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HomeMy WebLinkAboutAgenda - 11-19-1996 - 10a 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No..062=—k ACTION AGENDA ITEM ABSTRACT Meeting Date: November 19, 1996 SUBJECT: Child Day Care Subsidy Program Status Report DEPARTMENT: Social Services PUBLIC HEARING: YES NO X INFORMATION CONTACT Marti Pryor-Cook, Ext. 2802 TELEPHONE NUMBERS Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To provide an update on child day care programs due to recent legislation. BACKGROUND: Due to Welfare Reform, federal legislation consolidated funding sources for child care into what is now called the Child Care and Development Fund (CCDF). The majority of these funds are to be used to support employment for welfare recipients, those transitioning off welfare, and families at risk of going on welfare. At the state level, CCDF funds are combined with Social Services Block Grant (SSBG) and state funding to comprise Orange County's day care allocation. This consolidation facilitates seamless policy and procedures regarding prioritization of families for child care subsidy,parent fees and income limits, and market rates. ALLOCATION Orange County received an allocation for the current fiscal year of$1,751,110.00. While this appears to be a very large allocation, it is just above our expenditure level for the past fiscal year of$1,505,533.00. Until passage of the Welfare Reform Legislation by Congress, there was uncapped funding for families who qualified for the various Public Assistance Programs (AFDC and JOBS); therefore, there was no allocation for these families and they were able to receive child care subsidy as an entitlement benefit. The result is that the agency will now have to prioritize the needs of these families with the needs of the families who have been eligible under other funding sources. WAITING LIST PRIORITIES DSS has always prioritized abused and neglected children and foster children and our plan is to continue to prioritize these children to protect them and to support permanent plans for them. Federal funds prioritize working families who are on welfare, transitioning off f 2 welfare, and at risk of being on welfare. Therefore, our priorities for the child care subsidy program are as follows: 1. Child Protective Services 2. Child Welfare Services 3. Employment a. Child Protective Services(employed after one year) b. Foster children c. Work First participants d. Other AFDC clients who are employed e. Clients leaving AFDC who need child care in order to work(Former Transitional clients). E Low Income working famililes(30 hours per week minimum) 4. Training a. High School students b. Students in technical/skill development programs of less than two years in duration c. University or college students who are AFDC recipients 5. Children with development delays NOTE: Children with special needs have state priority up to 4%of our allocation. PARENT FEES AND INCOME ELIGIBILITY LIMITS, Recent state legislation has changed the income eligibility limits and parent fees for subsidized child care. The maximum income eligibility limits for families have been raised to 75% of the state median income. While this measure extends a family's eligibility for subsidy, parent fees will be assessed at higher rates: 7%, 8%, or 9%. As such, low-income families who may not have shared in the cost of child care under the previous policies may find it difficult to pay up to 9% of their gross income for child care. However, the revised system does require that most families pay some share of the cost of their child's care and increased parent fees .will reduce the DSS share for each family which will result in more families being served for the same government dollars. Please see established limits for child day care services listed below: ESTABLISHED INCOME LIMITS FOR CHILD DAY CARE SERVICES Income Unit Size 1 2 3 1 4 1 5 1 6 Maximum Gross Monthly Income $1,449 $1,895 $2,341 $2,786 $3,232 $3,678 Income Unit Size 7 8 9 10 11 12 Maximum Gross Monthly Income $3,762 $3,845 $3,929 $4,012 $4,096 $4,180 MARKET RATES New policies regarding market rates will change the rate structure that we have in Orange County. Counties are now required to pay child care providers either their charge for child care or the county market rate. Previously in Orange County, a rate less than market had 3 been negotiated with some child care providers who met minimum licensing requirements and who employed-less than 50% of their teachers with a teaching credential. However, since market rates have not increased in Orange County for two years and minimum wage increased in October impacting on many child care providers, the new requirement to pay the provider's charge or market seems fair. Listed below are the market rates for Orange County: ORANGE COUNTY MONTHLY MARKET RATES CENTERS HOMES Infant/Toddler $550. $410. 2's $481. $410. 3-5 $457. $410. School Age $432. $410. RECOMMENDATION: The Manager recommends that the Board receives the report as information. 4 CHILD DAY CARE SUBSIDY PROGRAM STATUS REPORT Due to Welfare Reform, federal legislation consolidated funding sources for child care into what is now called the Child Care and Development Fund(CCDF). The majority of these funds are to be used to support employment for welfare recipients, those transitioning off welfare, and families at risk of going on welfare. At the state level, CCDF funds are combined with Social Services Block Grant (SSBG) and state funding to comprise Orange County's day care allocation. This consolidation facilitates seamless policy and procedures regarding prioritization of families for child care subsidy,parent fees and income limits, and market rates. ALLOCATION Orange County received an allocation for the current fiscal year of $1,751,110.00. While this appears to be a very large allocation, it is just above our expenditure level for the past fiscal year of $1,505,533.00. Until passage of the Welfare Reform Legislation by Congress, there was uncapped funding for families who qualified for the various Public Assistance Programs (AFDC and JOBS); therefore, there was no allocation for these families and they were able to receive child care subsidy as an entitlement benefit. The result is that the agency will now have to prioritize the needs of these families with the needs of the families who have been eligible under other funding sources. WAITING LIST PRIORITIES DSS has always prioritized abused and neglected children and foster children and our plan is to continue to prioritize these children to protect them and to support permanent plans for them. Federal funds prioritize working families who are on welfare, transitioning off welfare, and at risk of being on welfare. Therefore, our priorities for the child care subsidy program are as follows: 1. Child Protective Services 2. Child Welfare Services 3. Employment a. Child Protective Services(employed after one year) b. Foster children c. Work First participants d. Other AFDC clients who are employed e. Clients leaving AFDC who need child care in order to work(Former Transitional clients). f. Low Income working famililes(30 hours per week minimum) 4. Training a. High School students b. Students in technical/skill development programs of less than two years in duration c. University or college students who are AFDC recipients 5. Children with development delays NOTE: Children with special needs have state priority up to 4%of our allocation. 5 PARENT FEES AND INCOME ELIGIBILITY LIMITS Recent state legislation has changed the income eligibility limits and parent fees for subsidized child care. The maximum income eligibility limits for families have been raised to 75% of the state median income. While this measure extends a family's eligibility for subsidy, parent fees will be assessed at higher rates: 7%, 8%, or 9%. As such, low-income families who may not have shared in the cost of child care under the previous policies may find it difficult to pay up to 9% of their gross income for child care. However, the revised system does require that most families pay some share of the cost of their child's care and increased parent fees will reduce the DSS share for each family which will result in more families being served for the same government dollars. Please see established limits for child day care services listed below: ESTABLISHED INCOME LIMITS FOR CHILD DAY CARE SERVICES Income Unit Size 1 2 3 4 5 6 Maximum Gross Monthly Income $1,449 J $1,895 $2,341 $2,786 $3,232 $3,678 Income Unit Size 7 8 9 10 1 11 12 Maximum Gross Monthly Income $3,762 $3,845 $3,929 $4,012 1 $4,096 J $4,180 MARKET RATES New policies regarding market rates will change the rate structure that we have in Orange' County. Counties are now required to pay child care providers either their charge for child care or the county market rate. Previously in Orange County, a rate less than market had been negotiated with some child care providers who met minimum licensing requirements and who employed less than 50% of their teachers with a teaching credential. However, since market rates have not increased in Orange County for two years and minimum wage increased in October impacting on many child care providers, the new requirement to pay the provider's charge or market seems fair. Listed below are the market rates for Orange County: ORANGE COUNTY MONTHLY MARKET RATES CENTERS HOMES infant/Toddler $550. $410. 2's $481. $410. 3-5 $457. $410. School Age $432. $410.