Child Care and Development Fund, Report to Congress for Fiscal Years 2002 and 2003
CERTIFICATES, GRANTS, AND CONTRACTS
Although most States administer the bulk of their CCDF funds as certificates or vouchers, 25 States reported they also have grants or contracts for child care slots. In most cases, these grants and contracts are limited to specific populations and/or low-income neighborhoods where child care supply is limited. States also use contracts to support Head Start "wraparound" initiatives, school-age child care, or programs that target specialized populations such as teen parents or children with special needs. With the CCDF quality set-aside, earmarks, and other funds, States also use grants and contracts to expand and improve the quality of care for infants and toddlers and to address issues of compensation and professional development. These quality improvement grants are often combined with funding from child care certificates and vouchers, parent fees, and other sources.
The Biennial State Plans indicate that an increasing number of States are exploring the feasibility of awarding grants and contracts targeted to quality improvement outcomes such as lower child-staff ratios, increased staff training, or national accreditation. These contracts may be used in combination with funding from vouchers and certificates, parent fees, employer contributions, and other fundraising efforts to support the cost of good, quality child care. Often the contracts are used to support tiered reimbursement or other quality enhancement strategies.