Feb. 10, 2022
2022-23 Governor’s Executive Budget Overview
Office of Child Development and Early Learning
On February 8, 2022, Governor Tom Wolf provided his final Executive Budget Address. Over the past eight years, the Governor has included significant investments in early childhood programs. This year's budget highlights for early childhood programs are included below.
 
Department of Human Services

Early Intervention
 
Early Intervention Birth-3 (negative supplemental of $2.956 million, total 2021-22 appropriation of $169.701 million; AND increase of $11.555 million, total 2022-23 appropriation of $181.256 million) to serve an estimated 48,400 children.
 
Funds were reduced in 2021-22 to reflect decreased service delivery activity. 
 
Increased funds will support the existing program and add maternal post-partum depression to tracking eligibility.   

Child Care Works
 
Child Care Services (level-funded, total appropriation of $156.482 million) to support low income families.
 
Child Care Assistance (increase of $38,000, total appropriation of $109.925 million) to support families receiving TANF, Former TANF and SNAP benefits. 
 
Combined with increases in federal funds, the $38,000 increase in Child Care Assistance is intended to support the proposed increase in minimum wage to $12 hour.   
   
Child Care Works (CCW) is also supported by federal funding sources including Child Care Development Block Grant, Social Service Block Grant and Temporary Assistance for Needy Families. In addition, throughout the pandemic, the federal and state government has offered substantial and continued supports via Corona Virus Relief Act, the CARES Act and the Consolidated Appropriations Act, the Coronavirus Response and Relief Supplemental Act (CRRSA) and American Rescue Plan Act (ARPA) have made additional federal funding available to support child care.
 
Throughout the COVID-19 pandemic, child care has received substantial and continued supports from the federal and state government, including:
 
2019-20 - $106 million – Coronavirus Aid, Relief, and Economic Stimulus Act (CARES Act) – stabilization grants to providers (Rounds 1 and 2)
2019-20 - $116 million – CARES Act via Act 24 - stabilization grants to providers (Round 3)
2020-21 - $303 million – Coronavirus Response and Relief Supplemental Act (CRRSA) million – stabilization grants to providers (Round 4), to support increased MCCA rates in 2021-22, and $600 grants to Early Childhood Educators.
2020-21 - $455 million – American Rescue Plan Act (ARPA) – $352 million for increased MCCA rates to the 60th percentile, decreased family co-payments and the re-instatement of a 25% non-traditional child care add-on from January 2022 through September 2024. Planning for remaining balance not yet finalized. 
2020-21 - $18 million – ARPA – Support for Child Care Assistance – support of existing enrollments
2021-22 - $728 million – ARPA – $629 million for stabilization grants to providers and $99 million for various initiatives. Application for funding was available from September 2021 through January 2022. 
 
As a result of the COVID-19 pandemic, enrollments in CCW has decreased from 114,250 in March 2020 to approximately 82,170 in December 2021 or a decrease of 27 percent. The current wait list for CCW services is zero.
 
Evidence Based Home Visiting and Family Supports
 
Community-Based Family Centers (increase of $15 million, total appropriation $34.558 million) to expand Evidence-Based Home Visiting programs and Family Support Services. The increase in state funds, combined with available federal funds, will serve approximately 3,500 additional families in 2022-23.  

Nurse Family Partnership (increase of $95,000, total appropriation of $13.178 million) to continue Nurse Family Partnership (NFP) Evidence Based Home Visiting services for approximately 2,831 pregnant women and families. The $95,000 increase replaces federal funding received in 2021-22 for COVID-19 response.  

In January 2022, DHS released a Request for Application (RFA) to re-compete for all OCDEL overseen federal and state funded Evidence Based Home Visiting (EBHV) and Promoting Responsible Fatherhood programs. All current OCDEL grantees of EBHV and Fatherhood programs will be required to re-compete for funding through the RFA process. New grants awarded through this RFA process are anticipated to begin July 1, 2022.
 
Department of Education
 
Early Childhood Education
The 2022-23 Governor’s Executive Budget continues to build on the state’s investment in PA Pre-K Counts and Heads Start Supplemental Assistance Program.
 
PA Pre-K Counts (increase of $60 million, total appropriation of $302.284 million)
 
  • To increase the cost per child from $8,750 to $10,000 for full time slots and from $4,375 to $5,000 for part time slots
  • To serve an additional 2,308 children for a total of 30,421 children 
 
Head Start Supplemental Assistance Program (increase of $10 million, total appropriation of $79.178 million)
 
  • $10 million to support increased costs anticipated through the in 2022-23 through 2027-28 grant cycle
  • To continue serving 6,774 children
 
Together with $175 million in funding increases secured over the past seven years for Early Childhood Education, an additional investment of $70 million in 2022-23 will increase funding for Pre-K Counts by 211 percent and funding for Head Start Supplemental Assistance by 102 percent since 2014-15.
 
The chart below highlights the future funding opportunities related to HSSAP and PA PKC:
Early Intervention
Preschool Early Intervention, 3-5 (level-funded, total appropriation of $336.5 million) to serve 63,000 children. 

Workforce Investments
 
The 2022-23 Governor’s Executive Budget includes a proposal to increase the state minimum wage to $12 per hour effective July 1, 2021, with an annual increase of $0.50 per hour until all minimum wage employees earn $15 per hour.
 
Governor Wolf also proposed a minimum salary of $45,000 for all certified teachers in the commonwealth. This would apply to PA Pre-K Counts and Head Start Supplemental Assistance Program certified teachers employed by a school district, intermediate unit or career and technical school.
 
Reimagining Child Care for State Employees
Governor Wolf’s budget proposal also supports a new $30 million initiative to establish child care options for state employees intended to eliminate child care as a barrier to employment. This initiative will be led by the Department of General Services.  
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