CHAPTER 6
CHILD CARE SUBSIDY PAYMENTS
Child care subsidies in California take one of two forms. Either CDE contracts
directly with the program that provides care, or indirectly with an APP, who in
turn pays the providers chosen by families. See Chapters 1 and 5 for more
information about this distinction. In both cases, DSS and CDE place restrictions
on the rate providers may be paid with public funds for their services, and
imposes conditions on providers before they can be paid with those funds. The
State also defines the levels at which families can be required to share in the cost
of child care services, and the amount they must pay. In sum, the State will pay
up to a maximum amount for child care services provided to eligible families by
approved providers.
CDE and DSS have very detailed regulations on how public funds must be
spent for child care services. The basic rule is that “[s]tate contract funds must be
spent on reimbursable costs for eligible children.”1 The extensive reporting and
auditing requirements that are placed on CDE and DSS contractors are beyond
the scope of this manual. For assistance please contact Child Care Law Center.
VOUCHER-BASED PROGRAMS – PAYMENT PROCEDURES
MAXIMUM REIMBURSEMENT RATE AND REGIONAL MARKET RATE SURVEY
Payment levels in the public subsidy system are linked to the private child
care “market” through both the Regional Market Rate (RMR) survey and the
requirement that providers cannot charge more to families receiving child care
subsidies than they charge unsubsidized families.2 CDE determines annually the
maximum amount the subsidy system will pay child care providers for voucher-
CAL. DEP’T OF EDUC., CHILD DEVELOPMENT ATTENDANCE AND FISCAL REPORTING AND
REIMBURSEMENT PROCEDURES (2010) [hereinafter, “Greenbook”],
http://www.cde.ca.gov/fg/aa/cd/documents/greenbook09.doc.
2
CAL. EDUC. CODE § 8222(a)–(c) (2010). Numerous requirements are also placed on providers
to ensure they are not taking advantage of the subsidy system, including submitting rate sheets
to both the APP and R&R, posting rates in facilities, and limiting increases in rates for subsidized
families to only once per year. CAL. EDUC. CODE § 8222(d)–(g) (2010). APPs are responsible for
verifying the information submitted by providers. CAL. EDUC. CODE § 8222(h) (2010).
1
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Chapter 6: Child Care Subsidy Payments
based care through the RMR survey.3 The survey determines the “market rate”
based on geographic location (county); type of child care setting (centers, family
child care homes or license exempt); the amount of care provided and payment
schedule (full or part-time, monthly, weekly, or daily); and the ages of the
children served (infants, preschool, and school-age).
Child care providers who receive subsidies are paid the rate they usually
charge for unsubsidized families, up to a maximum known as the
“reimbursement ceiling”. Reimbursement ceilings are set as a percentage of the
RMRs in each county,4 and are currently set at the 85th percentile of the RMR for
providers in the county offering the same type of child care for the same age
child.5 These ceilings are designed to control state costs for subsidized care while
allowing families access to the vast majority of local providers.6 A
reimbursement rate that exceeds the ceiling may be used only when no more
than two child care providers in a region care for children of families with child
care subsidies.7
For license-exempt child care, no survey is conducted to establish the regional
market rate; instead, the license-exempt rate has been set at 90% of the
reimbursement ceilings for family child care home providers.8 As discussed in
Chapter 5, the reimbursement rate for license-exempt child care is often lower
than the minimum wage.9
The current CDE reimbursement rate ceilings are available on the CDE
website at: http://www.cde.ca.gov/fg/aa/cd/ap/index.aspx.
45 C.F.R. § 98.43(b)(2) (requiring a market rate survey at least every two years); CAL. EDUC.
CODE § 8265, .5 (2010); 5 CAL. CODE REGS. § 18221(e); MPP § 47-401.2.
4
CAL. EDUC. CODE §§ 8266, 8266.5 (2010); 5 CAL. CODE REGS. §§ 18074.2(a), 18413(a), 18428(a).
See also CAL. EDUC. CODE § 8357(a) (2010) (detailing CalWORKs child care Regional Market Rate
issues).
5
MPP § 47-401.11; MB 06-16; CAL. DEP’T OF SOC. SERVICES, ACL 06-29, CHANGES TO IN/OUT OF
MARKET RATES, 75/25 RULE, STATE MEDIAN INCOME (SMI) AND FAMILY FEE SCHEDULE (2006),
http://www.dss.cahwnet.gov/lettersnotices/entres/getinfo/acl06/pdf/06-29.pdf.
6
CAL. EDUC. CODE § 8357(a) (2010); MPP § 47-401.1.
7
5 CAL. CODE REGS. § 18076(c); MPP § 47-401.21.
8
5 CAL. CODE REGS. § 18074.2(b). For a copy of the Regional Market Survey of California Child
Care Providers, contact the Child Care Law Center.
9
CAL. DEP’T OF EDUC., REIMBURSEMENT CEILINGS FOR SUBSIDIZED CHILD CARE (2006),
http://www.cde.ca.gov/fg/aa/cd/ap/index.aspx (In 2010, in Los Angeles county, part-time
hourly care for a child six years old or older being cared for by an exempt child care provider is
compensated at a rate of $3.36 per hour.).
3
96
Child Care Subsidies in California
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FACTORS CONSIDERED IN ESTABLISHING THE MAXIMUM REIMBURSEMENT RATE
California law establishes payment levels for subsidized child care based on a
variety of factors, and includes adjustments for special circumstances described
below. In addition to the factors used to establish the Regional Market Rate
(geographic location, type of setting and age of children served), the maximum
reimbursement ceilings for voucher-based child care subsidies can vary
depending on the following factors:
• Number of hours of care;
• The time that care is needed (e.g., during the day, or on evenings or
weekends); and
• Whether the child has exceptional needs or is severely disabled.10
MAXIMUM REIMBURSEMENT CEILINGS FOR SUBSIDIZED CARE
HOURS OF CARE
The maximum reimbursement rate depends in part on the number of hours
of care provided. Care may be provided by the hour, day, partial week, full
week, partial month, or full month.11
• Full-time monthly rate is used when the child receives over 30 hours of care
per week for a month, and care occurs every week in the month.12
• Part-time monthly rate is used when the child receives 15-30 hours of care
per week, and care occurs every week in the month.13
• Full-time weekly rate is used when the child receives more than 30 hours of
care per week, but not necessarily for a whole month.14
• Part-time weekly rate is used when the child receives 15-30 hours of care per
week, on at least 3 days per week.15
• Daily rate is used when a child receives six or more hours of care on three
or fewer days per week, or, under some circumstances, when a parent has
an unscheduled need for child care for more than six hours per day per
occurrence.16
• Hourly rate is used when a child receives no more than six hours of care on
any day and no more than 15 hours in the week, or, under some
10
11
12
13
14
15
16
5 CAL. CODE REGS. § 18075.1–.2.
5 CAL. CODE REGS. § 18075.
5 CAL. CODE REGS. § 18075(f).
5 CAL. CODE REGS. § 18075(e).
5 CAL. CODE REGS. § 18075(d).
5 CAL. CODE REGS. § 18075(c).
5 CAL. CODE REGS. § 18075(b).
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Chapter 6: Child Care Subsidy Payments
circumstances, when a parent has an unscheduled need for child care for
six hours or less per occurrence.17
The hourly rate is also available to pay for the portion of child care services
that exceed 52.5 hours per week and is not included in the provider’s full-time
weekly or full-time monthly rate. The hourly rate may be used under these
circumstances only if the family uses a single child care provider to meet the
entire child care need.18
Ordinarily, providers are compensated on the basis of a single rate category,
unless using more than one category results in a lower payment.19
CARE OFFERED DURING NON-TRADITIONAL HOURS
For licensed providers who offer evening or weekend care, an adjustment
increases the maximum payment ceiling for full-time weekly, and part-time or
full-time monthly child care services under the following circumstances:
• When a child receives care between 6 p.m. and 6 a.m. on weekdays or
anytime on weekends, the provider’s usual payment rate is multiplied by
1.25 when more than 50 percent of the need for care occurs during this
period.20
• If more than ten percent but no more than 50 percent of the care occurs
during this time, the provider’s usual payment rate is multiplied by 1.125.
21
It is often complicated to determine the appropriate reimbursement rate
category, especially for low income families whose need for care differs from
traditional work hours and varies from week to week.22
CARE FOR CHILDREN WITH DISABILITIES
A rate adjustment applies to child care services provided to children with
exceptional needs, and a larger rate adjustment applies to services for severely
disabled children.
17
18
19
20
21
22
98
5 CAL. CODE REGS. § 18075(a).
5 CAL. CODE REGS. § 18075(a)(3).
5 CAL. CODE REGS. § 18076.
5 CAL. CODE REGS. § 18075.1(b)(1).
5 CAL. CODE REGS. § 18075.1(b)(2).
MPP § 47-401.13; 5 CAL. CODE REGS. § 18075.
Child Care Subsidies in California
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CHILDREN WITH EXCEPTIONAL NEEDS
For children with exceptional needs, the provider’s usual payment rate is
multiplied by 1.2.23 California law defines “children with exceptional needs”24 as:
• Infants and toddlers (0 through 36 months), who have been determined
eligible for early intervention services pursuant to the California Early
Intervention Services Act;25 and
• Children (3 through 21 years) who have been determined to be eligible for
special education and related services by an individualized education
program team.26
In order for the provider to receive the exceptional needs adjustment to her
usual rate, the child(ren) must have an active individualized family service plan
or individualized education plan, must be receiving early intervention services
or appropriate special education and related services, and must have specific
disabilities and require the special attention of adults in a child care setting.27 In
addition, the increase to the caregiver’s rate is permitted only when there is
documentation that the additional services and/or accommodations are being provided for
the particular child with exceptional needs, and such services and/or accommodations
result in an on-going financial impact on the child care provider.28
Note that the laws protecting people with disabilities, such as the Americans with
Disabilities Act (ADA), Section 504 of the federal Rehabilitation Act, and California’s
Unruh Civil Rights Act, generally prohibit providers from charging unsubsidized families
a higher rate for providing care for their child(ren) with disabilities.29 The underlying
policy encourages providers to distribute any additional costs of providing care for a
child with a disability across all of the families that pay for child care services. The
legislature has determined that public policy encouraging providers to serve subsidized
children with exceptional needs favors the state paying an increased rate to those
5 CAL. CODE REGS. § 18075.2(a)(1).
CAL. EDUC. CODE § 8208(l) (2010).
25
CAL. GOV’T CODE § 9500 et seq. (2010).
26
5 CAL. CODE REGS. § 56000 et seq.
27
CAL. EDUC. CODE § 8208(l) (2010). Children with special needs include children with mental
retardation, hearing impairments (including deafness), speech or language impairments, visual
impairments (including blindness), serious emotional disturbance (also referred to as emotional
disturbance), orthopedic impairments, autism, traumatic brain injury, other health impairments,
or specific learning disabilities
28
5 CAL. CODE REGS. § 18075.2(b).
29
42 U.S.C. § 12203 (2010); CAL. CIVIL CODE § 51(b) (2010); See CHILD CARE LAW CENTER, CARING
FOR CHILDREN WITH SPECIAL NEEDS: THE AMERICANS WITH DISABILITIES ACT (ADA) AND CHILD
CARE (2003) (Contact Child Care Law Center, [email protected] for a copy of this
publication).
23
24
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Chapter 6: Child Care Subsidy Payments
providers, since the subsidy is comprised of public funds contributed by all taxpayers.
Please contact Child Care Law Center, [email protected], with questions about the
application of the rate adjustment for children with exceptional needs or severely disabled
children.
SEVERELY DISABLED CHILDREN
Children who are severely disabled qualify for an adjustment rate of 1.5.30
California law defines “severely disabled children” as:
• Children with exceptional needs (birth through 21 years) who require
intensive instruction and training in programs serving pupils with the
following profound disabilities: autism, blindness, deafness, severe
orthopedic impairments, serious emotional disturbances, or severe mental
retardation; and
• Individuals who would have been eligible for enrollment in a
developmental center for handicapped pupils on January 1, 1980.31
As with children with exceptional needs, the extra payment rate for severely
disabled children is provided only when there is documentation that additional
services and/or accommodations for that particular child are being provided,
and such services and/or accommodations result in an on-going financial impact
on the provider.32
METHOD OF PAYMENT FOR VOUCHER-BASED CARE
DIRECT PAYMENT TO PROVIDER
Generally, payment for CalWORKs child care is made by the CWD/APP that
administers the subsidy directly to the licensed child care provider.33 In the case
of in-home license-exempt child care, California law allows agencies
administering child care subsidies to pay the CalWORKs parents, who are
expected to use the subsidy to pay their child care provider themselves.34 See
Chapter 5, for a discussion of employment law issues and information about
payment for license-exempt child care. DSS regulations allow providers to be
5 CAL. CODE REGS. § 18075.2(a)(2).
CAL. EDUC. CODE § 8208(y) (2010).
32
5 CAL. CODE REGS. § 18075.2(b).
33
CAL. EDUC. CODE § 8357(e) (2010).
34
CAL. EDUC. CODE § 8357(e) (2010) (stating that if care is provided in the home of the recipient,
payment may be made to the parent as the employer, and the parent shall be informed of his or
her concomitant legal and financial reporting requirements).
30
31
100
Child Care Subsidies in California
07-12
paid in advance of providing the child care, or afterwards,35 but the standard
practice of CWD/APPs is to pay providers in arrears.
PAYMENT FOR ABSENCES AND HOLIDAYS AND USE OF ALTERNATE PROVIDERS
In all child care subsidy programs, the law recognizes that some special
situations demand extra payments for care.
DSS CHILD CARE PROGRAMS
In CalWORKs Stage 1 child care, at county option, providers may be paid for
care during excused absences of the child or parent.36 Excused absences may
include family emergencies, court appearances, a child’s illness, or other
circumstances.37 Payment for excused absences may also include payment to a
provider who has a policy of payment on a fixed schedule, whether the child
attends or not.38 Some CWDs continue to pay for Stage 1 child care while the
parent is between welfare-to-work activities, particularly if the parent will
otherwise lose their licensed child care provider.
CDE CHILD CARE PROGRAMS
In CDE child care programs, when a child is absent the provider should still
be paid if the provider has a contractual policy of requiring unsubsidized
families to pay for absences.39 Up to 10 holidays per year are also compensated if
the provider has a contractual policy that requires unsubsidized families to pay
for holidays.40 Alternate providers may be used by a subsidized family and paid
for child care services if the regular provider has a paid holiday or if the child is
ill.41 Subsidy payments may not be made for hours a child is attending school.42
DELAYED OR LATE PAYMENT
CDE regulations require APPs to have a plan for timely payment of child care
providers.43 Although there is authority for requiring CWDs/APPs to pay
35
36
37
38
39
40
41
42
43
MPP § 47-420.22.
MPP § 47-401.9.
MPP § 47-401.91.
MPP § 47-401.92.
5 CAL. CODE REGS. § 18076.2(b)(1).
5 CAL. CODE REGS. § 18076.2(b)(2).
5 CAL. CODE REGS. § 18076.2(c).
5 CAL. CODE REGS. § 18076.2(d)(1).
5 CAL. CODE REGS. § 18226.
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Chapter 6: Child Care Subsidy Payments
providers in the same manner (weekly, monthly, etc.) as providers require
payment by their unsubsidized families,44 in practice, CWDs/APPs determine
their agency payment schedule and pay providers in accordance with the
agency’s schedule. Some CWDs/APPs pay providers semi-monthly, while most
issue payments on a monthly basis. It should be noted, however, that
CWDs/APPs almost always pay in arrears for services, even if the provider
requires unsubsidized families to pay in advance.
Many providers face the problem of delayed or late payments by the
CWD/APP. Delayed payments are those made after care is provided, and often
the following month, but on schedule with the APP’s payment plan. Late
payments are those made after the scheduled date for payment. Frequently,
CWDs/APPs withhold payments to providers due to the actual or alleged failure
of parents or providers to submit the requisite child care time sheet and other
documentation to the CWD/APP on a timely basis. Parents and providers often
complain that CWDs/APPs misplace documentation that has been provided and
unnecessarily delay payment.
Late payments are problematic for providers who tend to be small business
owners, often with no source of income other than child care. Child care
providers do not have the right to challenge DSS, CDE or APPs’ child care
subsidy decisions that affect them such as late payment, termination of a
subsidy, or an incorrect payment amount. When there is a dispute between the
provider and the CWD/APP regarding payment, there is no formal mechanism
for resolution available to the provider as a CWD/APP contractor.45 The first
option is to use the APP’s informal, internal “grievance” process which APPs are
required to have available for providers.46 Another alternative is to file a small
claims court action against the subsidy recipient. In addition, the parent
receiving the subsidy can file an appeal on behalf of the provider when late
payment of the provider jeopardizes the family’s child care, though there is some
question whether this option is available to families under CDE regulations if no
Notice of Action has been issued to the family.47 Please contact Child Care Law
Center for information, [email protected].
CAL. EDUC. CODE § 8222 (2010) ; CAL. DEP’T OF EDUC., MB 99-05 (1999).
The only option available to providers is the APP internal “grievance” process, which all
APPs are required to have in place. 5 CAL. CODE REGS. § 18223(c).
46
5 CAL. CODE REGS. § 18223(c).
47
MPP § 47-420.31; 5 CAL. CODE REGS. § 18120(a).
44
45
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Child Care Subsidies in California
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RETROACTIVE PAYMENTS
See Chapters 2 and 5 for discussion of retroactive payment policies.
CONTRACTED PROGRAMS PAYMENT PROCEDURES
Both the general rules and the payment methodology that apply to contracted
child care programs are very different from the rules and payment methodology
for voucher-based programs.
STANDARD REIMBURSEMENT RATE
Contracted programs are compensated based on the number of children they
serve and the number of days that child care services are provided. The payment
rate is called the “Standard Reimbursement Rate.”48 The California budget of
2009-2010 establishes this rate as $34.88 per child day of enrollment, or $8,595
per annum based on 250 days of operation.49
Reimbursement rates for contracted programs are adjusted based on the
following factors:
• The number of hours per day the child is in care.50
• The age of the child, with separate rates for infants and toddlers.51
• Whether the setting is a child care center or family child care home
education network.52
• If the child has exceptional needs or is severely disabled.53
• If the child is at risk of neglect, abuse, or exploitation.54
• If the child is limited-English-speaking or non-English-speaking.55
FAMILY FEES AND CO-PAYMENTS
Family fees and co-payments are two separate types of payments that parents
receiving subsidized care may have to pay. Parents are charged a family fee as
their share of the cost of care, based on their income and family size. Parents are
48
49
50
51
52
53
54
55
CAL. EDUC. CODE §§ 8265, 8265.1 (2010); 5 CAL. CODE REGS. §§ 18054, 18055.
CAL. EDUC. CODE § 8265(b) (2010); State Budget Act of 2007, item 6110-196-0001, provision 9.
CAL. EDUC. CODE §8266.1 (2010).
CAL. EDUC. CODE §8265.5(b)(1)-(3) (2010).
CAL. EDUC. CODE §8265.5(b)(1)-(3) (2010).
CAL. EDUC. CODE §8265.5(b)(4)-(5) (2010).
CAL. EDUC. CODE §8265.5(b)(6) (2010).
CAL. EDUC. CODE §8265.5(b)(7) (2010).
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Chapter 6: Child Care Subsidy Payments
required to pay a co-payment only if the family chooses a child care provider
who charges more than the maximum reimbursement rate. A family will have to
pay both a family fee and a co-payment if the family’s income is high enough to
require a family fee and the parents choose a child care provider who charges
more than the county’s reimbursement ceiling.
CO-PAYMENTS
In CalWORKs Stage 1, a co-payment is “the amount the client is responsible
to pay, if she or he chooses a child care provider who charges a fee higher than
the maximum child care subsidy payment rate.”56 Similarly, in CDE child care
programs, a family that chooses child care that costs more than the maximum
reimbursement ceiling must pay the extra as a co-payment directly to the
provider.57 CWDs/APPs are not required to monitor or ensure that parents
actually pay co-payments to their selected providers.
EXAMPLE: Maria and her 3-year old son live in Contra
Costa County. The maximum amount the subsidy
system will pay for full-time care in a family child
care home in Contra Costa County is $779.09 per
month.58 Maria chooses a provider who charges
$879.09 per month. Maria must pay a co-payment of
$100 per month, the difference between the amount
her provider charges and the subsidy reimbursement
rate ceiling.
MPP §§ 47-110(c)(2), 47-110(f)(1), 47-401.3.
5 CAL. CODE REGS. § 18076.1(a), (b) (which does not use the term “co-payment” but is clear in
its meaning: a family may choose a child care provider that charges more than the maximum the
subsidy will pay, but in that situation, the family is responsible to pay the difference between the
rate charged by the provider and the maximum payment rate). See also 5 CAL. CODE REGS. §
18109(a)(4) (“The fee assessed and collected shall be either the fee indicated on the fee schedule,
the actual costs of services or the contract maximum daily/hourly rate, whichever is least.”); 5
CAL. CODE REGS. §§ 18414(b) (Stage 2), 18429(b) (Stage 3).
58
DEP’T OF SOC. SERVICES, ACL 09-13, UPDATE TO ACL 09-03 AND CHANGES TO INSTRUCTIONS
REGARDING THE RMR PAYMENT CEILINGS AND FAMILY FEES (2009),
http://www.dss.cahwnet.gov/lettersnotices/entres/getinfo/acl/2009/09-13.pdf; CAL. DEP’T OF
EDUC., REIMBURSEMENT CEILINGS FOR SUBSIDIZED CHILD CARE (2009, effective 10/1/06),
http://www.cde.ca.gov/fg/aa/cd/ap/index.aspx.
56
57
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Child Care Subsidies in California
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FAMILY FEES
A “family fee” is a share of the cost of care that gradually increases as a
parent’s income increases. Family fees are calculated pursuant to a graduated fee
schedule established by the CDE, based on the State Median Income (SMI) for all
subsidized childcare.59 The fee schedule takes into account the family's income
and the family size to determine whether a fee must be paid at all and, if so, the
amount of the fee.60 Family fees may be charged whether the family is receiving
subsidized child care through a voucher-based or a contracted program.
Families begin to incur fees when their incomes reach slightly below 40
percent of the SMI;61 the fee amount increases as the family’s income grows.62
EXAMPLE: Mrs. Garcia has 2 children. Her monthly
income is $1,950. Based on the CDE fee schedule,, her
family fee is $2.00 per day for full-time child care. If
her monthly income increased to $3,628, her family
fee would be $17.25 per day.63
California law does not state definitively who must collect the family fee.
Instead, each CWD/APP must determine the method of collection. Many
agencies take responsibility for collection of family fees from parents, but others
deduct the family fee from the provider’s payment and require the child care
provider to collect the fee from the parent.64 This arrangement can lead to
problems, creating tension between parents and providers, or leading the
provider to forego fees because of the burden it places on low income families.
CAL. EDUC. CODE §§ 8263(f), 8263.1(a) (2010); 5 CAL. CODE REGS. §§18108, 18414, 18429; MPP §
47-401.8 (Stage 1); CAL. DEP’T OF EDUC., MB 06-16, CHANGES IN LAW AFFECTING ALTERNATIVE
PAYMENT PROGRAMS AND FAMILY CHILD CARE HOME EDUCATION NETWORKS UTILIZING THE
REGIONAL MARKET RATE CEILINGS. Federal law does not prohibit the charging of family fees, but
it does recommend reasonable restrictions so family fees do not exceed 10% of a family’s income.
See 63 Federal Register 39,960; 45 CFR § 98.43 (fees should be affordable and should not impede
access to child care).
60
CAL. EDUC. CODE § 8263(e), (f) (2010); MPP §§ 47-110(c)(2), 47-110(f)(1); CAL. DEP’T OF EDUC.,
MB 06-19, REVISED CHILD CARE AND DEVELOPMENT FEE SCHEDULE EFFECTIVE JANUARY 1, 2007 1
(2006), http://www.cde.ca.gov/sp/cd/ci/mb0619.asp [hereinafter MB 06-19].
61
MB 06-19.
62
See the Parent Voices website for information regarding that organization’s efforts to keep family fees
affordable, http://www.parentvoices.org.
63
MB-06-19.
64
5 CAL. CODE REGS. §§ 18221(h), 18226.
59
105
Chapter 6: Child Care Subsidy Payments
Families should always ask for and retain a receipt when they pay their family
fees, whether to the CWDs/APPs or directly to their provider.65
FAMILY FEES FOR CALWORKS CASH AID FAMILIES
In general, because the countable income level of most families receiving
CalWORKs cash assistance is so low, families do not meet the income level that
would require them to pay a family fee. However, because of differences in the
way DSS and CDE count income, some CalWORKs cash aid families receiving
CalWORKs Stage 2 child care were required to pay family fees. In many of these
families the parents were students, or only the children were receiving cash
assistance. Legal services advocates recognized that forcing these families to pay
family fees was inconsistent with welfare-to-work rules that require counties to
provide necessary supportive services (not to mention, nonsensical and
detrimental), and brought the issue to the attention of legislators. In October
2008, the law was changed to prohibit the charging of family fees to CalWORKs
cash aid families.66 CDE and many of its contractors were unhappy with this
provision, and worked to reverse it, but were unsuccessful. Finally, in
September 2009, CDE issued a Management Bulletin to its contractors informing
them of the prohibition on charging family fees to cash aid families67 and DSS
issued an All County Letter with similar information to its CWDs.68 At this
point, no CWD or APP should be charging a family fee to a cash aid family; if
you become aware of a situation in which fees are being charged, contact the
Child Care Law Center.
TERMINATION FOR NON-PAYMENT OF A FAMILY FEE
Families using subsidized care with a contracted center are delinquent in
paying fees after seven days from the date the fees were due. Families with
voucher-based subsidies are delinquent in paying fees on the date their provider
5 CAL. CODE REGS. §§ 18113(a).
CAL. EDUC. CODE § 8447(g) (2010).
67
CAL. DEP’T OF EDUC., MB 09-18, CHANGES IN LAW AFFECTING CHILD CARE AND DEVELOPMENT
PROGRAMS. "Effective immediately contractors should no longer be charging a family fee for child
care service to families in which any member of the family is receiving CalWORKs. Contractors
will continue to assess family fees for former CalWORKs cash aid recipients. However, for
families who continue to receive a CalWORKs grant on behalf of the children, such as safety net
and sanctioned families, a family fee will not be assessed.”
68
DEP’T OF SOC. SERVICES, ACL 09-57, CALWORKS PROGRAM UPDATES REGARDING THE REGIONAL
MARKET RATE, RESTRICTIONS TO THE DAILY RATE REIMBURSEMENTS, STATE MEDIAN INCOME, AND
FAMILY FEES (2009).
65
66
106
Child Care Subsidies in California
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notifies the APP that fees have not been paid.69 Families that are late in paying
their family fee should not be immediately terminated from subsidized child
care. Rather, the CWD/APP must inform the family about the effect of
nonpayment of fees via a Notice of Action (NOA). The notice must include:
• The total amount of unpaid fees;
• The fee rate;
• The period of delinquency; that is, how late the payment is; and
• The fact that child care services shall be terminated two weeks from the
date of the NOA unless all delinquent fees are paid before the end of the
two-week period.70
The agency administering the subsidy must work with the family and
attempt to schedule repayment of the delinquent fees, and must accept a
reasonable plan from the parents for payment of delinquent fees.71 However, the
CDE regulations are not clear as to whether the NOA must inform the family of
the fee repayment plan option. The contractor must continue to provide services
to the child(ren) so long as the parent(s) pays current fees when due and
complies with the provisions of the repayment plan.72 If the family fails to pay
the family fee even after this reconciliation process, the subsidy can be
terminated, and the family will be ineligible for a child care subsidy until all
delinquent fees are paid.73
69
70
71
72
73
5 CAL. CODE REGS. § 18114(b),(c).
5 CAL. CODE REGS. § 18114(d).
5 CAL. CODE REGS. § 18115.
5 CAL. CODE REGS. § 18115.
5 CAL. CODE REGS. §§ 18116, 18414 (Stage 2), 18429 (Stage 3).
107