Day-care directors across the state should begin receiving letters this week inviting them to participate in a program that encourages higher child-care standards that could also pay off financially.
The program, established through the Department of Social Services’ Office of Family Support, creates a new star rating system, using licensing as the foundation and setting standards for a point system through which centers can earn up to five stars.
A separate tax credit system has been crafted to correlate with the rating program to offset the cost of providing and paying for quality care. The credits begin in January 2008.
The credit is subtracted from the state taxes owed by parents, daycare center owners, teachers and staff.
The amount of the credits increase with each additional star rating given to a daycare center.
“Child care is not particularly well-funded,” said Sherry Guarisco, director of OFS’ child care and early childhood education division. “This begins to help us not only increase the awareness but increase the resources as well.”
Centers that have a license and comply with the state’s basic standards are automatically considered one-star facilities.
A second star is awarded if the operation meets 12 other criteria outlined in the program, such as requiring directors and teachers to complete certain amounts of training.
To receive a three- to five-star rating, points must be earned within four areas: administrative practices, family and community involvement, program, and staff qualifications.
For example, under staff qualifications, directors can receive one point for completing six semester hours in child development classes, three semester hours in administrative coursework, and one year teaching young children. Two points will be given if the director completes an additional three semester hours in child development classes.
A center that receives three to five points will be given a three-star rating, six to nine points will be given four stars, and 10 to 11 points will be given five stars.
Participation in the program is voluntary.
The cost to implement the quality rating system is anticipated to be $13.2 million in fiscal year 2007-08, based on the 1,762 child-care centers that exist in the state, and other states’ rating systems.
The expected loss to the state’s tax revenue caused by the tax credits in 2008-09 is $7.1 million and is expected to total $68.2 million over five years.
Families with children under the age of 6 in child care could receive as much as three times what they are given in the existing tax credit system, teachers can earn up to a $3,000 credit for continuing their education, and businesses can receive up to a 20 percent credit on expenses for improving or supporting care centers.
Geoffrey Nagle, director of the Institute of Infant and Early Childhood Mental Health at Tulane University, said the state is setting a national example with its four-part tax credit program, some of which don’t even exist elsewhere in the country.
Child Care Association of Louisiana board members said they are eager to see participation in the rating system but voiced hesitation about the tax credit program, particularly as how it relates to the actual providers.