HB 566-FN-A - AS INTRODUCED

 

 

2023 SESSION

23-0303

06/10

 

HOUSE BILL 566-FN-A

 

AN ACT relative to establishing a fund for child care workers and early childhood educators at state licensed child care centers.

 

SPONSORS: Rep. Germana, Ches. 1; Sen. Fenton, Dist 10

 

COMMITTEE: Health, Human Services and Elderly Affairs

 

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ANALYSIS

 

This bill establishes a child care workforce fund to provide grants to eligible child care employers for child care workforce recruitment and retention bonuses and benefits.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

23-0303

06/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Three

 

AN ACT relative to establishing a fund for child care workers and early childhood educators at state licensed child care centers.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Section; Child Care Workforce Fund.  Amend RSA 126-A by inserting after section 17-a the following new section:

126-A:17-b  Child Care Workforce Fund; Child Care Workforce Recruitment and Retention Bonus and Benefit Program Established.

I.  There is hereby established a child care workforce fund to finance recruitment and retention bonus grants for eligible New Hampshire child care employers at license child care centers.  The fund shall be non-lapsing and continually appropriated to the department, and shall be funded by state appropriations and any available federal funds received by the department.

II.  The department shall determine grants to be awarded as follows:

(a)  All grantees shall deliver workforce bonuses on the following schedule:

(1)  For new child care worker employees, a sign-on bonus of $1,000, distributed after 6 months of employment.

(2)  For new early childhood educator employees, a sign-on bonus of $1,500, distributed after 6 months of employment.

(3)  For new child care worker employees who continue with their employment, a retention bonus of $2,000, distributed at fiscal quarter 2 of the third year of employment; a retention bonus of $2,500, distributed at fiscal quarter 2 of the fifth year of employment; and, a retention bonus of $2,500, distributed at fiscal quarter 2 of every additional fifth year of employment thereafter.

(4)  For new early childhood educator employees who continue with their employment, a retention bonus of $2,500, distributed at fiscal quarter 2 of the third year of employment; a retention bonus of $3,000, distributed at fiscal quarter 2 of the fifth year of employment; and, a retention bonus of $3,000, distributed at fiscal quarter 2 of every additional fifth year of employment thereafter.

III.  To receive a grant from the child care workforce fund, the recipient shall be a child care center licensed by the department.

IV.  For the purposes of this section, a "child care worker" is defined as a full-time employee with a high school degree or diploma; and, a "childhood educator" is defined as a full-time employee who qualifies as a "lead teacher" under the department of health and human service state licensing procedures and regulations.

2  New Subparagraph; Dedicated Fund.  Amend RSA 6:12, I(b) by inserting after subparagraph (387) the following new subparagraph:

(388)  Moneys deposited in the child care workforce fund as established in RSA 126-A:17-b, I.

3  Effective Date.  This act shall take effect July 1, 2023.

 

LBA

23-0303

Revised 1/31/23

 

HB 566-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to establishing a fund for child care workers and early childhood educators at state licensed child care centers.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2023

FY 2024

FY 2025

FY 2026

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$0

$2.92 million

$0.91 million

$3.94 million

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Available federal funds

 

METHODOLOGY:

This bill establishes a new child care workforce fund to provide recruitment and retention bonuses to new child care workers and childhood educators.  The Department of Health and Human Services shall administer the fund and provide grants to licensed child care centers for pay sign-on and retention bonuses to eligible employees in accordance with the terms of the bill.

 

The Department assumes that it will be responsible for monitoring the use of the grants for compliance with the terms of the bill.  Accordingly, the Department states that it will need to establish one full-time Business Administrator II (LG 24, Step 5) to distribute grants to licensed child care providers and monitor use of the funds.  Additionally, the Department states it will need to make systems changes to the New Hampshire Connections Information Systems.  The Department expects those changes to cost approximately $1,200,000.

 

With respect to the recruitment and retention bonuses themselves, the bill provides recruitment bonuses of $1,000 for child care workers and $1,500 for child care educators.  Child care workers who continue with their employment will  be eligible for the following retention bonuses: $2,000 in year three, $2,500 in year four, and $2,500 in year five.  Child care educators who continue with their employment will be eligible for the following: $2,500 in year three, $3,000 in year four, and $3,000 in year five.  The Department assumes that the bonuses will be available only to child care workers and childhood educators hired after the bill is effective, because the bill states that bonuses will be awarded to new child care workers and new childhood educators.  Based on survey data, the Department estimates 1,396 current vacancies exist in the affected fields, 33 percent of which (461 positions) are for early childhood or lead teacher positions, and 67 percent of which (935 positions) are child care workers.  The Department further assumes that although the bill will reduce turnover of child care workers, some turnover will still occur.  The Department estimates that following the first year of implementation, half as many new employees (231 child care educators and 468 child care workers) will be hired in subsequent years.  Total costs are projected below:

 

 

FY 2024

FY 2025

FY 2026

Employee Costs

 

 

 

 

 

 

 

     Business Administrator II (LG 24, Step 5)

 

 

 

          Salary

 $      59,300

 $      59,300

 $      61,900

          Benefits

 $      34,300

 $      35,800

 $      36,300

               Total:

 $      93,600

 $      95,100

 $      98,200

 

 

 

 

Systems Changes Costs

 

 

 

 

 

 

 

     NH Connections Information Systems

 $ 1,200,000

 $             -   

 $             -   

 

 

 

 

Recruitment & Retention Grants

 

 

 

 

 

 

 

     Child Care Educator Sign-On Bonus

 

 

 

          # Eligible Employees

461

231

231

          # Eligible Employees * $1500

 $    691,500

 $    346,500

 $    346,500

     Child Care Worker Sign-On Bonus

 

 

 

          # Eligible Employees

935

468

468

          # Eligible Employees * $1000

 $    935,000

 $    468,000

 $    468,000

     Child Care Educator Retention Bonus

 

 

 

          # Eligible Employees

0

0

461

          # Eligible Employees * $2,500

 $             -   

 $             -   

 $ 1,152,500

     Child Care Worker Retention Bonus ($2,000 apiece)

 

 

 

          # Eligible Employees

0

0

935

          # Eligible Employees * $2,000

 $            -   

 $            -   

 $ 1,870,000

 

 $ 1,626,500

 $    814,500

 $ 3,837,000

 

 

 

 

TOTAL COST:

 $ 2,920,100

 $    909,600

 $ 3,935,200

 

 

The child care workforce fund is non-lapsing and continually appropriated to the Department, and shall be funded by state appropriations and any available federal funds received by the Department.  This bill does not provide an appropriation into the fund and it is not known if funds will be appropriated to the fund.

 

AGENCIES CONTACTED:

Department of Health and Human Services