Budget Amendment ID: FY2027-S4-738

EDU 738

C3 Operational Grants Formula Fix to ensure equity

Mr. Tarr moved that the proposed new text be amended by inserting after section _ the following new section:-

"SECTION_. Section 20 of chapter 15D of the General Laws is hereby amended by inserting after subsection (c) the following subsection:-

(c¾) In developing and maintaining the formula for distributing operational grants under this section, the department shall ensure that equity-related adjustments are based on the socioeconomic characteristics of the municipality in which the early education and care provider is physically located and the aggregate demographics of the children enrolled at the provider. Equity adjustments shall not be allocated on the basis of regional or proximity-based indicators that reflect the socioeconomic characteristics of neighboring municipalities or census tracts when such indicators do not accurately represent the socioeconomic characteristics of the provider’s own municipality or enrolled population.

To ensure that equity-related adjustments are directed to providers serving families with the greatest needs, the department shall establish minimum thresholds of enrollment of high-need children for providers to qualify for equity-related adjustments. Such thresholds shall be based on the proportion of enrolled children who: (i) receive childcare financial assistance; (ii) are identified as high needs; or (iii) reside in communities with documented socioeconomic disadvantage. No provider located in a higher-income municipality shall qualify for equity-related adjustments unless the provider enrolls a meaningful percentage of high-need children, as determined by the department and documented in writing.

The department shall incorporate municipality-specific socioeconomic indicators, including but not limited to median household income, child poverty rates and documented shortages of early education and care slots, into the formula. The department shall include in the annual report required under subsection (g) a description of how proximity-based indicators were excluded or adjusted under this subsection, the thresholds established for high-need enrollment, and an analysis of the impact of these changes on geographic and socioeconomic equity."