Child Care Centers and Group Child Care Homes: Stabilization Funding Formula

If your program qualifies for Stabilization Funding, the amount you’ll get is based on a number of factors — your licensed capacity, accreditation status, whether you received Care 4 Kids benefits, and more. 

When you fill out your application, we’ll automatically calculate the funding amount for your program. We base the number on data validated by OEC or 2-1-1 Child Care. You don’t need to do any calculations yourself. However, if you’re curious about specific components of the formula — or want to get a sense of how much funding your program may receive — get the details below.

Use the estimator tool

United Way developed a tool that you can use to estimate funding for your program. Use the funding formula estimator for child care centers and group child care homes.

Understand the formula

There are 3 basic steps to figuring out the amount of funding your child care center or group child care home will get: working out the base amount, adding any bonuses, and determining whether you will opt in to the workforce compensation funds. 

Base amount

You begin calculating your base amount by determining your starting rate. That rate may increase depending on additional factors. Here’s the formula.

Starting rate —$440 or $640x 1.2 (Child care center or group child care home increase)x 1.25 (if eligible to serve infants and toddlers)x Your programs’s adjusted licensed capacity= Base amount

This table will explains each of the factors that go into your base amount.

FactorWhat it means
Starting rateThere are 2 possible starting rates:
– $640 per child if your program was reported open October 12-16, 2020
– $440 per child if your program was not reported open October 12-16, 2020

Why are there two different rates? We’re recognizing programs that stayed open or reopened earlier during the pandemic and continued to offer services.
Child care center/group child care homeAll centers and group child care homes get an increased rate to reflect higher operating costs.
Eligible to serve infants and toddlersYour program is licensed to serve infants and toddlers (children under the age of 3). This is offered automatically to all family child care providers.
Adjusted licensed capacityYour adjusted licensed capacity is based on your licensed capacity and the number of hours your program is open.
Adjusted licensed capacity = 100% of your licensed capacity if 50% or more of the classrooms in your program are operating 30 hours or more per week
Adjusted licensed capacity = 50% of your licensed capacity if less than 50% of the classrooms in your program are operating 30 hours or more per week

Bonuses

You may get additional funds on top of your base amount if you meet the criteria for any of these 4 bonuses. Here’s the formula for calculating bonuses.

Base amount x 0.2 (if accredited) plusBase amount x 0.15 (if receiving C4K benefits) plusBase amount x 0.05 (if open during peak pandemic) plus Base amount x 0.25 (if equity bonus SVI level 1) or x 0.35 (if equity bonus SVI level 2)Equals total bonuses

This table will help you understand the bonuses.

Type of bonusWhat it means
Accreditation Your program has NAEYC accreditation, NAFCC accreditation, or Head Start Approval.
Care 4 KidsYou program received benefits during at least 1 of the 3 following months: December 2019, December 2020, or March 2021.
Peak PandemicYour program was open on at least 2 of these 3 dates: March 27, 2020; April 20, 2020; May 4, 2020

This bonus is to reward providers who stayed open during the most challenging days of the pandemic.
Equity AdjustmentYour program’s score on the CDC’s Social Vulnerability Index.
Level 1: SVI greater than or equal to 0.6 and less than 0.8
Level 2: SVI greater than or equal to 0.8

This bonus is intended to acknowledge providers serving and operating in vulnerable communities. The Social Vulnerability Index was created by the CDC and provides a score based on census data for the area where your program is located. Use our child care provider dashboard tool to calculate your SVI.

To get your total potential funding, just add the base amount and bonuses.

Base amount plusTotal bonusesEquals total potential funding

Staff compensation opt-in 

There’s one more step to determining your total estimated funding — deciding whether you want to opt in for workforce compensation. This option is designed to encourage programs to reward their staff for their work during COVID-19.

  • If you choose to opt in, you’ll get the total possible amount of funding — and you agree to use at least 25% of that amount on your staff (for bonuses, wage increases, health care insurance costs, retirement, educational advancement, or tuition reimbursement) 
  • If you chose to opt out, your total funding will be reduced by 25%
FactorTotal funding you’ll receive
If you decide to opt in to staff compensation100% of your total potential funding
If you decide to opt out of staff compensation75% of your total potential funding

Whether your program opts in is up to you. Just remember that your total funding amount will be higher if you opt in and agree to spend it on compensating your staff.

Examples

Here are a few examples of how the calculations work for 2 different center-based programs.

Example 1

Base Amount Factors:

  • Licensed child care center
  • Open 10/12-10/16/20
  • Full-Time
  • Endorsed for infant/toddler care
  • Capacity of 136 children
Base Amount: Setting Type Adj. = 0.2 Infant/Toddler Bonus = 0.25
Capacity136
Total Base Amount$130,560
Bonuses: C4K = 0.15  Peak Pandemic = 0.05$19,584.00 + $6,528
Total Bonus Amount$26,112
Eligible Funding Amount: $156,672
Staff Compensation Opt InApprox. $39,168
Total Funding$156,672

Example 2

Base Amount Factors:

  • Licensed child care center
  • Accredited
  • Not open 10/12-10/16, 2020
  • Part-Time
  • Not endorsed for infant/toddler care
  • Capacity of 80 children
Base Amount: Setting Type Adj. = 0.2
Capacity 80 / 2 to reflect for part-time40
Total Base Amount$21,120
Bonuses: Accreditation = 0.2 C4K = 0.15  Level 2 Equity Bonus = 0.35$4,224 + $3,168 + $7,392
Total Bonus Amount$14,784
Eligible Funding Amount: $35,904
Staff Compensation Opt Out($8,976)
Total Funding$26,928
Questions?

Explore our detailed Frequently Asked Questions. You can also contact 2-1-1 Child Care at 1-800-505-1000 or email childcarefunding@ctunitedway.org. Make sure to have your child care license number handy to speed up the process. 

Last updated May 6, 2021