the breakdown of all
16 sources of revenue and personnel and non-personnel expenses, for each
17 type of child day care program setting included in the study.
18 2. The commissioner of the office of children and family services
19 shall submit a report detailing the findings of the child day care cost
20 study to the governor, the temporary president of the senate, the speak-
21 er of the assembly, the chairperson of the senate committee on children
22 and families, and the chairperson of the assembly committee on children
23 and families on or before July 1, 2017.
24 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14141-01-6