MCCTF Minutes 010500

MCCTF January 5, 2000
Meeting Minutes

I. Opening Business:

A. Co-chairs Erin McGovern and Steve Manchester called the meeting to order at 9:40 a.m. The meeting opened with introductions.

B. The agenda was approved.

C. Peg Barratt distributed information resultant of her presentation at the December meeting.

II. Update on the Business of the Task Force

A. Child Care Center Rules: Steve Manchester distributed information from the newsletter Developments In…. Problems with the Office of Regulatory Reform's (ORR's) new rules include 1)new playground regulations apply only to some centers, and 2)there are play space size exemptions for centers operated in public school buildings and by businesses. Mike Zimmer, who had a hand in writing the rules, has left ORR for the Department of Consumer and Industry (DCIS), and someone new is now with this issue. It is still unclear what will happen next.

B. School Readiness: Reorganization of the Department continues; early childhood is now in the Office of School Excellence.

C. Ready to Succeed Dialogue with Michigan: the Family Independence Agency (FIA) has approved a $100,000 appropriation to MCCTF. The Planning Committee will meet on 1-7-00 to finalize a contract with Public Sector Consultants (PSC) regarding how to spend the money.

D. Managed Care: it is possible that Community Mental Health Boards will bid with private organizations to provide mental health benefits. For more information, contact Michelle Strasz at mtstrasz@aol.com or (517)482-5807.

III. Guest Speakers: Peg Barratt, Kristi Carambula, and Jeff Padden

A. The panel was scheduled to discuss their research and the resulting FIA report. The FIA report had not been released at the time of the MCCTF meeting, and the panel was unable to disclose information contained in it. The did discuss other aspects of their research:

1. The group conducted national research regarding cost, accessibility, and quality of child care, and found that affordability was the primary concern for most parents.

2. "What is quality child care?" Peg distributed research on staffing, training and education, and outcomes.

3. "Does quality matter economically?" The panel quoted the High/Scope research that states for every $1 invested in early childhood, we save $7 in public spending later. The group also quoted other research that suggests savings in the reduction of special education services, reduced welfare costs, and reduced criminal justice costs.

4. For more information, contact Jeff Padden at 517.485.4477.

IV. Closing Business:

A. Next month's meeting will feature Jan Ellis (R.E.A.D.Y. kits), more about the FIA report, and planning the 2000 MCCTF Action Agenda. The meeting will extend through lunch until approximately 2:00 p.m. Lunch will be provided.

B. Please come prepared to discuss the FIA report and the MCCTF Action Agenda. See Appendix A for a "Summary of FIA Child Day Care Recommendations." See Appendix B for a list of concerns the MCCTF Planning Group generated at its January 10 meeting. If you would like to receive a full copy of the FIA report, please contact Paul Nelson's office at 517.335.6183.

C. Next month's meeting will take place at 9:30 a.m. on February 2 at the Michigan State Library, in the Lake Ontario room on the third floor.

D. The meeting was adjourned at 11:48 a.m.

Appendix A: Summary of FIA Child Day Care Recommendations
1. FIA recommends development and implementation of a Michigan central registry for in-home and license-exempt child care providers similar to "TrustLine."

2. FIA recommends development and implementation of an EBT swipe card payment system for FIA subsidized child care.

3. FIA recommends implementation of an automated IRS-1099 reporting system.

4. FIA recommends retention of the current child care rate areas.

5. FIA recommends making no child care provider rate changes at this time. If the legislature were to pursue some rate adjustments, FIA would recommend focusing, within available funding, on the youngest children.

6. FIA is interested in pursuing quality initiatives and recommends further analysis and development of such options as such as EQUIP grant enhancements and obtaining a T.E.A.C.H. license.

7. FIA is interested in pursuing means of providing additional child care assistance for children with special needs and recommends further study of this subject.

8. FIA recommends no change in rates for care during non-traditional hours as the 1998/1999 market rate survey does not support the need for a premium reimbursement rate.

9. FIA recommends continuing to set low-income child care eligibility at an average of 185% of the federal poverty level.

10. FIA recommends retention of the current low-income child care fee scale.

11. FIA recommends that it continue to monitor for the risk of CDC program waiting lists.

12. FIA recommends not pursuing child care related corporate tax credits at this time based on the experience of other states.

13. FIA recommends consideration for adoption of the Texas model for a public/private partnership on child care.

14. FIA recommends exploring various options with the business community for leveraging public/private funding such as low rate loans or loan guarantees for child care providers.

15. FIA recommends that the additional $33M be made available over multiple years to actualize an EBT system, "TrustLine" registry, regional public/private partnerships, additional EQUIP grants, and several other proposals contained in the Child Day Care Analysis and Recommendations.

Appendix B: Michigan Child Care Task Force Response to Recommendations of the FIA Report
A planning session to revise the MCCTF's "Action Agenda" will be part of the Michigan Child Care Task Force meeting on February 2, 2000. The planning session will begin with a discussion of the recently released FIA report, Child Day Care Analysis and Recommendations (released January 5, 2000).

The MCCTF Planning Group has had the opportunity to review the FIA report that was completed by Public Policy Associates in response to spending the $33M set aside funds. The Planning Group has some concerns about the recommendations that have been made for spending the set aside funds. The responses presented below are both for your information and to give you "food for thought" as we plan our legislative agenda for the year 2000.

1.FIA recommends making no child care provider rate changes at this time. If the legislature were to pursue some rate adjustments, FIA would recommend focusing, within available funding, on the youngest children.

MCCTF response: One of the focuses for spending the $33M was to be on infants and toddlers. This recommendation falls short of meeting the original charge of addressing the shortage of spaces for quality infant and toddler care. The Planning Group suggests that FIA make a commitment to Michigan's youngest children and, at least, raise child care rates for providers caring for infants and toddlers. FIA estimates the cost for raising rates for infant and toddler care would be approximately $10,000,000 annually.

2. FIA is interested in pursuing quality initiatives and recommends further analysis and development of options such as EQUIP grant enhancements and obtaining a TEACH license.

MCCTF response: We would like to see FIA go beyond obtaining a TEACH license and begin to implement the TEACH model in Michigan. This would include bringing Sue Russell to Michigan from North Carolina to introduce the TEACH (Teacher Education And Compensation Helps) and WAGES (Workers Are Gaining Educational Success) programs to legislators and other interested parties. In particular, the Michigan Early Childhood Professional Development Consortium and members of the 'Ready to Succeed Dialogue with Michigan' should be included.

TEACH, now in 11 states, provides partial scholarships to child care providers for early childhood education and training programs and rewards increased education through bonuses or wage supplements.

In North Carolina, TEACH participants have earned an average of 18 credit hours, received 10 to 40% pay increases and decreased turnover rates to less than 10% per year. Implementing a program like TEACH in Michigan could help increase provider education levels and reduce turnover rates in the field of early childhood education and care from the current level of 40%.

3. FIA recommends continuing to set low-income child care eligibility at an average of 185% of the federal poverty level.

MCCTF response: Since the inception of welfare reform, the number of people going back to work has increased dramatically. We recommend that FIA increase the eligibility scale to 200% of poverty or to 75% of the state median income (currently at 58%) to provide a more graduated level of support as families establish themselves in the workforce.

4. FIA recommends not pursuing child care related corporate tax credits at this time based on the experience of other states.

MCCTF response: We recommend that FIA consider creating a child care tax credit for Michigan parents, similar to what several other states have established. Additionally, we recommend that FIA pursue the possibility of a corporate tax credit for Michigan businesses as one way to increase corporate investments in enhancing access to quality child care for their employees.

5. FIA recommends that the additional $33M be made available over multiple years to actualize an EBT (electronic benefits transfer), "Trustline" registry, regional public/private partnerships, additional EQUIP grants, and several other proposals in the Child Day Care Analysis and Recommendations.

MCCTF response: The Planning Group would like to request further clarification on the idea of implementing an EBT. There is not enough information provided in the report that shows the benefits of such a system.

Additionally, there is concern for the cost and effectiveness of using the "Trustline" central registry. The report recommends that the voluntary registry be used for in-home and license-exempt (relatives and child care aides) providers to provide parents with an added sense of security. It can be assumed that parents who choose relative and aide providers are not likely to utilize "Trustline" to check to records of the relatives or aides for whom they have chosen to care for their children. Therefore, it may not be most effective to spend significant amounts of money on such a registry.

This recommendation would seem most to benefit families with incomes high enough to afford more costly in-home care by nannies. In this case, it is likely that the nanny would have already had a criminal record check before providing care for a family.

The MCCTF Planning Group, with the assistance of the MCCTF members, intends to draft a letter in response to the report that will be disseminated to state legislators so that our concerns can be heard.

Additionally, a public hearing has been scheduled for February 14, 2000 at 1:00 p.m. in the House Appropriations Committee room in the Capitol Building to give concerned advocates the opportunity to respond to the recommendations of the report.

Some Michigan lawmakers have stated that they don't want to use the $33M set aside funds from TANF surplus dollars on anything that would require annual increases, so that the state won't be obligated in future years if there is no money available.

The MCCTF Planning Group believes that the set aside money must be spent on making substantial changes for Michigan's children and their families, even if this means funding initiatives with money that "may not be available from year to year, " because

1) Today's economy and the low unemployment it affords increases demands for child care, and depends on child care for the continued success of welfare to work;

2) the economy also enables experienced child care providers to leave the field for higher paying, less stressful jobs with benefits;

3) and, the growing interest in Michigan on the importance of birth to three and quality education and care has created opportunities for increased private sector investment. Public investments made now can build upon these private dollars, so that the state will not be left "footing the bill" in future years.

The time is now to make positive changes for children in child care around the state. No where else in today's booming economy does the business world operate on the basis that money "may not be there" tomorrow. Waiting for our robust economy to falter will be a missed opportunity to make a difference in promoting quality care for all children.

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MCCTF January 5, 2000 Meeting Minutes


I. Opening Business:
	A. Co-chairs Erin McGovern and Steve Manchester called the meeting to order at 9:40 a.m. The meeting opened with introductions. B. The agenda was approved. C. Peg Barratt distributed information resultant of her presentation at the December meeting.

II. Update on the Business of the Task Force
	A. Child Care Center Rules: Steve Manchester distributed information from the newsletter Developments In…. Problems with the Office of Regulatory Reform's (ORR's) new rules include 1)new playground regulations apply only to some centers, and 2)there are play space size exemptions for centers operated in public school buildings and by businesses. Mike Zimmer, who had a hand in writing the rules, has left ORR for the Department of Consumer and Industry (DCIS), and someone new is now with this issue. It is still unclear what will happen next. B. School Readiness: Reorganization of the Department continues; early childhood is now in the Office of School Excellence. C. Ready to Succeed Dialogue with Michigan: the Family Independence Agency (FIA) has approved a $100,000 appropriation to MCCTF. The Planning Committee will meet on 1-7-00 to finalize a contract with Public Sector Consultants (PSC) regarding how to spend the money. D. Managed Care: it is possible that Community Mental Health Boards will bid with private organizations to provide mental health benefits. For more information, contact Michelle Strasz at mtstrasz@aol.com or (517)482-5807.

III. Guest Speakers: Peg Barratt, Kristi Carambula, and Jeff Padden
	A. The panel was scheduled to discuss their research and the resulting FIA report. The FIA report had not been released at the time of the MCCTF meeting, and the panel was unable to disclose information contained in it. The did discuss other aspects of their research:
		1. The group conducted national research regarding cost, accessibility, and quality of child care, and found that affordability was the primary concern for most parents. 2. "What is quality child care?" Peg distributed research on staffing, training and education, and outcomes. 3. "Does quality matter economically?" The panel quoted the High/Scope research that states for every $1 invested in early childhood, we save $7 in public spending later. The group also quoted other research that suggests savings in the reduction of special education services, reduced welfare costs, and reduced criminal justice costs. 4. For more information, contact Jeff Padden at 517.485.4477.

IV. Closing Business:
	A. Next month's meeting will feature Jan Ellis (R.E.A.D.Y. kits), more about the FIA report, and planning the 2000 MCCTF Action Agenda. The meeting will extend through lunch until approximately 2:00 p.m. Lunch will be provided. B. Please come prepared to discuss the FIA report and the MCCTF Action Agenda. See Appendix A for a "Summary of FIA Child Day Care Recommendations." See Appendix B for a list of concerns the MCCTF Planning Group generated at its January 10 meeting. If you would like to receive a full copy of the FIA report, please contact Paul Nelson's office at 517.335.6183. C. Next month's meeting will take place at 9:30 a.m. on February 2 at the Michigan State Library, in the Lake Ontario room on the third floor. D. The meeting was adjourned at 11:48 a.m.






Appendix A: Summary of FIA Child Day Care Recommendations 1. FIA recommends development and implementation of a Michigan central registry for in-home and license-exempt child care providers similar to "TrustLine." 2. FIA recommends development and implementation of an EBT swipe card payment system for FIA subsidized child care. 3. FIA recommends implementation of an automated IRS-1099 reporting system. 4. FIA recommends retention of the current child care rate areas. 5. FIA recommends making no child care provider rate changes at this time. If the legislature were to pursue some rate adjustments, FIA would recommend focusing, within available funding, on the youngest children. 6. FIA is interested in pursuing quality initiatives and recommends further analysis and development of such options as such as EQUIP grant enhancements and obtaining a T.E.A.C.H. license. 7. FIA is interested in pursuing means of providing additional child care assistance for children with special needs and recommends further study of this subject. 8. FIA recommends no change in rates for care during non-traditional hours as the 1998/1999 market rate survey does not support the need for a premium reimbursement rate. 9. FIA recommends continuing to set low-income child care eligibility at an average of 185% of the federal poverty level. 10. FIA recommends retention of the current low-income child care fee scale. 11. FIA recommends that it continue to monitor for the risk of CDC program waiting lists. 12. FIA recommends not pursuing child care related corporate tax credits at this time based on the experience of other states. 13. FIA recommends consideration for adoption of the Texas model for a public/private partnership on child care. 14. FIA recommends exploring various options with the business community for leveraging public/private funding such as low rate loans or loan guarantees for child care providers. 15. FIA recommends that the additional $33M be made available over multiple years to actualize an EBT system, "TrustLine" registry, regional public/private partnerships, additional EQUIP grants, and several other proposals contained in the Child Day Care Analysis and Recommendations.


Appendix B: Michigan Child Care Task Force Response to Recommendations of the FIA Report A planning session to revise the MCCTF's "Action Agenda" will be part of the Michigan Child Care Task Force meeting on February 2, 2000. The planning session will begin with a discussion of the recently released FIA report, Child Day Care Analysis and Recommendations (released January 5, 2000). The MCCTF Planning Group has had the opportunity to review the FIA report that was completed by Public Policy Associates in response to spending the $33M set aside funds. The Planning Group has some concerns about the recommendations that have been made for spending the set aside funds. The responses presented below are both for your information and to give you "food for thought" as we plan our legislative agenda for the year 2000. 1.FIA recommends making no child care provider rate changes at this time. If the legislature were to pursue some rate adjustments, FIA would recommend focusing, within available funding, on the youngest children. MCCTF response: One of the focuses for spending the $33M was to be on infants and toddlers. This recommendation falls short of meeting the original charge of addressing the shortage of spaces for quality infant and toddler care. The Planning Group suggests that FIA make a commitment to Michigan's youngest children and, at least, raise child care rates for providers caring for infants and toddlers. FIA estimates the cost for raising rates for infant and toddler care would be approximately $10,000,000 annually. 2. FIA is interested in pursuing quality initiatives and recommends further analysis and development of options such as EQUIP grant enhancements and obtaining a TEACH license. MCCTF response: We would like to see FIA go beyond obtaining a TEACH license and begin to implement the TEACH model in Michigan. This would include bringing Sue Russell to Michigan from North Carolina to introduce the TEACH (Teacher Education And Compensation Helps) and WAGES (Workers Are Gaining Educational Success) programs to legislators and other interested parties. In particular, the Michigan Early Childhood Professional Development Consortium and members of the 'Ready to Succeed Dialogue with Michigan' should be included. TEACH, now in 11 states, provides partial scholarships to child care providers for early childhood education and training programs and rewards increased education through bonuses or wage supplements. In North Carolina, TEACH participants have earned an average of 18 credit hours, received 10 to 40% pay increases and decreased turnover rates to less than 10% per year. Implementing a program like TEACH in Michigan could help increase provider education levels and reduce turnover rates in the field of early childhood education and care from the current level of 40%. 3. FIA recommends continuing to set low-income child care eligibility at an average of 185% of the federal poverty level. MCCTF response: Since the inception of welfare reform, the number of people going back to work has increased dramatically. We recommend that FIA increase the eligibility scale to 200% of poverty or to 75% of the state median income (currently at 58%) to provide a more graduated level of support as families establish themselves in the workforce. 4. FIA recommends not pursuing child care related corporate tax credits at this time based on the experience of other states. MCCTF response: We recommend that FIA consider creating a child care tax credit for Michigan parents, similar to what several other states have established. Additionally, we recommend that FIA pursue the possibility of a corporate tax credit for Michigan businesses as one way to increase corporate investments in enhancing access to quality child care for their employees. 5. FIA recommends that the additional $33M be made available over multiple years to actualize an EBT (electronic benefits transfer), "Trustline" registry, regional public/private partnerships, additional EQUIP grants, and several other proposals in the Child Day Care Analysis and Recommendations. MCCTF response: The Planning Group would like to request further clarification on the idea of implementing an EBT. There is not enough information provided in the report that shows the benefits of such a system. Additionally, there is concern for the cost and effectiveness of using the "Trustline" central registry. The report recommends that the voluntary registry be used for in-home and license-exempt (relatives and child care aides) providers to provide parents with an added sense of security. It can be assumed that parents who choose relative and aide providers are not likely to utilize "Trustline" to check to records of the relatives or aides for whom they have chosen to care for their children. Therefore, it may not be most effective to spend significant amounts of money on such a registry. This recommendation would seem most to benefit families with incomes high enough to afford more costly in-home care by nannies. In this case, it is likely that the nanny would have already had a criminal record check before providing care for a family. The MCCTF Planning Group, with the assistance of the MCCTF members, intends to draft a letter in response to the report that will be disseminated to state legislators so that our concerns can be heard. Additionally, a public hearing has been scheduled for February 14, 2000 at 1:00 p.m. in the House Appropriations Committee room in the Capitol Building to give concerned advocates the opportunity to respond to the recommendations of the report. Some Michigan lawmakers have stated that they don't want to use the $33M set aside funds from TANF surplus dollars on anything that would require annual increases, so that the state won't be obligated in future years if there is no money available. The MCCTF Planning Group believes that the set aside money must be spent on making substantial changes for Michigan's children and their families, even if this means funding initiatives with money that "may not be available from year to year, " because 1) Today's economy and the low unemployment it affords increases demands for child care, and depends on child care for the continued success of welfare to work; 2) the economy also enables experienced child care providers to leave the field for higher paying, less stressful jobs with benefits; 3) and, the growing interest in Michigan on the importance of birth to three and quality education and care has created opportunities for increased private sector investment. Public investments made now can build upon these private dollars, so that the state will not be left "footing the bill" in future years. The time is now to make positive changes for children in child care around the state. No where else in today's booming economy does the business world operate on the basis that money "may not be there" tomorrow. Waiting for our robust economy to falter will be a missed opportunity to make a difference in promoting quality care for all children.


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