Child Care

1
Child Care Development Fund Block GrantTrends
in Administration May 2009
2
CCDF Purpose

• The Child Care and Development Fund is a
  multibillion-dollar Federal and State partnership
  administered by the Child Care Bureau to promote
  family economic self-sufficiency and to help
  children succeed in school and life through
  affordable, high-quality early care and
  afterschool programs.

3
CCDF Purpose

• Parental Choice is promoted through State child
  care programs that serve low-income families
  through vouchers allowing parents to choose from
  a wide range of providers in the child care
  market. Parental choices cross a broad spectrum,
  from child care centers to relative caregivers.

4
CCDF Funding Structure
5
CCDF Grantee Planning

• Currently administering CCDF according to
  State/Territory/Tribal plan for 2008-2009 which
  takes them through September 30, 2009.
• On July 1, 2009, State/Territory/Tribal plan for
  2010-2011 is due. Goes into effect October 1,
  2009.
• Major changes require amendment approved by the
  Child Care Bureau within 60 days of
  implementation.

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EXTERNAL FACTORS IMPACTING CCDF ADMINISTRATION in
2009
Improper Payments
State Budget Deficits
TANF Work Requirements
ARRA
Eligibility
Access/Enrollment
Co-Pay and Fee Scales
Provider Payment
POLICY LEVERS AVAILABLE TO STATES
7
External Factors Impact on Subsidy Administration

• Unfortunately, at the same time that families
  are in greater need of help, many states are
  dealing with increasing budget pressures that
  could restrict their ability to provide that
  help. This development is a serious concern
  given that, even before the current economic
  slowdown, state child care assistance policies
  were behind where they were in 2001. Without
  additional resources for child care assistance,
  this trend is likely to not only continue but to
  get worse.
• Source Schulman, K. Blank, H. (2008,
  September). State child care assistance policies
  2008 Too little progress for children and
  families. Retrieved January 30, 2009, from
  www.nwlc.org/pdf/StateChildCareAssistancePoliciesR
  eport08.pdf

8
CCDF Discussion

• Which CCDF policy levers and external factors are
  important topics in your states right now?
• What would you like to get out of this session?

9
CCDF State Plan, Part 1 Administration
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Trends in Governance Structures

• Connections with Education
• Combing purposes under one umbrella
• District of Columbia Early Care Education
  Administration
• Florida Office of Early Learning
• Georgia Bright from the Start
• Maryland Division of Early Childhood Development
• Massachusetts Department of Early Learning
  Care
• Pennsylvania Office of Child Development
• Tennessee Office of Early Learning
• Vermont Child Development Division
• Washington Department of Early Learning
• Wisconsin Department of Children Families

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Trends in Financing

• Strategies to increase resources
• blending/braiding funds from different state and
  federal sources
• Maximizing federal resources
• tax strategies (beer/cigarette taxes, tax
  credits)
• general revenue
• Beer or cigarette taxes
• Developer impact fees
• Lottery and gambling revenues
• Tobacco settlement money
• Private funds from businesses or foundations
• Use of state PreK spending for match/MOE
• Strategies to contain costs
• adjustment to subsidy policies
• improve administrative efficiencies and reduce
  improper payments

12
Trends in Cost Containment

• Capping subsidy eligibility timeframe
• Limiting the total amount of time a family can
  receive assistance, especially at higher income
  levels.
• Limiting outreach efforts
• Requiring more frequent re-determinations
• Paying for care only after full approval of the
  application
• Limiting assistance for education

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Trends in Cost Containment (continued)

• Reducing the number of income exemptions allowed
  when determining income
• Including assets when determining income
• Including the income of all family members, (i.e.
  teen parents)
• Eliminating assistance during travel time to and
  from approved activities
• Limiting grace periods for job search

14
Trends in Improper Payments

• Administrative errors
• Strengthening subsidy policies and training field
  staff for consistent interpretation
• Case review for internal quality control
• Automation
• Providing outreach/training for parents and
  providers
• Increasing resources to follow-up on client or
  provider errors

14
15
Trends in Improper Payments

• Intentional Program Violations
• Fraud reporting hot-lines
• Provider audits
• Using automated data systems to flag questionable
  activities and identify trends
• Sharing common data across systems to access and
  compare family eligibility factors and child
  attendance levels
• Inquiries on other available databases

16
Trends in Technology

• Automation of subsidy management
• Web-based functions for participants
• Integration/Coordination of data across programs
• Data driven decision making
• Development/integration of data systems that
  track longitudinal outcome data

17
Administration Discussion

• What is impacting CCDF Administration in your
  state?
• How does this affect the work you do?
• What difference does the use of technology make?
  Is it worth the investment?
• What makes a difference in the lives of
  children, families and child care providers?

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CCDF State Plan, Part 3 Child Care Services
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State Payment Rates to Providers
State Payment Rates to Providers
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Trends in Payment Rates

• Revising Market Rate Survey methodology and
  policies based on research findings
• Incorporating tiered reimbursement rates through
  accountability to QRS standards
• Considering payment for special situations
• Child care assistance for deployed military
• Payment for non-traditional hour care
• Payment for care while parents who work a second
  or third shift sleep.

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Trends in Payment Rates (continued)

• Implementing swipe cards and other automated
  payment methods
• Changing payment units
• Changing payment schedule
• Reimbursing providers for absent days (e.g.
  holidays, sick days).

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Eligibility

• Income eligibility limits range from 34 percent
  to 85 percent of State Median Income (SMI)
• Overall, States and Territories report an average
  income eligibility level equivalent to 60 percent
  of SMI
• 11 States and Territories have two-tier
  eligibility systems one income level for
  initial entry into the program and a higher
  income level to remain eligible
• Only 14 states use factors besides income and
  family size to determine eligibility.

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Trends in Eligibility

• Definition of eligible activities
• Policies related to extending eligibility for job
  search/ employment gap and presumptive
  eligibility
• Policies related to temporary absence (i.e. a
  member of the family unit is absent from the home
  for an extended period of time) and
• Definition of income (i.e. policy related to
  income exclusions/deductions)
• Strategies to reduce barriers to access
• Cooperation with child support enforcement agency
  

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Trends in Prioritization

• Electronic waiting list management
• Partnerships with child protective services for
  children in foster care or at risk
• TANF children

25
Waiting Lists

• 37 States and Territories serve all eligible
  families who apply for child care services
• 25 States and Territories maintain waiting lists,
  or have processes in place to maintain waiting
  lists even though they currently serve all
  eligible families.

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Co-Payments

• 26 States/Territories report using additional
  factors beside family size and income to
  determine co-payments
• 29 States/Territories establish the co-payment
  fee per family
• 14 States/Territories establish the fee per
  child, and the fee is the same for each child.
  The remaining 12 establish the fee per child, but
  offer discounts for additional children

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Co-Payments (continued)

• 24 States/Territories waive the co-payment for
  families below the Federal Poverty Income
  Guidelines
• 17 States/Territories reported that most or all
  family fees are at less than 10 percent of income
  
• 40 States/Territories allow providers to charge
  families for the unsubsidized portion of normal
  fees

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Child Care Services Systems Discussion

• Eligibility definitions, Provider rates,
  Parent co-pays, Waiting lists
• Adjusting one may affect the others
• What priorities are most important in managing
  these trade-offs?