HomeMy WebLinkAboutAgenda - 11-11-2014 - 3ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 11, 2014
Action Agenda
Item No. 3
SUBJECT: Update on Employment and Child Care Programs Operating at Social Services
DEPARTMENT: Social Services PUBLIC HEARING: (Y /N) No
ATTACHMENT(S):
Child Care Eligibility Chart
Market Rate Chart
INFORMATION CONTACT:
Nancy Coston, 919 - 245 -2800
PURPOSE: To receive an update on Department of Social Services (DSS) employment
programs and child care services and to provide feedback to staff on the use of County funds to
support these efforts.
BACKGROUND: One of the important missions of the Department of Social Services is to help
low income families increase financial self- sufficiency. Staff plans to provide the Board of
County Commissioners (BOCC) with information about some of the employment and training
activities currently provided at DSS and some of the barriers faced by low income working
families. These programs include Work First, Food and Nutrition Employment and Training,
and the Building Futures Youth Employment and Training Program.
Many of the families served at DSS also need child care subsidy to support either work or child
safety. Recent changes by the North Carolina General Assembly to eligibility rules and a
budget cut related to updated census data have created a crisis in the child care program at
DSS.
Before the summer recess and before the General Assembly approved its budget, the BOCC
was informed about the possibility of some of these changes. At a Board budget work session,
an adjustment to the Social Services (DSS) budget was made with the understanding that these
additional funds would be used to serve any families losing eligibility due to the income changes
until this issue could be revisited by the BOCC. DSS has been studying the impact of these
various changes and is seeking guidance from the BOCC about the use of County funds to
support some of the impacted children and families. The attached chart summarizes the
changes and recommendations that have been discussed by the Social Services Board.
FINANCIAL IMPACT: Since this is an informational item and relates to funding in the approved
DSS budget, there is no financial impact.
RECOMMENDATION(S): The Manager recommends that the Board receive and discuss the
update information provided by the Department of Social Services and provide feedback on the
use of County funds to support child care and employment activities.
Child Care Eligibility Changes
October 2014
Change
Anticipated Impact
Current Practice
Staff Recommendations
Income Eligibility Changes
Although there is minimal
Although the state policy
Continue paying for three months of care to allow longer
For any annual reviews after
impact on children under 6,
requires only a ten -day notice,
notices to families.
October 1, 2014, income
many families with part-time
DSS is giving families three
eligibility changes from 75%
care now have a fee higher
month notices of this change
Total for 8 months of $60,000
median income to 200%
than the cost of the care.
and utilizing county funds to
Federal Poverty Level for
pay for that care. This was
children 0 -5 and to 133% for
85 families total thru May
based on the discussion with
children 6 -12. This will cause
2015
the BOCC during the budget
many working parents to lose
negotiations.
child care.
Cost of $7,500 per month
Fee Increases and Change in
This mostly impacted large
This change has been
Implement state policy but note potential impact on
Part -time Care
families (whose fees were
implemented for all cases and
summer costs. Families who meet eligibility criteria but
Effective October 1, 2014,
previously a smaller
was not phased in during
would be assessed a fee higher than the cost of the part-
regardless of cost of care
percentage of income) and
reviews.
time plan are being placed in "eligible but suspended
(including part time and
families with part-time care
status." These families will be automatically eligible for
afterschool), parents now pay
(fee is no longer prorated for
full-time care in the summer and should not be placed on
10% of monthly gross income
part-time care) who must all
the bottom of the wait list. There is a possibility that DSS
as their fee. This will represent
now pay higher fees. In
will not have enough state subsidy funds to cover those
a significant increase for some
some cases these two
costs neat summer. Not assisting these families will
families, particularly those with
changes will cause families
create significant hardship for these working families and
large families and part-time
to have a higher fee than the
DSS would recommend using county funds for this if
care.
actual cost of care.
state subsidy is not available.
Inclusion of Relatives' Income
25 families total through May
Will affect families as reviews
Provide county funds to support any relative cases with
Effective January 2015, income
2015.
are completed starting January
needs related to child welfare when family is working
from relatives not currently
2015
with assigned prevention worker. Utilize one of the
counted for eligibility and fees
Cost of $11,000 per month
positions available after the termination of the school
will have to be included. This
social work contract, funded partially through Medicaid
will have a significant impact
Administrative Claiming, to provide comprehensive
on grandparents, aunts and
services to these families.
uncles who are providing
homes for children and may
also cause an increase in foster
care
Market Rate Increase
A rate increase was approved
for providers which may also
impact how many children can
be served with the subsidy
funds.
All market rates will increase
effective January 2015. The
cost of the increase for this
fiscal year is estimated at
$150,000- 200,000.
See attached market rate
increase chart.
Implement state policy
Decrease in Subsidy for
Currently DSS is
The BOCC provided DSS with $500,000 in the current
Orange County
overspending the state
budget for children on the wait list. Given the cut, DSS
For several years, the state has
allocation although an
recommends using county funds to continue services to
not rebased subsidy allocations
additional allocation for this
eligible families currently being served if state funds are
using the available census data.
year of $290,000 is now
not sufficient to cover this care.
This year begins a six -year
expected. State funds may be
cycle to implement this
exhausted before the end of
rebasing and Orange County's
the fiscal year even with the
allocation has decreased by
wait list for working families.
approximately $700,000. The
second phase of the
implementation will occur in
July 2016.
Wait List
Working families will wait
Only target populations (child
Although the BOCC provided funds for the wait list,
There are currently 276 children
longer for child care. The
protective services and foster
DSS recommends delaying serving any of those families
on the wait list and they are
current wait list began in
care, Work First training,
until the costs of providing longer notices to ineligible
being assessed to see how they
May 2014.
adolescent parents in high
families and of providing subsidy for child welfare
are impacted by the new
school, and homeless children)
relative cases is known. If after these changes, budget
policies.
are currently being served
projections for the year allow for more children to be
without being placed on the
served, working families on the wait list will be served in
wait list. All other families
the order they were placed on the list. Spending will need
are being placed on the wait
to be monitored since the next fiscal year will begin in
list if they meet the new
June 2015 and it is less likely that Orange County will
criteria.
receive a supplemental allocation next year.
Infant & Toddler Rates
Three Star: $892
Four Star: $943
Five Star: $1009
Infant & Toddler Rates
Three Star: $958
Four Star: $1009
Five Star: $1080
2007 Subsidized Child Care Market Rates
2 -Year Old Rates
Three Star: $760
Four Star: $798
Five Star: $853
3 -5 Year Old Rates
Three Star: $708
Four Star: $752
Five Star: $795
2015 Subsidized Child Care Market Rates
2 -Year Old Rates
Three Star: $840
Four Star: $883
Five Star: $950
3 -5 Year Old Rates
Three Star: $752
Four Star: $805
Five Star: $869
School -Age Rates
Three Star: $534
Four Star: $565
Five Star: $585
School -Age Rates
Three Star: $551
Four Star: $587
Five Star: $622
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