The Pennsylvania Office of Child Development and Early Learning (OCDEL), Bureau of Early Learning Policy and Professional Development, has released the Announcement ELRC 21-#02 Increase to Child Care Works Base Payment Rates.
The Announcement announces an increase to base rates paid to providers participating in Child Care Works (CCW). Base payment rates are also known as the Maximum Child Care Allowance (MCCA). This Announcement replaces ELRC Announcement 18 #01- Increasing Base Payment Rates for STAR 1 and STAR 2 Providers and Improving the Maximum Child Care Allowances for All Providers.
Every three years, OCDEL conducts a child care Market Rate Survey (MRS) to guide base rate setting. The last MRS was completed in 2019 and released in 2020 and can be viewed here. Effective March 1, 2021, base rates for CCW reimbursements will be regionalized and increased to meet a floor equal to the 40th percentile of the market rate for child care in the provider’s region. This change represents an increase from approximately the 25th percentile where the majority of Pennsylvania’s rates currently sit. This change brings Pennsylvania closer to the federal government’s recommendation of reimbursing child care providers at the 75th percentile. The base rate increase is supported by $28.8 million in federal funding for the 2020-21 fiscal year and $87.2 million in the 2021-22 fiscal year.