Connecticut’s Early Childhood Education Endowment Fund is officially in use. The Fund, which was established this legislative session, contains unappropriated money from the General Fund surplus. This year, about $300 million went into the fund.
That money was transferred to the Fund on June 30, and the first investment was made on July 1, according to a press release from the Office of the Treasurer.
“This transformative investment and first-in-the-nation initiative is going to make a meaningful difference for Connecticut families,” said Treasurer Erick Russell in the press release. “Not only will the endowment provide greater opportunities for every child in our state, it will also invest in the child care workforce – including educator wage parity and a health insurance subsidy program – and provide better options for parents, particularly those forced to choose between entering the workforce or staying home to avoid the high cost of child care.”
The Fund will pay for childcare for families in the Early Start CT program who earn under $100,000 per year. It is also supposed to guarantee that households that make more than $100,000 per year pay, at most, only 7% of their household income on child care.
It will also support the expansion of early care and education programs. At least 35% of those new spaces will be dedicated to infants and toddlers, “directly targeting the most underserved population in the childcare system,” according to the press release.
These benefits are supposed to take effect in Fiscal Year 2028.
In Connecticut, there are tens of thousands of child care slots that are open on paper. However, facilities are limited by staffing shortages.
More than 15% of spaces for infants at large- and medium-sized child care centers, as well as 20% of spaces for infants at small centers and 37% of spaces at facilities run by licensed individuals at their homes, were open as of March, according to United Way of Connecticut. By percentage, there were slightly fewer open spaces for toddlers at child care centers.
“I want to thank Governor Lamont, legislative leaders, Office of Early Childhood Commissioner Beth Bye, and all of the dedicated advocates who have made this a priority,” Russel said.
The press release described the Fund as a “permanent, independent investment vehicle dedicated to child care and early childhood education.” To ensure its longevity, drawdowns will be capped at 10-12% a year.
“It’s an honor for our office to play an important role in administering this endowment, which serves the ultimate goal of all our work – helping to improve economic opportunities for everyone in our state,” Russell said. “Connecticut is setting a national model for how to build a lasting, independent infrastructure for early childhood education.”
The Treasurer is responsible for the maintenance, administration, investment and release of the Early Childhood Education Endowment Fund.
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