Market Rate Surveys
Related Items: ACF Regional Program Managers
Program Instruction (CCDF-ACF-PI-2009-02) also available in Word and PDF)
ACF
Administration for Children and Families |
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES |
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1. Log No: CCDF-ACF-PI-2009-02 | 2. Issuance Date: January 16, 2009 | |
3. Originating Office: Child Care Bureau, Office of Family Assistance | ||
4. Key Words: Child Care and Development Fund (CCDF): Market Rate Survey for States, Territories and Tribal Lead Agencies |
PROGRAM INSTRUCTION |
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To: |
Lead Agencies administering child care programs under the Child Care and Development Block Grant (CCDBG) Act of 1990, as amended and other interested parties. |
References: |
Section 658E of the Child Care and Development Block Grant (CCDBG) Act of 1990, as amended; 45 CFR 98.16(l); 45 CFR 98.43(b)(2). |
Subject: |
This Program Instruction clarifies certain provisions of the Child Care and Development Fund (CCDF) regulation regarding local market rate surveys Specifically, this Program Instruction addresses:
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Background: | In odd-numbered years, Lead Agencies must submit biennial CCDF Plans for Administration for Children and Families (ACF) review by July 1. ACF will approve plans that satisfy the requirements of the CCDBG Act and regulations at 45 CFR Parts 98 and 99 no later than 90 days following the date on which the Plan is received (45 CFR 98.18(a)) . When approved by ACF, Plans become effective on October 1. A Tribal Lead Agency consolidating CCDF under Public Law 102-477 may be subject to different deadlines, based on the Tribe’s specific plan period. Federal regulations at 45 CFR 98.16(l) and 98.43(b)(2) require a Lead Agency to provide, as part of its CCDF Plan, a summary of the facts that were relied on to determine that its payment rates ensure equal access to child care services. At a minimum, Lead Agencies are required to show how payment rates are adequate based on a local market rate survey conducted no earlier than two years prior to the effective date of the currently approved Plan. |
Policy: |
Deadline for Completing Market Rate Surveys State, Territorial, and Tribal Lead Agencies must complete and analyze m arket rate surveys prior to the July 1 Plan submission date. This deadline allows Lead Agencies to use market rate survey results to respond to Plan questions addressing equal access requirements at 45 CFR 98.43, and allows sufficient time for ACF review and approval within the 90 day allotted timeframe. (As noted above, P.L. 102-477 Tribes may be subject to different deadlines). Conditions Under Which Alternative Documentation May be Acceptable ACF recognizes that market rate surveys may not be feasible under certain limited circumstances, particularly for some Tribal or Territorial Lead Agencies. Therefore, these Tribal and Territorial Lead Agencies may provide alternative documentation in lieu of a market rate survey if at least one of the following criteria is met:
A Tribal or Territorial Lead Agency that meets one of the two criteria (above) and chooses to submit alternative documentation in lieu of a market rate survey must submit the following in section 3.2 of its CCDF Plan:
Regardless of whether the Lead Agency uses a market rate survey or provides alternative documentation, the Lead Agency in its Plan must provide a summary of the facts relied on to determine that its payment rates ensure equal access. Except in limited circumstances described above, the market rate survey is still required and remains the primary methodologically-sound way for Lead Agencies to ascertain whether the payment rates they establish provide equal access. Conditions Under Which a Tribe May Use State Survey Results If a Tribe does not meet the limited exceptions to the market rate survey requirement (described above), it may be able to use the State’s market rate survey rather than conducting its own. As indicated in the preamble to the 1998 CCDF Final Rule at 63 FR 39977, a Tribal Lead Agency may base its payment rates on State’s market rate survey rather than conducting its own survey if the Tribe’s service area is included in the State survey. If a Tribal Lead Agency elects to use the State’s survey, it must indicate in its CCDF Plan which State and the date (including year) of the survey. For Tribes whose service area falls into more than one State, the Tribal Lead Agency must indicate each State and year. This Program Instruction further clarifies that in order for a Tribe to use a State’s survey, the State survey must include relevant providers in the tribal service area, including providers that Indian families could potentially access, in order to be representative of the child care market for Tribal families. Further, the State survey must provide survey results in a manner relevant to the Tribe’s service area. If a State’s survey only provides statewide results, it may not represent characteristics of the Tribe’s service area. Finally, in instances where the Tribe uses State survey results to set its rates, the Tribe should not simply adopt the State’s CCDF payment rate schedule, but rather should use the results from the State’s survey of market prices as part of the summary of facts relied upon for ensuring equal access. State and Tribal Collaboration ACF strongly encourages States and Tribes to collaborate regarding market rate surveys. As discussed above, under certain circumstances Tribes may use State survey results to set rates. Because States also provide CCDF assistance to Indian children, States benefit by including in their market rate surveys tribal service areas and providers serving Indian children. Under Federal statute and rules [658O(c)(5) of the CCDBG Act and 45 CFR 98.80(d)], Indian children have dual eligibility to receive CCDF services from either the Tribe or the State. State and Tribal coordination may be helpful in the following areas:
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Effective Date: |
This Program Instruction is effective upon issuance. |
Resources: | ACF recently funded a research project on conducting valid child care market rate surveys, including State, Territory, and Tribal market rate survey practices and policies. Materials from the project are available at www.researchconnections.org |
Questions: | Direct all inquiries to the Child Care Program Manager in the appropriate ACF Regional Office. |
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Related Items: ACF Regional Program Managers |