1

Child Care Financial Assistance – System Reform:State Trends & Strategies, How Effective

TA Can and Will Support States

Dallas Cross-Regional MeetingApril 8-10, 2015

National Center on Child Care Subsidy Innovation and Accountability

2

Child Care Subsidy: Reauthorization Topics

• Eligibility

• Payment Rates and Policies

• Serving Vulnerable Populations including Homeless Children

• Increasing the Supply of Quality Care

3

Eligibility Policies: Family Friendly/Continuity of Care

• No Less than 12 month redetermination

• Authorization periods

• Aligning with other programs

• Eligibility processes – Reporting Requirements

• Protections for Working Families

• No less than 3 Month Job Search

• Graduated Phase Out

4

Eligibility: Where States are Now

• 29 States/Territories have 12 month eligibility period– Over half align with other programs• 7 with EHS/HS• 15 with TANF and/or SNAP

– Actual periods much shorter due to “churn”– One State with 12 month eligibility found 35% of children had actual

eligibility > 4 months

• 18 States have “tiered eligibility”– Family > 150% FPL is not eligible in 15 States– Family > 200% FPL is not eligible in 38 States– Per Economic Policy Institute, 200% FPL is necessary to meet basic

needs

5

Eligibility: Where States are Now

• 48 States/Territories provide some assistance for Job Search– 38 include new applicants

• Length of Job Search varies:– 1 – remainder of the month– 5 – fewer than 30 days– 16 – 30 days– 21 –30-90 days– 3 – more than 90 days

• Actual unemployment episodes average 3.5 months

6

Eligibility: Child Care Subsidy TA

• Regional Webinars– 3-4 in July 2015

• Review and Feedback on State Policy Changes– One-on-one discussions

• Peer to Peer discussions– Small group – Similar States

• Written products

7

Payment Rates/Policies

• Timely Payments

• Generally Accepted Payment Practices

• Methods of Payment

• Absence Days

• Market Rate Survey & Alternative Methodologies

• Linking Rates to Quality

8

Payment Rates/Policies: Where States are Now

• 39 States allow absence dayso Number of days allowed varies significantly

o Many States have restrictions around claiming absence days

• Differential and tiered rates:o 36 States/Territories have higher rates linked to quality (as defined by

State)

o Even with Tiered Payments, most still fall short of the 75th Percentile

o 11 States/Territories have differential rates for non-traditional hours

9

Payment Rates/Policies: Child Care Subsidy TA

• Regional Webinars– 3-4 in June/July 2015

– Focus on implementation

• Review and Feedback on State Policy Changes

• Peer to Peer discussions

• BUILD Initiative meeting – July 2015

• Written products

10

Serving Vulnerable/Homeless Children:

• Serving homeless families

• Identifying vulnerable populations– Children in Underserved Areas

– Infants and Toddlers

– Children with Disabilities

– Children with non-traditional hour needs

• Eligibility processes– Presumptive eligibility

11

Serving Vulnerable/Homeless Children: Where States are Now

• 37 States/Territories have differential rates for children with special needs

• Definition of Homelessness– McKinney-Vento Homelessness Act of 1987

• Most States do not have policies specific to Homeless Children and Families in Shelters– Hardship of application and eligibility processes

12

Serving Vulnerable/Homeless Children: Child Care Subsidy TA

• Regional Webinars

o 2-3 in August 2015

o Focus on implementation issues and strategies

• Resource Materials on Homelessness and Families in Shelters

• Peer to peer discussions

• Policy/procedure review and feedback

• Written products

13

Increasing Supply of Quality Care

• Understanding the Current Supply IssuesMarket rate survey/alternative methodologies

• Evaluating and setting payment rates

• Sliding fees and affordability

• Grants and contracts

• Early Head Start and Head Start partnerships

• Payment practices

14

Increasing Supply of Quality Care: Where States are Now

• 43 States/Territories use grants or contracts to:o Increase the supply of specific types of careo Support higher quality programso Support programs offering comprehensive serviceso Serve underserved families

• Of the States that use grants or contracts:o 8 – serve children with special needso 9 – provide wrap-around/integrated care (EHS, HS, pre-k)o 9 – serve infant/toddlerso 6 – serve specific geographical areas

15

Increasing Supply of Quality Care: Child Care Subsidy TA

• Regional Webinars– 3 in May 2015

– Focus on implementation strategies

• Peer to peer discussions

• Policy/procedure review and feedback

• Written products

16

DISCUSSION