NY State Senate Bill 2025-S5533

Senate Bill S5533

2025-2026 Legislative Session

Establishes the permanent child care workforce pay equity fund and provides for the distribution thereof; appropriation

download bill text pdf

Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 24, 2025	referred to finance

2025-S5533 (ACTIVE) - Details

See Assembly Version of this Bill:: A492
Current Committee:: Senate Finance
Law Section:: Appropriations
Laws Affected:: Add §97-bbbbb, St Fin L; amd §153-k, Soc Serv L
Versions Introduced in 2023-2024 Legislative Session:: A5753

2025-S5533 (ACTIVE) - Summary

Establishes the permanent child care workforce pay equity fund and provides for the distribution thereof; makes an appropriation therefor.

2025-S5533 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5533

SPONSOR: BRISPORT
 
TITLE OF BILL:

An act to amend the state finance law and the social services law, in
relation to establishing a permanent child care workforce pay equity
fund and the distribution of such fund; and making an appropriation
therefor

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the state finance law by adding a new
section 97-bbbbb to establish the permanent child care workforce pay
equity fund.

Section 2 requires the OCFS to establish rules and regulations for the
distribution of funds from the permanent child care workforce pay equity
fund, under certain guidelines.

Section 3 appropriates $1.2 billion for the permanent child care work-
force pay equity fund.

Section 4 sets forth the effective date.

 
JUSTIFICATION:

New York State is very deep in a child care crisis. New York's child
care prices are among the highest in the nation, and our wages are among
the lowest. This legislation seeks to put New York on the path towards
universal child care by establishing a permanent child care workforce
pay equity fund.

It has for a long time been the consensus among all experts, observers,
and advocates has been that the low wages for child care sector is
precisely what is driving the current crisis. On February 6, 2025, the
Office of the New York State Comptroller released a report to further
illustrate this point. The Comptroller notes that, "(d)espite demanding
work requirements, child care workers on average earn significantly less
than the state median wage, and many do not have access to other bene-
fits, such as employer-provided health insurance, paid time off or
pensions." In fact, "the median wage for those working in the sector was
$38,234 annually, more than $20,000 less than the median wage for all
New Yorkers." Because of our shameful treatment of child care workers,
"between 26 to 40 percent of the child care workforce leave their jobs
each year, with many reporting high levels of burnout and stress."

The Comptroller's report is just the latest in a string of reports that
have come to the same conclusions, year after year. In fact, even the
Governor's own Child Care Availability Task Force recommended in an
April 2024 report that a permanent workforce wage supplement be insti-
tuted in New York State. This report stated bluntly that " 
The main
driver of the state's capacity crisis is the workforce shortage," and
that "(c)hild care providers have repeatedly raised at Task Force meet-
ings that the top concern is their inability to recruit and retain child
care educators because they cannot afford to compensate them adequate-
ly." Accordingly, "the Task Force recommends New York State act with
urgency to . . .  (i)mplement a permanent line of funding for the child
care workforce." To make the point perfectly clear, the Task Force wrote
that "this workforce investment must be permanent" and that "(o)nly with
permanent funding will child care programs be able to recruit and retain
educators."

This legislation simply seeks to implement the most important recommen-
dation from the Governor's own child care task force.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  $1.2 billion

 
EFFECTIVE DATE:
This act shall take effect on the 90th day after it shall have become a
law.

2025-S5533 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5533
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2025
                                ___________
 
 Introduced  by Sen. BRISPORT -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance law and the social  services  law,  in
   relation  to  establishing a permanent child care workforce pay equity
   fund and the distribution of such fund; and  making  an  appropriation
   therefor

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance law is amended by adding  a  new  section
 97-bbbbb to read as follows:
   §  97-BBBBB. STATEWIDE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND.
 1.  THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE  COMP-
 TROLLER  AND THE COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN
 AS THE "PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND".
   2. THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL CONSIST OF
 MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
 OR SOURCE. ANY UNEXPENDED  AND  UNENCUMBERED  MONEYS  REMAINING  IN  THE
 PERMANENT  CHILD  CARE  WORKFORCE PAY EQUITY FUND AT THE END OF A FISCAL
 YEAR SHALL REMAIN IN THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY  FUND
 AND  SHALL  NOT  BE CREDITED TO ANY OTHER FUND. ANY INTEREST RECEIVED BY
 THE COMPTROLLER ON MONEYS ON DEPOSIT IN THE FUND SHALL  BE  RETAINED  IN
 AND BECOME A PART OF SUCH FUND.
   3.  MONEYS OF THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL
 BE MADE AVAILABLE TO THE COMMISSIONER OF  THE  OFFICE  OF  CHILDREN  AND
 FAMILY  SERVICES  FOR  ACTIVITIES  TO  IMPROVE  WORKFORCE CONDITIONS FOR
 EMPLOYEES OF ELIGIBLE CHILD CARE SERVICES  AND  PROGRAMS,  AND  TO  HELP
 ENSURE  ELIGIBLE  PROGRAMS  CAN  OPERATE  AT HIGH QUALITY AND AT MAXIMUM
 CAPACITY. ALLOWABLE USES OF THESE FUNDS MAY INCLUDE, BUT NOT BE  LIMITED
 TO, SALARY INCREASES, WORKFORCE RETENTION BONUSES AND RECRUITMENT BONUS-
 ES,  INDIRECT  COSTS  ASSOCIATED  WITH IMPLEMENTING SALARY INCREASES AND
 BONUSES, COSTS ASSOCIATED WITH EMPLOYEE  HEALTH,  AND  FRINGE  BENEFITS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10145-02-5

 S. 5533                             2
 
 MONEYS  AWARDED  TO A PROGRAM IN ACCORDANCE WITH THIS SECTION SHALL MEET
 THE FOLLOWING REQUIREMENTS:
   (A)  NO  LESS THAN SEVENTY-FIVE PERCENT OF MONEYS AWARDED TO A PROGRAM
 FROM THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL BE USED TO
 INCREASE COMPENSATION AND/OR BENEFITS FOR EMPLOYEES IN A DIRECT CAREGIV-
 ING ROLE WITH CHILDREN;
   (B) NO LESS THAN TEN PERCENT OF MONEYS AWARDED TO A PROGRAM  FROM  THE
 PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL BE USED TO INCREASE
 COMPENSATION AND/OR BENEFITS FOR EMPLOYEES, ADMINISTRATORS, OWNER-OPERA-
 TORS, WHO ARE NOT IN A DIRECT CAREGIVING ROLE WITH CHILDREN; AND
   (C) ALL REMAINING MONEYS AWARDED TO A PROGRAM FROM THE PERMANENT CHILD
 CARE  WORKFORCE  PAY  EQUITY FUND SHALL BE USED AT PROGRAM DISCRETION TO
 SUPPORT THE WORKFORCE, EXPAND  PROGRAM  CAPACITY,  AND  IMPROVE  PROGRAM
 QUALITY.
   4. THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL SUBMIT A REPORT TO
 THE  GOVERNOR  AND THE LEGISLATURE BY JANUARY THIRTY-FIRST, TWO THOUSAND
 TWENTY-SIX AND ANNUALLY THEREAFTER DETAILING ALL EXPENDITURES AWARDED TO
 A PROGRAM FROM THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY  FUND,  AND
 THE  OFFICE'S  PRIORITIES  FOR ALLOCATING FUNDS FROM THE PERMANENT CHILD
 CARE WORKFORCE PAY EQUITY FUND.
   5. WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION AND  ANNUALLY
 THEREAFTER,  THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL ESTABLISH,
 BY REGULATION, A MINIMUM COMPENSATION SCALE FOR THE CHILD CARE WORKFORCE
 THAT IS INCLUSIVE OF ALL MEMBERS OF THE WORKFORCE,  NOT  JUST  THOSE  IN
 DIRECT  CAREGIVING  ROLES WITH CHILDREN, AND IS STRUCTURED TO NOT INTER-
 FERE WITH EXISTING OR FUTURE COLLECTIVE  BARGAINING.  SUCH  COMPENSATION
 SCALE SHALL SEEK TO ELEVATE WAGES OF CHILD CARE EDUCATORS TO PARITY WITH
 THOSE  OF SIMILARLY SITUATED PUBLIC SCHOOL EDUCATORS AND SHALL BE DEVEL-
 OPED IN CONSULTATION WITH THE DEPARTMENT OF LABOR, THE  STATE  EDUCATION
 DEPARTMENT,  UNIONS  REPRESENTING  CHILD  CARE  WORKERS  AND  PROVIDERS,
 MEMBERS OF THE CHILD CARE ADVOCACY  COMMUNITY,  AND  REPRESENTATIVES  OF
 CHILD  CARE  PROGRAMS  OF  ALL  MODALITIES,  FROM  AROUND THE STATE. ALL
 PARTICIPANTS SHALL BE PERMITTED TO REVIEW AND COMMENT ON THE DRAFT MINI-
 MUM COMPENSATION SCALE, WHICH SHALL BE PUBLISHED ANNUALLY, NO LATER THAN
 DECEMBER THIRTY-FIRST IN ANY GIVEN CALENDAR YEAR FOLLOWING  THE  INITIAL
 REPORT.
   6.  TO  BE ELIGIBLE TO BE AWARDED MONEYS FROM THE PERMANENT CHILD CARE
 WORKFORCE PAY EQUITY FUND, A PROGRAM MUST  ACCEPT  FAMILIES  PAYING  FOR
 CHILD  CARE  BY  MEANS OF THE NEW YORK CHILD CARE ASSISTANCE PROGRAM. IN
 ADDITION,  UPON  IMPLEMENTATION  OF  THE  MINIMUM  COMPENSATION   SCALE,
 PROGRAMS  MUST  AGREE  TO MEET THE MINIMUM COMPENSATION REQUIREMENTS AND
 AGREE TO REASONABLE REPORTING REQUIREMENTS REGARDING  THE  USE  OF  SUCH
 FUNDS.
   7. THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL MAINTAIN A FORMULA
 FOR  DISTRIBUTING FUNDS TO CHILD CARE PROVIDERS WHICH SHALL GIVE PREFER-
 ENCE TO PROVIDERS THAT SERVE: (I) HIGH NUMBERS OF CHILDREN RECEIVING NEW
 YORK CHILD CARE ASSISTANCE PROGRAM SUBSIDIES; (II) HIGH NUMBERS OF  HIGH
 NEEDS  CHILDREN;  AND (III) UNIQUE POPULATIONS OR THAT OTHERWISE ADVANCE
 THE INTEREST OF THE PROGRAM AS DETERMINED BY THE DEPARTMENT.
   SUCH FORMULA FOR  DISTRIBUTING  FUNDS  SHALL  CONSIDER:  (I)  LICENSED
 CAPACITY  AND ENROLLMENT INCLUDING THE AGES OF THE CHILDREN ENROLLED AND
 THE AGES OF THE CHILDREN FOR WHOM THE PROVIDER HAS  CAPACITY;  PROVIDED,
 HOWEVER, THAT ENROLLMENT SHALL BE MEASURED BY THE DEPARTMENT USING QUAR-
 TERLY  ENROLLMENT  AVERAGES OR, IF DEEMED APPROPRIATE BY THE DEPARTMENT,
 USING ENROLLMENT AVERAGES THAT ARE MEASURED LESS FREQUENTLY  THAN  QUAR-
 TERLY; (II) COSTS ASSOCIATED WITH EMPLOYEE COMPENSATION, INCLUDING SALA-
 S. 5533                             3
 
 RIES  AND  BENEFITS; (III) THE NUMBER OF ENROLLED CHILDREN RECEIVING NEW
 YORK CHILD CARE ASSISTANCE PROGRAM SUBSIDIES; (IV) THE DEMOGRAPHICS  AND
 INCOME OF FAMILIES SERVED, INCLUDING THE NUMBER OF CHILDREN ENROLLED AND
 IDENTIFIED  AS  HIGH  NEEDS;  (V)  THE  BUSINESS STRUCTURE OF PROVIDERS;
 PROVIDED, HOWEVER, THAT LARGER INVESTOR-OWNED PROVIDERS SHALL BE  DEPRI-
 ORITIZED AND ONLY ELIGIBLE FOR FUNDING IF THE COMMISSIONER OF THE OFFICE
 OF  CHILDREN  AND  FAMILY  SERVICES PERSONALLY CERTIFIES ELIGIBILITY FOR
 SUCH FUNDS AND IS PROVIDED AN ASSURANCE AS TO HOW  SUCH  FUNDS  WILL  BE
 USED  TO  SUPPORT  THE CHILD CARE WORKFORCE AND THAT SUCH FUNDS WILL NOT
 SERVE TO ENRICH PRIVATE FOR-PROFIT INVESTORS; AND (VI) ANY OTHER FACTORS
 IMPACTING THE COST OF PROVIDING QUALITY EARLY EDUCATION AND CARE INCLUD-
 ING, BUT  NOT  LIMITED  TO,  SERVING  INFANTS  AND  TODDLERS,  PROVIDING
 NONSTANDARD  HOURS  OF  CARE, AND PROVIDING CARE IN SOCIALLY AND ECONOM-
 ICALLY DISADVANTAGED AND HISTORICALLY UNDERREPRESENTED COMMUNITIES  WITH
 SHORTAGES  OF EARLY EDUCATION AND CARE SLOTS. THE OFFICE OF CHILDREN AND
 FAMILY SERVICES SHALL INCORPORATE GEOGRAPHIC EQUITY INTO THE DEVELOPMENT
 OF THE FORMULA AND, TO THE BEST OF  THEIR  ABILITY,  CALCULATE  PAYMENTS
 SUCH THAT ALL FUNDS ARE DISTRIBUTED TO ELIGIBLE PROVIDERS EACH YEAR.
   §  2.  Section 153-k of the social services law is amended by adding a
 new subdivision 13 to read as follows:
   13. (A) THE OFFICE OF CHILDREN AND FAMILY SERVICES  SHALL  IMMEDIATELY
 ESTABLISH  RULES  AND REGULATIONS FOR THE DISTRIBUTION OF FUNDS FROM THE
 PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND.
   (B) THE OFFICE OF CHILDREN AND FAMILY  SERVICES  SHALL  ESTABLISH  AND
 MAKE WIDELY AVAILABLE A CONSOLIDATED APPLICATION FOR THE PERMANENT CHILD
 CARE  WORKFORCE  PAY  EQUITY  FUND NO LATER THAN ONE HUNDRED EIGHTY DAYS
 AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION. ELIGIBILITY FOR THE  FIRST
 ROUND  OF  PAYMENTS  FROM  THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY
 FUND SHALL BE DETERMINED WITHIN SIXTY DAYS AFTER  THE  APPLICATIONS  ARE
 MADE AVAILABLE, WITH THE FIRST ROUND OF PAYMENTS DISBURSED WITHIN THIRTY
 DAYS  OF  ELIGIBILITY DETERMINATION. ALL PROVIDERS AND PROGRAMS APPROVED
 FOR FUNDS PURSUANT TO THIS SUBDIVISION SHALL  BE  PROVIDED  PAYMENTS  AT
 LEAST  QUARTERLY  FOR  SO  LONG AS THE PROGRAM REMAINS ELIGIBLE OR UNTIL
 FUNDS ARE EXHAUSTED. THE OFFICE OF CHILDREN AND  FAMILY  SERVICES  SHALL
 DETERMINE  A  SIMPLE  PROCESS  FOR PROGRAMS TO RECERTIFY ELIGIBILITY FOR
 SUCH FUNDS AT AN INTERVAL OF NO LESS THAN EVERY TWENTY-FOUR MONTHS.
   §  3.  The  sum  of  one   billion   two   hundred   million   dollars
 ($1,200,000,000),  or  so  much  thereof  as may be necessary, is hereby
 appropriated to the office of children and family services  out  of  any
 moneys  in  the  state treasury in the general fund to the credit of the
 permanent child care workforce pay equity  fund  account  not  otherwise
 appropriated  for  the  purposes  of carrying out the provisions of this
 act. Such moneys shall be payable on the audit and warrant of the  state
 comptroller  on  vouchers  certified  or approved by the commissioner of
 children and family services, or  such  commissioner's  duly  designated
 representative in the manner provided by law.
   §  4.  This act shall take effect immediately; provided, however, that
 the amendments to section 153-k of  the  social  services  law  made  by
 section  two of this act shall not affect the repeal of such section and
 shall be deemed repealed therewith.

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