Wisconsin Shares: $106 million Underspending at Children’s Expense

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Wisconsin Shares has spent $106.3 million less than budgeted for the last three state fiscal years in subsidy payments to child care programs.

Underspending

The Big Question:

If we are repeatedly underspending, why do we still have policies that continue to drive child care payments down, undermining the quality of their programs and the children they serve?

  1. Low Rates: Why do we still have payment rates to child care programs well below the market rate standard set in statutes, after 7 years of frozen rates?
  2. Pay on attendance: Why are so many child care programs continuing to get paid only for attended days when their costs are fixed based on enrollment?
  3. Cut in bonus payments: Why are bonus payments for 4- and 5-Star program proposed to be capped, so many of our highest quality child care programs take a cut?
  4. 5% penalty: Why are 2-Star programs still being penalized by a 5% cut to their payments, making it difficult for them to improve their quality?

It seems prudent to adjust these policies as soon as possible to strengthen Wisconsin Shares and YoungStar so that the children served get the high quality care and education they need to thrive in school and beyond.

Dave Edie

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