NYC Council Applauds Agreement for DOE to Resolve Delayed Reimbursements, Ensure Baseline Payments for Early Childhood Education Providers

 

The New York City Council applauded a new agreement with the Department of Education (DOE) to resolve delayed reimbursements that have threatened the operations of early childhood education programs citywide. The agreement releases key funding for the programs that more adequately reflect their contracts, and follows sustained advocacy by providers, advocates, and labor unions, with key support from Council Members. Early childhood education programs were being shortchanged payments from their contracts when the actual enrollment numbers in their invoices fell short of contract projections. Throughout the pandemic, this proved to be a significant issue – providers budgeted and hired for a projected level of enrollment based on their contracts, but were denied reimbursement payments when experiencing unforeseen enrollment declines.

Under this new agreement, providers will be guaranteed 75 percent of their contracted amount regardless of unexpected drops in actual enrollment. The payment floor will stabilize a crucial sector of the city’s economy and education system, helping retain a workforce of mostly women of color and avert the likely loss of early childhood education programs and providers.

The agreement comes two weeks after the Council’s Education Committee held a hearing and press conference on the topic. The department will also provide specialized support to help programs submit their invoices and get paid, which the Council urged.

“New York City’s early childhood education providers care for and teach our children at a critical stage in their young lives,” said Speaker Adrienne Adams. “This sector serves an important role in our city’s neighborhoods and local economy, while employing mostly women of color. These providers and educators deserve financial stability, and today’s agreement helps them receive the funding needed to operate their programs. As a city, we must strive to ensure our essential vendors are paid in an adequate and timely manner. This is a step in the right direction to achieve that shared objective for these vital providers of early childhood education.”