The South Carolina Education Oversight Committee (EOC) convened on April 14, 2025, to discuss critical findings from a recent cost report on the South Carolina Early Reading Development and Education Program (CERDEP). The report, presented by Dr. Jessica Brown from the Darla Moore School of Business at USC, highlights significant gaps between the costs of providing early childhood education and the state reimbursement rates for providers.

Dr. Brown's analysis revealed that public providers incur an average cost of approximately $14,000 per child annually, while private providers average just over $9,000. However, the current reimbursement rates fall short, with public providers receiving about $6,000 and private providers slightly less. This discrepancy creates a funding gap of around $8,000 per child for public providers and $3,000 for private ones, raising concerns about the sustainability of early childhood education programs in South Carolina.

The report identified several key cost drivers, including teacher salaries, class sizes, and facility ownership. Staffing costs account for 40-60% of total expenses, with public school teachers earning significantly more than their private counterparts. The findings suggest that addressing teacher pay disparities could enhance program quality and reduce turnover, which is crucial for maintaining stable learning environments for children.

The committee discussed potential policy considerations, including adjusting reimbursement rates based on teacher qualifications and regional cost variations. Dr. Brown emphasized the importance of aligning reimbursement rates with inflation and ensuring that they reflect the true costs of providing quality education.

As the meeting concluded, committee members recognized the need for ongoing evaluation of cost estimates and the impact of reimbursement rates on early childhood education providers. The discussions underscored a commitment to improving educational outcomes for South Carolina's youngest learners while addressing the financial challenges faced by both public and private providers.