SB 702 would require the Bureau for Family Assistance to increase the base payment rate for each type of child care annually beginning September 1, 2025, using the Consumer Price Index for all urban consumers as the adjustment benchmark. The bill applies to the state’s child care payment structure, which includes both base rates and incentive rates, and is framed as part of West Virginia’s administration of federal Child Care and Development Fund dollars.
In addition to the automatic annual rate adjustment, the bill directs the Bureau for Family Assistance to study whether a performance-based contracting model could improve child care quality. That study must examine how incentive payments might be used to improve outcomes such as kindergarten readiness for children in child care centers, and the Bureau must report its findings to the Legislative Oversight Commission on Health and Human Resources Accountability by December 15, 2025.
Impact
The bill would amend West Virginia Code by adding a new section to Article 2 of Chapter 49, creating a statutory requirement for annual CPI-based increases to child care base rates and mandating a study and report on performance-based contracting. Its practical effect would be to tie state child care reimbursement rates more closely to inflation and to require the Bureau for Family Assistance to evaluate whether incentive-based payment structures can improve provider quality and child outcomes. The measure would affect child care providers, families using subsidized care, and the state agency administering child care assistance funds.
Sentiment
The available record shows no committee transcript or recorded votes, so there is no documented debate or formal vote history to indicate support or opposition. Based on the bill text and committee substitute status, the measure appears to be presented as a policy response to child care affordability, provider reimbursement, and quality improvement concerns, with an emphasis on administrative study and reporting rather than immediate structural overhaul.
Contention
No specific points of contention are documented in the provided materials. Potential areas of debate suggested by the bill itself include the fiscal impact of mandatory annual rate increases, whether CPI is the appropriate measure for setting provider payments, and whether performance-based contracting and incentive payments would reliably improve quality or kindergarten readiness. Any disagreement would likely center on balancing higher reimbursement for providers against budget constraints and on the effectiveness of outcome-based payment models.
Making a supplementary appropriation to the Department of Human Services, Bureau for Medical Services – Policy and Programming and State Board of Education – State Department of Education