Committee on Small Business

Good afternoon. Welcome to the New York City Council hearing for the Committee on Small Business jointly with the Subcommittee on Early Childhood Education. At this time, we're going to ask everyone in the room to silence all cell phones and electronic devices. If you wish to testify, you need to fill out an appearance card. If you haven't done so yet, please see the sergeant-at-arms in the back of the room and we'll get you signed up.

Most importantly, at this time, no one is allowed to approach the dais. Chair, you may begin.

Good afternoon, everyone. I am Councilmember Chanel Thomas-Henry, chair of the Committee on Small Business. Thank you for joining us for today's joint hearing between the Committee on Small Business and Subcommittee on Early Childhood Education to examine the business of child care. I'd like to begin by thanking my co-chair, Councilmember Jennifer Gutierrez. I'd like to also thank the representatives from the administration, members of the public, and my council colleagues who have joined us here today, including Councilmembers Santosuosso, Joseph, Felder, and Brewer.

And on Zoom, we have Councilmember Maloney. The last couple of years, we've seen conversation grow significantly around childcare in New York City. This year, the mayor, the governor, and the council have focused their efforts to examine the landscape of childcare and improve its affordability and accessibility for New York City families. Part of this examination is considering who would provide childcare, and that is why today's hearing is so important.

New York City small businesses are significant providers of childcare And ensuring that they have the resources and guidance to conduct their business is crucial to meeting the affordability needs of New York City families. According to a 2024 report from the U.S. Small Business Administration, nearly all firms in the child care industry are small businesses, but most of the child care firms that have exited the market have been small businesses.

The growing cost of the industry has been an overwhelming burden for small businesses, and this 2024 report further noted that the price of childcare grew by 230% from 1990 to 2022. Small businesses have the unique ability to be deeply connected to their communities. Many serve as unofficial community centers, or were started by someone who was born and raised in the neighborhood.

Businesses can begin because of deep need to give back to the community or share a passion, but starting a small childcare business takes a unique amount of work. There are many complex requirements that a childcare business must meet in addition to myriad rules and regulations that all small businesses must follow in New York City. The cost and the complexity of starting and sustaining a childcare business cannot be understated, and we must find ways to appropriately streamline the business of childcare if we truly want to make childcare affordable.

The committee is also hearing Introduction 445 from Councilmember Stevens, which requires the Department of Small Business Services to expand the Business Pathways Program to include creative fields retail, and cosmetology. The programs would assist NYCHA residents in formalizing their businesses, including via professional business education course, mentorship, and professional coaching; support in obtaining business licenses; guidance on business operations, marketing, and financial structures; funding to complete required health and safety trainings; support in completing provider applications; and help for certain businesses to secure a commercial space.

The Business Pathways Program currently empowers entrepreneurs who reside in NYCHA housing to start and grow businesses in food and childcare, the latter of which we plan to focus on for this hearing. Public information about this program is limited, including who is presently responsible for running the program, and we look forward to hearing from the administration about this program and their thoughts on council Member Stevens' bill.

I would like to thank Tyler Walls and Rebecca Barrillo from Central Staff for their work putting this hearing together, as well as my own staff, Derek Slaughter, Franklin Richards, and Sierra Smith, and everyone working in the background to help make this hearing possible. I'd also like to mention, I believe we were joined by Councilmember Moreno. Moreno. Yes, I'm coming.

Okay. He's here somewhere. All right. We'll find Councilmember Murano shortly. In the meantime, I will turn it over to my co-chair, Councilmember Gutierrez, for remarks.

Thank you, Chair. Good afternoon, everyone. I'm Councilmember Gutierrez, Chair of the Subcommittee on Early Childhood Education. We're so excited to join the Committee on Small Business. and their chair, Councilmember Chanel Thomas-Henry, for today's oversight hearing on the business of child care. Over the last several months as chair of the SEV Committee, I've had the privilege of hearing directly from families about how reliable, affordable child care plays an integral role in their lives.

Yet the people who run child care programs are caught in an impossible squeeze. Child care providers are asked to deliver high-quality, safe, and nurturing environments on razor-thin margins. They are competing in a market where the service is expensive for families to buy, and the wages they can afford to pay their staff remain far too low. As former Treasury Secretary Janet Yellen described, the childcare industry is the textbook example of a broken market.

The majority of childcare businesses are small business and are owned and operated largely by women and often women of color. Most are working hard and following the rules to keep their childcare business open, but this can often feel impossible. National data shows that most for-profit childcare facilities operate on a profit margin of less than 1%, well below the recommended healthy margin of 15% seen across most industries.

This means if an unexpected cost pops up, like a broken fridge or plumbing backups or water heater failures, it can often be devastating to the financial stability of that childcare program. This year, Mayor Mamdani and Governor Hochul made a big investment in expanding the childcare system. But improving childcare access for families is not just about making childcare more affordable.

The underlying infrastructure needs investment too. This means increasing contracted rates for DOE childcare seats and setting reimbursement rates for childcare vouchers at the true cost of care. Without sufficient public funding, childcare programs will continue to struggle. So today we'll ask the Mayor's Office of Childcare and Early Childhood Education and the Department of Small Business Services, how are you supporting childcare businesses as small businesses?

And how are you ensuring the financial viability of child care programs? Thank you to the members of the Subcommittee on Early Childhood who have joined us today. I also want to thank the staff, Julia Goldsmith-Pinkham, Katie Salina, Grace Amato, Andrew Lane Lawless, and Margaret Barnsley, as well as my own staff, Frank Hulka, Angelica Colon, and Madeline McGillivray, for their work on today's hearing.

Oh, and Soleil, my legislative fellow. Thank you, Chair. I turn it back over to you. Thank you, Councilmember Gutierrez.

I will now turn it over to the committee counsel to administer the oath before we hear from the mayoral administration. Thank you, Chair. Can all admin staff, admin representatives come up to the table, including NYCHA? Thank you. Do you affirm to tell the truth, the whole truth, and nothing but the truth before this committee and to respond honestly to councilmember questions?

Yes. Yes. Thank you. You may begin when ready.

Good afternoon, Chair Gutierrez, Chair Thomas-Henry, members of the Subcommittee on Early Childhood Education, members of the Committee on Small Business, and all other city council members. My name is Emmy Liss, and I am the executive director of the Mayor's Office of Child Care and Early Childhood Education. I'm joined today by my colleagues at the Department of Small Business Services and New York City Housing Authority.

Thank you for organizing this hearing and giving us the opportunity to testify about the business of child care. I would also like to acknowledge and recognize the early childhood educators and providers who have joined us for this hearing today, as well as the advocacy groups and organizations who support this critical workforce. We're grateful for the work you do every day in our city's early childhood programs and appreciate you being here to share your stories and experiences.

Universal childcare is a critical pillar for the Momdani administration and a key component in making New York City more affordable for everyone to raise a family. This administration has been working diligently toward a city where every child under 5 has access to free, high-quality early care and education offered in a range of culturally competent settings with caregivers and educators who are trained, respected, and fairly compensated.

On just day 8 of this administration, the mayor stood with the governor as she committed over $1.2 billion to New York City to put us more firmly on a path to universal childcare. Here in New York City, we are lucky to have a rich ecosystem of early childhood education providers. Many of the city's community-based childcare providers have been in operation for decades, or more than a century in some cases, and they have educated and cared for thousands and thousands of children.

We appreciate that today's hearing recognizes childcare providers as the small businesses that they are. According to state licensing data, there are more than 10,000 unique licensed childcare programs in New York City. Over 2,200 licensed daycare centers, more than 1,500 licensed school-age childcare centers, close to 5,600 group family daycares, and around 740 family daycares. Childcare businesses in New York City are typically very small.

Small family childcare programs may not have any staff other than the owner, and larger family childcare programs may have just 1 or 2 additional staff members. According to data from the U.S. Census, more than half of childcare programs operating in New York City employ fewer than 5 people. Just 3% of child care businesses employ more than 50.

As small businesses, New York City's child care leaders, a majority of whom are women of color, often wear many hats. And New York City's regulatory landscape for child care providers, while important for health and safety, can make life very challenging for our child care business owners. Close to half of all child care workers have their own children at home.

In total, over 5,000 child care workers have a child under the age of 5 at home, meaning they are likely making use of early care and education themselves. The Mayor's Office of Child Care and Early Childhood Education sees its mandate simply: to make it easier for families to find access and afford care, and to make it easier for child care providers to open, operate, and sustain their businesses.

We do this by setting the administration's strategy to deliver on universal child care, coordinating and aligning policy and programmatic activity across agencies involved in early care and education work, engaging deeply with community to ensure parent and child care provider voices are represented in policymaking, and partnering with business, philanthropy, and the nonprofit sector to accelerate innovation and impact.

Over the past 10 months, we have spent time listening to child care providers to try to better understand what they need and how the city can better support their work, which is essential to delivering on our vision of universal child care. In April, we launched a new child care center provider permitting portal, which consolidates application requirements, simplifies communication with the Health Department, and provides real-time updates on application status, removing barriers that have long made it difficult for providers to open their doors.

And we were pleased to demo that permitting portal for the Council earlier this year. In May, Mayor Mondani issued a proclamation declaring Child Care Provider Appreciation Month and coordinated a series of visits to child care providers across the city intended to bring more visibility to the work that our providers do every day. Additionally, my office has partnered with Providers Organized for Power, or POP, to lead a listening tour with home-based child care programs focused on fostering honest conversations with educators as part of our commitment to supporting the educators who make child care possible for working families across New York City.

In August, Mayor Maldonado and Schools Chancellor Kumar-Samuels announced a comprehensive overhaul of the city's child care procurement processes to ensure providers working with New York City Public Schools can open their doors and to work to accelerate contract registration. This overhaul included a $43 million investment to transform New York City Public Schools Division of Early Childhood Education to ensure the staffing capacity necessary to implement reforms designed to prevent future contracting and payment delays.

Our team in the Mayor's Office is helping to coordinate a provider-led steering committee to design a shared services cooperative for home-based providers to reduce costs, drive up revenue, and help providers build power together. This co-op would serve as a tool to empower our small family child care businesses to compete with larger chains that threaten the business model of our essential small business providers.

Lastly, we know that our small child care businesses face a crisis of rapidly growing costs especially liability insurance, and they lack the negotiating leverage to resolve those. We believe we should use the levers of government to support our small businesses in reducing costs like these. Looking ahead, the city is bringing together partners within and outside government to develop a comprehensive strategy to grow, sustain, and support the child care workforce, including addressing wage disparities, rising operating costs, and the long-term investments needed to support competitive compensation and high-quality care.

As the administration works with urgency to implement universal childcare, we know that we must invest in childcare operators and ensure they can sustain their businesses. In the past several months, we have taken some initial steps to address the financial and operational challenges facing providers and the educators who make these programs possible, though we know there is still much more work to do.

In the executive budget, the Mayor invested $40 million to increase rates for contracted early childhood providers, including a 5% rate increase for family child care providers and a 2% increase for family child care networks and center-based providers. The administration also launched a $3 million emergency microgrant fund to provide financial assistance to licensed home-based child care providers facing urgent challenges that threaten their ability to remain open.

And with the city's recent announcement of where geographically we will offer 2K in fall 2027, We have opened procurement opportunities for child care providers who may wish to offer 2K services. There is a survey open now to existing early childhood contracted providers, which they must complete by November 9th, and a request for information for potential new partners with New York City Public Schools, which will be open until November 12th.

I will now turn it over to my colleague, Horace Khan, Chief of Staff at the Department of Small Business Services, who will speak to how SBS supports the critical work that our child care providers do as small businesses in New York City. We look forward to your questions today and your partnership in this work.

Good afternoon, Chair Thomas Henry, Chair Gutierrez, and members of the New York City Council Committee on Small Business and Subcommittee on Early Childhood Education. My name is Haris Khan. I serve as Chief of Staff at the city's Department of Small Business Services, or SBS for short. SBS's mission is to unlock economic potential and create economic security for all New Yorkers by connecting New Yorkers to good jobs, creating stronger businesses and building thriving neighborhoods across the 5 boroughs.

Small businesses are the backbone of our economy, and the city's independently owned childcare providers play a dual role. They help sustain our economy and serve as essential support system for thousands of families. SVS is committed to supporting all small businesses, including childcare providers, by offering educational resources on topics such as opening a storefront business, forming a worker cooperative, securing financing, and accessing free commercial lease assistance legal services.

We're grateful for our ongoing partnership with the Mayor's Office of Child Care and Early Childhood Education and the Department of Health and Mental Hygiene in supporting these operators. In addition to our direct services, SBS partnered with City Hall in the development and implementation of the Open for Small Business Reform Agenda, which includes more than 50 reforms with 4 specifically focused on child care. care.

These reforms include expanding the child care permitting portal and upgrading the background check request portal. In this process, the administration gathered insights from industry leaders and direct feedback from small business operators, including a child care operators roundtable led by Deputy Mayor Julie Su and Executive Director Liss. Additionally, we partner with the Office of Child Care and Early Childhood Education in our public events and webinars to help educate small business businesses.

Our New York City Business Express Service team also works with DOHMH to guide child care providers through the requirements, city requirements, and connects them to the full suite of SBS services as needed. Additionally, I'd like to briefly speak on the Business Pathways Program referenced in Introduction 445, sponsored by Council Member Althea Stevens. The Business Pathways Program is operated by NYCHA's Office of Resident and Economic Resident Economic Empowerment and Sustainability, REES.

According to NYCHA, since 2014, the program has enrolled 448 residents in 12 cohorts of the food business pathways to start or grow their food businesses, and 189 residents across 9 cohorts of the childcare business pathways to start and formalize their childcare business. We're joined today by my colleague Shayna, Castillo, Vice President of Partnerships and Initiatives at NYCHA, who can answer further questions on this program.

We're also grateful for the partnership of the New York City Council as a critical partner in all of our work, and thank you for this opportunity to testify, and I welcome any questions that you may have.

Thank you both for your testimony. I'd like to announce that we found Councilmember Marano has joined us. We've also been joined by Councilmember Riley and Councilmember Maloney on I will now turn it over to Councilmember Joseph to ask questions. Thank you so much, Chairs, for this, allowing me to go before. So there are a little over 7,000 family child care providers in the city, and fewer than 2,000 are in a network.

That leaves about 5,000 providers locked out of the contract seats. What are the specific steps to bring them in, and when do you plan— and why do the FCCs get paid less than a CBO for the same seat, also in the pay? and they have to pay a network fee, how do you expect to see them joining it as worth it?

Thanks so much for your question, Councilmember. So New York City Public Schools contracts with networks, as you referenced. These are intermediary organizations, very often community-based organizations with deep roots in child care and in their community. We leverage networks as the vehicle to support home-based providers because Administratively, it is, as we all know, onerous to contract with the city and something that can be really challenging for a small child care provider.

So the network takes on a lot of that administrative business work and then can provide support to the provider when it comes to business enrollment and other administrative functions. Our family child care networks are also equipped to provide coaching and support to family child care providers in languages that providers speak, which may be other than English. And so we believe that when they are operating at their best, our family child care networks are a really strong bridge to support providers participating in the city's initiatives.

We also recognize that not all family child care providers have historically wanted to participate in networks, and so we've spent a lot of the past 10 months in conversation with providers and advocates who work with providers to understand what some of their challenges have been in and working with them to identify areas for strengthening our networks so that those can be more compelling opportunities for providers.

We've really brought them the question of what would it take for you to be excited about joining a network and are working to incorporate the feedback we hear from them. I know you just referenced fees, and I know this came up at our last hearing. Family child care networks should not be charging providers a fee for participating, and so if that's something you're hearing, we would love to I would encourage you to follow up with your office and get more specifics because that is not part of the model.

New York City Public Schools pays a flat rate to family child care networks. A portion of that rate is to cover their administrative costs, and the vast majority of that rate goes directly to the provider to cover services. If we plan on— if the goal is universal, you're leaving almost 5,000 providers out of that network. I know you said you're encouraging them to come in.

Do you know what the problem is as to why there's a hesitation to join your network? Is that in conversation? Yeah, that's been a big part of the conversation. I'd say we are growing the capacity of our networks as we expand. So as we expand 2K, we are looking to bring family child care providers into the program in a significant way.

We know that many families prefer home-based care for their toddlers, and that is a model we want to really lean on. So with the expansion of 2K, we are expanding network capacity and again really engaging providers to understand where there may have been past hesitancies, myths, misconceptions, and real challenges that we are working to address. Thank you, Chair.

I'm just gonna— thank you. Nearly 30,000 families were on voucher waitlists this month. Of the 10,000 children The Mayor promised to move off. How many have actually been moved? Who got priority and how many families are still waiting once all the 10,000 are enrolled? I'm hearing from providers who are losing income while these seats remain empty. Yes, so as the administration announced earlier this month, we are beginning to take families off of the voucher waitlist.

We recognize that this waitlist has been an incredible hardship for the families waiting for care and for the providers who are willing, ready, and able to serve those families. Some portion of those 30,000 families may already be in other publicly funded care, but they absolutely have the right, if they would prefer a voucher, to remain on the waitlist.

We are inviting families to submit the paperwork to come off the waitlist in tranches so that we can provide support. About 3,000 Invitations went out to children on the waitlist earlier this month, and we will continue to move families off the waitlist on a monthly basis until we maximize our funding. 10,000 is the number we shared at that announcement, but our hope is that we can continue to move even more families off the waitlist.

How do you prioritize the families you do move off the list? So that is a process very tightly regulated by state and federal guidelines. Families come off the waitlist in the order they went onto the waitlist. Families who come off the waitlist must be in one of 3 priority groups: under 300% of the federal poverty line, unhoused, or the child has a disability.

But we move through the waitlist in order that families have been waiting. Thank you.

Most of the childcare workers are women, women of color, immigrants. Are you actively walking them through WMBE certifications? And if you are providing training for them, is it provided in their language of choice? I don't know if that's something you can speak to about sort of broadly. I think we can certainly get back to you with more information about how our colleagues in the MWBE team talk about that.

But if there's anything you want to add. Yeah, the New York City Public Schools also has an MWBE team that works with their providers. But there's regular conversations between our team and their team. They do their own outreach, but we also have joined them and vice versa. And so there's a partnership between the teams that work on MWBE certification.

We encourage any New Yorker— they don't have to go to public schools. They could also come to SBS and we'll help them with their MWBE certification for sure. Labor is the biggest cost for these programs and turnover hurts children the most. How will the new RFP close the pay gap for early childhood educators? And is the current rate structure pushing small providers to keep wages low just to stay open?

What about wages and benefits? So we know that wages and benefits are one of the biggest challenges that are facing child care providers and their workforce, and this is something we are committed to addressing over time. The city has not yet released a new RFP for early childhood services. That's something that will come, and we will be working with our partners in the council, our partners in labor to look at wages within that, and we are continuing to look at other pathways to support early childhood workers in the meantime.

Thank you, Councilmember Joseph. I have a couple of questions and I'll turn it over to my colleagues. I know you mentioned the number of Child care businesses in New York City. Do you have an account of how many of those businesses are nonprofit versus for-profit entities? That is not a piece of data that the state or the city collect in licensing.

We know there is a healthy mix of nonprofit and for-profit, and even among many of our for-profit businesses, that they are, you know, very small businesses, and as was referenced are operating on very thin margins. Okay. Committee staff and subcommittee staff have heard that liability insurance continues to be an issue for child care small business owners, with 80% of child care owners nationwide reporting increased costs.

Is the Mayor's Office of Child Care aware of this issue, and are you offering any guidance to business owners in assessing affordable Liability insurance. We are very aware of this issue as we've gone across the city and met with childcare providers of all sizes. This is something we hear as a really pressing concern. And as you noted, we know this is not just a New York City problem, but when I talk to childcare leaders in other cities, it's something that folks are hearing broadly.

We have been over the past couple months looking at ways the city can leverage our our scale and our power as city government to try and address this crisis because we know that it's really hurting our providers. So that's something we are actively working towards solutions on. Okay. Have you been talking to any providers in particular that would be interested in focusing on providing more affordable rates to childcare businesses?

At this point, there are very few insurance companies operating in New York City that will insure childcare providers. We want to make sure those who are in the business don't leave, but we also do need to look at alternatives to support providers. Again, this is something we see happening all across the country where the number of insurers who are willing to back childcare providers is dwindling.

Got you. Thank you.

Next question. In family childcare homes, business owners often wear multiple hats as both the early childhood educator and the business operations coordinator. Is the Mayor's Office of Childcare providing any specific trainings for family childcare home providers on how to operate a childcare business as a sole proprietor? So for family childcare providers who are part of our family childcare networks, they do receive access to coaching and support through their network.

There are also many, many wonderful organizations operating here in the city who are incredibly skilled at sort of the business of family childcare, who work with our family childcare educators and We are in close conversation with many of them about that. As I referenced in the testimony, we are also working with a group of family child care educators who are interested in building a cooperative, which when stood up would be a vehicle to really support the participating members with all aspects of running their business.

What services do family child care networks offer to alleviate some of the business administration burden from these home providers? Family child care networks serve essentially as the intermediary between New York City public schools and our family child care providers. They take on the burden of contracting with the city, all the paperwork that is required in order to be a contractor with the city.

They bear the financial risk that comes with that as well. In that sense, are essentially providing greater stability for the providers than they might have if they were working directly with the city. Okay.

At this time, right before I turn it over to Councilmember Gutierrez, I would like to acknowledge that we have been joined by Councilmember Brooks Powers, co-chair. Thank you, Chair. Thank you both for your testimony. I wanted to ask to the Mayor's Office of Child Care, I know you referenced in your testimony roughly the amount of providers Do you have a sense of how many are nonprofit and how many are for-profit?

That is not information that the city or state actively collect. Okay. Sorry. What should they— what do they want to collect? Oh, do you— can you collect that information? I would have to get back to you on whether we can collect that. The city and state share the responsibility for licensing childcare providers in the city. Our family childcare providers are licensed by the state and our center-based childcare providers are licensed by the Department of Health.

So we would have to get back to you on what business information we can collect. Okay. Thank you. Is the Mayor's Office of Childcare, are you all concerned about reports of increased interest from private equity in the childcare industry? I know we have heard from folks almost at every single hearing testify about that. Yes, that is something that we are keeping an eye on.

Part of why we've been really excited about structures like this cooperative that we're discussing with child care providers is it's another way of providing business support and strength to providers. It can often also be a model that supports succession planning. Mm-hmm. We've been really excited by some of the more innovative business models we've seen popping up in the city.

For example, Imagine Early Learning, which is the first fully employee-owned childcare chain in the city. And we are very much keeping an eye on the growth of private equity into childcare. We know that the strength of New York City's childcare ecosystem is that it is so deeply rooted in community, and we have providers who have been in their communities for decades and decades, and we want to make sure that that small business framework that we continue to see providers with those community connections operating.

I think the concern is, right, it's just comparatively a private equity company that just has a more— that has— that you can see they have more funding for infrastructure. It's really difficult for, you know, a home-based provider 2 blocks away to compete. Are you all thinking through this co-op, and I will ask more about this co-op, Are you all thinking about guardrails around, you know, these private equity still businesses receiving public funds for childcare?

It's something we're certainly going to look into. Okay. Okay.

I wanted to ask about the microgrant program, which I think is great. You referenced it in your remarks. Can you share the current status of this program? Yes. So in August, we announced that we were launching this program by opening up a procurement for an administrator to actually run the program. So we are in the final stages of contracting with that administrator.

We are also deep in the work of planning for what the microgrant program, all of the details of it, and we've had childcare providers at the table driving that planning, thinking about questions like what kinds of emergency expenses will be eligible, What scale of grants, in what ways should providers be prioritized as they apply for the funding.

And we plan to, with the administrator and with our advisory group of providers, launch the program later this year. Okay. And when would it be— I know that you're in that procurement process. When would it be available for a provider potentially to apply? Our goal is to launch the provider-facing part of this program by the end of the year, and then we anticipate making grants on a rolling basis as providers experience emergencies and apply for those funds.

Okay.

As the DOE early childhood system expands, not every family will immediately have access to public options, and child care small businesses will continue to play a critical role in providing child care. How will you ensure child care small businesses remain viable as the universal system is stood up so that the city doesn't lose our child care capacity?

It is absolutely a priority for us to make sure that child care providers, regardless of their relationship with the city, are able to continue opening, operating, and sustaining their businesses. We want to make it easier for them to open in the first place, which is why we've invested in things like the permitting portal to smooth the pathway to opening.

We are also working to streamline the various processes and regulations where multiple agencies are involved so that providers are not kind of caught in the crosshairs between different agencies and conflicting guidance. So our office plays a role there. We want to make it easier for families to find childcare providers through tools like nyc.gov/childcare, which is a map of every licensed childcare program in the city and tools to help families find their way to those programs.

And then as we continue to expand access to care, make sure we are prioritizing work with our community-based child care providers and home-based providers, which is why with the expansion of 2K, we are working 100% with providers. There's no 2K in schools. This is a program entirely built in partnership with community-based child care providers and home-based providers.

Okay. Thank you. I'm not sure if my colleague Councilmember Joseph had— I know she was talking about the vouchers, but Are you aware of any childcare business closing due to lack of families having access to vouchers? It's a concern we've heard from providers. I don't have any specific examples of closures that have happened because of this. Certainly if there are any you're hearing about, either in your district or elsewhere, would love to talk about that.

But we know that with the voucher waitlist, obviously it's placed a huge burden on families, but providers as well, particularly providers operating in lower-income communities where families have historically historically relied on vouchers for care. So we know that reopening the waitlist is something that will support families certainly, but our providers as well.

But so, okay. And you haven't heard, I'll make sure to give you the name of the provider that said they closed because they closed in May because of the vouchers. And the $10,000 or $10,000 plus I think is amazing. But I think it's not a system that families or even providers really know to depend on year after year.

Right. It's not something that's funded in the out years. The 10,000 is really just for through the end of this fiscal year, correct? No, the 10,000 families who receive vouchers as they come off the waitlist, they will have it— maintain a voucher for as long as they remain eligible, which is why we sort of— we waited to begin taking families off the waitlist until we had that certainty.

We did not want to give families and providers access to care only to then have to take it away. So any family who receives a voucher, so long as they remain eligible, they will be able to maintain that voucher. Okay. And then, but new families who are adding, they're adding themselves to the waitlist, correct? Yes. New families can continue to apply and add themselves to the waitlist.

And that funding to support, to get those families off, newer families off the waitlist, we're not sure about in the next year. So the Child Care Assistance Program, AKA vouchers, is a state-funded program. And so we are able to take families off the waitlist now as we leverage The funding we received from the governor earlier this year, and certainly that's something we'll continue to talk about with the state.

But there is no— and I'm not trying to take away— I think the 10,000 is great. I think it's worthy of the announcement. But I just want to be clear for New Yorkers who are hearing like, oh, there's 10,000 vouchers available now. It's 10,000 vouchers really working its way through this waitlist. But if you are having a baby in the new year and you're in need of this voucher, that doesn't mean that you— that there is money for this voucher.

That's correct. I just want to be clear. The 10,000 or more vouchers that we are able to give out at this point will go to the families who have been on the waitlist the longest. So there, we do expect there will still be families waiting for care. And that's just leveraging with the state for their budget? Yes.

We also want to make sure that for families who may be waiting for a voucher but may also be eligible for other forms of care, whether that's 2K, 3K, or pre-K, or any of the city's Head Start or Early Head Start programs that families know about and are taking advantage of those care options. Even if they elect to remain on the waitlist for a voucher, they may be able to receive other care in the meantime.

Is there any conversation with the state about increasing the reimbursement rate for these vouchers? The voucher reimbursement rate is set through— by the state through a process called the market rate. The state has recently issued their market rate survey to childcare providers across the city, which is a chance for providers to inform the state about the cost of providing care.

The state will use that data to then set the market rate, and they are set to update their market rates in 2027. Thank you.

I have a couple more and then we can— I know we've got a number of members. Okay. In January, the administration testified that there was going to be a new payment and data management system rolled out by the DOE. for contracted providers. Is that system still on track to be launched by now, the end of the year?

The DOE is actively working on the development of the system called the Early Childhood Management System, or ECMS, and would really defer to my colleagues at New York City Public Schools to give an update, which we're happy to provide to you and the subcommittee. Okay. Okay. I think you answered this before. Besides what you— I think you referenced this in your testimony about the 2% increase, just referencing contracts, the 2% increase for CBOs, 5% for family child care networks in the process.

When these rates were awarded, and of course I'm like referencing the original bid in 2019 and 2021, when they were awarded, did it include an opportunity to negotiate a reimbursement for fixed costs such as rent or insurance? So the contract, the rates that providers have in their contracts, which as you said were negotiated for many providers in 2021 when their contracts were first set, providers went through a rate negotiation process with New York City Public Schools.

There was not one single rate providers, there is variation in between those rates, and providers were able to demonstrate, for example, their rent costs as a way of informing their rate. Okay. And is there— is that locked in or is there an opportunity for a provider to ask for higher reimbursement rates such as increasing rent or labor costs?

There are. So providers' rates are set at the time of the contract and based on a budget that they develop every year. Providers submit an updated budget to New York City Public Schools. If there are providers experiencing some significant shift in costs, you know, would encourage them to connect with their operations analyst at New York City Public Schools to look at their budget.

But there is, and, you know, in moments where, for example, in 2024, when there was a new labor agreement between DC 37 and the Daycare Council, providers with staff in the union received increased funding to support that collective bargaining agreement. Okay. Does the current contract only reimburse programs for the minimum legal classroom ratio? Providers' budgets are set based on the classroom ratios that are dictated by the DOE, which is 18 children and 2 teachers for pre-K, 15 children and 2 teachers for 3-K, and 12 children and 2 teachers for 2-K.

Okay. So it's only— but it's only— it's for— it's the amount— it's— that is set across the board or that's set individual, like contract by contract? That is the standard classroom group size and ratio for all 2K, 3K, and pre-K providers. There are some exceptions, for example, for integrated classrooms where there are children with disabilities learning alongside children without IEPs.

Okay. I have one more question. And I think you'll hear a lot about this from some of the folks that testify, but obviously I want to once again raise dignified wages, pay parity. And I know we're rather early, but I want to make sure that folks are encouraged to bring this to your attention. Do you— how will the new RFP seek to address pay parity and low wages for these early childcare workers?

Increasing wages and addressing some of the significant equity gaps we've seen is a priority for the administration, and we are looking at ways we can work to address that and eager to partner with council as we think about this in the coming year and years. Okay. I have one more question just about networks, and I'll pick it back up after members, but can you just tell me from the RFI that was sent out earlier this year, Were any new networks established as a result of the RFI?

There were, and I would have to work with my colleagues at New York City Public Schools to get back to you on the specific numbers. Okay. Okay. Great. Thank you. Thank you. And now I'll turn it over to Councilmember Felder for questions.

Thank you. So first of all, I wanted to thank you and thank the administration for giving the attention to this area. To my knowledge, this has been an area that I, you know, has certainly had my attention for quite some time. And at least beginning with the de Blasio administration, we didn't have— I never got a straight answer about, you know, the questions that are being raised this morning and the answers that have been given.

So despite the problems of not getting— being able to get it done, you know, immediately, I think that I appreciate at least that they're being addressed. Having said that, the issue The issue of payment to the providers is something that I hear over and over and over. And again, it's an issue that you inherited, you know, you need a SWAT team to really address because I think there are so many providers that are— I think that's a good point. that just haven't been paid for a long time.

Irrespective of what they should be getting paid prospectively, if they haven't gotten paid and they have to pay the rent now and everything else, it is inherently— when you talk about closures or not closures, whatever it is, it's certainly making it impossible for them. And that's something that I hear repeatedly. And I'm not volunteering to give you a list because I can if you want one.

But there are, I would say, you know, they're not in my district, but I myself, I would say, have heard from about conservatively at least 10 providers that haven't gotten paid for the previous Yeah. Not 20— and I'm not talking about '25 ending. They still haven't gotten paid for the previous year. And it's not as though somebody has said you're missing information.

In fact, one of them showed me the email with a compliment, you know, or some sort of saying thank you very much for providing all the information needed. And they're still waiting for the money. Again, the purpose is not to blame you, although I would love to because that's a lot juicier than asking the question. But the fact is that you know, and again, it's not something that started under this administration and that this administration in effect has to correct the problem that's been going on for at a minimum, I would say at a minimum, 8 years, I think more like 12 years or something like that.

So the question is, I'm sure you're aware of this problem, and I just would like to know whether there's anything, you know, you had mentioned additional money or additional staff. You talked about additional staff. But in addressing a different problem, it has additional staff been, you know, set aside or hired or whatever else to deal with providers getting paid?

Thank you so much, Councilmember. First, I would say do give us that list. If you have providers who have told you they have not been paid, please do share that with our office. And we will follow up immediately with the relevant agencies to make sure that they— that that is looked into right away. Some of the staff I referenced in testimony, the new staff lines that have been funded at New York City Public Schools, all of which are currently in the hiring process right now or that already have been hired on, many of those staff directly support operations and work closely with providers on things like invoicing and payment.

And really, our goal in bolstering staff capacity is to make sure that we don't just accept that because payment has always been a slow process, it needs to continue to be one. And we want to make sure that folks are being compensated for the work they are doing. I know that there are also providers, including— I know folks who are here to testify today who have concerns about the payment timelines for vouchers, which is something our colleagues at Administration for Children's Services are looking at really carefully and closely as well.

Thank you.

Councilmember Brewer. Thank you very much. Very articulate answers. I have a couple of questions. First of all, what are you learning— I have 3 kind of disparate questions. What are you learning from One Center Street, if anything? The second question is, with all of this great news, what kind of evaluation is being done to see if families are staying in New York.

Obviously it's too early, but you got to get started. The way evaluation works, as you know, you start from the beginning. If you start in the middle, it's not good evaluation. So I want to know if that's happening. And then third, for SBS, you know, how many folks are you working with? How many child care businesses are existing in the private sector?

And there's one that I'm really interested in, which is the 24-hour for the folks at the airport. and people who have lots of, you know, different kinds of jobs. So that's just the beginning of questions. Thank you so much. So first, on One Center Street, the Little Apple, which started earlier this year, is now serving about 40 children, employees of municipal staff who work at One Center Street or elsewhere as part of DCAS.

The facility is gorgeous. I highly recommend stopping by. It's a great way to brighten your day if you've not been. And I think the feedback we're hearing from folks who have access to that is that it's been really wonderful to them to have. So they're paying or you're paying? It is completely free for the employees and it is childcare for kids under 3.

Okay. And so the cost is something that would be applicable to others. under 3 also, basically? It's a model. It's the first of its kind and it's something we're looking at closely to see the impact it has on city workers and whether it's a model that could be replicated ultimately. The next one is, what about evaluation? This is something very top of mind for us.

As you referenced in terms of families leaving the city, part of the reason why childcare has been such a focus for this administration is because we see that families with children under 6 are twice as likely to leave the city as other households. And it's— I tell them to go to hell when they do, but yes. So we are working with a number of different outside research institutions who are all interested in studying the effects of our investments on childcare in New York City.

So are they going to do it or they're getting funded to do it, or where are we? There are a couple of institutions that have outside funding to do this. We are also within the city working with the Economic Development Corporation and others to look at and monitor the effects of our investments. There are a few external research reports that we know are being worked on.

I prefer external. We're doing both. In the Mayor's Office of Childcare, we are really working to coordinate with all of the outside researchers who are studying this to make sure that all the questions we have are being answered. We'd be happy to share more about our nascent research agenda with you. And then just 24-hour care, who's doing that?

So right now, that is a big gap. We know that there are families who, because of their work schedules, need that kind of care. We know that there are not very many providers in the city who offer it. Those who do tend to be our family childcare providers because that's a model that is sort of more flexible, more able to meet those needs for families.

It's something we need to spend more time and energy on for sure.

Okay, thank you. Thank you. Councilmember Santos-Oso. Thank you, both chairs. I want to turn to this— what I think is a really interesting idea about the cooperative and ask you if there's any discussion on contemplating that model to solve the insurance problem. First, I would say I think we know the insurance problem impacts every provider in the city regardless of their scale.

So it's something we're looking at across the whole sector. I think we see the childcare cooperative as potentially serving many functions, but one of them would be sort of shared buying power and shared services. How would that work? Would that work in conjunction with the centers, or do you see it solving different problems? Solving different problems. And I should say, I think cooperatives are a structure that we know are being looked at across sectors in New York City.

So not just specific to childcare, but it's a topic that's really on folks' minds in terms of how do we support small businesses. We are specifically working with a group of home-based providers who are looking at this model and whether it could apply particularly to support family childcare. Okay.

Turning to the 2K rollout, I think if I remember correctly, I don't know if it was at the press conference or if it was in one of these hearings, you were asked sort of the distribution of seats and how it would work. And I think your answer, I don't wanna misrepresent you, but I think your answer was essentially that one of the factors is how many providers in each neighborhood or in each district actually sign up and are interested in being part of the program.

Am I representing that? Yes, so that is a big part of that. So when looking at how many 2K slots should be essentially assigned to each of the districts that will have 2K, we look at how many 2-year-olds there are. So, you know, obviously your district has a whole lot of 2-year-olds versus some of our other districts that we are reaching next year just geographically are much smaller.

And so we will look at anticipated demand. So we look at how many 2-year-olds are in each community. We look at historic patterns of 3K and pre-K enrollment and other population factors to just sort of assess how many kids there are. And then we are also looking at provider capacity. So right now we have our seat survey and our RFI both available to providers to assess interest in offering 2K services.

We are also looking closely at what other care exists in communities for 2-year-olds. For example, we have many Early Head Start and Head Start providers across the city, and they provide incredible care to some of our lowest-income families. And so we want to make sure that we're not cannibalizing services, but— making sure that we're offering enough care in every community to serve 2-year-olds who can use it.

Okay. And so for, and for the 2K rollout, if I were a home-based provider who was interested in being part of the 2K rollout and it's going to be in one of the eligible districts, how would I know which of the centers, I'm sorry, which of the networks the city contracts with if I wanted to express interest in being a part of this?

Well, I'm happy to say, and we can share right after this hearing with all of you, we just posted a new sort of fact sheet for family child care providers. You know, you're interested in 2K, what next? Which does go through all of the different resources that providers have and the process by which they can identify networks that cover their geographic area.

Okay, great. And I know we already had the hearing on the dual language learners and the language capacity of some of these providers and of the program more broadly. If I were someone who ran a home-based— if I were a home-based provider and it was dual language and I wanted to be able to reach kinds of, you know, materials or outreach or speak with someone in my native language, is that something that I would be able to do as part of expressing my desire to be a part of this program and this rollout?

Yes. Many of our networks, our networks broadly have multilingual staff, and based on the communities they operate in, the providers they work with do have staff who speak many different languages. We will also, New York City Public Schools will be hosting sort of meet and greet sessions for networks and providers, which is something they did in the spring, and those sessions all will have translation support.

That's great. And For SBS, if there were very nascent early-stage child care providers, particularly like home-based providers, I'm thinking largely in immigrant communities or in dual-language communities that wanted to get in this process of getting themselves ready to become a part of this eventual program, what could they do? What services could SBS provide for them? Thank you, Councilmember.

So the vast majority, almost every single service that we offer, the general business services, they're all accessible to solopreneurs, home-based providers, to center-based providers, and all of them remain open. What we're really excited about in this calendar year with— under the mayor is the expansion of our NYC Business Express Service team. And as we speak today, the new staff, the new cohort of staff are getting trained on Department of Health licensing regulations related to childcare in specific.

Wow. So it's a— the work is only expanding with the expansion we saw this year in the adopted budget. Could I ask one more question, Chair? Sort of a dual SBS and childcare question. And this is half-baked, so bear with me. But, you know, the SBS program that is the sort of contractor fund where private equity loans in order to cover back payments for some city-based contracts, do you know what I'm talking about?

So we run a contract financing loan fund for city city contractors who would want upfront capital to get started on the work that they would like to conduct. That's capped at a 3% interest rate, so it's very competitive compared to the market rate interest rates, and it's a revolving fund that we operate in conjunction with the Economic Development Corporation.

Is there a world where a model of something like that could help, could work to solve some of the problems that we're facing with late late payments and nonpayments in the childcare sector? For our childcare providers, and we saw this earlier this summer as folks were going through the contracting process, our childcare providers are all eligible for interest-free bridge loans that are offered through a partnership between the Mayor's Office of Contract Services and the Fund for the City of New York.

That's a fund that's typically for nonprofits, but all of our childcare providers are eligible for that. But they won't, and I know this because of personal experience dealing with some of this in my district, they won't be eligible for a bridge loan if they're being held up by permitting issues that originate with DOH. So if the permit is still, and this is with not new providers, but that are going through some kind of renewal or there's a change in entity name, but if they're stuck in the DOH part of that, Because they don't have the active permit, they can't get funds from DOE, and therefore they still can't get paid.

Do you see, you know what I'm talking about? Yes. Yes. There are, you know, as we've been working with providers, we have been able to sort of help and support folks to resolve issues that were holding them up from getting a contract moving forward. And so we continue to kind of triage these on a one-by-one basis. And if there are specific providers in your district who are still sort of caught in this loop, please let us know and we can follow up on the particular cases.

Okay. Thank you. Thank you.

Councilmember Murano. Thank you, Chairs. Thank you both for your testimony. Ms. Liss, I was interested in your testimony about the $43 million investment to overhaul the city's early childhood education operations, particularly the commitment to accelerate contract registration and prevent payment delays. A couple of my colleagues have alluded to this already, but according to the Independent Budget Office, the average early childhood education contract went from being registered 83 days after its start date in fiscal 2021 to 247 days after its start date in fiscal 2024.

And again, I'm not blaming this administration for that. As my colleague said, you know, there's a lot of history here. But that's 8 months. Now, when the city doesn't pay a child care provider on time, that provider still has to pay the rent, they still have to pay employees, they still have to buy supplies. If a child care provider has to borrow money because the city hasn't paid what it owes them, does the city reimburse that provider for the interest on the loan?

So first, I want to say that we've, we have, we have seen You know, as you said, not just in the recent, sort of most recent period, but over many, many years, decades, a sort of acceptance that it is okay to pay providers late. And that's something that we fundamentally want to change. We do not believe that represents the way the city should partner with childcare providers, particularly given the time period you referenced where we saw contracting and payment, sort of that timeline protract.

Mm-hmm. We saw a sort of disinvestment in our early childhood infrastructure under the last administration, a nearly halving of the staff who support activities like contracting and payment. And that really drove a lot of the delays that we saw. And we are continuing to see some of the impact of that, though the investment you referenced that this administration is making is really targeted at addressing that, at making sure that we have the staff resourcing and support to pay providers on a timely basis.

When a contractor, a childcare provider has their contract registration delayed, they are eligible for interest-free bridge loans, and we really try and steer all contractors toward those loans because there is no— then there's no additional cost that they have to bear to take those out. There is not, you know, if a provider takes out a loan on their own, that's something, you know, we're continuing to look into whether there are resources to support folks, but that's not typically part of the reimbursable expenses.

So no, there's— got it. So the city is effectively making a small business pay for the city's own inefficiency, right? So of that $43 million that you're investing in reforms, how much is specifically dedicated to making sure providers get paid on time, and what measurable reduction in payment delays are you expecting? So I can get back to you on the exact breakdown of how many staff are assigned to payment and contracting, but that is a meaningful number of the new staff who are being invested in.

There's also systems reforms. Councilmember Gutierrez referenced the new sort of backend data management system that the Department of Education is rolling out. And so there are sort of a number of investments specifically targeted, and we will look at things like contract registration timelines, payment timelines, you know, how long from the time of invoicing to time of payment.

We do see that process has improved meaningfully over the last number of years from the time a provider submits a fully complete invoice to the time it's paid. But certainly this year, you know, we saw that there's still much more we need to do on contracting. Mr. Khan, you know, as a Staten Islander, I'm not going to ask you any difficult questions.

So I appreciated your acknowledgment that the city's regulatory landscape can make life very difficult for childcare business owners. You also mentioned the administration's Open for Small Business reform agenda, which includes more than 50 reforms, and 4 specifically focused on childcare. Here's what I'd like to know. Has the city calculated how much money those 4 childcare reforms will actually save an individual childcare provider?

So the reforms include a publishing of the plain language guide, expanding the childcare permitting portal, upgrading the background check request portal that's necessary for childcare operators, as well as an Office of Childcare, an ombudsperson office at the Department of Health. So some of them are structural investments in the city's infrastructure to support. Some of them are resources for the business community. would have to work with the relevant agencies to determine if they've done any analysis on the cost savings.

I look forward to seeing that, because the reason I ask is because I think there's a real possibility we're spending taxpayer money subsidizing childcare expenses that government bureaucracy helped create in the first place. But may I ask one more quick question? Thank you. To Ms. Liss, I want to raise something that doesn't get nearly enough attention. attention.

Your testimony talks about the expansion of universal childcare, including additional 2K opportunities. But the committee report points out an unintended consequence of these government-funded pre-K programs. Older children are generally less expensive to care for, and the revenue from those children helps providers subsidize the more expensive infant and toddler care. When those older children move into publicly funded programs, the cost of infant care can actually go up.

So before expanding government-funded childcare into a neighborhood, does the administration conduct any economic impact analysis on existing private childcare businesses? So this is an unintended consequence that, you know, we are— we're very aware of, and I think certainly we saw play out in the cities expansion of pre-K and something that we are keeping very closely in mind as we design our continued expansion.

So first, as we roll out 2K, we are not placing any 2K seats in public school buildings. We are only working with childcare providers in communities to make sure that they are able to maintain the care that they provide to toddlers and that we are not creating any of that sort of unintended effect of families moving out of community child care settings.

We also saw there was an impact, an unintended impact here, particularly on our family child care providers with the rollout of pre-K, because they were not at scale eligible to offer pre-K, which is tied to some state regulations, but certainly is a consequence we saw at the city level, which is why we've been really intentionally focused on making sure that family child care providers have a seat at the table as we're I think we want to be very careful in this set of expansions to balance the urgency that families have and the sort of desperate need families have for affordable or free care, but we need to make sure our providers remain sustainable.

Thanks very much. Thank you, Chair. No, thank you. I'd like to acknowledge we've been joined by Councilmember Hanif. I want to kind of piggyback on my colleague's question as regards to starting universal child care, essentially. Because as a parent, you can put your child in daycare at 6 weeks old. So from 6 weeks old to 2 years old, literally the cost of daycare is roughly on the low end, $1,000 a month.

Roughly. On the low end. On the low end. So have you guys looked at, ran a cost analysis from kind of going back to your point Councilmember, so right now we know what it costs to basically pay for a child from 3 years old, and in some instances 2 years old, through 12th grade. You know what vouchers you are paying for now.

Has there been a cost analysis to determine what it would actually cost the city to take that 6-week-old through 12th grade versus fighting the state every year for more money for vouchers and the like? Has that been done? So part of why we are— what we are ultimately building toward is a fully publicly funded system that would care for all children or provide for the care of children starting as young as 6 weeks.

Because as you said, the costs are unbearable for families. And we believe that childcare is and should be treated as a public good and funded that way from the earliest ages that families may need to take advantage of care. We have some internal assessment of cost. That's something we're continuing to look at and to discuss with the state as we think about what the true pathway to universal childcare would be.

I don't have a specific figure to give you right now, but it's something that we have been closely looking at and kind of measuring. But it seems like, like literally my head is about to explode from all the different nuances to how cost per child, this for that and that and this. Yes, it's complicated. We have X number of— like, we're making a simple math problem in my mind way more complicated than it needs to be.

And it could be me. I could be wrong. But would really like to see how we could simplify that because a lot of our parents are depending on that. And as you can imagine, as my colleague reminded me, $1,000 per month per child is the low end. Absolutely it does. I wanted to ask a question in regard to the bridge loans.

Which entity or entities are you currently working with for that bridge loan program, and how do childcare providers get access to it? So that is a program available to providers who contract with the city. They— particularly providers who contract with New York City Public Schools. It was specifically available to cover the period before a provider's contract has been registered.

So providers can work directly with New York City Public Schools to submit an application, and that loan fund is managed by the Fund for the City of New York. So not to belabor the point, but we've heard time and time again that the city is late and it's causing a lot of programs to close, cancel. Literally got a phone call yesterday where some teachers aren't able to get paid because they're waiting on money from the city.

And some of these entities have been in business for 20, 30, Plus years. What is causing these backlogs? It seems like at this point in time, it should be like riding a bike. Yeah, so again, first I would say if you're getting a call like that from a provider, please feel free to flag that for our office right away and we can look into the particular situation.

You know, we saw earlier in the summer that there was a delay in contract registration as the city was renewing over 1,000 early childhood contracts. That's not a process that happens every year, but it is a process that we had to go through this year. We saw the legacy of this historic disinvestment in our early childhood system.

We did not have the sufficient staff capacity to— and that was part of what drove the process. We worked quickly to address it by more than tripling the number of people who were working on contract registration, Working to make sure providers were aware of bridge loans and other supports to ensure they had what they needed and to move through that process as quickly as we could.

Got it. For SBS, does SBS offer any type of funding solution separate and aside from the bridge loan program to child care providers when there is this backlog or absence of payment from the city? So, uh, thank you, Chair Thomas-Henry. So it's the— we have the Contract Financing Loan Fund, but as Executive Director Liz mentioned, that the Mayor's Fund and the Mayor's Office of Contract Services has an even more generous program in that it doesn't have an interest rate associated with it.

The Contract Financing Loan Fund is one that has a 3% interest rate. Okay. Also for SBS, through NYC My City Business website, It indicates that SBS can help a business with hiring a team and potential employers can request recruitment services. Is this different from the Workforce One Centers? This is— so we have a— our system is pretty integrated in that if we're helping a business owner and a business owner indicates recruitment assistance, we would then connect them with our Workforce One Center closest to them and ensure that if there's a— if we have more clarity on the types of roles they're hiring for, that we find them qualified candidates across the city.

Do you have an idea of how many childcare positions are connected through Workforce One centers? I can try to find that for you, Councilmember, but we have definitely served childcare providers who have looked for support in hiring staff. If I don't have it on me, I'll get back to you with that number. Okay. I've also found that a lot of childcare providers or childcare entities Often work with SBS— not SBS, SYEP students.

Do you guys track that as well in terms of placement with summer youth employment and where they're placed in childcare facilities? We can certainly follow up with our colleagues at DYCD and come back to you with data on that, but we do know that many youth are in childcare programs through SYEP, and that's a great experience for both the youth and for the childcare programs.

Okay. We've mentioned and heard from a few people the expense of insurance. Um, does SBS direct people that ask for selecting insurance for their child care business to any particular resource at all? Uh, so, Chair, we don't direct businesses to particular for-profit businesses for any professional service that they're looking for, including insurance, but definitely something we've heard really loudly and clearly across the business community, especially the small business community.

And something that Executive Director Liss mentioned is also prevalent in the child care industry, where the cost of insurance is skyrocketing in ways in which it's making it really difficult for folks to operate their businesses. I did have the number on job seekers placed every year. It's roughly 50 job seekers. As the child care— as we proceed with the universal child care expansion, we'd love to serve more providers who are looking for qualified candidates across the city, and we've got 18 centers.

They're located all across the 5 boroughs and not too far away from neighborhoods, so please do reach out to us if you know of any providers that are looking to staff up. We're definitely interested in helping them. So is that 50 people looking for jobs that have come through a Workforce ONE site this year? No, 50 placements. 50 placements.

I'm sure it's hundreds of New Yorkers, but it's 50 actual placements. And again, it's like hard for us to require that the employers hire the individual, but what we do is job match, making sure that the business owner gets and the providers get qualified candidates that meet their needs. Okay. Would a home-based provider be eligible for the Commercial Lease Assistance Program?

A home-based provider looking to negotiate childcare? Yes, a home-based childcare provider looking to negotiate a commercial lease. So if they're looking to move into a storefront For either to be a childcare provider or for other types of business activities would definitely be eligible for commercial lease assistance. And we've definitely helped childcare providers in accessing commercial lease assistance in the past.

I think the idea is if I have a one-family home and I dedicate half of that home strictly for the childcare facility, would that business be eligible for the lease program, or does it have to be an actual physical storefront? It would have to be a commercial lease, so not a residential lease. The laws around residential leases, there's a lot of difference in the protections that the city and state have for residential leases as opposed to commercial leases.

Okay.

Now, private equity has become a growing presence in the childcare ecosystem, specifically large-scale firms. and small business childcare providers are more likely to exit the childcare market. What, if anything, has the administration been doing to ensure that small businesses are not pushed out of the market, especially by private equity? I mean, I'll start and I'll then pass to our executive director.

But from SBS's perspective, we do know that one of the pain points that businesses have— 2 major pain points that businesses have across the city's most common industries, including the care economy. One would be financing, just having the resources to expand, grow capital. And then second would be just navigating the maze of regulations. And with this particular industry, we all have acknowledged at this hearing there are more regulations than many other industries.

And so to that end, our financing assistance team works to connect any New Yorker entrepreneur to a set of affordable lending options. We mostly partner with CDFIs, community depository financial institutions. And what is a CDFI? that are not-for-profits looking mission-aligned, trying to help small businesses succeed in the city. Then we also have our NYC Business Express Service team, the team that you met on October 2nd.

It was their first day in office. The mayor swore them in. Today was the day where they were— they've been trained on all of our major enforcement agencies and the rules and regulations associated. Today was the day where they were getting trained on childcare as well. You should have brought them down. Anything to add? They're busy in training.

No, we'll just reiterate that we, as we continue to expand publicly funded care in the city, our priority is making sure we are partnering with our community-based childcare providers and small family childcare providers who are, you know, the backbones of their communities. And so we are really focused on making sure that as we are expanding public funding opportunities, that we are working very closely with those providers.

How are you currently tracking the number of those small providers that are opening and closing each year? Any child care provider who opens has to have a license or a permit. For our family child care providers, that comes through the State Office of Children and Family Services. For our center-based child care providers, that comes through the Department of Health.

Both of those respective agencies are looking at openings and closures, and our office partners with both of them. But is that data, like, reported in some centralized way so that you can easily— It's not data that I have in front of me today, but it's something that we are trying to look at more systematically and would be happy to share with the Council as we look at that data.

And does SBS look at that data at all to track the number of small businesses that essentially are opening and closing? So just across the board, across industries, we look at storefront activations, and we know that for home-based providers, we don't have the kind of data sets that other agencies would have. But on storefront activations and closures, that's something we're looking at very closely across the city.

Gotcha. I'll now turn it over to Councilmember Gutierrez. Thank you, and thank you, Chair, for raising the questions about closures. I'm curious if in collecting the data you are also— I guess I know it's not something that you have readily available, so totally fine, but just curious if when these providers have to close, whether— I'm talking about center-based primarily because I think those are more visible.

Are you made aware? Is the mayor's office made aware when they're closing? Like through a systematic reason, or like is it council members calling you frantically saying a center There is no systematic mechanism, no. We do— we hear from community members, we hear from elected officials, we hear from providers directly sometimes. But there is no sort of systematic way that we are notified if a provider closes.

That's an independent business decision they're making. And so that's— and, you know, we may find out about it before, we may find out about it after. And what about if they are contracted with the city? And still closing? If they're contracted with the city, then that's something, you know, that they discuss directly with New York City Public Schools, and we are notified when that does come up.

Have you heard of any instances where center-based contracted with the city are closing for any, like, late payments or any— like, are you made aware of the reason why they're closing? Certainly anytime a provider comes forward and says that they have some operational concern, and that it might lead them to close their doors. New York City Public Schools, if they're a contracted provider, our office, in any case, you know, we will often try to support and see if there's a way we can support that provider.

We have not, that I'm aware of, had any program closures because of payment issues in the last couple months. And then my last question on closures. I know that some of the 3K and pre-K sites in churches, for example, That takes a little bit of work through maybe the diocese, I'm not sure. But in my district, a number of the Catholic schools are closed and now there's charter schools in those sites, many of the Catholic schools that maybe had a 3K or pre-K program.

Are you made aware of when that closure happens? Are you— is the administration made aware of that closure is happening and now there's a charter expansion because of it? So if there is a program closure in a community, you know, we do look every year at what the capacity for pre-K and 3K and now 2K is in that community.

With the seat survey that we have open right now to existing providers, we do ask about providers' interest to expand their capacity. And certainly if we see in a community that there's been some shift, you know, we will work to try and address if we suddenly have a large number of families who previously had access to care and no longer have access to care.

When an independent school chooses to close, there are many ways we might find out about that, whether that's because they tell us directly, again, because we hear about it from the community, but we are constantly trying to assess what the need is in a community, and if there is a contracted provider who closes, certainly that's something New York City Public Schools would be able to factor into their planning.

Is there a certain amount of time that they're required to alert DOE if they're contracted with the city and then the parents? I would have to get back to you on that. Okay. Okay. Okay, great.

I have just a couple more questions on the child care provider, the permitting tool. Will the tool be available for permit renewals in the near future? Yes, that's something we're actively working on. Okay. And I'm sorry, I missed, is this tool, is this available now or? Yes. So this is the tool we demoed for the subcommittee back in April or May.

It is available for any center-based provider, prospective center-based provider looking to newly open in the city. And we are working to add renewals for center-based providers into this program as well. Okay. And do you have a sense of when you'll be able to integrate the renewals? That development work is underway right now. We can provide the subcommittee with an update.

Okay. Next, I just had questions on some of the operational costs. In their recent report on the true costs of ECE programming by UNH, they highlighted food costs, especially for standard day-year programs, as an issue because federal funding through CACFP only covers income-eligible children. Has the admin considered supplementing this funding? You know, as we look at future contract rates, we will look at things like the cost of food and how to address that in contract costs.

We do know that providers are facing rising costs, which is why the administration invested $40 million this year to make that 2% increase in center-based contract rates. We know that's just a first step and there's more that providers need. Okay. And in the same report, UNH highlighted the fact that providers could use more coaching and training for support.

Is that something that the admin has also considered increasing funding for? So the administration, you know, again, we, as we look ahead to future procurements and to future rate setting, we will look at all of the different cost categories that providers face. We do also— New York City Public Schools provides significant coaching and support to programs. So we have a team of instructional coordinators, as well as a team of social workers and inclusion specialists who all go out and directly support programs.

And that's capacity we've continued to build up and grow to make sure that we are able to support all programs as the city's Contracted capacity grows. Okay. And then my last questions for you, Emmy, were just related to the co-op. You mentioned, and I know this is in the beginning stages, so is it— you said it's primarily home-based providers that are kind of coming up, coming together for it?

Yes, there's a group of home-based providers who are coming together to do some sort of exploratory work and planning for a co-op. Okay. And is this— these are, I'm assuming these are home-based providers and not in a network or a mixture? I believe it's a mixture. Okay. As you know, and I always raise the deep concern that I have for continuing to expand this program without these independent business owners at the table, I'm curious if there's any more— is there anything more that you can tell us right now?

If I am someone who's looking to start my own home-based child care center, a space in my home, but I don't want to be a part of a network today, August 2026, do I have the support of the administration to still be able to thrive in a $2K, 0 to 2 space if I'm in District 32, for example, in Bushwick, that is getting $2K seats, which is a great thing?

But if I'm not already in the system, how can I still be successful? How can I still be a successful business owner? How can I do that in this climate? Like, what are some of the things that you are all thinking about, I know early on, to kind of integrate these people so these businesses don't have to close down, so these primarily women don't have to look— don't have to kind of figure out another career option?

I'm very concerned for them. Yeah, I mean, we absolutely do not want our home-based child care providers to close. We know how important these providers are to the families they serve. We know what their businesses mean to their communities. And we want to make sure that they can continue to thrive. I'm excited to come to Bushwick to sit with some home-based providers with you, hopefully in the coming weeks.

And we've been since January meeting very regularly with home-based providers across the city and continuing to talk with folks about the concerns they have, about what they need in order to be successful, and to really take their feedback to how we can continue to improve the structures and systems we have, including the networks. to make it a more appealing prospect, to make it something that can really deliver for our providers.

There are many providers who are serving families with vouchers, are serving families who pay privately, and also working with the DOE through a network. And we want to continue to support all of those pathways for our providers. Okay. Okay. Thank you, Emmy. Thank you. Chair, do you have any more questions? Yes. Thank you. A few more questions.

For SBS, the council recently passed the Red Tape Relief Act, Introduction 955, earlier this year. That law is intended to coordinate inspections for specific businesses, especially businesses within the child care industry. Has there been any updates on implementation of this bill from the mayor's office, and if so, are there any specifics that you can give in regards to how the program will operate?

Thank you, Chair. So the bill goes into effect in February of 2027, so we have 4 months till the effective date. We're currently scoping what would need to be done at SVS to fulfill the requirements and understanding the demand that we would see from child care providers. And, and so that's where we're currently at, but we're excited for the expansion of our BEST team, and today was the day that they were trained on child Let me— give me one second.

Have any childcare providers been assisted through the commercial lease program— assistance program? If so, how many and what issues were addressed specifically? So our commercial lease assistance program, since it's a legal service, there is some attorney-client privilege is applied to some of those interactions. So we may not know fully the extent of and the depth of the service-related issues that the child care providers raised, but we do know that child care providers have used that service, as have other small businesses.

Since the pandemic, it's at least 35 businesses that we know. that have used the Commercial Lease Assistance Program. You said 30— 35? It's 35 that have used the full legal services program focused on commercial lease. We know that with the expansion that this administration is leading, we're looking forward to serve a lot more. And that's 35 since when?

Since the beginning of the program, which was around the pandemic. Okay. And does SBS conduct any outreach specifically targeting childcare providers? And what type of materials are shared with those providers during that outreach? So we, we conduct ground outreach that, uh, even as you're aware, October 1st when we did— September 1st when we did the business owner bill of rights outreach, or the street vendor outreach that we've done in your district, um, when we go out, we're serving all types of small businesses, including street vendors, storefront businesses, entrepreneurs, New Yorkers that show up to our tables and our mobile outreach unit asking to get connected with entrepreneurship services even if they don't currently own a business.

So our outreach work is one where we're focused on ensuring that we're reaching neighborhoods that are far away from our business solution centers and even around our business solution centers. It's not one where we're targeting specific industries but one where we're trying to make sure the broad variety of New York small businesses and entrepreneurs are able to take advantage of these services, because most of our services are not limited to a particular industry.

Any New Yorker could benefit from— that's an entrepreneur— could benefit from financing assistance, understanding what the affordable lending options are in the market, could benefit from some licensing and permitting support. We're proud to help childcare providers and other businesses understand the DOB FDNY rules and regulations and permitting that they would have to navigate. Mm-hmm. And that's the type of support we provide across the And do you— does SBS currently track, like, the number of, say, restaurants versus childcare, apparel, and all the other industries, the different services that they provide to each individual?

Yes, it really varies depending on the service that we're providing. So, we'll have disaggregated data for the deeper services, such as the Commercial Lease Assistance Program. We won't have that for some levels of our business consultation. consultation or networking events or workshops that we organize where we just want to make sure that they take advantage of the educational materials and wouldn't want to create another wall where they'd have to go through an intake process before they get served.

Gotcha.

At this time, I want to ask Shawna Castillo to join the panel. I have a couple of questions as it relates to NYCHA and SBS and the like. How many businesses has SBS or BEST worked with that are part of the Business Pathways Program or are businesses owned by NYCHA residents? Thank you, Chair. So on— we— and I'll get you the number of businesses that operate within the zip codes that have the most NYCHA developments where we do services.

We have an incredibly strong working relationship and coordination with NYCHA's REIS team that Vice President Castillo runs. And our work is one where, through our BEST team and through all of our services, we're not necessarily tracking the residency of the New Yorker that we're serving, but we're tracking the business location. And so it's hard to know if the New Yorker that we're serving is one who lives in public housing, but But we are tracking the addresses of the businesses that we're helping, and so where they're located is something that we do see, and it's around 4,000 businesses just this last fiscal year around public housing.

Okay. In what capacity has SBS worked with NYCHA, and does SBS provide any services to the Business Pathways Program? So, the program was started in 2014, and at that time it was grant-funded. SBS, EDC, and NYCHA worked together in delivering, administering, developing the program. Around the time of the pandemic, the program— or sorry, when grant funding expired, that's when NYCHA took over administration of the program, but we still coordinate as needed on the program.

Just as we do with all other sister agencies when they run programs related to business activation. How many NYCHA residents are involved in the Business Pathways Program, and how many NYCHA entrepreneurs were assisted through this program this year? Good afternoon, Chair, and thank you for the question. Since 2014, we have had 365 graduates from our Food Business Pathways program, and since 2015, 149 graduates from Child Care Business Pathways.

This year, we are administering one cohort of Child Care Business Pathways that will enroll 25 residents. Are there any other programs aside from the food-based business? And the childcare provided in through the program, the Business Pathways program? Not currently provided through Business Pathways, but we are a resource for NYCHA residents that are interested in entrepreneurship in other sectors.

And so, for example, we'll host monthly resident business development orientations. We'll invite speakers and partners out that can engage with residents. And we do have a network of referral partners, including SBS, that we can refer residents to if they have a business interest or need that it's outside of the 2 sectors that we currently serve under the Business Pathways Program.

How are all these programs advertised? They're advertised digitally and traditional flyering. And so we do have a team that will flyer in NYCHA communities, will also table at NYCHA-based events, also external events when invited. We have a biweekly newsletter that goes out to all NYCHA residents that have provided NYCHA with an email address, and we'll also lean on our communications team for social media content.

Lastly, I'll say that we know that word of mouth and really hearing real testimonies makes a world of difference. And so we leverage our digital newspaper, our NYCHA Journal, to make sure that we're working closely with the comms team and producing a variety of success stories every month for NYCHA residents that also then link to how they can learn more about the program that was featured.

And of all the NYCHA housing throughout the City of New York, what percentage of those actually participate or do you advertise to? We're hitting every NYCHA development. Okay. And how many business owners— do you have data in terms of by development how many participants there are? We'll maintain data on how many participants have engaged in REACH's programming, specifically in Business Pathways.

And so that will not only include who graduated but So which businesses obtained their license in the case of childcare or registered their business in the case of food. And then NYCHA overall would obtain data through annual recertifications on the number of residents that are reporting self-business income. As part of your toolkit, is there any assistance with MWBE certification for these businesses?

We certainly connect residents to our procurement team for registration as a Section 3 business concern, which is not an MWBE certification, but it is a certification that NYCHA leverages. And then additionally, we will work with SBS on promotion around MWBE certification. In the past, We've actually hosted sessions in our computer lab where residents can get hands-on support in the certification process.

I'm not familiar with Section 3. What is that? Oh, it is just a designation for low-income workers and NYCHA residents.

Okay. Okay. So let me give you, for instance, currently there's a large infrastructure— there's a few large infrastructure programs in my backyard, not And there are 2 major NYJA facilities, the Bland and the Latimer, within a 1-mile radius. Do you know offhand if any of these residents have access, be it to any of the employment opportunities or on-site work that's being done with the soccer stadium and/or Willets Point?

I'm not familiar with those. specific projects, but I can say that generally we are open to working with any company that wants to make sure that local residents are aware of their employment opportunities, and we, you know, do so on a regular basis. In that, for instance, with so much infrastructure and development happening across the city, is there any current or future plans for training to prepare NYCHA residents for those opportunities, be it as entrepreneurs, or the workforce?

In our REIS department, we do offer a variety of job training initiatives through partners. And so a popular and consistent one that we've offered is a construction track through the NYCHA Resident Training Academy. And this is a pre-apprenticeship track, and so it can connect residents to union careers in the construction industry. Awesome. And how many staffers are in the Business Pathway programs?

The Department of REIS has 55 staff members total, and so staff members are cross-trained so that they can be supportive across functional units. Specifically within our Financial Capability and Business Development team, we have 1 assistant director, 2 project managers, and 2 temp staff currently. What is the fiscal cost of the program? And for the last 3 fiscal years— for the last fiscal— 3 fiscal years, sorry.

So the baseline costs for child care and food business pathways is $100,000 for each cohort. And so that cost, the fiscal year cost would depend on how many cohorts we operated in a particular year. And how long is each cohort? And that $100K, is it a specific number of people that can participate? So our Child Care Business Pathways program is generally operating for a 15 weeks, food generally operating for 10 weeks.

And so these meet about 2 times a week in the evening for 2 to 3 hours each session. And I'm sorry, could you repeat the second part of that question? Number of applicants who can participate For that $100,000? So we generally enroll 25, a cohort, in child and 30 in food. Okay. And where is the actual training based?

Well, since COVID we actually switched to a hybrid method. So we're doing a lot of virtual training and then place-based training dependent on the topic. and the needs. So, for example, in childcare, there is CPR and first aid that's done. For food, we'll go and take the aspiring entrepreneurs on a tour of a commercial kitchen, et cetera.

So, it could operate in a variety of places dependent on the topic, but it's quite accessible now as a hybrid model. And we've really seen since COVID that It's been quite helpful for residents to keep to that. How does someone apply, and then how are those applicants selected? So we'll identify in our promotional material how residents can learn more.

This typically starts with an information session, and so they may call our REACE hotline number, or they may also utilize a NYCHA self-service platform. So authorized residents do have access to a self-service platform where they can RSVP for an information session event. At the events, we'll provide an overview of the program, take questions. From there, there is an application process.

And we have a score grid that will follow, and then a small committee that includes our staff plus partner staff that can evaluate applications.

Now, in Introduction 445 from Councilmember Stevens would require the Department of Small Business Services to expand the Business Pathways Program. Is SBS at all involved in the Business Pathways Program currently? And should they be— if not, should they be involved? We are very appreciative of SBS's partnership. They've been a longstanding partner to NYCHA, both on the workforce side and on the business development side, and we absolutely leverage them as a referral partner.

And what is NYCHA's position on this bill? We appreciate the council's interest in the Business Pathways Program. We are very encouraged at what we see in continuing the program and definitely have successes of resident graduates from there. We'd love to set up more in-depth conversations with the council members in order to really discuss the program as it currently operates.

How— what has the residents' feedback been thus far of the current Business Pathways program? Or— and do you solicit feedback? As part of the program? We have taken feedback to make adjustments to the program. So an example of that will be the point in time in which we introduced the state application for licensing for childcare businesses when we first started the series.

We did that as like a postgraduate service. And the feedback was that it is, you know, very overwhelming and it's really good to make use of classroom time in order to start that process and get hands-on support, particularly as the application has now become digital. We do have residents that have a digital literacy or digital access need.

So that's an example of how we'll incorporate feedback into the program. And if a home-based provider needs help with financing, where would you direct them? We do see that providers need help with financing generally. Specifically for childcare, our next cohort in November will actually offer microgrants for a select number of graduates from the program that can help with things such as like furnishing that they need that are specific to the childcare business that they're intending to operate.

So, depending on the need, then we'll make a referral to SBS or to other partners that can then provide further financial assistance and guidance. And going back to Introduction 445, have you done a cost analysis or began to think about what it would look— the cost would be associated with expanding the program? Certainly, we— We know that depending on what we are considering for expansion, so for example, new sectors would require a new cost analysis that we have not yet done.

We're first led by resident interest and surveying residents. They're consistently interested, they maintain interest in starting a business and identifying needs around business coaching and capital, as you you previously stated, as needs that they have to be successful. But they also consistently identify food and childcare as being a primary interest of theirs, and that's why we've really stuck to offering this program series.

As stated previously, we know that a baseline cost for this particular industry of food or childcare would be $100,000, and then of course that cost could potentially rise if we're discussing the expansion of microgrants in the program like I previously mentioned. 2 final questions for me. I'm going to turn it over to my colleague. How many of the businesses that you guys helped open for child care specifically are still operating?

So as stated previously, we've had 149 graduates of Childcare since 2015, and 57 of those graduates have moved on to opening their business. Okay. And have you began tracking or seeing of these business owners how many continue to reside in NYCHA versus any who may go on? So periodically we will survey business owners to reach out, see if they need continued support, confirm if they're still operating.

You are right, one of the reasons that we will see for a business to drop off from operating might be that they moved out of NYCHA. Mm-hmm. In that case, if they're still interested in business services, we would direct them to partner such as SPS. Got it.

At this time, I'll turn it over to Councilmember Gutierrez. Thank you, Chair, and thank you, Ms. Castillo. I may ask a couple of questions that sound really elementary because I'm not familiar with the Business Pathways Program. Can you just tell me what are the industries that you're able to train people for in this program? Our most common industries are food and child care, and that aligns with resident And what's the food industry?

So food usually looks like catering, but not necessarily. And so we do have business operators that might sell their products in retail market as opposed to catering. So that's why we call it food broadly. But it is a program that it is not teaching you culinary skills, but it's a business development program for residents that are looking to start or formalize their food business.

And for the child care portion, that is helping people start their business of child care in their homes and elsewhere, or particularly to help them set up for opening up in their homes in NYCHA? Opening up in their homes and/or formalizing their business. So it is recognizing that there could be some informal businesses that are happening. And this is also making sure across the board that, you know, residents begin to understand— Like babysitting or nanny service?

Exactly. If you occasionally babysit, there's a way to really build on that and really formalize a business. Okay. But it is for specifically in the other respect, it's for them to be able to, like, set up their home. In their apartment, correct. Okay. Okay. I'm going to come back to you. But I just wanted to ask SBS.

I raised this to the Mayor's Office of Child Care before about private equity. And we do hear a lot. We hear them almost at every hearing. And some of those firms are contracted with the city, right? Some of them, they're part of the universal model. But does SBS, in your effort to support small businesses, do you feel that there are any— do you think that we should be creating more guidelines for the way that the city works with contracts with private equity versus actual small, you know, local community businesses?

Thank you. Thank you, Chair. So on contracting, I would have to defer to the Mayor's Office of Contract Services and Chief Procurement Officer Kim Yu. But on the topic of private equity and the impact it's having across the small business industries, it's something we're hearing, we're seeing. And we're working really hard to figure out ways to avoid and come up with ways that the city could use its power.

It's either purchasing power or other interventions, programmatic interventions or protections that the city should consider to support small businesses. And so there's work underway. In the next couple of months, you'll hear more on how we could do better to protect small businesses. And okay, do you have any examples of, like, specific protections that you're thinking about, or— It's a whole host of things that we're currently exploring.

And one thing we're also looking at that briefly came up earlier in this conversation was on leases. There's differences in residential leases and commercial leases. And why is that? And why have we accepted the norms on one set of leases on types of protections landlords are liable for and the types of protections that landlords are liable for in commercial leases.

So that's just one area of interest. There's other areas that we're looking at. Certainly the cost of insurance has come up significantly. Yeah. For so many small businesses, the cost of commercial rent has come up across the city. And so we're looking at how can the city government not just look at the things city government can do to reduce the cost drivers for them, which are things that you've heard, looking at fines, looking at fees, looking at process, but also look at things that are beyond the direct control of city government.

But is there a role the city can play? Our viewpoint here is we should be as expansive as possible in delivering relief for small businesses, and that's what the Commissioner and the administration is intending to do. Is there, with regards to child care private equity, I've I've been meeting with them, speaking with them. A lot of them, you know, they like to see themselves as like these are being operated and owned by, you know, small business owners just in this larger franchise as a franchisee.

I'm curious, do you all have data or is this something that you can collect for in those instances where they, you know, I don't know why they are operating under a larger franchise, but do you all have data or a sense of like why someone who is an independent business owner with, you know, private equity firm A is going with that versus just wanting to engage with the city, wanting to engage to be able to open up their own, you know, childcare center.

On the dynamics of the industry, I defer to the Office of Childcare. But I think we have heard there is so many— I am trying to give Emmy a break. She has been here 3 times this month, okay? Yeah, it's the— we just, we are just not— Are you, but are you all engaging? Are you, are you all working collaboratively with the mayor's office?

I think, because I think it's— I've met with them. I think it's interesting. A lot, a few of them, a number of them are contracted with the city, right? They, you know, the Bright Horizons Learning Experiences, they have these 3K and pre-K programs. They're, they're a part of the universe. Um, but the way that they approach me is like, no, but we, we are business owners also, just under this large— you keep smiling every time I say it, but under these like So, I'm just curious, like, if we are collecting data, if we're asking them, like, did you try to open up your own thing and why are you— I'm just— because there's a lot of concern.

There's so much concern with just private equity in general, but there's a serious impact to our small businesses. So, just curious if you all, like, how you think— how you will approach working with them. I mean, I think the data we have is pretty anecdotal, I would say, and there are many different models for some of these bigger chains.

Some of them do operate their sites directly, and some of them do, as you said, have a franchise model. We met with one recently who, for them, it is a really big selling point that their franchise owners are almost entirely women of color operating businesses in their communities. Right. And I think they would say that they offer some greater level of security or whatever it might be in terms of benefits and other connections to a bigger company.

I think part of the reason we continue to be excited about structures like co-ops or the employee ownership model that we've seen growing with childcare is because those are alternatives when it comes to being able to offer childcare providers stability, succession planning, some of the resources at scale. Childcare, we know, can be an incredibly lonely and and challenging business.

And so I think there are other ways we are looking at to support providers who are looking for some of that sort of broader support and sustainability. Yeah, I'm wondering if there's like marketing that says like that makes it easier to just to be able to work with the city directly to open up a business as opposed to, you know, having to turn to some of these bigger private equity companies.

Yeah, we're certainly too very interested in seeing more worker cooperatives across several industries. Yeah, yeah, yeah. And I think something that I think many of us here would appreciate is of the services that childcare providers come to SBS for, worker cooperative-related services are the top service thus far. And so there is interest, and we do run a series of worker cooperative-related services, legal assistance, How do you create the bylaws for governance?

Help you with financing assistance, and really excited to do even more on general shared service co-ops, which is an area of interest at SVS too, and that we're working with folks in City Hall on. But also just expanding the possibilities for more New Yorkers to learn about worker crops because, as you can imagine, it's a complicated thing to get your head around at the first go if you mention oh why don't you consider converting to a worker co-op?

It's also something we're looking at, and it came up in the. one of the last Small Business Committee hearings on legacy businesses too as a pathway for succession. If a business owner is retiring, has no other plan, feasible pathway to hand their business over either in the family or somebody that they would sell it to, one area that we're strongly exploring is could we create incentives for more businesses to sell and convert into worker co-ops so that you retain the workforce that was so integral to the success of Thank you.

And then I know that you mentioned earlier there's kind of your limitations, I guess, with supporting just a childcare business. But is there something on— if I guess, what is the direction for a New Yorker who wants to open up a childcare business? They just open up their laptop and are they using My City? Are they going the SBS route?

Kind of what is like the next step if someone's just like blindly saying, like, I want to open up a childcare business in New York City? I think there's no wrong door. If folks approach SBS, we will help them, especially with storefront business openings. That's something where we've got resources, services, technical assistance, and we work very closely with the bureau at the Health Department that does the licensing.

And one thing that is interesting that I'm sure Chair Thomas-Henry would appreciate is unlike other industries, before the Health Department licenses licenses a childcare provider for center-based operations, they do a mandatory orientation with that entrepreneur. So before you even think of getting your lease or you get your licenses, you first learn a whole set of regulations. And another interesting aspect in this particular regulatory space is that the health department also offers a viability check of that center location.

So before you sign a lease, you could also learn by having the health department The same agency that does the enforcement also tells you whether the space could be feasible for that type of an operation. I love that. Okay. Thank you. Then I just have a couple more questions for Ms. Castillo. Again, this is brand new information to me.

Can you share, for someone who is interested in pursuing the child care training program, what is the duration of that training program? 15 weeks. 15 weeks. And how is that facilitated? Is it virtual? It's mostly virtual and in the evenings. So, and it's how many hours a week? Um, it's 2 days a week, about 6 hours a week each.

Oh, 3 and 3 maybe. Okay. Um, okay. And what are— for the majority— and you mentioned that this year's the current cohort, you have 25? Yes. How many of those are for the child care program? All. Oh, wonderful, wonderful. I'm just curious on the, like, is there any limitation to a NYCHA resident who's living in a studio versus a 1, 2, 3-bedroom?

Like, how are you all kind of assessing the individual resident's circumstance and their viability of participating and even successfully opening up a business? That's a great question. So we work with a contracted provider, BOCNET, Business Outreach Center network that are well-known and well-regarded in the industry. And so they really are experts in preparing the residents who enroll in Child Care Business Pathways.

They will conduct a walkthrough of the prospective applicant's apartment and give them the information that they need, really kind of begin to set the standard as to the size of the business that they could potentially do based on the space that they have. Also begin to give them tips around, you know, maybe there's too much furniture in a living room and that's an intended space to use for the business.

So that assistance will continue throughout the duration of the 15 weeks and really helps to best prepare the eventual enrollee until the— to the official inspection process of the program and also in really deciding What type of business do they want to register for? Okay. And then how many cohorts a year are— is the Business Pathways Program able to— This year we're doing one cohort.

Typically we do 1 to 2 cohorts. Okay. And then what happens after the 15 weeks? Are you in communication with them, or is BACH in communication with them to see were they able to open up a business, kind of just check in with them? Okay, both of us. Yes. Okay. And how regularly are you checking in with them, or, you know, for how long is the program checking in with, you know, the graduate of the program?

I mean, is it for years? Really, yes. We have graduates that are 7 years in business now. We have others who will decide they want to pivot to something else, as I mentioned earlier, and we'll provide that support. So we really do want to be touching base with them on a regular frequency to ensure that our stats are up to date and how the program is operating, but also that we're reminding them that we're a continued resource even post-graduation.

Okay. And how do you have a sense of what the success rate is for folks in the child care program wanting to open up their child care business? Like, for each cohort, how many of them are able to successfully do that? Yeah. So as stated earlier, we have 57 businesses that launched. Since the beginning of the program?

Since the beginning of the program, yes. And we have 27 that are currently operating as of August of this year. Okay. But you don't know, is that, what is like the percentage of that versus the entire graduating class? I don't mean to assume I— Oh, it was 189 graduates since 2015. Okay, okay. And then I think it's wonderful.

Again, this is brand new information. I was not aware of this like very particular program. But I do have to share that I think, you know, in knowing some of the home-based providers in my district, visiting with them that are in public housing, I mean, They have real challenges because before opening up their business, before anything, they're NYCHA residents.

And it is really difficult to live in NYCHA for multiple reasons. But primarily just for repairs and dignified housing in some of these instances. What are you hearing from cohort participants about their challenges in getting repairs, necessary repairs that they need to have to be able to pass inspection and contract with the city? And how How does the Business Pathway Program help in accelerating some of these much-needed repairs for them to get their business off the ground?

That's why it's really important that we start that pre-inspection walkthrough really even at the application stage of the program. I spoke about some of the items that our training partner, BACnet, will review with the residents. But are they able to To move NYCHA along on some of these things? Well, so what I was going to say is that we also, if there are repair needs, first we make sure that they have put in a ticket.

So yes, we know that residents put in tickets and we know what some of that feedback is, but there are also some issues that residents are dealing with and they haven't yet formally put in a ticket. So we first make sure that they're educated in NYCHA's standard repair ticket process And then we make sure that they know that REIS is a resource for them.

And so we'll direct them to follow the standard guidance, go to the— call the Customer Contact Center, follow up with your property management office. If they're not getting the resolution that they're expecting, then they reach out to our office, and we're there to serve as a resource the same way we would for business coaching, financing, any other support and referrals that they need.

And then we'll work internally to try and address their repair concern. Okay. I'm just curious, and I'll maybe pose this question for the admin at a later time. Just curious if of the home-based providers in NYCHA, if any of them, you know, just have these extenuating circumstances with NYCHA to be able to maintain their business. open. And so I'll pose that at a later time.

I don't know. I just— I don't know if that's a— I don't know if it's pervasive, but I feel like I represent 9 NYCHA developments in my district. The majority of the housing-related issues are coming from public housing tenants. So I can't imagine that they're also able to kind of operate their business from their home and not being a part of that population that is in constant need of repairs and attention from NYCHA.

I just have one more question. I don't know if you can answer it, but For the centers that are in NYCHA, do you, do you know if they are on a different track for maintenance repairs for NYCHA? So daycare operators on NYCHA grounds would also follow a customer contact center track as the first step to report in a repair ticket, and then we do have a department called the Office of Public-Private Partnerships that meets with schools on a biweekly basis, and they're there to support on a number of items, including any repair escalations that are needed.

Okay. Okay. I think I'm done, Chair. Thank you. No worries.

One more quick question and a comment. I know you said you haven't started the cost analysis that Intro 445 would bring, but part of the bill would require professional business education, mentorship, support on licenses, et cetera, a few things that I believe SBS currently does through NYC BEST and Business Solutions programming. Would ideally— have you given consideration to would it just be an expansion of the SBS team providing these services, or are you guys thinking more something in— a training for the NYCHA business program to do these courses in-house?

So I can start with that answer. So currently our Business Pathways Series does have in its curriculum many of the items that you mentioned. So it's really focused on business development, what it takes to be a successful business operator, including learning about financing, learning about regulatory requirements. And then we currently do partner with SBS and absolutely can continue to strengthen our partnership with them, particularly as they take on new pieces of this work in the current administration.

SBS have anything to add? Nope. Okay. Awesome. And the last thing was a comment. Emmy, you did so graciously offer to hear of any programs that are having a problem. So I did, like, within the last 24 hours, have heard that Afro-American Parents Educational Center in Councilmember Hankerson's district. And not sure if you have time to stick around, but as of today, we did hear that we're going to have quite a few people testifying regarding the closure of Christ the King Community Daycare and Preschool.

Thank you.

And this panel is excused. I now open this hearing for public testimony. I remind members of the public that this is a government proceeding and that decorum shall be observed at all times. As such, members of the public shall remain silent at all times. The witness table is reserved for people who wish to testify. No video recording or photography is allowed from the witness table.

Further, members of the public may not present audio or video recordings as testimony, but may submit transcripts of such recordings to the sergeant-at-arms for inclusion in the hearing record. Thank you. If you wish to speak at today's hearing, please fill out an appearance card with the sergeant-at-arms and wait to be recognized. When recognized, you will have 2 minutes to speak on today's topic.

If you have written testimony, written statement, or additional written testimony you wish to submit for the record, please provide a copy of that testimony to the sergeant-at-arms. You may also email written testimony to testimony@council.nyc.gov. within 72 hours of the closing of this hearing. Audio and video recordings will not be accepted. For in-person panelists, please come up to the table once your name has been called.

Now I will call the first in-person panel. Olena? Yay, that's the one with the baby. I know, it says myself and my daughter. I can't wait to see. She is an amazing baby. I feel like I have to whisper. Sanaje Beckles-Canton, Abigail Leonard, and Majean Schwartz— Shartz? Shantz. Okay, Majean Shantz. Apologies. I apologize. Oh, the baby. Olena, what is her name?

Frances. Frances Hall. I have Olena missing. Abigail and Sanaje Beckles-Canton. Sanaje? All right, Alina, you may begin.

My name is Alina Knizhnik Olsen, and I'm an educational director in a preschool that is contracted with DOE. We have 1 pre-K and 2 3K classrooms, 46 kids altogether, 3 teachers plus 4 assistant teachers, 1 floater— I wish it was a full-time assistant teacher— director of operation, and at last, me. My budget is $900,000. $14,000 a year for 10 months.

The budget— the biggest expenses is my rent, which is $30,000 a month. Out of those $30,000, $8,000 is our share of property taxes. Our yearly rent is $360,000, and DOE covers $2,046 of it. My teachers are making $72,000, $63,000, and $59,000, which is $194,000 a year. If they were working in DOE Center, not CBO, their pay would be without experience $80,000 and $71,000.

So the difference in 1 year is huge. In 10, it is a fortune, a down payment for an apartment. Assistants are being paid $30,000 for full-time, and a floater gets $20,000. $140,000 right there. Director of operations gets $30,000, and my salary is $75,000 a year. Altogether, it comes to $442,000 a year. If you add those 2 numbers, it's $688,000 a year.

And while that number sounds like a budget of a small town, when you divide those numbers by the hours per people put weekly, you are getting chump change. I do pay into my staff's medical insurance, 401, disability insurance, and unemployment. And then there's food bills, electricity, fire alarm, internet, phone maintenance, liability insurance, janitorial supplies. The biggest issue in early childhood education are qualified staff, and this is where my budget fails me.

In one of the council meetings in the summer, I bumped into my City College professor, Gail Buffalo, and I said that the issues we talked about 13 years ago are unfortunately same. Biggest one is pay parity. DOE can do better for all of our staff and stop calling early childhood education— educators free childcare. Please start paying all my staff same as, say, our DOE pre-K center neighbors with 3 classrooms, Little Brooklyn.

And while many of you are calling for more hours in early childhood education, I have to remind you all, we too have families and our kids need us to. Thank you. Those were a lot of numbers. Can you provide the written testimony as well? Okay, there you go. I would say thank you for coming and staying.

Good afternoon, chairs. My name is Abigail Leonard, and I am policy and communications analyst at Children's Aid. Children's Aid provides early childhood, foster care, behavioral health, youth development, and other services to children and family families across New York City. Across this work, we've seen how the liability insurance crisis threatens the business model of child-serving organizations. The crisis is particularly severe for voluntary foster care agencies, which provide state and locally mandated services.

But more broadly, we're concerned that rising insurance costs will weaken provider infrastructure needed to responsibly scale child care services across New York City. At Children's Aid, our core liability premiums doubled from 2022 to 2026. Between 2023 and 2025 alone, our primary general, professional, and sexual abuse and molestation coverage rose from approximately 594,000 to 1.2 million. Our umbrella and excess coverage nearly tripled from 206,000 to almost 630,000.

This has direct implications for the business of child care. Government-contracted child care providers may be required to maintain specific insurance coverage. but they cannot simply raise their prices when premiums increase. Their revenue is largely determined by government contracts and reimbursement rates that may not reflect current insurance costs. Providers are left to absorb the difference within already constrained program budgets.

These costs affect real business decisions. When more funding must go toward insurance, providers have less flexibility to invest in wages, retain educators, maintain facilities, open classrooms, or expanded to communities with unmet need. If required coverage becomes unaffordable or unavailable, it can also determine whether an organization can compete for a government contract or continue operating the contracted program at all.

We urge the council to support Councilmembers Gail Brewer and Althea Stevens' forthcoming resolution calling for the passage of important state legislation to address this problem and to ensure the new Office of Insurance Affordability examines the challenges facing childcare and nonprofit human services providers. The child's— the city's childcare system cannot expand if the organizations expected to operate it cannot afford the basic costs of doing business.

Thank you.

My name is Megan Shantz. I'm the owner and director of Supermoon Art Space, which is a small center-based daycare in Ridgewood in Queens. We're in our 9th year of operating and we've cultivated an excellent reputation in our community. However, this year for the first time we are under-enrolled because middle and lower-income families we aim to serve can no longer afford to pay for care.

We're faced with the possibility of taking out loans, possibly laying off staff to cover costs. And while we're submitting our proposal to become a 2K program next year, simply sustaining the business between now and a possible July is proving to be a huge challenge. And should we receive a 2K contract, we're concerned about the issue that Councilmember Gutierrez raised earlier about funding only covering the minimum number of staff required by Article 47.

We have cultivated a high-quality program with little to no staff turnover or burnout by employing a large team of teachers and administrators, more than the minimum requirements. So the switch to 2K may not accommodate our ability to sustain sustain that. We currently have space for families with child care vouchers and are so glad that more vouchers have recently been made available.

But we're not aware of a system that helps us connect with the families who've received vouchers. Calls to ACS and other local support networks have led to dead ends. We would love to learn from the people in this room how a center like ours can locate voucher families in need of care. Additionally, as a form of expanding and growing our business, we've piloted a series of much needed after-school programs for 3K and pre-K students in public schools.

They're fee-based programs. We also offer sliding scale rates and accept vouchers, but we would love to offer them for free. However, we learned that DYCD does not currently fund programs for children under 6. We sincerely hope that the city is considering modifying this restriction as part of a plan to provide universal child care. I'd like to thank Councilmember Gutierrez. and Councilmember Thomas Henry and this subcommittee for creating the opportunity to share these thoughts with you.

And thanks for everyone in the room. Thank you.

We just have a couple quick questions for this panel. In regards to the insurance, in your contract, have you increased the amount you're asking for and been denied, or within the contract you're only allowed to bill for a certain So liability insurance is very interesting because we pay for it across our entire organization. So we can't break it up between childcare-related liability insurance costs, foster care-related liability insurance costs, and whatnot.

So we reference our insurance numbers in various ICR rates that we are able to have adjustments for. We're also a Head Start provider, and there is a 15% administrative cap for our ability to include contract or administrative costs, including insurance in that. And then our various contracts are disparate on how much we're able to complain— to claim, and then how much we're able to adjust also.

Another complicated math problem. Yeah. Okay. And then I was going to say, in terms of vouchers and connecting to providers, Emmy and her team is still here right behind you. Please connect. And Councilmember Gutierrez had some questions. Thank you. Just for you, thank you so much for testifying once again and for leaving your business to be with us all day.

You said that for the first time you're under-enrolled. And can you talk to me a little bit more? Is it— what is the reason? Why do you think? I think it's honestly the economy. I've had families that lost jobs in the past couple of months and had to either leave completely or reduce their days. Because we're center-based and our costs are pretty high, we do charge slightly more than family-owned, so— or family-based centers or childcare— family childcare centers.

So we have had families switch to family-based. We have some families who had their first child with us and now with their second child they have a nanny and the nanny helps them at night with laundry and food. Oh. And so they've just chosen to stay with the nanny rather than send their second child to us. So it's— we have a community of people, but I think— Yeah.

My understanding is it's mostly the economy, that people are losing work and that the rates that we're charging, which we're trying to keep as affordable as we can, are just all of a sudden out of reach for them. Yeah. And you're District 24, correct? Yeah. So it's one of the sites. Yep. And you are not in a network?

We're not. We've reached out to networks, but we were not, for whatever reason. I don't know if we're not eligible or— it wasn't really part of our our plan from the beginning because operating independently was working for us. We don't really turn a profit, but we've been able to sustain. And like I said, part of the reason that makes it difficult to sustain is because we have a really big team.

So, and, and that makes it easier for everyone that's on our team to, to feel comfortable and nurtured and supported, but it just makes it really expensive to operate. Right. And we've had to raise rates just to accommodate that. And do you have a universal 3K or pre-K program? We don't. We didn't apply for 3K when it came through.

We just have been serving 2-year-olds primarily, but now we are applying for 2K. Okay. Yeah, well, I have your— let's continue to stay in touch. I, you know, I just know from my constituents who are alum just rave about your site. And, you know, this is a lot of the work that we try to highlight at these hearings is, you know, someone who's operating it, yes, an independent business, but really this, like, foundation for our families.

It's the reason why I'm sure the majority of your families are from the neighborhood, but you've got families that are traveling far and wide. And these are, like, quality programs that we want to make sure not only just stay open, but can thrive in this universal child care program. So thank you. Thank you both so much. Thank you.

Thank you.

This panel is excused. The next panel Drew Weber, Ingrid Matias, Shelby Lohr, and Shanita Bowman. Bowen. This was my— oh, okay. This is my baby. Can I have her name? The woman from— Thank you. You may begin when ready.

Good afternoon. Good afternoon, and thank you for the opportunity to testify today. My name is Ingrid Matias Chungata, and I'm the executive director of Nuestros Niños. Proudly serving Williamsburg and Queens for the last 53 years, I want to begin by acknowledging the city's recent commitment to improving early childhood, particularly the investment in contracting payment systems and expanding services to our families.

These are encouraging steps, but as we move forward toward universal childcare, we must strengthen the foundation of the systems, the community-based organizations and family child care educators who make it possible. At Nuestros Niños, we know firsthand the challenges of delayed reimbursement. Our staff and our providers were without pay for a couple of weeks this summer. And certainly the uncertainty of contracts.

Yet our responsibility to our children, our families, and our employees never stops. We need predictable contracts, timely payments, transparent systems, and equitable per-child funding that reflects the true cost of quality education, regardless of where the child lives and who serves them. And we cannot overlook our family child care providers. These are small business owners who are open their homes invested their resources and dedicated to servicing their community.

They deserve equitable compensation, business stability, and a meaningful voice in decisions that affect their livelihood. Community-based organizations are equally essential. We are not simply contracted providers. We are part of the fabric of our neighborhoods. We know our families, their cultures, their history, their language, and their needs. As the city reimagines early childhood education, I urge us to build a system grounded in partnership, shared accountability, and a respect for every child care provider.

Because universal child care is not just about expanding access; it's about ensuring that institutions and educators. families and trusted generations are supported, valued, and positioned to strive. Thank you.

Same testimony. Good afternoon, Chairs Thomas-Henry and Gutierrez. My name is Shanita Bowen, Chief Operating Officer for ECE On The Move. We represent family child care educators in residential settings across New York City and the families that they serve. We are educators and small business owners. We pay taxes, employ staff, and keep parents working. Our businesses are struggling to survive.

Families can't afford the true cost of care, and reimbursement rates don't cover our operating costs. And yet we faced two payment problems: first, unexplained payment reversals. One educator's reimbursement was reversed without adequate explanation. explanation or the educator's input. Even after the city's system error was corrected, it took an entire month for her payment to be restored. This should never happen.

Educators deserve notice and an opportunity to resolve errors before the reversal occurs. Even when a reversal is justified due to the educator's error, reasonable repayment plans must be available so that the business can continue to operate. Second, late reimbursements. Our outdated attendance and payment system need modernization and better management. Payroll and expenses don't wait. When we pay late— when we receive our pay late— I'm sorry, when we pay our bills late, we get penalized.

But when our reimbursements arrive late, who compensates us for the hardship? How can we expect essential small businesses to stay open when the systems they depend on are so unpredictable? We urge the council, ACS, and the state to increase reimbursement rates, expand childcare assistance, modernize the payment system, prevent unexplained reversals, offer reasonable repayment plans for educator errors, and end late reimbursements through greater accountability.

True universal childcare means more than access. It requires systems that work together to support families and the educators who serve them. Thank you.

Good afternoon. Sorry. Good afternoon, Chair Gutierrez, Chair Thomas-Henry, and members of the committee. Thank you for the opportunity to testify. My name is Drew Weber, and I work at the the Consortium for Worker Education, or CWE. As the workforce development arm of the New York City Central Labor Council, we train home-based and union childcare workers and run 2 programs connecting working New Yorkers to subsidized childcare.

In that work, we have seen firsthand how the current system underserves both providers and parents. We need a system that pays reliably and fairly and is made easier to navigate for everyone involved. Earlier this month, alongside the UFT, CLC, ILR, and Providers Organized for Power, we convened union leaders and child care providers to discuss how to build a universal child care system that works for all workers.

Ideas included many of what was discussed today, including a shared service cooperative, pay ladder to guaranteed fair wages, care for workers working nontraditional hours, and child care benefits negotiated directly into union contracts. What was clear is that we cannot leave behind the workers and providers who have been at the front lines of this work. We have seen firsthand how better and more reliable pay can make the difference for providers.

CWE's state-funded child care scholarship program supports middle-income, episodic, and undocumented families who don't qualify for the Child Care Assistance Program. Notably, it pays out higher rates than what is allowed under CCAP, and it pays for a child's full enrollment rather than based on attendance. So a provider isn't docked when a child is out sick. For a small business running on thin margins, that means steadier income and greater financial stability.

We have also seen how hard it is for parents and providers to navigate assistance programs split across 3 city agencies. Along with better pay for providers, we urge the city to build stronger connective tissue between these programs, either internally or through partnerships with nonprofits, so parents, providers, and unions know their options. We look forward to continuing our work with advocates, unions, and the council to build a universal childcare system that works for all workers.

Thank you.

Good afternoon, Chair Gutierrez, Chair Thomas-Henry, and members of the Subcommittee on Early Childhood Education and the Committee on Small Business. My name is Shelby Lohr. I'm the senior manager of policy and advocacy at the Daycare Council of New York. The Daycare Council of New York represents nearly 300 center-based childcare providers operating approximately 13,000 publicly funded seats across New York City.

Our members are both nonprofit organizations and small businesses. Among other things, child care providers must meet their payroll, cover their rent and insurance, purchase food and supplies, comply with extensive regulations, and recruit their staff. Providers are expected to maintain a quality program but often lack predictable revenue, timely payment, adequate rates, and reasonable control over enrollment. That is, child care Providers are expected to operate like a business, but the public systems they depend on can sometimes prevent them from doing so.

These challenges are reflected in our September 2026 brief called Voices from Daycare Council Members, and it draws on member experiences and recommendations for improving the contracted early childhood system. One area is that providers struggle to operate when they're faced with late and unpredictable contract payments. In 2023, Daycare Council surveyed more than 250 early care and education providers where 64% reported that they remained unpaid for the prior month's services.

Among providers who were forced to bridge these gaps, 25% were able to obtain a business loan, but 26% also took out personal loans to make that work. Sometimes also they relied on grants, bridge loans, and other private funds to sustain their operations. In other words, they're borrowing money, sometimes even from personal loans and family and friends to finance services that are supported by the city contracts.

And often this is their sole revenue source, is from these contracts. So again, they have to absorb a lot of the late fees that come with the delays. Another area is that the reimbursement rate does not reflect the cost of the service that is being purchased. Oh, all right, I'll wrap it up there, but there's an extensive section that I'll send over along with some of this.

Oh, thank you all. Thank you all for your testimony. Thank you all so much. And you've all testified before.

I'm clear on the necessity of, like, on-time payments. Obviously, increasing the rate of these contracts, they just don't keep up with the pace of the cost of living. Are there other challenges that you've heard from some of the daycare providers or the childcare providers that we should know about, particularly with regard to turnover, turnover to the DOE, for example, or just turnover in general?

Or is there anything else that you would like us to know? We would love, especially for you folks that have been doing this for a while, you know, we want to be able to inform the next round of RFPs. So while you're here, it would be good to get that from you guys. I think that for us at Nuestros Niños, we become the training ground for teachers.

So once they come to our program, we take them on a study plan, support them through their academics, getting licensed. And as soon as they do that, you know, we can't blame them. They go to New York's public schools. It's higher pay. And we can't compete. We're a 12-month program to a 10-month program. There's no competition. So at the end of the day, we are competing with our funders.

Yeah. And I'll add that the same way family child care educators are close with their parents, we're also close with our assistants. And if our assistants are waiting for pay, they're skeptical about everything. Yeah. And when they see that we can't put the payment in the portal on time and get paid on time, it affects their pay.

And then when the providers— you know, we're people, so, you know, we may grumble a bit about whether a DOE program may not address all of the hours, extended hours, overnight care, special needs. Like, it has to address all of that. And the assistants are paying attention. So new workforce is going to be a challenge. You mean attracting a new workforce?

Attracting a new workforce. Yeah. Okay.

Thank you. Thank you, guys. Thank you. Shout out nuestros niños. Thank you. This panel is excused. For the next panel, I'm call up Lynn Fredericks, Ben Parisi, Michelle Chan, and Sanaj Beckles Canton. Yeah, he just needs to fill out. Yeah, that's fine. Just he just needs to fill out an appearance card. Okay. What's her name? Do we have one for Carmelita?

You can get a one. Okay. Come on down. We'll get the formalities taken care of. Ben Parisi, is that— was that you? You were online too? Okay. All right. You may begin.

Here we go. Thank you so much, Chair. Thank you. Thank you, Thomas Henry and Subcommittee Chair Gutierrez. My name is Lynn Fredericks, and I am the founder and the leader at a small but national nonprofit, Family Cook Productions, that has a large footprint, including in early childcare. I founded Family Cook 30 years ago after using mealtime to heal my own family life when I found myself a single mom of 2 little boys after a divorce.

I was moved to share the learnings of how my life really transformed through this nourishing food and the mealtime and bonding together, and to bring that to address the health— diet-related health crisis in the United States. Family Cook has developed one of the widest, over 30 years, portfolios of evidence-based culinary nutrition intervention programs and curricula impacting over 345,000 individuals in 30 states and 400 locations through a license and training model.

We provide hands-on food and skills education in partnership with New York Public— New York City Public Schools and New York City Schools contracted community-based family-operated preschools and childcare centers. Today, we have supported 253 preschool classrooms, over 4,000 families across 5 boroughs with our evidence-based childhood, early childhood education program called Nibble with Willow. We enthusiastically support this bill to make— to give resources to the business of childcare, because we've seen over the last 15 years the resource gap of community-based child— community and family-based child care operators as compared with their DOE counterparts.

I'll say a little more and then I'll— You can wrap it up. Okay. So I wanted to tell you a lot more about the need for this training, but it is extremely necessary and critical for the training that is being offered around business to also offer training on the quality of the childcare. Because I can't tell you, but I can provide this with you.

I'm sorry that it was not fast enough. But the outcomes that we've been able to show leave all levels. So they're at the level of the actual early learning, healthy eating, even toxic stress. We have evidence over— 4 years. Robin Hood gave us a million-dollar investment for this program and we've really expanded it. But the— but we can't support because they don't have any training money to be able to work with the CBOs and the family care.

Thank you.

Next is Carmelita. Hi, good afternoon. So my name is Carmelita Lopa. I'm an educator and provider. I'm actually the assistant of my program. My sister is the onsite provider. Our facility is a group family daycare. It's called Habawasanigu Academy. That comes from the Garifuna language. We're located in East Flatbush. I am a member of POP and NYCC.

Some concerns which bring me here today, which I heard echoed before, are payment issues. So in reporting payments, sometimes we get paid 3 to 4 weeks after the fact, which in turn causes a problem for payroll. Or we have reversed payments. So the payment is given and then taken away. It might be the next check or whatever.

And then I'll have to cover the funds. It's just ridiculous. So example of that is if, say, the child were being paid on a regular rate and it was a special needs child. It's the craziest thing, but they take back the payment, and then I have to wait till it's adjusted 5 to 6 weeks later. So that's definitely something that is, um, crazy.

So, um, if universal child care is supposed to be available for all children, then it should be a city priority. It needs to figure out how to adjust that system to reflect the dilemma that we have. Another problem that we have is with the 2K and the 3K, the change in hours. Some parents cannot pick up their children at 2 o'clock.

If not, that means them losing their job, their employment. So we lost 4 children to that. And then we were able to get them back because I figured out a way to pick up those 4 children. So once again, this is still— you know, all of our situations are not the same. So for another provider, that would just be a loss.

And the list goes on and on because I've lost other children. 2 here, 3 there. You know, our capacity is 16. I tried. You can wrap it up if you want to finish your thought. I have another thought too. I also got a violation that I shouldn't have received. It had to do— it was during COVID And we had an inspection on the same day as the violation.

It's the weirdest thing. The violation is 2315. Annie, is that you? Say again? Okay, okay, okay. And I'm sure if it happened to me, it happened to someone else. So now they sent me like a deal. Like if I go down there and work out a deal with them and pay part of it, they'll work out some— but it shouldn't be a deal because I shouldn't have gotten a violation.

So we were inspected and got a summons on the same day. So you get a congratulatory— Was your summons by mail? Yes. So it's just crazy. So we got a violation because the onsite provider, which is my sister, that was vaxxed, was not vaxxed supposedly. But then we got a letter saying, congratulations, you passed your inspection, blah, blah, blah.

So this is a problem. This is a $2,300 problem. And if I don't take— if I don't pay it, I'm being threatened. I have a folder here full of correspondence. We're going to find someone in the room to help— to look into that for you.

I have a question about this reversal. How does that work exactly? Okay. Sorry. No. Yeah. How does that work? Me? Oh, that's for me? Yes. All right. So yeah. Curious. So it works a few different ways. So remember, we're paid after the fact, which they need to change that because in the real world, because I taught for nearly 30 years, we're paid on the 1st and the 16th of the month.

But that would make sense in the real world anyway. Say for instance, she was being— they were paying us on the regular ed, and she's special need. If finally when the paperwork goes through that she's a special needs child, I have to fill that out, I have to get all the stuff from the doctor, et cetera, et cetera, and then once that's finally gone through all the red tape, then they'll pay us on that rate.

But they, they will hold the check then, and then you have to wait until they recalculate the funds instead of just paying you the difference, which would make sense. It does. You squinting because it just— it's just a squint because it's crazy. It doesn't make any sense. It's an oxymoron. I understand it, but I agree it doesn't make any sense.

Yeah. And do you find that to only happen with children that are later identified as having special needs? Yes, which is also a problem because I think it should be identified early. So there's a few things happening. Some of us are afraid to tell the parents, right, that you need to have your child evaluated. So I think that needs to be a little bit more seamless.

That's also one issue because I hate that when I have to have the talk, but we have to have the talk. And once again, It's a little different for me working for the DOE for nearly 30 years. I taught middle school children, so I can identify. But, you know, we're not all created equal. Let me wrap my head around this.

Yes. I'm going to use simple math. Let's say, so a child— we send you $100. We found out that you have a child that has an IEP. So what is that, $150? Just for math. It's more. Let's, let's say $500. It's $500. So I sent you the $100. I take back the $100. And then some. Then sometime in the future, I send you $500.

Yes, right. But in the meantime, I had to pay the staff. Instead of just doing the $400. Yeah. In the meantime, I have to— I still have the overhead that I'm responsible for. And overdraft fees, possibly, because your account is just like ping pong. At this point. At that point. But good things inside. Emmy, I'm just— this is totally DOE.

Uh, it's DOE. Okay, actually, this is vouchers. Oh, these are just specific to the vouchers? Yes, this is the voucher. Yeah, state. Okay. Yeah. Okay, okay. This is the first time I'm hearing about these. Oh my goodness. Is this, is this a common practice? Have you experienced this, uh, always? Multiple times. Like in the past? In the past.

Yes. Okay. All right. Yeah. Okay. Thank you. You have questions? Okay. Thank you. You're excused. Thank you.

All right. We will now turn to virtual panelists. For virtual panelists, once your name is called, a member of our staff will unmute you and the sergeant-at-arms will set the timer and give you the go-ahead to begin. Please wait for the sergeant to announce that you may begin before delivering your testimony. Now I will call our first virtual panelist, Sheba Kapoor.

You may begin. You may begin.

Hi, everyone. Thank you. Good afternoon, Chairs Gutierrez and Thomas Henry. Thank you so much for the opportunity to offer testimony on behalf of the New York State Montessori Alliance. Montessori education serves over 15,000 students and employs more than 1,000 Montessori teachers across New York State, and many of those schools are in New York City. And we educate children as young as infants and toddlers in licensed child care centers through 12th grade in public, independent, and religious schools.

We respectfully ask the subcommittee to consider 2 important policy changes: recognizing median age as an appropriate method for determining predominant age in mixed-age classrooms, and recognizing accredited Montessori teacher education credentials as a pathway to qualification for lead teacher positions in 3K and pre-K programs. A defining feature of Montessori education is the mixed-age classroom. Children typically remain with the same teacher and community for multiple years, learning alongside peers at different developmental stages, and we therefore urge the City to recognize the median age of enrolled children as an appropriate method for determining a classroom's predominant age for purposes of applying the relevant staffing ratios.

This approach would allow Montessori schools to maintain established mixed-age classroom structures and comply with applicable staffing requirements without unnecessarily disrupting children's continuity of care. And we ask the subcommittee to support regulatory guidance that explicitly permits the use of median age for predominant age determinations while preserving existing child safety protections and approved staffing ratios. Our second request concerns Montessori teacher credentials.

When these credentials are not adequately recognized, experienced, and appropriately prepared Montessori educators may face barriers to employment in publicly supported early childhood programs. We respectfully ask the city to establish a clear pathway for recognizing credentials issued by MAC-T accredited or American Montessori Society— Your time has expired. Okay. Thank you, Shahar. Please submit your written testimony.

Next up, Joanne Lamart. You may begin. Um, let me see. I'm not sure if you can see me or you can hear me. Hopefully you can hear me. I'm speaking on— We can hear you. Okay, great.

Um, I'm speaking on behalf of Christ the King. Um, daycare center and preschool. I'm a parent and I've been in the school for 4 years now, and we got a notice yesterday that the school is closing. From what we hear, it's so that the charter school within the facility can open an elementary school. We do not need more elementary schools in this area.

We need child care, early child care. We need 3K and 4K programs, and Christ the King did have— does have 3K classrooms and 4 pre-K classrooms, one of which my son is in, the pre-K classroom now. And I was looking forward to my daughter completing the program. Um, it's a detriment to our community. It's a detriment to our children closing this.

So I'm please asking the committee to speak on behalf of the parents in this area, in Middle Village and the surrounding areas, to make the board at Christ the King reconsider their decision to give the space to the charter school. We don't need a charter school. We need early childcare. Thank you. Thank you for your testimony. Next up, Katie Johnston.

You may begin. Hello, and thank you for the opportunity to speak. My name is Katie Johnston. I'm a resident of Middle Village, Queens, District 24. Yesterday, myself and many, many families and employees were notified that Christ the King Daycare and Preschool, located in Middle Village, Queens, is closing. This is a major childcare center in our community, and I'm also a parent of a child there.

This childcare center has been in our community since 1993, and currently there are over 200 children enrolled in this center. ranging from 6 weeks to 5 years old, and now 200 children need to find alternative childcare before next July. 200 children. The reasoning of this closing of the center is not completely clear, but at the same time, a charter school that shares the campus with the daycare and preschool has applied for expansion of their school.

A public notice was published 2 weeks ago. I can provide the link if you'd like. I do not know if there's a connection, but the parents and community are very concerned. I cannot overstate the importance of this daycare to our community, not only to the children and the parents, but its numerous employees. The loss of employment will be substantial.

The burden to families and providers will be substantial. This is one of the most affordable childcare centers in the area. They offer flexible hours and after hours, which is incredibly difficult to find. And they've been operating in this neighborhood for 33 years. It's a part of the fabric of the neighborhood. To state again, 200 children will have to find alternative childcare before July 1st, and I have fact-checked that number.

I have called the daycare directly. My question is, who does this serve? What— who benefits from it, and why are the families paying the cost? As stated earlier in this meeting, childcare is a public good, and we cannot afford to lose 200 childcare Today I've heard the council talk about community childcare providers and seats available for 3K and pre-K, and I'm asking you to take this seriously.

I'm asking the committee— Time has expired. Thank you. Thank you for your testimony, and please, you can also submit written testimony. And I will say that your councilmember, Councilmember Wong, is very aware and looking into this situation. Next up, we have Mariela Perez. You may begin. You may begin. Sorry, you didn't unmute me. Okay. Well, yes, I am both a heartbroken parent but also a speech-language pathologist.

I have provided therapy at Christ the King, and I can tell you that losing a program like Christ the King, the 3K, the pre-K, is life-changing for children who are first noticed, you know, that they have like any kind of speech or motor or developmental delays. And so, you know, not only is it a huge loss for our families, but it could also be detrimental to students with disabilities who desperately rely on Christ the King Daycare and Preschool for early identification and support.

We already suffer from a shortage of 3K and UPK seats, and making room for a K through 8th grade school is just something we don't need. We have plenty of good public schools and parochial schools. We are starving for early childhood seats and infant and toddler care. And now with the expansion of 2K, I think it would actually make more sense to have, you know, Christ the King, you know, expand in that sense instead of having more room for a K to 8 school. that we just don't need.

So I'm asking you to please use your influence to speak to the authorities who approve charter school changes, like SUNY Charter Schools Institute, and ask them to rethink the permission for Middle School— Middle Village Prep to expand. We should think about the moms and the dads that have nowhere to send their infants and toddlers, and the teachers who are facing the loss of their livelihoods.

We— that's basically it. Thank you. Thank you. Thank you for your testimony. Next, we'll hear from Ethan Chan. You may begin. Good afternoon, Chair and members of the City Council. My name is Ethan Chan, and I am testifying today as a father, a former member of Queens Community Board 5, and a current associate board member of South Asian Youth Alliance— Youth Action, Saya, in Elmhurst, Queens, where I volunteer to support and mentor inner-city youth.

I am a native New Yorker, child of immigrants, and the first in my family to attend college. I was raised in New York City public schools, graduated from Brooklyn Technical High School, and earned my college and university degrees right here in New York City. I chose to stay here to raise my sons and watch them thrive in the city that gave me everything.

Today I am petitioning the City Council to urgently explore every option to keep Christ the King Community Daycare and Preschool open beyond its announced closure date of July 1st, 2027. I stated earlier, October 27th, families were notified that after 30 years of dedicated service, Education Director Dorothy Wagner is retiring, and a decision was made to close the daycare, 3K, and pre-K program entirely.

I've already called Councilmember Bill Wong's office in District 30 to raise my concerns, and I appreciate that this— his office has already asked the school to reconsider. However, we need the city council and city agencies to actively intervene and help facilitate While I fully understand and acknowledge the current enrollment crisis happening across all of education, shuttering a foundational community institution is not the answer.

Established in 1993, Christ the King's Preschool and Daycare is a local pillar in Middle Village. Crucially, its impact reaches far beyond the borders of Council District 30. The center serves as a vital anchor for working residential families in Middle Village, Maspeth, Glendale, Elmhurst, Rego Park, and Forest Hills, who all want to remain in New York City and raise their next generation of kids.

Closing this program will destabilize childcare across Central and Western Queens and cause many families to reconsider moving to or staying in our district and neighboring communities to raise our children. For my family, the stakes are personal. My oldest son Declan completed both his daycare and pre-K years at Christ the King. I personally want the chance to see my younger son Rowan— Your time has expired.

His preschool years at Christ the King. Thank you for your time. Thank you for your testimony. Next, we'll hear from Jesse Guido. You may begin. Hi, everybody. My name is Jesse Guido. I'm a resident of Maspeth, uh, Middle Village area, and I won't take up too much of your time. My concern is identical to the previous speakers.

As a dad, I'll tell you this: this program that they have at Christ the King is a unicorn. As a parent, you want to have your children, especially when they're that age, in trusted hands. You need to know that they're going to be in a place where not only they can learn, flourish, and thrive, but you trust where they are.

There's not an ounce or a minute that goes by every day where I worry about my child's well-being and whereabouts. in that facility, and I implore you to do everything in your power to try to leave it open. Thank you. Thank you for your testimony.

Um, next up, Mary Ayinde. You may begin. Good afternoon, and thank you, Chairman Gutierrez and members of the New York City Council Subcommittee on Early Childhood Education. Um, my— I'm calling, I'm calling in from the Center of Small Small World Early Childhood Center, which is operated by St. Nick's Alliance. As North Brooklyn settlement house and civic anchor, St.

Nick's Alliance provides diverse multigenerational services for very young children to the elderly also, including our 50-year-old center, Small World. As an early childhood provider, St. Nick's Alliance testimony focuses on 3 critical improvements essential to stabilizing the early childhood ecosystem, and that would be one, Strengthen the early childhood education workforce. Number 2, pay providers the real cost of operating early childhood education centers.

And number 3, invest in regulatory agencies. For community-based providers, hiring and retaining early childhood staff is extremely difficult due to low salaries, which are a direct result of inadequate contract values set by the New York City Department of Education and ratified by DC 37's local 95% and Local 205 contracts, center-based providers such as Small World cannot afford to offer salary parity with similar positions working directly at the DOE.

And as a result, center-based providers face very high vacancy rates and staff shortages, preventing them from running at full capacity due to Article 47 child-to-adult ratios. Underpaying providers, the real cost of operating early childhood centers. The birth-to-5 contract must be completely overhauled. The current enrolment-based model is highly defective with no guarantee of covering the real fixed costs for operating centres such as rent, insurance, and Article 47 safety regulations that do not change based on enrolment.

This funding model also ignores that centre-based providers have very little control over enrolment as the system is centralized Under DOE, under Invest in Regulatory Agencies, the time has expired. Thank you. Thank you for your testimony.

Up next, Ann Rita Wentworth. You may begin. Good afternoon, chairpersons and members of the council. I am the head of school at Pine Street School in Lower Manhattan and president of the New York State Montessori Alliance. Before I begin, I want to express my heartfelt sympathy to the school community that shared its experience of an unexpected closure.

I cannot speak to the circumstances of that closure, but I know how difficult it is to sustain an early childhood program. When a school closes, children, families, and educators lose a community they depend on, and it reminds us how fragile even deeply committed schools can become. I'm here to address how teacher qualification requirements affect our ability to recruit exceptional educators and sustain early childhood programs.

Under Article 47, group teacher requirements do not consistently recognize rigorous Montessori training As an independent qualification, we encounter exceptional Montessori-trained educators, sometimes with master's degrees in other disciplines, who must complete additional requirements to qualify. Alternatively, we hire teachers who meet the city's qualifications and invest significant resource training— resources training them in our educational philosophy. What's more, teachers themselves face substantial investments of time and money in additional coursework, often without a clear financial return.

And there is a significant issue of parity. A preschool operating within an established— established under Article 43 can face different and less teacher qualification requirements than a standalone early childhood program under Article 47, even when both are serving the same children. We are educating the same children at the same developmental stages, yet our regulatory classification can determine which educators are eligible to teach them.

At a time when we desperately need talented early childhood educators, These inconsistencies risk turning them away, and this is a business sustainability issue. Prolonged vacancies increase recruitment and training costs, strain existing staff, and can limit enrollment even when families need spaces. With staffing already our greatest expense, these costs cannot continually be absorbed or passed on through higher tuition.

We are not asking for lower standards. We are asking for equitable pathways that recognize rigorous professional preparation. And greater consistency across— Time has expired. Thank you. Thank you.

Next up, Nicole Plunkett. You may begin. You may begin. Nicole Plunkett, are you still with us? All right, we'll come back. Diana Diaz. You may begin. Do we still have Diana Diaz? Thank you for the opportunity. Good afternoon. My name is Diana Diaz. I am the director of the Early Care Department at the Committee for Hispanic Children and Families.

We are very excited about the many commitments to expanding access to free childcare and early learning, and we are at the same time concerned about childcare sector in New York City and the state on the ongoing inequities faced by families and children. in accessing the care that best meets their family's needs. While we celebrate the intention of universal childcare system, we cannot stress enough the need for city and state leaders to center stabilization of current childcare sector regardless of direct contracting or affiliations with NYCPS and ensure that all programs that care for children are equitable, incorporated into systems being designed and As the city has continued to age down its universal pre-K programming, we have been continuing destabilizing effects in existing childcare programs and workers.

Utilization of practices that ultimately undermine family choice in care and the perpetuation of inequality resources support in the New York City childcare sector entirely. While historic investments in childcare and early learning have been announced over the recent months, no sustainable commitments have been made to ensure that the professional workforce that is delivering the service for families is compensated appropriately and given access to benefits.

We celebrate the efforts to reduce the costs faced by families in accessing consistent, high-quality care, but note that the childcare sector has largely being left to carry the weight of these promises and initiatives on their shoulders. I will refer to our full testimony for additional insight. Thank you for the opportunity. Thank you for your testimony. I'll go back.

Is Nicole Plunkett? You may begin. And do we have Mercedes Mullihan? You may begin. And Mercedes, if you're on, we do need you to accept as a panelist. So again, Mercedes, if you're on, please accept as a panelist. We have phone number 646- You may begin. Again, if your phone number is 646-203-8808. Also accept as a panelist That's both Mercedes and the 646 number.

I'll move on to Divine Pryor. You may begin. Divine Pryor. You may begin. We have another person that's trying to get in. I will give them another minute. I will go back through. Is Nicole Plunkett— I see her raised hand. You may begin. Can we unmute her? Nicole, we see you but don't hear you. I mean, well, we don't see— we see your hand raised, but we don't hear you.

All right. We'll give Nicole a minute. Mercedes Mullihan. How are you? You may begin.

Sarah Decenna, you may begin. Hi there, everyone. My name is Sarah Decenna, and I am a resident of Middle Village, Queens. I just wanted to echo the same. Sentiment as the previous parents who went before me. We found out yesterday that a pillar in our community, Christ the King Daycare, who also holds 3K and preschool, will be closing effective July 2027.

We have no accommodations where the hundreds of children who are associated with the infant daycare and the 3K and pre-K are to go within the community. This comes at a time where New York City is emphasizing and really focusing on universal pre-K and pre-K programs. And to close this program again without any accommodation or any care for the parents and children currently enrolled in the program and what this means for the 2027 school year is definitely concerning.

There is also a large issue across the city for infant daycare. This program is trusted by the community for over 30 years, and we got announcement that our charter school is coming over with grants from the state to take over the space where this program is currently residing. So we would really like all attention on this matter, and we really hope that we can do something to save again the infant daycare and the access to universal 3K and pre-K to the program and really consider a SUNY proposal here that is ousting community members within our community who need this vital resource today and in the future.

Thank you for your testimony. Now I'll call on Debbie Quinones. You may begin. Yes. Hello. You can begin, Debbie. You may begin. I can hear you. Debbie, can you hear us? Tell her to talk. Yeah. Did we lose Debbie? All right. Well, let's go back. Do we have Nicole Plunkett back? You may begin. Nicole Plunkett. Mercedes Mullahan.

You may begin.

Hi, everyone. My name is Mercedes Mulholland. I'm a childcare educator at the residential setting. I'm a childcare educator for 25 years, and one of the reasons I all the time is thinking about how come it's possible we have the experience to work in the residential setting, and they trust you like we don't have any education, and also like We don't qualify.

We don't have qualification for be an educator because the most important thing is the parents looking for us. The parents like to be at the residential setting because we are a family. You're taking care of the children like it's as our own children. And I don't say anything bad about center. It's not necessary to say because every parent know when they want to take their children to the residential setting and why they want to.

Because we're not only a childcare educator or a home base, like they call us, childcare or babysitting. I am not considering myself a babysitter because no matter what, I don't have a degree in education. I am not a babysitter. I am an educator. That's how I call myself, and I call to the rest of the other providers at the residential setting.

And right now, the situation with the 2 care affecting all the childcare educators at the residential setting. Why? Because you ask the question, what I have to do for have the 2 2 children with 2-year-old? Nobody answered, but we know the answer. We know the answer, but no one is saying, oh, if you want to have a 2-year-old kid in your care, you have to join a network.

Your time has expired. You have to join in a network. That's exactly what they have to do. Your time has expired. Okay, thank you. Thank you for your testimony.

We're gonna try Nicole Plunkett again. Nicole Plunkett, you may begin. Hello, can you hear us? Yes, we can. Okay, uh, hi, this is Nicole's husband Sean. I don't know, we're having some difficulty with the Zoom. Um, thank you for giving us the opportunity to speak. And again, we're residents of the town of Maspeth, and we're the parents of a child in the Christ the King Community Daycare Center.

And I guess what I would just say to add to all the other excellent points that have been made would just be that, you know, my wife and I are both New York City Department of Education employees. We had an incredibly difficult time finding daycare that was both flexible, trustworthy, and nurturing. And when we found Christ the King, we kind of thought we had hit the jackpot.

And we feel devastated that our daughter and all the other kids that she attends with are not going to have the opportunity to continue with this program. So we're really hoping, especially for people like my wife and I who are, you know, not high-income people, we don't really have opportunities elsewhere, at least not opportunities like the one Christ the King has given us and so many other parents.

We just want to implore you to just you know, do whatever it is that you have in your power to see that hopefully we can continue this program. As people have said, it is a pillar of the community, um, and I know that a lot of other parents feel the same way that we do. So thank you.

Mr. Plunkett, can you please state your name for the record? Yeah, Sean Plunkett. Thank you so much for your testimony.

I'm now going to call Annie Littenberg. You may begin. Uh, hi, I'm reaching out as a Middle Village resident, uh, and a parent at Christ the King Community Daycare Preschool regarding the devastating news that our school will be closing in July 2027. Um, I am just seconding and thirding and fourthing of what all the other parents have said.

Um, for more than 30 years, Christ the King has provided essential childcare and early childhood education. From my brother-in-law all the way to my 2-year-old son. As we heard today during today's hearing, the center currently serves more than 200 children ranging from just 6 weeks old through pre-K. This isn't simply the loss of a school. It's a potential loss of an entire early childhood education community, including trusted teachers, established classrooms, developmental support, and childcare arrangements that working families depend on.

My husband and I both commute in and out of the city. The location is amazing. The teachers are amazing. Thank you. And the community will be truly missing something if this school no longer stands to serve. We did not get proper answers as to why the school is closing. And I think as long-term customers of the daycare, my children have been there since 7 months old till my oldest is now 5.

We've been there a long time. We deserve more answers and honesty as to why this is closing. Thank you for your time. Thank you for your testimony.

We will now try Debbie Keonis. You may begin. All right. Last call for Debbie. You may begin. Okay. And then final call for phone number 646-203- 8808. You may begin.

Hi, hi, can you hear me? Yes, we can. And can you please state your name for the record? Yes, my name is Kylie Chan. I'm calling to express also my concerns about the upcoming closure of Christ the King Daycare and Preschool Middle School. CTK is just a fantastic center. that even though I am not living in the immediate Middle Village area, I actually drive my child there every day.

I live in Regal Park. It's not far, but it's not close either. I chose this place over all the others because this place honestly just outshines them all. And to be honest, many of these staff members and teachers are CTK lifers. They are literally alumni who went to CTK themselves, returned to teach, and they've enrolled their own kids there.

This deep generational connection fosters such like a great, wonderful, and family-oriented community vibe. That stands in stark contrast to a lot of other centers and even like public schools. My daughter currently goes there for daycare and is there for 3K, and we honestly hope that she would stay on for 4K, but this closure robs her and many other children who enter CTK of that expectation of staying there until they age out.

Compounding this is a severe lack of available early childhood seats in our area. Early childhood education in our district is It's fiercely competitive, and families are facing an impossible landscape of finding seats. I called my, like, local zone schools, and they literally told me flat out my child has no chance of getting in. Now I am absolutely terrified because what is my daughter gonna do for 4K?

I also called City Council Member Lynn Schulman and City Council Member Bill Wong's office today, and I just want to highlight this crisis because we are losing teachers, because these teachers are also going to be out of a job as well. And these children will also not have spots, and we just really desperately need more child early childhood care centers as opposed to elementary schools.

And that is it. Thank you. Thank you for your testimony.

Debbie Quiñones. Hi, can you hear me? Yes, we can. Oh, thank you. Okay. Hi, my name is Debbie Quiñones, and I am, um, A daycare provider in Bushwick, and I have been open for almost 10 years now, and we are in a little bit of fear for this 2K rolling out. We are not in network, and we're just a little— we fear the future of our business at the moment.

If, especially if this is not going to be a pathway without— for like non-network providers. I do have a lot of friends, provider friends, that we're all worried about the same thing. And I just want to know if they have any more answers on how providers like us who are not part of networks, which I hear networks are also at capacity, what's going to happen to us?

Like, are we going to have to close? Infant care, you know, ratios are different. That's more, more money's in payroll. So we're just a little fearful at the moment, and especially of our, the near future, because this is going to roll out in Thank you, Debbie, and thank you for your perseverance, resilience and perseverance. Thank you, Debbie.

And thank you to your council member for— Quitting. We love you. I said we can't shut this down without Debbie testifying. Thank you, Chanel. No worries.

We have now heard from everyone— excuse me— who has signed up to testify. If we inadvertently missed anyone, please feel free to raise your hand. If we missed anyone who would like to testify either in person, please visit the sergeant's table and complete a witness slip now. If we inadvertently missed anyone who would like to testify virtually, please use the raise hand function in Zoom and a member of our staff will call on you in the order of hands raised.

All right. Seeing no one else, I would like to note again that witness Written testimony, which will be reviewed in full by committee staff, may be submitted to the record up to 72 hours after the close of this hearing by emailing it to testimony@council.nyc.gov. Thank you. This meeting is now— oh, we have— We have a raised hand.

Why did you say it? Chanel could have ignored it. Don't you see? Am I audible? Uh, we are. Can you state your name for the record? Yes. Hi, good afternoon. My name is Rosa Martinez. You may be— give us one minute, Rosa. You may begin.

I am a group family child care provider in the Bronx. Representing Shining Angels today, and I wanted to state that I do support universal childcare, but the 2K is growing on top of a 3K system that has still unresolved problems. First, rates are not fair. Second, payments of contracts and contracts are delayed. And third, family child care providers honestly feel pressure to join networks.

Networks can help, but joining should be a real choice with clear terms and fees. Thank you. regarding the payments and contracts of being delayed. Hundreds of providers are still lacking registered contracts when school began, and providers cannot sustain a program while waiting to be paid. And regarding the first part of rates not being fair, this year's budget raised family provider rates by only 5%, I believe, and providers say that that still falls short.

We still have the same cost as everyone else, so we need a rate study that reflects what care actually cost. And that's all I have to say for today. Thank you for your testimony.

Do we have any other raised hands on Zoom? Seeing none, this meeting is now adjourned.