BESSIE TARTT WILSON INITIATIVE FOR CHILDREN

BLUEPRINT FOR EARLY EDUCATION COMPENSATION REFORM

January 2011

Board of Early Education and Care

Recommendations2

The Task Force strongly urges Massachusetts and the Department of Early Education and

Care to fully develop, within 12 months, a career ladder that requires increased

compensation for career growth and both incremental wage increases and annual bonuses

for achieving performance benchmarks and obtaining additional education. The

implementation of the career ladder should happen shortly after development and should

require that there are no decreases in base pay to early educators.

The Task Force strongly supports the creation of a refundable 15% earned income tax credit for early education providers from Massachusetts within the next 12 months.

The Task Force strongly supports the creation of an early education endowment fund that

provides monetary support for the career ladder, and supplements the market rate for high

quality programs.

Create a loan forgiveness program for early educators that requires a commitment to the

field.

The development of a career ladder by the end of

2011 that requires increased compensation for

career growth and both incremental wage

increases and annual bonuses for achieving

performance benchmarks and obtaining

additional education. The implementation of the

career ladder should happen shortly after its

development and should require that there are no

decreases in base pay to early educators.

A Career Ladder3

A Career Ladder: What’s Been Done & Next Steps

4

Since September 2010, BTWIC has been assisting the Department of Early

Education and Care in their creation of a career ladder that will encompass

center-based care, family child care, and out-of-school-time care.

The ladder has been presented to two different focus groups for feedback

and has been revised to reflect the suggestions from the field and

stakeholders. Focus Groups were held in Boston and Worcester with a total of 28 participants.

Next steps for the career ladder are to present the revised version to the

Commissioner for distribution to the appropriate committees on the EEC

Board of Directors.

A Career Ladder: What Does It Look Like?

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The career ladder includes:

descriptions of responsibilities at each level

required education and experience

in-service training and continuing education

Individualized Professional Development Plans (IDPD)

The career ladder does not include job titles (currently) to

ensure it is universal across the three types of care settings.

A career ladder based on Washington state’s model would cost MA $13.4M annually.

These numbers are based on 51% of 11,690 early educators (excluding Preschool and Kindergarten) and 20% of 7,369 family child care providers receiving a 25¢/hour increase for an AA and a 75¢/hour increase for a BA or higher. This

estimate also includes a $1,000 annual bonus.

These estimates are based on findings from The Massachusetts Capacity Study (2005) from Wellesley Centers for Women, Wellesley College on past levels of

degree attainment within the field.

A career ladder based on Washington state’s model would cost MA $13.4M annually.

These numbers are based on 51% of 11,690 early educators (excluding Preschool and Kindergarten) and 20% of 7,369 family child care providers receiving a 25¢/hour increase for an AA and a 75¢/hour increase for a BA or higher. This

estimate also includes a $1,000 annual bonus.

These estimates are based on findings from The Massachusetts Capacity Study (2005) from Wellesley Centers for Women, Wellesley College on past levels of

degree attainment within the field.

The creation of an early education

endowment fund that may provide

monetary support for compensation,

the career ladder, and supplements

the market rate for high quality

programs.

An Endowment Fund6

An Endowment Fund7

How will an endowment work?

An early education fund would best be

administered as a statewide “field of interest”

fund in collaboration with an existing early

education organization and managed by a

board of advisors who determine how funds are

allocated and invested.

Funding for the endowment should come from

public, private and foundational partners.

BTWIC’s goal is to gauge the feasibility of an

early education endowment fund for

Massachusetts and is currently in the

Assessment Phase.

An Endowment Fund: What Will It Look Like?

8

In January, BTWIC will convene a meeting to introduce the concept of an

early education endowment fund move further in our analysis of the

feasibility of such a fund. The next step will be to establish a Planning Task Force to recommend a

structure for the Early Education Endowment.

The Task Force would be comprised of decision makers from corporations, non-

profit funders, higher education, and early education stakeholders.

It is possible that this Task Force will develop into the endowment's governing

body.

There are numerous cases of early education endowment funds

throughout the country. The most successful is the Nebraska Sixpence

Fund. However, Minnesota offers a strong model as an endowment fund

based on research and public/private collaboration.

The creation of a refundable 15%

earned income tax credit for early

education providers in the state.

A Tax Credit9

A Tax Credit10

The proposed15% tax credit for early educators will be

modeled on the state’s existing earned income tax credit.

The average benefit to each early educator would be $255.

Combined with the state’s existing Earned Income Tax Credit,

the benefit becomes $510. Additionally, the average benefit

for the federal earned income credit is $1,700, making the

average benefit eligible early educators $2,210.

It is estimated that the proposed tax credit will cost the state

between $3.4-$3.6M dollars to fund.

A Tax Credit: What’s Been Done11

BTWIC has developed a bill for filing and

is currently meeting with legislators to

secure a sponsor.

Legislators have responded favorably to

the idea.

While we move forward with the

proposed early educators tax credit,

BTWIC will engage the field to file for

the existing earned income tax credits.

BTWIC has partnered with United Way

and other tax assistance providers to

promote their services.

A Tax Credit: Next Steps12

BTWIC is hosting state-wide meetings with

early educators to educate them about the

EITC and urge them to take advantage.

BTWIC has contacted 53 centers (with a

capacity of at minimum 50 children) in

December, and has planned to do info

sessions for at least 138 early educators

(both center-based and family child care

providers) throughout Boston and Central

Mass in January 2011.

BTWIC ultimately plans to visit multiple

locations within the six DEEC regions of the

state.

We estimate we will speak with at least 300

early educators about the Earned Income Tax

Credit.

Since September 2010, BTWIC has met with the following groups to discuss the proposed tax credit as well as efforts to support the existing Earned Income Tax Credit: • The City of Boston

Earned Income Tax Credit Campaign,

• Action for Boston Community Development,

• The Massachusetts Association of Day Care Agencies,

• Thrive in 5 Boston,• United Way of Central

Mass,• The Massachusetts

Asset Building Coalition, and

• Boston Community Partnerships for Children.

Since September 2010, BTWIC has met with the following groups to discuss the proposed tax credit as well as efforts to support the existing Earned Income Tax Credit: • The City of Boston

Earned Income Tax Credit Campaign,

• Action for Boston Community Development,

• The Massachusetts Association of Day Care Agencies,

• Thrive in 5 Boston,• United Way of Central

Mass,• The Massachusetts

Asset Building Coalition, and

• Boston Community Partnerships for Children.

The development of a loan

forgiveness program for early

educators that requires a

commitment to the field.

Loan Forgiveness13

Pennsylvania’s “Quality Early Education Loan Forgiveness Program” was

active up until June 30, 2008 and provided up to $3,300 per year for up to

3 years.

Illinois’ Teachers and Child Care Providers Loan Repayment Program

provides up to $5,000 to students who enter the child care profession and

serve in low-income areas.

Loan Forgiveness: Why?14

How does loan forgiveness benefit compensation?

Loan forgiveness programs provide assistance, allowing

early educators to use wages to buy food or other

necessities.

Loan Forgiveness programs make is possible for early

educators to return to school by keeping their loans in

good standing, which is necessary to access the

Scholarship Fund in future years.

Loan Forgiveness: What’s Been Done & Next Steps

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BTWIC has been working with

Boston Equip since October 2010 to

study the early education field via

focus groups and questionnaires.

This research will help BTWIC build

the case for a loan forgiveness

program, allowing us to estimate how

many people would take advantage,

how much it would cost the state,

and how it will improve quality of

care for children and compensation

for early educators.

Loan Forgiveness: Findings16

350 survey respondents to date (December 17, 2010)

37.4% work at a child care center

29.1% work at a family child care home

17.4% work at Head Start

4% work in a public school

33.5% of those currently in school have current public and/or

private loans.

52% have taken out student loans at some point.

64.6% were not aware of the existence of loan forgiveness

programs.

10.8% have had a bad experience with a previous loan forgiveness

program.

The Corporate Component

Why and where does the corporate world and early education intersect?

Reliable early education and care enables business to attract and retain employees, and reduces absenteeism to increase productivity.High-quality early education prepares children to grow into a skilled labor force, benefitting local business and communities within Massachusetts. Community engagement is more than a buzzword for businesses. It is vital in ensuring a strong, healthy workforce and maintaining employee satisfaction.The economic viability of Massachusetts is bolstered by a thriving, high-quality early education and care industry.Investments in early education and care have a high return on investment.

On An Early Education Endowment Fund:

An early education endowment fund offers sustainability to a field the corporate sector relies on to succeed. An investment in an early

education endowment fund makes sense.

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THANK YOU

THE FULL REPORT IS AVAILABLE AT WWW.BTWIC.ORG