Correction: October 15, 2025 | In the original version of this comment, data for total approved capacity was incorrectly used in place of total number of Type A FCC providers. Where indicated, those numbers have been corrected, and additional text has been added to correctly identify the originally reported numbers. Corrections and additions appear in bold; incorrectly reported data are struck through.
Parents need options for childcare, whether they work 9-to-5, second shift, or overnight. Type A providers are an important option for Ohio families.
This provision, which reduces payment rates for the nearly 4,000 334 Type A providers offering publicly funded childcare (PFCC) to the payment rates for Type B providers, could disrupt the childcare supply for the nearly 4,000 children these providers are approved to serve, according to publicly requested data from the Ohio Dept. of Children and Youth for calendar year 2024. Type A providers are paid at a higher rate for a reason: They have additional costs associated with staff, building, and zoning. Reducing payment rates disincentivizes Type A providers from continuing to invest in their business at the same level. To make up for the lost revenue from the state, we may very well see a large shift in Type A providers opting to instead license as Type B providers. Even with increased group ratios, as enacted in the state budget, childcare slots may be lost.
Even though this proposed rule change is only through the biennium, Type A providers will feel the ramifications now in their budgets. All but 120 11 of the Type A providers providing PFCC across the state will see a reduction in weekly revenue, even accounting for increased group size. That means 97% 95% of Type A providers will see a decrease in payment rates from this change, and only those in Cluster 1 (mainly rural) counties with see an increase. The 3,800+ 324 Type A providers in Cluster 2 and 3 counties will lose out, with providers in Cluster 3 (mainly urban) counties seeing the biggest losses: a base rate reduction of $600 per week. Silver-rated Type A providers will see a weekly loss of $825 with this change. Step-Up-To-Quality ratings require ongoing effort and investment; reducing payments for high-quality early childhood educators is a disservice to Ohio’s children.
This lost revenue means Type A providers will need to scale back to afford to stay in business. If the goal of the state is to ensure every family has access to high-quality, affordable childcare, defunding the suppliers of childcare is not the solution. This rate change is not sustainable for businesses or families and will be devastating for the childcare sector while the rule change is in effect.