LRB-2939/2
GM/JK/TF/TY/MS:wlj:mrc
1999 - 2000 LEGISLATURE
June 17, 1999 - Introduced by Senators Risser, Darling, Plache, Rosenzweig,
Erpenbach, George and
Breske, cosponsored by Representatives Hasenohrl,
Black, Boyle, Pocan, Bock, Reynolds, Turner, Miller, Berceau, Plale,
Plouff, Young and
Lassa. Referred to Committee on Human Services and
Aging.
SB199,2,7
1An Act to repeal 49.155 (1m) (a) 4. a., 49.155 (1m) (a) 4. b., 49.155 (1m) (c) 1m.,
249.155 (1m) (c) 2. and 49.155 (1m) (c) 3.;
to renumber 49.137 (6);
to renumber
3and amend 49.155 (1m) (a) 4. (intro.) and 49.665 (1) (c);
to amend 20.435 (5)
4(bc), 20.435 (5) (jz), 20.435 (5) (o), 20.435 (5) (p), 20.445 (3) (cm), 49.136 (7) (a),
549.143 (2) (a) 8., 49.148 (1m) (a), 49.155 (1d) (a), 49.155 (1m) (intro.), 49.155
6(1m) (a) (intro.), 49.155 (1m) (c) 1., 49.155 (1m) (c) 1g., 49.155 (1m) (c) 1h., 49.155
7(3m) (a), 49.155 (5), 49.665 (3), 49.665 (4) (b), 49.665 (4) (c), 49.665 (5), 71.05 (6)
8(a) 15., 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4), 71.26 (2) (a), 71.30 (3) (f), 71.34
9(1) (g), 71.45 (2) (a) 10., 71.49 (1) (f) and 77.92 (4); and
to create 20.235 (1) (cw),
1020.445 (3) (ct), 39.385, 49.135, 49.137 (6) (a), 49.139, 49.155 (1) (aL), 49.155 (1g)
11(d), 49.325 (4), 49.665 (1) (bq), 49.665 (1) (c) 2., 49.665 (4) (am), 71.07 (5d), 71.07
12(6m), 71.07 (7g), 71.10 (4) (cm), 71.10 (4) (gc), 71.28 (5d), 71.28 (7), 71.30 (3) (ea),
1371.47 (5d), 71.47 (7) and 71.49 (1) (ea) of the statutes;
relating to: a child care
14worker loan repayment assistance program; a child care career education
1scholarship program; early childhood councils; requiring recipients of child
2care funding to have received training in child development and safety; training
3and network development for special needs child care providers; eligibility for
4child care funding; health care for low-income child care workers; creating tax
5credits for employers who provide child care; creating a nonrefundable
6individual income tax credit for certain expenses related to child or dependent
7care; granting rule-making authority; and making appropriations.
Analysis by the Legislative Reference Bureau
This bill makes various changes relating to child care.
Early childhood councils
The bill requires the department of workforce development (DWD) to provide
grants to public agencies or nonprofit organizations for the establishment of local
early childhood councils. Membership on a local early childhood council is open to
all persons and organizations in the community with a demonstrated interest in or
knowledge of child care, early childhood education or other services for young
children and their families. A local early childhood council must include parents,
child care providers, an elected county official and one or more representatives of a
local employer, the local school district, the county department of human services or
social services (county department), the local health department and a local child
care resource and referral agency. A local early childhood council must do all of the
following:
1. Conduct an assessment of child care and early childhood education programs
and other services for young children and their families that are available in the
community and an assessment of the need for those programs and services in the
community.
2. Develop a plan to increase the supply and accessibility of high-quality child
care and early childhood education programs in the community; foster coordination
and communication between appropriate individuals and organizations in the
community to maximize the accessibility and quality of, and to minimize duplication
in, the programs and services that are available in the community for young children
and their families; and promote and increase public awareness of the characteristics
and importance of high-quality child care and early childhood education for young
children.
3. Advise the county department on the development of the county's proposed
budget for the expenditure of child care funding.
Child development and safety training
Under current law, DWD must reimburse child care providers or must
distribute funds to county departments for child care services provided for persons
who are eligible for child care assistance under the Wisconsin works (W-2) program.
Under current law, DWD also administers various child care grant programs
including a child care start-up and expansion grant program and a child care quality
improvement grant program. This bill requires a person and all employes of that
person who provide care and supervision for children to have received not less than
20 hours of training in child care and development before that person may receive
funding for providing child care under the W-2 program or a child care start-up and
expansion grant or a child care quality improvement grant.
Child care worker loan repayment assistance
This bill creates a child care worker loan repayment assistance program to be
administered by the higher educational aids board (HEAB). Under the program, a
child care worker is initially reimbursed by HEAB for ten percent of the outstanding
principal amount of educational loans of the child care worker or $1,000, whichever
is less, if all of the following apply:
1. The child care worker has been continuously employed full time in this state
as a child care worker for not less than 12 months.
2. The child care worker graduated on or after May 1, 1999, with a degree in
an area relating to early childhood education.
3. The child care worker is currently repaying any educational loan and is not
in default on repayment.
After initial reimbursement under the program, a child care worker is eligible
for additional loan repayment assistance payments from HEAB, up to a maximum
of four additional reimbursements, in the same manner as initial reimbursement
under the program.
Child care career education scholarships
This bill creates a child care career education scholarship program to be
administered by DWD or by an agency contracted by DWD to administer that
program. Under the program, DWD may award scholarships of not less than $500
nor more than $5,000 per year to individuals who are child care providers and to
individuals who are employed by a child care provider or by a head start agency in
the direct provision of child care services or in the administration of child care
services to enable those individuals to earn associate degrees, bachelor's degrees or
other credentials approved by DWD in the fields of child care or early childhood
education. Under the program, DWD, a scholarship recipient and, if applicable, the
scholarship recipient's employer must enter into a contract specifying the
commitments of each party to the contract. The contract must include the amount
of the scholarship, which, subject to the $5,000 maximum scholarship limit, may
cover up to 100% of the cost of the scholarship recipient's books and tuition and
which, subject to that limit, may provide for not more than three hours per week of
paid leave from work to study or attend classes; the number of credits the scholarship
recipient will take during the time period of the contract; a commitment by the
scholarship recipient's employer to provide a pay raise or bonus to the recipient upon
completion of his or her course of study and the amount of that pay raise or bonus
or, if the scholarship recipient is an individual who is a child care provider, a
commitment by DWD to pay a bonus to the individual upon completion of his or her
course of study and the amount of that bonus; and a commitment by the scholarship
recipient not to resign from employment with the child care provider or head start
agency that employed him or her during the time period of the contract for not less
than six months nor more than one year after the end of that period as specified in
the contract or, if the scholarship recipient is an individual who is a child care
provider, to remain a child care provider for not less than six months nor more than
one year after the end of the time period of the contract as specified in the contract.
Badger care for child care workers
Currently, under the badger care program, families with incomes below 185%
of the federal poverty line who meet certain criteria are eligible for partially or wholly
subsidized coverage of the same health services and benefits offered under the
medical assistance program. "Family" is defined as at least one dependent child and
his or her custodial parent or parents.
This bill expands the badger care program to cover individuals who are child
care workers who meet the income and nonfinancial eligibility requirements. Under
the bill, child care workers need not be parents to qualify for the health care coverage.
Wisconsin works child care
Under current law, to be eligible for child care assistance under the Wisconsin
works (W-2) program, an individual must have an income of no more than 165% of
the federal poverty level. Also, under current law, a parent who receives at-risk or
low-income child care funding must make copayments for the cost of child care
received, in accordance with a formula specified by DWD.
Finally, an individual may receive child care funding to participate in certain
employment skills training, including an English as a second language course, if the
W-2 agency determines that the course would facilitate the individual's efforts to
obtain employment; a course of study meeting the standards established by the
secretary of education for the granting of a declaration of equivalency of high school
graduation; a course of study at a technical college; or participation in educational
courses that provide an employment skill, as determined by DWD. An individual
may receive funding for that purpose for up to one year and only if the individual
meets at least one of the following conditions:
1. The individual has been employed in unsubsidized employment for nine
consecutive months and continues to be so employed.
2. The individual is a participant in a W-2 employment position.
This bill expands eligibility for child care assistance under W-2 to individuals
who are participating in employment skills training regardless of whether they are
currently employed. The bill also raises the financial eligibility threshold from 165%
of the federal poverty level to 85% of the state median income. Additionally, the bill
directs DWD to develop a sliding scale formula for child care copayments based on
an individual's ability. Under the bill, DWD may not require any parent to pay more
than ten percent of his or her family income for the cost of child care received.
The bill also changes the annual general program revenue for paying child care
subsidies to a continuing appropriation.
Other Wisconsin works
Currently, an eligible custodial parent of a child who is 12 weeks old or less may
receive a monthly grant of $673 without being required to work. This bill increases
the permissible age of the child to one year.
Tax credits
This bill creates an income tax and franchise tax credit for a corporation that
constructs and equips a day care center or pays a day care center to care for the
children of the corporation's employes during the employes' working hours. Sole
proprietorships, corporations and insurers may claim the credit. Partnerships,
limited liability companies and tax-option corporations compute the credit but pass
it on to the partners, members and shareholders in proportion to their ownership
interests.
The credit is an amount equal to 50% of the amount paid by the corporation
during a taxable year to construct and equip a day care center that is owned and
operated by the corporation or an amount equal to 50% of the amount paid by the
corporation during a taxable year to a day care center to care for the children of the
corporation's employes during the employes' working hours. A corporation may also
claim a credit equal to $50 a month for each child of a corporation's employe enrolled
in the corporation's day care center for a taxable year.
If the credit claimed by a corporation exceeds the corporation's tax liability, the
state will not issue a refund check, but the corporation may carry forward any
remaining credit to the next five taxable years. If a day care center that is
constructed and equipped by a corporation ceases its operation within five years from
the date that construction of the day care center was completed, the corporation must
pay back the credit received in proportion to the period of time that the day care
center operated.
Finally, the bill creates an income tax and franchise tax credit for five percent
of child care costs, up to a maximum annual credit of $15,000. The expenses that may
be counted in calculating the credit are those of acquiring, constructing and
rehabilitating child care facilities; operating costs of day care facilities; and amounts
paid under a contract for child care services for the claimant's employes.
Under current federal law there is an individual income tax credit for a portion
of qualifying child or dependent care expenses that are paid for the purpose of
enabling a taxpayer to be gainfully employed. An eligible claimant must maintain
a household for a "qualifying individual", which is defined as a dependent under the
age of 13, a disabled spouse or another disabled individual who is a dependent of the
taxpayer. The federal credit is nonrefundable, meaning that no refund is paid if the
amount of the credit exceeds the taxpayer's tax liability. The maximum credit is $720
if the taxpayer has one qualifying individual or $1,440 if the taxpayer has more than
one qualifying individual.
This bill creates a nonrefundable individual income tax credit that is equal to
50% of the amount that is claimed by an individual under this federal credit.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB199, s. 2
3Section
2. 20.235 (1) (cw) of the statutes is created to read:
SB199,6,64
20.235
(1) (cw)
Child care worker loan repayment assistance. Biennially, the
5amounts in the schedule for the child care worker loan repayment assistance
6program under s. 39.385.
SB199, s. 3
7Section
3. 20.435 (5) (bc) of the statutes is amended to read:
SB199,6,118
20.435
(5) (bc)
Health care for low-income families and eligible individuals. 9As a continuing appropriation, the amounts in the schedule A sum sufficient for the
10badger care health care program for low-income families
and eligible individuals 11under s. 49.665.
SB199, s. 4
1Section
4. 20.435 (5) (jz) of the statutes is amended to read:
SB199,7,42
20.435
(5) (jz)
Badger care premiums. All moneys received from payments
3under s. 49.665 (5) to be used for the badger care health care program for low-income
4families
and eligible individuals under s.
49.466 49.665.
SB199, s. 5
5Section
5. 20.435 (5) (o) of the statutes is amended to read:
SB199,7,86
20.435
(5) (o)
Federal aid; medical assistance. All federal moneys received for
7meeting costs of medical assistance administered under
ss. s. 49.45 and
, to the extent
8permitted under federal law, s. 49.665.
SB199, s. 6
9Section
6. 20.435 (5) (p) of the statutes is amended to read:
SB199,7,1410
20.435
(5) (p)
Federal aid; health care for low-income families. All federal
11moneys received for the badger care health care program
for low-income families 12under s. 49.665, to be used for
that the purpose
of providing health care coverage to
13low-income families that are eligible under s. 49.665 (4) (a) for the badger care health
14care program.
SB199, s. 7
15Section
7. 20.445 (3) (cm) of the statutes is amended to read:
SB199,7,2316
20.445
(3) (cm)
Wisconsin works child care. The As a continuing appropriation,
17the amounts in the schedule for paying child care subsidies under s. 49.155.
Before
18October 1, 1997, moneys appropriated under this paragraph may be used to fund
19child care costs of individuals who secure unsubsidized employment and lose
20eligibility for aid to families with dependent children as provided under s. 49.191 (2),
21for child care and related transportation costs under s. 49.26 (1) (e), for at-risk and
22low-income child care under s. 49.132, 1995 stats., and for child care costs under ss.
2349.191 (1) and 49.193 (8).
SB199, s. 8
24Section
8. 20.445 (3) (ct) of the statutes is created to read:
SB199,8,3
120.445
(3) (ct)
Local early childhood council grants. As a continuing
2appropriation, the amounts in the schedule for grants for local early childhood
3councils under s. 49.135.
SB199, s. 9
4Section
9. 39.385 of the statutes is created to read:
SB199,8,7
539.385 Child care worker loan repayment assistance program. (1) 6There is established, to be administered by the board, a loan repayment assistance
7program for resident child care workers who meet all of the following requirements:
SB199,8,118
(a) Have graduated on or after May 1, 1999, with a bachelor's degree from an
9institution of higher education, as defined in s. 39.32 (1) (a), located in this state or
10a degree under an associate degree program, as defined in s. 38.01 (1), in an area
11relating to early childhood education.
SB199,8,1312
(b) Are currently in loan repayment on any student loan, which loan repayment
13status is not in default, as determined by the applicable lender.
SB199,8,1514
(c) Have been continuously employed on a full-time basis in this state for at
15least 12 months as a child care worker.
SB199,8,16
16(2) The board shall:
SB199,8,2417
(a) Reimburse a child care worker for 10% of the outstanding principal amount
18of any student loans of the child care worker or $1,000, whichever is less, for the
1912-month period of eligibility under sub. (1). As a condition of eligibility for loan
20repayment assistance under this paragraph, the child care worker shall submit to
21the board, on a form prescribed by the board, a statement certified by the lender of
22an applicable student loan, within 30 days previous to the filing of the submission,
23certifying that the loan repayment status of the borrower is not in default and the
24outstanding principal amount of the applicable student loan.
SB199,9,3
1(b) For each succeeding 12-month period of eligibility under sub. (1), reimburse
2the child care worker as determined under par. (a). No child care worker is eligible
3for more than 5 loan repayment assistance payments under this section.