Child Care Services Association
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 Home | Provider Services | Child Care WAGE$® Project
Child Care WAGE$® Project
Child Playing The Child Care WAGE$® Project provides education-based salary supplements to low paid teachers, directors and family child care providers working with children between the ages of 0-5. The project is designed to provide preschool children more stable relationships with better educated teachers by rewarding teacher education and continuity of care. The Child Care WAGE$® Project is offered statewide in North Carolina as a funding collaboration between local Smart Start Partnerships and the Division of Child Development. Counties that use Smart Start funding to support the Child Care WAGE$® Project may participate.

Child Care Services Association (CCSA) administers the project in participating North Carolina counties

The Child Care WAGE$® Project is also licensed in Florida, Kansas, and South Carolina

Child Care WAGE$® Project Salary Supplement Chart

Child Care WAGE$ Project Permission Form
(20 KB PDF file | Requires Adobe Acrobat Reader - Download Now)
Download Child Care WAGE$ Application Form
(220 KB PDF file | Requires Adobe Acrobat Reader - Download Now)
Download WAGE$ Program Summary and Outcomes 2004-2005
(1.1 MB PDF file | Requires Adobe Acrobat Reader - Download Now)
Download The WAGE$ PAGES Newsletter - Fall/Winter 2006-2007
(120 KB PDF file | Requires Adobe Acrobat Reader - Download Now)
Download WAGE$ Popular Misconceptions
(1.1 MB PDF file | Requires Adobe Acrobat Reader - Download Now)

FAQ

Q Why is the Child Care WAGE$® Project needed?
   
A

According to workforce data collected in 2003 by Child Care Services Association, North Carolina is faced with an average teacher turnover rate of 24% per year. This rate is a notable drop from the 31% turnover rate established previously and reveals the impact of programs created to address retention. Despite the progress, this rate of departure means that children still struggle with inconsistent educators in the years when establishment of trust and the promotion of learning in a stable environment are most important. The median wage for teachers is $8.00 an hour, and teachers cite low pay as a primary reason for leaving. According to the study, 79% of teachers statewide who do not see themselves in the child care field in three years, indicate that better pay might entice them to stay. Lack of resources and an effort to maintain affordability for parents often make it difficult for individual child care programs to offer sufficient wages to retain educated staff and to reward or encourage teacher education. Research continues to show that teacher education and turnover rates affect children's development, so fair compensation of child care professionals is essential.

 
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Q Who is eligible to receive a salary supplement?
   
A
Any child care professional earning at or below the income caps selected by the funding partnership may be eligible to participate.  The Child Care WAGE$® Project has three income cap levels from which a partnership chooses.  The lower cap is $13 per hour for all positions; the standard cap is $15 per hour and the higher cap is $17 per hour.  The supplement recipient must work with children between the ages of 0-5 at least 10 hours per week in a licensed child care program in a participating county and must have some formal child care credential or education beyond a high school diploma.

 

 
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Q How much can a recipient receive?
   
A Salary supplements are tied to the education level of the recipient, the position the recipient holds in her/his program and the "Tier" level chosen by each participating county. (Counties choose which tier they want to support.) For example, a teacher or family child care provider is eligible for a $450 or $600 annual supplement for having attained the Early Childhood Certificate, and can earn $1500 or more per year with an AAS in Early Childhood Education. Directors are funded on a different scale than teachers and home providers. Using either Tier, the amount of the supplement increases as the level of education increases. Supplements for part-time employees are prorated based on a 40 hour work week.
 
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Q What does an individual have to do to participate in the Child Care WAGE$® Project?
   
A

In order to participate in the project, interested child care professionals must complete an application and provide verification of current employment in a participating county child care program, current wages and educational credentials.

New applicants should submit an official transcript or complete an internet permission form to allow WAGE$ staff to download your grades directly from your school (if online grades are available). The internet permission form is
available here.

 
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Q If I work in a child care center, what is the center's responsibility?
   
A A child care center must agree to provide verification of an applicant's employment status and wages and agree not to use participation in the Child Care WAGE$® Project to offset normal wage increases. The center is not responsible for providing the salary supplement should funding no longer be available.
 
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Q How are supplements received?
   
A Each participant who meets the requirements for the Child Care WAGE$® Project and remains eligible will receive a check from CCSA in the seventh month, after the completion of her/his six month commitment period. Commitment periods run from mid-month to mid-month and are established by CCSA for each individual participant using application date, start date and education documentation. The installment is based on half of the annual award amount and reflects the schedule worked during the six month period. All payments are contingent upon funding availability. Project staff must verify that participants have worked in their child care programs during the preceding six months before checks can be issued. Once approved for an award, participants who remain in the same child care program do not need to reapply in order to receive future installments.
 
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Q How can a participant increase the level of supplement received?
   
A Participants in the Child Care WAGE$® Project may increase their supplement amounts by gaining more education. The T.E.A.C.H. Early Childhood® Project offers scholarships to child care professionals who want to earn course credits toward early childhood credentials or degrees. Information may be obtained by contacting the T.E.A.C.H. Early Childhood® Project at Child Care Services Association (919-967-3272). Documentation of increased education must be submitted to the Child Care WAGE$® staff in order to qualify for a higher award amount. Participants are encouraged to send grade reports or an updated transcript after any formal coursework. All educational levels prior to the AAS ECE or its equivalent on the scale are temporary. Participants must advance to a higher level within either two to three years depending on position to remain eligible. Deadlines are shared with individual participants as applicable.
 
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Q Do individuals have to pay taxes on the supplement received?
   
A The salary supplement is income. Participants will receive an IRS-1099 form at the end of the year if they received $600 or more from Child Care Services Association during the calendar year. Recipients are responsible for reporting and paying any personal income taxes due.
 
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Q Will an individual receive a supplement if she/he moves to another child care program?
   
A Checks are issued to participants after each six month period in the same child care program. If a participant moves to another licensed child care program in a participating county within the six months, then the commitment period must be reset based on her/his employment date at the new site. This policy is designed to encourage more stability for the children in care and to discourage participants from changing programs.
 
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Q What are the benefits/results of the Child Care WAGE$® Project?
   
A

Children are the main beneficiaries. They are able to bond with a provider who has made a commitment to the field and who has a formal child care credential or education beyond a high school diploma. Providers benefit by receiving salary supplements that allow them to remain in the early childhood field. More than 8,900 providers in North Carolina received a supplement during the 2004-2005 fiscal year. Taxpayers benefit by saving $7 later for every $1 spent now on high quality programs for young children.

The Child Care WAGE$® Project has been successful in improving child care quality by reducing turnover and encouraging the continued education of teachers, directors and family child care providers. During fiscal year 2004-2005:

  • Child Care Services Association administered the statewide Child Care WAGE$® Project in 59 North Carolina counties.
  • The annual turnover rate was 16% for WAGE$ Project participants, far less than the preprogram statewide turnover rate of 31% per year and less than the current statewide turnover rate of 24%.
  • Sixty percent (60%) of WAGE$® Project participants indicated that they had taken college level coursework since applying to the Child Care WAGE$® Project and 86% plan to do so in the future.
  • Eighteen percent (18%) of WAGE$® Project participants moved up a level on the supplement scale due to continued education.
  • The average six-month supplement across the state was $574 (or $1148 per year).
 
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Q What have participants said about the Child Care WAGE$® Project?
   
A "It will offer encouragement to the workers to work towards a higher education and enable them to remain in the centers where they are presently working. The children will benefit from this because they need as much stability as possible as we are now laying the foundation for their future learning. Many of our good child care workers are forced to leave the field for better wages. Some of us sacrifice to remain in child care because of our love, compassion and our dedication to making a difference in the lives of our children. Better pay and much needed resources would help relieve the financial stress and help us do a better job as teachers. Yes, I believe the [Child Care WAGE$® Project] is very important and is making a very positive difference." Center Teacher, Clay County
 
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Q How is the Child Care WAGE$® Project funded?
   
A The Child Care WAGE$® Project is offered statewide through Governor Hunt's NC Cares initiative and is a funding collaboration between local Smart Start Partnerships and the Division of Child Development. Counties that use Smart Start funding to support the Child Care WAGE$® Project may participate. Child Care Services Association (CCSA) administers the project in participating counties.
 
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Q What is the history of the Child Care WAGE$® Project?
   
A Child Care Services Association (CCSA) created the Child Care WAGE$® Project in 1994 in Orange County, North Carolina to address the issues of low compensation and high turnover in the early childhood workforce. With Smart Start funds provided by the Orange County Partnership for Young Children, low-paid teachers, directors and family child care providers working in regulated child care settings began receiving a semi-annual salary supplement linked to their level of education. Turnover has dropped dramatically and child care providers are increasing their education. CCSA is now administering the Child Care WAGE$® Project in many counties across North Carolina.
 
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Q How do I find out more about replicating the Child Care WAGE$® Project in my state?
   
A

In addition to operating in North Carolina, the Child Care WAGE$® Project is licensed in Florida, Kansas, and South Carolina. To find out how to replicate the Child Care WAGE$® Project in your state, contact:

Child Care Services Association
P.O. Box 901
Chapel Hill, North Carolina 27514
[P] 919.967.3272
[F] 919.967.2945
Contact Us Now

If you send an e-mail, please be sure to indicate your name, address and phone number.

 
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