FCF Helps Alaska Manage Loss of Providers Post-Pandemic

The COVID-19 pandemic exacerbated many of the difficulties already present in the State of Alaska’s child care systems. the State of Alaska engaged First Children’s Finance to consult with the state’s Child Care Program Office (CCPO) to support its planning around COVID-19 related relief funding for the child care subsidy system. With the help of FCF’s National Team and input from providers and residents, Alaska officials were able to create a plan to improve its child care systems statewide.

Background and challenges 

The COVID-19 pandemic significantly impacted child care across the United States and exacerbated many of the difficulties already present in the State of Alaska’s child care systems. In 2022, the State of Alaska engaged First Children’s Finance to consult with the state’s Child Care Program Office (CCPO) to support its planning around COVID-19 related relief funding for the child care subsidy system. 

During this period, Alaska had experienced a nearly 10% decrease in its licensed child care providers, with even more closures expected. Additionally, the number of children and families participating in Alaska’s Child Care Assistance Program (CCAP) declined, resulting in over 60% of the population residing in areas where there were not enough licensed child care facilities to meet demand. 

The goal of this consultation was to analyze data and identify immediate and long-term interventions to stabilize current child care businesses and help ensure the future of equitable access to high-quality child care for all Alaskans.  

How was First Children’s Finance able to help? 

FCF took multiple approaches to better understand the child care situation in Alaska and the experiences of child care providers, families, and other relevant partners with the child care subsidy system. To understand the current dynamics, FCF: 

• Reviewed policies, strategic plans, and existing research to understand local context. 

• Gathered and analyzed administrative data from the CCPO and US Census to understand the current child care subsidy usage and potential need. 

• Met with a wide range of partners to better understand experiences with the child care and subsidy systems. This included focus groups with providers and families. 

• Surveyed Alaskan families to understand their child care experiences and needs. 

What was the outcome?  

FCF’s final report highlighted key findings, offered policy and process recommendations, and suggested strategies to support the CCPO’s future actions. Key suggestions included: 

• Expanding family participation to simplify the application and documentation process (completed or in progress); additional steps include exploring additional subsidies or cost-of-living adjustments and providing increased targeted funding for businesses (under consideration) 

• Increasing the supply of child care businesses starting with a cost of care study to inform the CCPO (completed); incorporating a strategic plan for covering the true cost of care and examining rate-setting policies (under consideration) 

• Boosting community engagement efforts by increasing collaboration with Tribal CCDF administrators (completed); developing a marketing campaign with accessible language (under consideration) 

• Enhancing CCPO infrastructure, including a new data system (completed); building capacity and staffing to better support families and businesses (under consideration)