Child Care Subsidy 101

1
Child Care Subsidy 101

• Presentation to the KidsFirst Quality Counts for
  Kids Task Force
• September 13, 2004
• Alan Sweet
• DWD Child Care

2
Topic Areas

• History and Highlights
• Subsidy Case Processing
• Provider Requirements
• Automation Successes
• Payments and Rate Setting
• DWD Child Care Budget
• Where Does the Money Go?
• Data Capacity (Data Sharing) Grant

3
History and Highlights

• Subsidy program dates back to AFDC days, as early
  as 1968.
• Waiting lists eliminated in 1996 funding
  available for all eligible families.
• Funding sources (TANF, CCDF, and GPR) merged into
  a single funding stream in 1996.
• Current program in effect since 1997 (W-2).
• Wisconsin Shares name official in 1998.
• Program is state-supervised under the Office of
  Child Care (recently renamed the Child Care
  Section) in DHFS until transferred to DWD in
  1996.
• Program administered at local level. By statute,
  W-2 agency determines eligibility and
  county/tribe administers authorization and
  payment responsibilities.

4
Subsidy Case Processing

• Family applies for subsidy at W-2 agency
  (frequently the county).
• W-2 agency determines eligibility and passes case
  to child care agency.
• Child care agency assesses need and issues
  authorization.
• Notices mailed to both provider and family for
  new, changed, or ending authorizations.
  (Providers may also check on the status of
  authorizations by using the CCPI system)
• Payments issued based on two-week attendance
  reporting period
• Eligibility reviewed and renewed every 6 months.

5
Provider Requirements

• Every provider must be regulated (except for
  programs operated by public schools).
• Every provider must report attendance completely,
  accurately, and timely.
• No provider can charge rates higher than those
  charged to private pay families.
• Every provider must report price structure to
  county in annual rates survey.

6
Automation Successes

• Child Care Payment System (CCPS) went live in
  1998 (subsystem of CARES)
• Statewide administration, eliminated
  county-by-county variances
• Share data base with W-2, Food Stamps, Medical
  Assistance, Badger Care, Senior Care, and other
  assistance programs.
• Child Care Provider Information (CCPI) first Web
  initiative in Summer 2001.
• Child Care Web Attendance (CCWA) implemented in
  March 2002.
• Child Care Provider Certification (CCPC)
  implemented Summer 2003.
• Child Care Statewide Administration on the Web
  (CSAW) majority of CCPS moves from mainframe to
  Web in 2004.
• Child Care Provider File (CCPF) scheduled for
  October 2004.

7
Payments and Rate Setting

• Annual survey of all licensed (center and family)
  providers to collect price information
• For each county and tribe, counting slots, a
  maximum rate is established for each age groups
  slots at the 75th percentile. Therefore, 75 of
  the care in a county should be affordable by
  subsidized families.
• Up until February 2003, there were two age
  groups birth-to-two and over two years
• Currently there are four age groups
  birth-to-two, two-to-four, four-to-six, over six
  years
• County/tribal maximum rates are effective at the
  beginning of the calendar year and are published
  on the Child Care Section website.
• Subsidy payments are based on authorized amount,
  but cannot exceed the providers weekly price or
  the county/tribal maximum rate, whichever is less
  (family co-payments are subtracted from amount).
• Accredited providers receive a 10 bump in
  their payments IF their rates are higher than the
  county maximum rate.

8
DWD Child Care Budget (SFY 2004)
Quality Improvement Child Care Section
administration, Transfer to DHFS/BRL, Child Care
Resource and Referral, Child Care Scholarships,
Early Childhood Excellence, Community Child Care
Initiative Grants
9
DWD Direct Child Care Budget(SFY 2004)
Other Local Administration (includes
certification), On-site Child Care, Migrant Child
Care
10
Where Does the Money Go?(State Fiscal Year 2004)
11
(No Transcript)
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Data Capacity (Data Sharing) Grant

• In 2002, DWD was awarded a three-year
  (250,000/year) grant from the federal DHHS Child
  Care Bureau to build a comprehensive data base of
  all regulated providers in the State of
  Wisconsin.
• No such data base has existed until this time.
  The Child Care Provider File will be live in
  October 2004!
• Project involves sharing and exchanging data with
  grant partners
• DHFS Bureau of Regulation and Licensing
• Child Care Resource and Referral Network
• The Registry
• University of Wisconsin Extension
• DPI Food Program
• Data base will be the ideal platform for the
  Quality Ratings/Tiered Reimbursement program,
  given its information on providers and link to
  subsidy program.

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Conclusion

• Questions?
• The End
• THANK YOU!