Appendix II: Child Care Eligibility for CalWORKs Recipients and Non-Recipients
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In the latter days of the AFDC program, two different subsidized child care systems existed, one generally supervised by the state Department of Education and consisting of a patchwork of programs authorized by the Child Care and Development Services Act (Education Code § 8200, et seq.), and the second -- for AFDC recipients and former recipients -- by the state Department of Social Services by way of the old child care income disregard, GAIN and Non-GAIN child care, California Alternative Assistance Program, and Transitional Child Care programs. Under the CalWORKs statute, uniform eligibility criteria have been developed governing all subsidized child care programs (Education Code § 8263) which will operate under protocols drafted by the Department of Education. This consolidation is reflected in the requirement that child care resource and referral programs be located at the welfare department, if possible. Education Code § 8352.
Financial Eligibility
Eligibility for subsidized child care is not limited to CalWORKs recipients, and includes families with up to 75% of the state median income, currently $30,036 per year for a family of three. Availability of such subsidies, however, will be subject to funding. Education Code §§ 8263(a)(1)(B) & (b)(2), 8263.1. (See also Education Code § 8354(b), referring to post-CalWORKs continuity of child care and subsidies; and ACL 97-73 and ACL 98-46, the Department of Social Service's implementation instructions for child care under CalWORKs.)
Families whose children were in subsidized child care on January 1, 1998, and whose income is between 75% and 100% of the state median cannot be displaced from programs so long as they meet the program criteria in effect on that date. Education Code § 8263.1(b).
Child care subsidies may be used to pay for child care which is exempt from licensure. Education Code § 8208.1. For families transitioning off of CalWORKs, the law's intention is to ensure continuity of child care and of child care subsidies. Education Code § 8354(b).
Age of Children
Subsidized child care is theoretically available for children up to age 14, or age 21 if "severely handicapped." Education Code §§ 8201(a), 8208(h) and (x). There is no age limit if the child is at risk of abuse, neglect or exploitation. Education Code § 8208(j) and (l). However, most child care programs set their own age limits.
Eligibility Criteria and Priority
A family seeking child care subsidies must meet one criterion in each of two categories, and have a high priority:
- Category 1 (Education Code § 8263(a)(1)):
- The family must be either a current CalWORKs recipient, an income eligible family, a homeless family, or a family with an abused, neglected or exploited child.
- Category 2 (Education Code § 8263(a)(2)):
- In addition, the family must need child care because:
- the child is identified by a legal, medical or social service agency or emergency shelter as: a recipient of Child Protective Services; or neglected, abused or exploited or in danger of neglect, abuse or exploitation; or having a medical or psychiatric special need requiring child care,
- OR
- the parents are engaged in vocational training leading to employment; or employed or seeking work; or seeking permanent housing; or so incapacitated as to require child care.
- Priority for Child Care Assistance (Education Code § 8263(b)):
- In granting child care subsidies, priority will be given to applicants in the following order:
- neglected, abused or exploited children in Child Protective Services; or children at risk of neglect, abuse or exploitation.
- income eligible families, with families with the lowest gross income in relation to its family size assisted first, and families of equal incomes assisted according to their length of time on the applicable waiting list.
The CalWORKs statute also permits Local Child Care Development and Planning Councils (whose members are appointed by the county board of supervisors and the superintendent of schools) to draft additional local priorities the use of child care funds for consideration, and possible adoption, by the board of supervisors or superintendent of schools. Education Code §§ 8499.3(a), 8499.5(b).
The Three Stages of Subsidized Child Care
CalWORKs recipient families pass through the child care system in three stages, with welfare department involvement diminishing as the family becomes more stable and ultimately leaves the CalWORKs program. Thus, only the first stage of child care is directly supervised by the welfare department. Education Code §§ 8350 and 8351. Most CalWORKs recipients and recent former recipients will be in the first two stages.
The child care system for CalWORKs families is supposed to operate as follows:
- Referral to a Child Care Provider
- The welfare department will refer families needing child care to the local child care resource and referral program. This program must then give the family at least four referrals, at least one of which must be independent of the resource and referral program. The program must also advise the family of their right to choose a license-exempt provider, and may refer the family to such a provider. Education Code §§ 8216, 8225, 8352. While the availability of unlicensed care broadens the availability of child care, the family should not be pushed into accepting such care just because it may be cheaper for the county.
- Stage 1:
- Applicable to current or former CalWORKs recipients, this stage extends from when a recipient begins "welfare-to-work activities" and continues until the child care need is "stable" (up to six months, but may be extended if the participant's situation is still unstable). Education Code § 8351(a). The criteria for "stability" are apparently up to the county, and should be given close scrutiny by advocates.
- Stage 2:
- This stage begins when the participant=s welfare-to-work activity is stable, or when the participant is transitioning off of aid and child care is available. This stage can last up to two years after the recipient is no longer eligible for CalWORKs. Education Code § 8353. This can be an important distinction if funding for stage 3 child care is scarce. For example, if an eligible CalWORKs recipient chooses to leave the program, she arguably should be able to receive stage 2 child care until she is no longer eligible for CalWORKs plus the two years after she became ineligible for CalWORKs.
- Stage 3:
- This stage begins when "funded child care space is available" for CalWORKs recipients, for diversion payment recipients (to avoid CalWORKs), or for regularly employed CalWORKs participants with an income up to 75% of the state median. Education Code § 8354.
- Supervision of stages:
- The county welfare department supervises stages 1 and 2 as well as a CalWORKs recipient's transition between stages 1 and 2. Education Code § 8351(a); Welfare and Institutions §§ 11323.6, 11323.8. For child care providers supervised or paid by the county, disclosure of certain information must be made to CalWORKs participants, including hours of availability and rates charged, character references, statements of qualifications and experience, criminal record, etc. Welfare and Institutions § 11324. The state Department of Education is to supervise programs administering stages 2 and 3. Education Code § 8354(a).
Rights of Child Care Recipients
A CalWORKs recipient or former recipient has the right to:
- No break in child care services as the family transitions between stages or off of CalWORKs (Education Code § 8350(b))
In addition, by January 31, 1998, the state Department of Education will be required to implement quality control standards and complaint procedures governing unlicensed child care providers. Education Code § 8358.
Child Care Payments
- CalWORKs Recipients: Reimbursement and Direct Provider Payment
- Until June 30, 1998 (six months after the effective date of the statute), the county will reimburse the CalWORKs recipient for child care expenses up to the allowable rate (see below). The county will thereafter directly pay the child care provider. Education Code § 8537(e).
- Non-CalWORKs Recipients: Direct Provider Payment
- Child care subsidies operate on a sliding scale which diminish as a family's income approaches 75% of the state median. If the rates charged by the family's child care provider are within state guidelines, no family co-payment will be required until the family=s income exceeds 50% of state median. As of December 1997, a co-payment of $1 (part-time care) or $2 (full-time care) per child is required from families of two earning $1557 per month, families of three earning $1669, families of four earning $1884, and families of five earning $2151. As the family income reaches 75% of the state median ($2336 per month for a family of two, $2503 for three, $2781 for four, $3226 for five) these co-payments go up to $4.55 and $9.10 per day per child for part-time and full-time care, respectively. The fee schedule from which the stated rates were taken (see Attachment 1) was last set in October 1997, and a new proposed schedule will probably go into effect around June 1998.
Provider Payment Rates
The child care subsidy payment rate is governed by regional market rates and capped at 1.5 standard deviations of the mean rate for all providers in the community. Education Code § 8357(a). Provider reimbursement rate ceilings are set by the Superintendent of Public Instruction. Education Code § 8265.
Payment or reimbursement will not be made for child care provided by parents, legal guardians, or assistance unit members. Education Code § 8357(c).
Before and After-School Programs
Funding for before and after-school programs is permitted. Education Code § 8481(a)). Such programs must be a collaborative effort with the local school district, and should encourage the hiring of parents and siblings receiving CalWORKs benefits to work in the program. Programs which do so will have preference for state funding. Education Code §§ 8481(e) and (g).
Rules and Regulations Governing Child Care
Rules and regulations on eligibility, enrollment and priorities for subsidized child care are to be promulgated by the state Superintendent of Education. Education Code § 8263. Unfortunately, the statute does not set a date by which these regulations must be in place.
