Child Care and Development Fund, Report to Congress for Fiscal Years 2002 and 2003
ADMINISTRATION
States indicate that CCDF Lead Agencies are working in partnership with multiple Federal, State, Tribal, and local entities to administer CCDF funds. Many Lead Agencies directly administer funds for child care services through child care certificates, vouchers, or contracting with child care programs to serve families that are eligible for child care assistance. However, all of the Lead Agencies contract with at least one other entity to assist them in administering funds to improve the quality and availability of child care.
In some cases, States devolved substantial administrative responsibility for CCDF to local jurisdictions. In a number of States, including California, Colorado, and Indiana, administrative responsibility for CCDF is at the county level. Other States, such as Texas and Florida, granted the authority to administer CCDF at the local level to nongovernmental entities created by statute.
State Flexibility
States have significant flexibility in administering and funding child care assistance programs under CCDF and TANF. Almost half of the States (24) indicate they give families participating in TANF first priority for child care assistance. However, a few States use the flexibility under CCDF to establish eligibility requirements, family co-payment amounts, reimbursement rates, and funding levels that allow them to provide child care services to all eligible low-income working family applicants without regard to TANF status.
Eligibility
In the FY 2002-FY 2003 Biennial State Plans, maximum family income eligibility levels across States ranged from 39 to 85 percent of the State Median Income (SMI) (or 122 to 325 percent of the Federal Poverty Level assuming a family size of three).
While four States and three Territories reported they set the income eligibility ceiling at 85 percent of the SMI, the Federal maximum, most set eligibility at a lower level in order to prioritize families with very low incomes. On average, States reported an income eligibility level equivalent to 62 percent of SMI.
Most States use pretax gross income, usually expressed in monthly terms, to determine if a family is eligible to receive child care assistance. However, some States exclude or exempt certain income, or allow deductions to income for certain expenses. Most commonly, States exclude or exempt income received from certain public assistance programs such as TANF, Supplemental Security Income, Volunteers in Service to America (VISTA), food stamps, energy assistance, and housing allotments.
In their definition of "working," 15 States indicate that parents must work a certain number of hours per week or month to qualify for child care assistance. The hours specified range from 15 to 35 hours per week.
Priorities
States decide whether to target certain populations or to treat all families the same regardless of welfare receipt status or history. Twenty-four States give families currently receiving, at risk of receiving, or transitioning off TANF first priority for child care assistance. Eleven States indicate that first priority is given to families that include a child with special needs, as defined by the States. Other States give priority to teen parents, non-TANF teen parents with no high school or general education diploma, families with medical emergencies, parents who are students in postsecondary education, parents in homeless or spousal-abuse shelters, children in protective services or foster care, and children in need of before- and after-school care.
Family Contributions to the Cost of Care
States are required to establish a sliding fee scale, based on income and family size, whereby families receiving services through CCDF contribute to the cost of care. Some States use other factors including the price of care, the State reimbursement rate, or both, in determining the amount of co-payments. In the FY 2002-FY 2003 Biennial State Plans, close to 75 percent of States indicated that co-payments were based on a percentage of family income. Of these States, co-payments were also based on other factors, such as number of children receiving care, number of hours in care, the cost of care, whether care is full- or part-time, and years of participation in CCDF.
States may choose to waive co-payments for families with income below the Federal Poverty Level. Five States require all families to pay a fee. Twelve States waive fees for all families with income at or below the poverty level. Thirty-three States waive fees for some families with incomes at or below the poverty level.
In addition to assessed family co-payments, many States allow providers to charge families the difference between their usual and customary rates and what the State reimburses. Fourteen States reported that they prohibit providers from charging fees in addition to the co-payments established by the State. Three additional States said that they prohibit some, but not all providers from charging families fees in addition to the established co-payments. Of the 17 States that have prohibitions against additional charges, many said providers may charge fees such as late charges or costs related to registration, transportation, and field trips.