Early Learning Action Alliance
Subsidy Issues for Consideration on 2010 Legislative Agenda
Elements of HB 1754:
1. Change the child care eligibility re-authorization from the current maximum of “up to six months”, to twelve months. Currently, the average authorization is closer to three months and in some instances, authorization periods are even shorter. There are several problems that would be addressed if this policy were changed:
a. It would promote continuity of care by reducing the number of different child care providers a child is placed with (we know that each transition to a new caregiver is very difficult for the children).
b. Amount of money spent on the constant re-authorization process, which results in both overpayments and underpayments, would decrease.
c. It would make tracking for providers clearer and easier, which would also have a positive impact on overpayments etc.
2. Hold the amount families are charged for child care co-pays to no more than 10% of the family’s gross monthly income. Several national studies have indicated 10 percent as the highest percentage of a family’s income that should be charged for child care co-pays. When it is too high for families to pay, providers often have to decide whether or not to just "eat" the unpaid co-pay or terminate care.
3. Expand the number of allowed absences per month from the current five days to ten days. The City of Seattle currently allows up to 10 days based on the often chaotic lives of low income families (problems with transportation, jobs with no sick leave, frequent moves etc.). This supports providers who care for these children as well, since providers are forced to “eat” the cost of extra absences, which sometimes forces them to make difficult decisions between accepting an increase in the cost of care versus terminating care for a child.
The following items came up, in addition to the ones already identified in HB 1754, in the recently completed child care provider survey. Currently, members of the Subsidy/Co-Pay Task Force are researching them.
4. Extending working connections child care to those families NOT on TANF who have lost employment, up to three or four months, to prevent interruption in care and support the families in their job search.
5. Providers would like to receive child care termination letters at the same time as the parents do. There is currently a requirement that parents receive advance notice prior to termination, but the same requirement is not in place for providers. This often results in unnecessary overpayments and confusion.
6. The issue of whether or not to exclude child support payments from the calculation of eligibility and co-pays for working connections child care is being looked into. This is very complicated because child support often comes in erratically and rarely at the amount imputed by the judge. Using net income instead of gross would be another way to address this issue.