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BOSTON (State House News Service) - A bill aiming to make early education and care more affordable for families and to invest in the industry to keep teachers in the field -- an issue that all three of Beacon Hill's most powerful leaders have said is a priority -- would cost the state hundreds of millions of dollars in new funding every year, for several years.
The dichotomy of the early education field is that a single year of early childhood education could cost parents tens of thousands of dollars, while simultaneously early ed teachers are often earning wages well below the cost of living in their area.
Shamilia Lloyd left the job she was passionate about, teaching young children, to instead work at a liquor store when she decided it cost more to go to work than it did to stay home. Lloyd, like other parents who work in early child care and education, have to balance low pay with the high costs of sending their own children to preschool if they cannot be home with them.
"It doesn't give you the same excitement. I had children come in [to the liquor store] with their parents, and I got that one quick moment where I could be a teacher again and have a conversation and do a back and forth and see their social skills and emotional skills," she said. "I get teary-eyed about it."
Lloyd was one of dozens of parents and educators who testified Tuesday before the Joint Committee on Education in support of legislation that would offer families financial assistance with the cost of early education and child care and address the stability of the industry, as teachers flock to higher-paying jobs.
The bill, commonly referred to as the Common Start bill (S 301 / H 489), would largely subsidize expensive early childhood education for lower-income families, leading to huge projected increases in the percentage of young kids in such programs by reducing the cost burden for families.
A report from the Department of Labor that came out earlier this year shows parents in Middlesex and Norfolk counties pay the third-highest child care prices in the nation, at more than $26,000 per year.
The bill also seeks to steer state funds toward early care providers, to directly offset provider operating costs, including higher educator pay.
In its first year, the legislation would offer financial assistance aimed at families earning at or below 85 percent of the state's median income ($115,546 for a family of four, or $78,571 for a family of two) -- which a recent UMass Boston report said would cover nearly half of all Massachusetts families with children under 14, or under 17 with special needs.
This significant increase in subsidies would reduce the cost of child care from an average 17.2 percent of a family's earnings to 4.3 percent -- and it would also cost the state $1.7 billion, the UMass researchers found.
And that $1.7 billion doesn't cover the full cost of the Common Start bill.
The House version of the legislation, sponsored by Rep. Ken Gordon and Rep. Adrian Madaro, would eventually raise the financial assistance threshold to families earning 125 percent of the state median income, a level representing about $169,920 annually for a four-person household, and ties the timeline of expanded eligibility to federal funding.
A Senate bill cosponsored by Sens. Jason Lewis and Susan Moran would extend eligibility for financial assistance to families making up to 200 percent of state median income -- which would extend to upper-middle class households, who make an average $271,872 per year in a family of four. The senators' legislation would incrementally expand the subsidy eligibility over five years.
The Senate's bill would also make early childhood care free for all families who live below the federal poverty level, which is currently $30,000 per year for a four-person household.
Under the current law, only households that earn 50 percent or less of the state median income -- equivalent to about $67,968 annually for a household of four -- qualify for some subsidies.
The report's estimate that the program would cost the state $1.7 billion only covers the original 85 percent state median income threshold, without any of the step-ups both chambers' bills call for.
This estimate also only represents how much the state would have to pay to cover the increases in family financial assistance. The report did not touch on the section of the bill having to do with providing direct funding to early education providers.
"We did not estimate that, but [the cost] is also large," said Randy Albelda, a UMass Boston economics professor and one of the report's authors.
In March, a coalition of organizations that support Common Start estimated the "full implementation of our vision" would require hundreds of millions of dollars in new funding every year, for several years, ultimately costing more than $2 billion in annual funding.
It would cost the state more than the Student Opportunity Act, a 2019 law that funneled an unprecedented $1.5 billion in additional funding to the state's K-12 schools over seven years. In this year's budget, schools received a $594 million increase in funding under the 2019 law.
Asked by Education Committee Chairman Jason Lewis, who co-sponsored the Common Start bill, how the state could afford the program, Albelda said it would likely take a combination of federal funds and new ways to generate revenue for the state.
She said one of her ideas is a new statewide property tax that would exempt a large portion of Massachusetts households.
"But you're right, I mean, the revenue has to come from somewhere. And this has been, frankly -- I have gray hair. And I've been working on this child care issue for 30 years, largely because it's so crucial for both children but also for women," Albelda said. "And we all agree that it's important, but we've never made it a funding priority. And I think it's time."
Another one of the researchers, professor of economics and public policy at Northeastern University Alan Clayton-Matthews, answered Lewis' question by saying the bill would be an investment in families.
"One way to think about it, without giving any answers, is how do we pay for K-12?" Clayton-Matthews said. "Anyone can send their kid to school, they know they can send their kid to a quality school, and it's not going to kill their budget. So there must be some way to move that down to younger ages."
Despite the high cost, top Democrats in the House and Senate have promised to address the slow-burning crisis in the early education sector, where providers are coping with widespread staffing shortages, workers are languishing on low wages and families are struggling to pay for care, if they can even find available slots.
"We know how important early education and care is, both to addressing the 'she-cession' that worsened during the pandemic and in preparing our children to learn. Simply put, it is past time to update the way we imagine and support this crucial sector," Senate President Karen Spilka said in her inaugural address in January.
Advocates for state subsidized child care say that expensive early childhood education disproportionately impacts women, who more often than men will leave the workforce to take care of their kids.
The Senate unanimously approved a bill in July 2022 seeking a years-long expansion of subsidies, increased pay and benefits for workers, and permanent grants to stabilize providers, but the lateness of the bill's passage left the House with little time to fashion a response.
House Speaker Ron Mariano has signaled that he wants his chamber to get more involved in the issue this time around, though he stopped short of embracing the expansive proposal backed by the Senate last session.
"This session, the full attention of the House will be directed at examining ways to further support our vital early education and care workforce," Mariano said during his own inaugural address. "This workforce is made up largely of women and often women of color. As we work to build a system to provide affordable access to quality child care for Massachusetts families, I was proud of the work done last session to increase salaries and other key supports for EEC workers, and I'm confident that the Legislature can do more on this critical issue."
During her run for governor, Healey endorsed an earlier version of the Common Start proposal, which would have eliminated child care costs for the lowest-income families and limit it to no more than 7 percent of income for other families, plus increase pay for early educators.
A website outlining the governor's priorities specifically references the Common Start bill.
"Governor Healey and Lieutenant Governor Driscoll support a comprehensive solution to the child care crisis, such as legislation in line with Common Start that would make sure every family pays what they can afford, and that care workers are paid what they deserve," it says. "This is something our families, workers, and businesses all agree on."
Written By Sam Drysdale/SHNS
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