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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?
5
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
15
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.
17
THANK YOU
THE FULL REPORT IS AVAILABLE AT WWW.BTWIC.ORG