Alaska discovered that family participation in the subsidy program had declined over the last several years, reimbursement rates were low, and copays weren’t affordable for families. The state was also interested in investigating Alaska’s child care supply gap.

The state hired an outside contractor to research child care supply gaps and participation in the subsidy program. First Children’s Finance’s (FCF) consultation with the Alaska Department of Health's Division of Public Assistance Child Care Program Office (CCPO) addressed a decrease in families and children participating in the Child Care Assistance Program (CCAP). FCF provided a strategic report to the CCPO, including an analysis of community feedback, research findings, and recommendations for short- and long-term interventions in the subsidy and licensing systems through policy and process recommendations. These recommendations aimed to stabilize current child care businesses and ensure equitable access to high-quality child care for all Alaskans.

During the implementation period, the Child Care Program Office experienced restructuring of state departments and leadership staff transitions. The loss of institutional knowledge in finance and procurement created barriers to strategy implementation.

This strategy required the involvement and input of several authorities within the state government. While identifying all the necessary roles and approvals took time, it also enabled the team to share the importance of this work with those authorities. Subsequently, the team has seen an increase in interest in child care in legislative sessions and throughout state leadership. The governor’s administration recently announced an administrative order for a child care task force, a workforce study, and a child care cost model.

The state hired an outside contractor to help gather information and provide recommendations on improving the subsidy program and increasing capacity. The project supported the state’s understanding of the costs associated with delivering care across various child care provider types to inform subsidy rates.