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S.F. No. 2819 - Child Care Assistance Modifications
Author: Senator Hottinger
Prepared by: Joan White, Senate Counsel (651/296-3814)
Date: March 9, 2006

Section 1 amends the child care assistance eligibility formula, by striking language that required a household to have an income below 175 percent of poverty in order to be eligible. The modification allows all households that have an income less than 250 percent of poverty to be eligible for the program.

Section 2 strikes child care assistance rates paid to providers. Current law, which is stricken, requires on January 1, 2006, the maximum rate paid for child care assistance be the lesser of the 75th percentile rate for like child care arrangements, or the previous year's rate in the county increased by 1.75 percent. New language requires the maximum rate paid for child care assistance be adjusted annually and may not exceed the 75th percentile rate for like-care arrangements.

Section 3 allows a child care provider or child care center to be paid a 15 percent differential above the maximum rate, up to the actual provider rate, if the provider or center holds a current early childhood development credential or is accredited. This section defines credential and accreditation for both family child care providers and child care centers.

Section 4 suspends, from July 1, 2006, to June 30, 2008, county fees for background studies and licensing inspections in family child care and child care centers. The commissioner is required to use unallocated federal child care development fund money from the 2004-2005 biennium to reimburse the state and counties for the reduced child care revenue due to the temporary suspension. The commissioner is also required to set a standard statewide license and background study fee for family child care providers based on the average fees currently being charged.

Section 5 provides a new parent fee schedule for co-payments paid by parents who are using the child care assistance program.

Section 6 provides a blank appropriation from the general fund to the commissioner of human services to fund eligible families on the basic sliding fee waiting list. This section requires the appropriation amount be added to the basic sliding fee base budget for fiscal years 2008 and 2009.

Section 7 repeals the existing parent fee schedule, which is replaced in section 5.




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