University of Kentucky to lead Kentucky Kindergarten Readiness Performance-Based Child Care Incentive Pilot Program

The University of Kentucky is to lead the Kentucky Kindergarten Readiness Performance-Based Child Care Incentive Pilot Program, established through House Bill 6, which was passed by the Kentucky General Assembly in the 2026 Regular Session. The statewide program will evaluate the effectiveness of financial incentives for caregivers on kindergarten readiness outcomes. 

According to an article on the University of Kentucky’s website, Nick Pace, Ed.D., who serves as the dean of the university’s College of Education, was quoted as saying of the project’s importance, “Kindergarten success is a key part of a child’s educational journey. We are eager to collaborate to provide Kentucky communities, early childhood education providers and policy makers with information on how we might best support children’s readiness. Generating knowledge that supports children as they start school is an important part of our mission to serve and strengthen the Commonwealth.”

The project will be led by Collin Shepley, Ph.D., an associate professor in the UK College of Education. He studies early childhood education and early intervention systems. As part of the project, Shepley will assemble a team of researchers to develop a method of measurement for whether financial-based incentives for caregivers improves kindergarten readiness outcomes. Shepley notes that these researchers will come from varied areas of expertise, including those who are familiar with causal research design and those who are familiar with the state’s early care and education system.

Shepley said of the complex process, “Our job at UK is to make sure that we design the study in such a way that it considers all the nuances, braiding of funding streams and variations across settings that exist in early care and education. If we look at the studies conducted to determine reimbursement rates for centers across the state, the only centers that actually break even at the end of their fiscal year are those with huge enrollment numbers.”

Before kindergarten, there are a number of possibilities for where a child might be: enrolled in a licensed childcare center, participating in a Head Start or state-funded preschool, be in a home-based childcare program, or stay at home with a caregiver, or a combination of any of these situations. All of the adults children interact with in any of these settings are affecting the child’s development and paving their path for kindergarten. 

Further explaining the project, Shepley said, “This project provides an opportunity for the folks who are doing good quality work in raising and caring for children to be financially recognized. A big part of this is recognizing that, for many caregivers, raising a child is either a second full-time job or a job that doesn’t end at 5 p.m. Parents are tired when they get home from work or from simply caring for their child throughout the day. We can’t expect parents to spend every second with their child stressing about development and kindergarten readiness. They need time to rest and reenergize because no one is a good parent when they are exhausted. If we do this right, we will be able to not only reliably isolate and understand the effects, or noneffects, of performance-based incentives, but we will have very precise data about the costs required to implement this at scale for the Commonwealth.”

Shepley also notes that while the project is directly examining the effects of financial incentives, it aims to develop strategies for families to engage with their child’s development in ways that fit in with their already busy lives.

Sen. Danny Carroll sponsored the kindergarten readiness portion of the legislation. He said of the project, "The big goal of early childhood education is helping more children arrive at kindergarten ready to learn and succeed. This pilot allows Kentucky to study an innovative, outcomes-focused approach and to ask an important question: What strategies are most effective at preparing children for the next step? I believe parents and child care providers play a critical role in a child's learning development, and this pilot recognizes that partnership while allowing us to gather meaningful data on what works. Rather than relying on assumptions, we can measure results, learn from the experience and use that information to guide future decisions. I'm grateful to my legislative colleagues for supporting this effort and for putting forward the funding necessary to see it through. I also appreciate the University of Kentucky’s leadership and look forward to seeing what we learn. If we can identify approaches that help more children enter school prepared for success and support Kentucky’s early childhood education sector, that is a win for students, families, educators and the Commonwealth."

For more information about the University of Kentucky, visit the school’s website.