State board adopts pre-K sliding scale for middle‑income families; MSDE builds calculator, flags integration work with childcare subsidies

The Maryland State Board of Education voted to adopt MSDE's recommended sliding scale to determine family contributions for Tier 2 pre‑K families (those with incomes between 301% and 600% of federal poverty level), implementing a statutory requirement of the Blueprint for Maryland's Future for FY2024‑25.

MSDE presenters said the statutory per‑pupil cost baseline for FY25 is set in law at about $13,000 and is indexed in subsequent years. Under the adopted five‑level sliding scale, family contributions rise with income up to a statutory cap so that a family at the highest tier would pay no more than 7% of gross annual income. MSDE demonstrated a working calculator that local education agencies and private providers can use to compute household FPL, tier assignment and the monthly family share.

MSDE staff noted implementation details and limits. Tier‑2 eligibility is currently restricted to 4‑year‑olds for FY25 to prioritize expansion for 3‑ and 4‑year‑olds in Tier 1; families with children who have disabilities or for whom English is not the home language will be treated as Tier 1 for FY25 as part of a transitional arrangement. Starting FY26 LEAs will be responsible for distributing state funds to private provider partners.

Board members pressed MSDE about intersections with the federal child‑care scholarship program. MSDE acknowledged the two programs currently do not automatically reconcile contributions; a family could conceivably pay for sibling childcare plus a pre‑K share because the funding streams are separate and differently audited. MSDE said it will explore options to reduce the burden on families and noted the calculator will be updated to surface other benefits a family may qualify for, but that full technical integration across funding streams would require more complex system and audit changes and possibly legislation.

The board approved the sliding scale after MSDE laid out verification documentation, enrollment agreement requirements for Tier 2 families, and procedural guidance for LEAs and private providers. MSDE recommended continued tracking of enrollment by tier to inform FY26 allocations.

MSDE also called attention to a stewardship goal: the sliding scale is intended to be least expensive for families and to encourage mixed‑delivery enrollment (school‑based and private providers). The board adopted the guidance and asked MSDE to return with implementation tools and further recommendations about midyear income changes, with a view to possible legislative solutions if needed.