New Jersey Assembly Bill A1470

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Requires State provider subsidy payments for child care services to be based on enrollment.

Impact

This bill is set to have significant implications for the way child care services are funded in New Jersey, especially for those catering to low-income families. By basing payments on enrollment instead of attendance, the legislation aims to alleviate financial uncertainty for providers, which has become increasingly critical as many have reported struggles with operating costs and fluctuating enrollment levels. The change is anticipated to support the stability of child care providers and ensure that they can continue to serve eligible families effectively within the state’s welfare and education sectors.

Summary

Assembly Bill A1470 proposes changes to the existing framework of state subsidies for child care services. Specifically, the bill requires that subsidy payments made to licensed child care providers and family day care providers be determined based on the number of enrolled children, rather than the number of children actually in attendance. The intent is to provide more predictable financial support for these providers as they navigate current economic challenges, particularly due to the impacts of the COVID-19 pandemic. As part of this structure, subsidy payments will be calculated based on enrollment figures recorded in mid-October and mid-April each year.

Contention

The main points of contention surrounding A1470 will likely center on the potential impacts on provider accountability and the overall budgeting for child care services within the state. Critics might argue that tying subsidies to enrollment might encourage providers to over-enroll beyond actual capacity or lead to inefficiencies if they do not maintain appropriate attendance figures. Supporters, however, contend that this approach is essential for ensuring that providers receive consistent funding to adequately plan for operational needs, especially during fluctuating economic conditions that have been exacerbated by the pandemic.