Investment

Massachusetts House Eyes $110M for Childcare Crisis

Massachusetts House leaders rolled out a plan this week to put more than $110 million toward early childhood programs in their FY23 budget. Speaker Ron Mariano, House Ways and Means Chair Aaron Michlewitz, and several colleagues laid out the details at a Monday press conference hosted by Ellis Early Learning in Boston's South End.

The timing matters. A special legislative report found that since March 2020, more than 1,300 childcare providers, roughly 17% of the state's total, have shut their doors. That translates to the loss of almost 24,000 slots for families.

What the plan puts on the table

Three main allocations get the bulk of the new funding:

  • $60 million to raise pay for childcare workers
  • $10 million to help providers afford childcare for their own kids
  • $16.5 million for Head Start, which serves low-income families

The plan also wants to change how providers get paid, tying compensation to enrollment rather than day-to-day attendance.

The sector's longer wish list

The same legislative study recommended annual spending of more than $1.5 billion to stabilize the field. At roughly $110 million, the House proposal is a sliver of that, and Mariano framed it that way. He said the proposals represent "a beginning" and reflect the suggestions the House could act on fastest given the state's fiscal position. Michlewitz added that affordability for families is "an important discussion" that will continue, but this round focuses on accessibility for the kids currently locked out.

Childcare in Massachusetts currently runs more than $20,000 a year for infants and above $15,000 for four-year-olds, a number the proposal does not directly change.

What the providers are saying

Lauren Cook, the CEO of Ellis Early Learning, made the case that the field has been in survival mode. She pointed out that the workforce is largely women of color, many living in multigenerational homes where COVID exposure becomes a serious concern. "You're wiping noses, you're wiping bottoms, you really cannot get more intimate a connection," Cook said. The point: low pay plus high personal risk has driven a lot of talented teachers out.

Our analysis

This proposal is a real down payment, but it does not close the gap. Here is how to read it:

  • The $60 million salary bump addresses the single biggest driver of the closure wave. Until pay is competitive with school districts, retention will remain brutal.
  • Tying pay to enrollment rather than attendance reduces the kind of revenue swings that push small providers out of business, especially in neighborhoods where families come and go.
  • What is missing is the family side. A parent paying $20,000 a year for infant care sees nothing change in their monthly bill under this plan.
  • Compared to the $1.5 billion recommendation, this is closer to triage than transformation. Expect the Senate to push for a bigger number, especially around subsidies.

For a sector that has lost 17% of its providers in two years, the political signal matters as much as the dollar figure. A meaningful first step can stabilize the bleeding while the bigger affordability fight plays out.

A practical example

Say you are a parent in Worcester with a toddler and a newborn. You are on two waitlists and have been for months. Under the current plan, your monthly bill does not change, but there is a better chance one of those waitlists opens up, because a provider who would have closed might keep its doors open thanks to the salary bump and steadier funding. The win for you is access, not savings.

Bottom line

The House is moving in the right direction, but this is a start, not a solution. Watch the full House budget release Wednesday, and then the Senate version, for the real test: whether affordability for families gets a serious line item.

Key takeaways

  • $110+ million proposed for early childhood in Massachusetts FY23 budget
  • $60 million targeted to provider salaries
  • Compensation would be tied to enrollment rather than attendance
  • Affordability for families is not addressed in the proposal
  • $1.5 billion annual investment was the legislative report's recommendation

Frequently asked questions

When is the full House budget released?

According to the press conference, the full proposal was scheduled to be released on Wednesday of the same week.

Does the proposal help families pay for childcare?

No. Mariano and Michlewitz acknowledged affordability is not directly addressed. The proposal focuses on the provider side.

How big is the childcare crisis in Massachusetts?

A legislative report found more than 1,300 providers, about 17% of the state's total, closed since March 2020, eliminating nearly 24,000 slots.

What is the enrollment-versus-attendance change?

The proposal ties provider compensation to enrollment, not daily attendance. This reduces revenue volatility when attendance fluctuates and avoids penalizing providers for irregular attendance.

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