S T A T E O F N E W Y O R K
________________________________________________________________________
492--A
2025-2026 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 8, 2025
___________
Introduced by M. of A. HEVESI -- read once and referred to the Committee
on Children and Families -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the state finance law and the social services law, in
relation to establishing a permanent child care workforce pay equity
fund and the distribution of such fund; and making an appropriation
therefor
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The state finance law is amended by adding a new section
97-bbbbb to read as follows:
§ 97-BBBBB. STATEWIDE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND.
1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMP-
TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN
AS THE "PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND".
2. THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL CONSIST OF
MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
OR SOURCE. ANY UNEXPENDED AND UNENCUMBERED MONEYS REMAINING IN THE
PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND AT THE END OF A FISCAL
YEAR SHALL REMAIN IN THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND
AND SHALL NOT BE CREDITED TO ANY OTHER FUND. ANY INTEREST RECEIVED BY
THE COMPTROLLER ON MONEYS ON DEPOSIT IN THE FUND SHALL BE RETAINED IN
AND BECOME A PART OF SUCH FUND.
3. MONEYS OF THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL
BE MADE AVAILABLE TO THE COMMISSIONER OF THE OFFICE OF CHILDREN AND
FAMILY SERVICES FOR ACTIVITIES TO IMPROVE WORKFORCE CONDITIONS FOR
EMPLOYEES OF ELIGIBLE CHILD CARE SERVICES AND PROGRAMS, AND TO HELP
ENSURE ELIGIBLE PROGRAMS CAN OPERATE AT HIGH QUALITY AND AT MAXIMUM
CAPACITY. ALLOWABLE USES OF THESE FUNDS MAY INCLUDE, BUT NOT BE LIMITED
TO, SALARY INCREASES, WORKFORCE RETENTION BONUSES AND RECRUITMENT BONUS-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01350-02-5
A. 492--A 2
ES, INDIRECT COSTS ASSOCIATED WITH IMPLEMENTING SALARY INCREASES AND
BONUSES, COSTS ASSOCIATED WITH EMPLOYEE HEALTH, AND FRINGE BENEFITS.
MONEYS AWARDED TO A PROGRAM IN ACCORDANCE WITH THIS SECTION SHALL MEET
THE FOLLOWING REQUIREMENTS:
(A) NO LESS THAN SEVENTY-FIVE PERCENT OF MONEYS AWARDED TO A PROGRAM
FROM THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL BE USED TO
INCREASE COMPENSATION AND/OR BENEFITS FOR EMPLOYEES IN A DIRECT CAREGIV-
ING ROLE WITH CHILDREN;
(B) NO LESS THAN TEN PERCENT OF MONEYS AWARDED TO A PROGRAM FROM THE
PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL BE USED TO INCREASE
COMPENSATION AND/OR BENEFITS FOR EMPLOYEES, ADMINISTRATORS, OWNER-OPERA-
TORS, WHO ARE NOT IN A DIRECT CAREGIVING ROLE WITH CHILDREN; AND
(C) ALL REMAINING MONEYS AWARDED TO A PROGRAM FROM THE PERMANENT CHILD
CARE WORKFORCE PAY EQUITY FUND SHALL BE USED AT PROGRAM DISCRETION TO
SUPPORT THE WORKFORCE, EXPAND PROGRAM CAPACITY, AND IMPROVE PROGRAM
QUALITY.
4. THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL SUBMIT A REPORT TO
THE GOVERNOR AND THE LEGISLATURE BY JANUARY THIRTY-FIRST, TWO THOUSAND
TWENTY-SIX AND ANNUALLY THEREAFTER DETAILING ALL EXPENDITURES AWARDED TO
A PROGRAM FROM THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND, AND
THE OFFICE'S PRIORITIES FOR ALLOCATING FUNDS FROM THE PERMANENT CHILD
CARE WORKFORCE PAY EQUITY FUND.
5. WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION AND ANNUALLY
THEREAFTER, THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL ESTABLISH,
BY REGULATION, A MINIMUM COMPENSATION SCALE FOR THE CHILD CARE WORKFORCE
THAT IS INCLUSIVE OF ALL MEMBERS OF THE WORKFORCE, NOT JUST THOSE IN
DIRECT CAREGIVING ROLES WITH CHILDREN, AND IS STRUCTURED TO NOT INTER-
FERE WITH EXISTING OR FUTURE COLLECTIVE BARGAINING. SUCH COMPENSATION
SCALE SHALL SEEK TO ELEVATE WAGES OF CHILD CARE EDUCATORS TO PARITY WITH
THOSE OF SIMILARLY SITUATED PUBLIC SCHOOL EDUCATORS AND SHALL BE DEVEL-
OPED IN CONSULTATION WITH THE DEPARTMENT OF LABOR, THE STATE EDUCATION
DEPARTMENT, UNIONS REPRESENTING CHILD CARE WORKERS AND PROVIDERS,
MEMBERS OF THE CHILD CARE ADVOCACY COMMUNITY, AND REPRESENTATIVES OF
CHILD CARE PROGRAMS OF ALL MODALITIES, FROM AROUND THE STATE. ALL
PARTICIPANTS SHALL BE PERMITTED TO REVIEW AND COMMENT ON THE DRAFT MINI-
MUM COMPENSATION SCALE, WHICH SHALL BE PUBLISHED ANNUALLY, NO LATER THAN
DECEMBER THIRTY-FIRST IN ANY GIVEN CALENDAR YEAR FOLLOWING THE INITIAL
REPORT.
6. TO BE ELIGIBLE TO BE AWARDED MONEYS FROM THE PERMANENT CHILD CARE
WORKFORCE PAY EQUITY FUND, A PROGRAM MUST ACCEPT FAMILIES PAYING FOR
CHILD CARE BY MEANS OF THE NEW YORK CHILD CARE ASSISTANCE PROGRAM. IN
ADDITION, UPON IMPLEMENTATION OF THE MINIMUM COMPENSATION SCALE,
PROGRAMS MUST AGREE TO MEET THE MINIMUM COMPENSATION REQUIREMENTS AND
AGREE TO REASONABLE REPORTING REQUIREMENTS REGARDING THE USE OF SUCH
FUNDS.
7. THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL MAINTAIN A FORMULA
FOR DISTRIBUTING FUNDS TO CHILD CARE PROVIDERS WHICH SHALL GIVE PREFER-
ENCE TO PROVIDERS THAT SERVE: (I) HIGH NUMBERS OF CHILDREN RECEIVING NEW
YORK CHILD CARE ASSISTANCE PROGRAM SUBSIDIES; (II) HIGH NUMBERS OF HIGH
NEEDS CHILDREN; AND (III) UNIQUE POPULATIONS OR THAT OTHERWISE ADVANCE
THE INTEREST OF THE PROGRAM AS DETERMINED BY THE DEPARTMENT.
SUCH FORMULA FOR DISTRIBUTING FUNDS SHALL CONSIDER: (I) LICENSED
CAPACITY AND ENROLLMENT INCLUDING THE AGES OF THE CHILDREN ENROLLED AND
THE AGES OF THE CHILDREN FOR WHOM THE PROVIDER HAS CAPACITY; PROVIDED,
HOWEVER, THAT ENROLLMENT SHALL BE MEASURED BY THE DEPARTMENT USING QUAR-
TERLY ENROLLMENT AVERAGES OR, IF DEEMED APPROPRIATE BY THE DEPARTMENT,
A. 492--A 3
USING ENROLLMENT AVERAGES THAT ARE MEASURED LESS FREQUENTLY THAN QUAR-
TERLY; (II) COSTS ASSOCIATED WITH EMPLOYEE COMPENSATION, INCLUDING SALA-
RIES AND BENEFITS; (III) THE NUMBER OF ENROLLED CHILDREN RECEIVING NEW
YORK CHILD CARE ASSISTANCE PROGRAM SUBSIDIES; (IV) THE DEMOGRAPHICS AND
INCOME OF FAMILIES SERVED, INCLUDING THE NUMBER OF CHILDREN ENROLLED AND
IDENTIFIED AS HIGH NEEDS; (V) THE BUSINESS STRUCTURE OF PROVIDERS;
PROVIDED, HOWEVER, THAT LARGER INVESTOR-OWNED PROVIDERS SHALL BE DEPRI-
ORITIZED AND ONLY ELIGIBLE FOR FUNDING IF THE COMMISSIONER OF THE OFFICE
OF CHILDREN AND FAMILY SERVICES PERSONALLY CERTIFIES ELIGIBILITY FOR
SUCH FUNDS AND IS PROVIDED AN ASSURANCE AS TO HOW SUCH FUNDS WILL BE
USED TO SUPPORT THE CHILD CARE WORKFORCE AND THAT SUCH FUNDS WILL NOT
SERVE TO ENRICH PRIVATE FOR-PROFIT INVESTORS; AND (VI) ANY OTHER FACTORS
IMPACTING THE COST OF PROVIDING QUALITY EARLY EDUCATION AND CARE INCLUD-
ING, BUT NOT LIMITED TO, SERVING INFANTS AND TODDLERS, PROVIDING
NONSTANDARD HOURS OF CARE, AND PROVIDING CARE IN SOCIALLY AND ECONOM-
ICALLY DISADVANTAGED AND HISTORICALLY UNDERREPRESENTED COMMUNITIES WITH
SHORTAGES OF EARLY EDUCATION AND CARE SLOTS. THE OFFICE OF CHILDREN AND
FAMILY SERVICES SHALL INCORPORATE GEOGRAPHIC EQUITY INTO THE DEVELOPMENT
OF THE FORMULA AND, TO THE BEST OF THEIR ABILITY, CALCULATE PAYMENTS
SUCH THAT ALL FUNDS ARE DISTRIBUTED TO ELIGIBLE PROVIDERS EACH YEAR.
§ 2. Section 153-k of the social services law is amended by adding a
new subdivision 13 to read as follows:
13. (A) THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL IMMEDIATELY
ESTABLISH RULES AND REGULATIONS FOR THE DISTRIBUTION OF FUNDS FROM THE
PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND.
(B) THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL ESTABLISH AND
MAKE WIDELY AVAILABLE A CONSOLIDATED APPLICATION FOR THE PERMANENT CHILD
CARE WORKFORCE PAY EQUITY FUND NO LATER THAN ONE HUNDRED EIGHTY DAYS
AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION. ELIGIBILITY FOR THE FIRST
ROUND OF PAYMENTS FROM THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY
FUND SHALL BE DETERMINED WITHIN SIXTY DAYS AFTER THE APPLICATIONS ARE
MADE AVAILABLE, WITH THE FIRST ROUND OF PAYMENTS DISBURSED WITHIN THIRTY
DAYS OF ELIGIBILITY DETERMINATION. ALL PROVIDERS AND PROGRAMS APPROVED
FOR FUNDS PURSUANT TO THIS SUBDIVISION SHALL BE PROVIDED PAYMENTS AT
LEAST QUARTERLY FOR SO LONG AS THE PROGRAM REMAINS ELIGIBLE OR UNTIL
FUNDS ARE EXHAUSTED. THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL
DETERMINE A SIMPLE PROCESS FOR PROGRAMS TO RECERTIFY ELIGIBILITY FOR
SUCH FUNDS AT AN INTERVAL OF NO LESS THAN EVERY TWENTY-FOUR MONTHS.
§ 3. The sum of one billion two hundred million dollars
($1,200,000,000), or so much thereof as may be necessary, is hereby
appropriated to the office of children and family services out of any
moneys in the state treasury in the general fund to the credit of the
permanent child care workforce pay equity fund account not otherwise
appropriated for the purposes of carrying out the provisions of this
act. Such moneys shall be payable on the audit and warrant of the state
comptroller on vouchers certified or approved by the commissioner of
children and family services, or such commissioner's duly designated
representative in the manner provided by law.
§ 4. This act shall take effect immediately; provided, however, that
the amendments to section 153-k of the social services law made by
section two of this act shall not affect the repeal of such section and
shall be deemed repealed therewith.