Assessing Market Rates and Child Care Costs

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This working tool will help Lead Agencies customize a plan and timeline for data gathering to inform provider rate setting.

This document outlines the steps a Lead Agency must complete in conducting a market rate survey or approved alternative methodology and the narrow cost analysis. A checklist is provided to guide the process from stakeholder engagement through the posting of the detailed written report.

This webinar provides a brief overview of how the Provider Cost of Quality Calculator (PCQC) can be used for a narrow cost analysis or to estimate program costs associated with various policy decisions. The focus is on the Lead Agency steps for internal use of the PCQC, including:

The New Mexico Early Childhood Education and Care Department worked in partnership with external fiscal consultants to develop a robust alternative methodology, incorporating a cost study and development of a cost estimation model.

The third brief, originally published in May 2018 and updated in January 2022, describes the process for analyzing the market rate survey results and developing price estimates that can then be used to assist Lead Agencies in setting base payment rates.

This resource offers strategies for Lead Agencies to strengthen the quality of their existing administrative data so that it can be used instead of surveying providers on market rates.

This infographic explains the data that a state or territory must gather and post as part of its Equal Access plan and for rate setting.

This resource discusses the use of administrative data in conducting market rate surveys, highlighting considerations for CCDF Lead Agencies in selecting administrative data for their market rate surveys.