Child Care and Development Fund, Report to Congress for Fiscal Years 2004 and 2005
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PAYMENT RATES
States must conduct market rate surveys every 2 years and must use the results in establishing child care provider payment rates that ensure that families receiving CCDF assistance have equal access to comparable care purchased by private paying families. Twenty-three States and three Territories indicated that they set reimbursement at levels equal to or higher than the 75th percentile of the local market rate. (This means that the State’s maximum rates are equal to or more than the price of 75 percent of child care slots in the market). However, eight of these States indicated that rates were established at the 75th percentile of a prior year market rate survey. For most States, reimbursement rate ceilings for center-based care remained constant as compared to the FY 2002–2003 Plan Period. Between 20 and 25 percent of States increased rate ceilings for infant, toddler, and preschool care, while approximately 10 percent decreased rate ceilings for such care. In 15 percent of States, maximum rates for school-age child care rose, while maximum rates for such care decreased in 18 percent of States.
Nineteen States implemented a tiered reimbursement system whereby providers are paid more if they can demonstrate that they offer higher quality care.
Limitations on the Use of In-Home Care
States must allow the use of in-home care but may set limits on its use. While 17 States indicated that they do not limit the use of in-home care (down from 22 in the FY 2002–2003 Plan Period), 33 States said they do impose limits in some way, mostly for financial reasons (up from 28 in the FY 2002–2003 Plan Period). Some of the States that impose limits require that a sufficient number of children be in care to ensure that the provider receives a minimum wage. For example, Idaho, Indiana, Iowa, Nebraska, and Wisconsin limit in-home care to families in which three or more children require child care while Delaware sets the minimum number at four children.
Processes With Parents
Thirty States plus the District of Columbia and Puerto Rico reported that an entity other than the Lead Agency determined eligibility for non-TANF families, TANF families, or both. Sixteen States are using the Internet to disseminate information about child care subsidies or help families request applications for assistance (up from four in the FY 2002–2003 Plan Period). Thirty-eight States indicate they allow families to request applications for child care services by mail or telephone. Eight of those States allow families to complete the subsidy application by mail or telephone.
Ten States allow child care programs that collaborate with Head Start to determine eligibility once a year, at the beginning of the program year, rather than using the more typical 3- to 6-month eligibility period.
States and Territories are required to establish procedures for maintaining records of substantiated parental complaints. In most States, records of substantiated complaints were maintained by the State’s licensing unit and were available to the public upon request at a designated place. Thirteen States established a toll-free telephone number that parents may call to request substantiated complaint information and five States allowed parents to request or receive complaint information via the Internet. Seven States reported using an automated system to track complaint information.