Under s.
48.84, Stats., licensed private adoption agencies are among the entities that may provide the preadoption training under s.
48.84 (1), Stats. There are 28 such agencies in the state. According to a February 2007 Department survey, at least 25 of the 28 licensed agencies already require and provide training to first-time adoptive parents. The training currently being provided and the training required to be provided under the proposed rule is substantially similar. Consequently, any costs that these agencies may incur under the proposed rule should be nominal.
Small Business Regulatory Coordinator
Rosie Greer
608-266-1279
Fiscal Estimate
Effective April 1, 2007,
2005 Wisconsin Act 293 creates s.
48.84, Stats., to require prospective adoptive parents to receive preadoption preparation (i.e., training) in the following instances:
Before a child may be placed under s.
48.833, Stats., (special needs adoption) for adoption;
Before a proposed adoptive parent who has not previously adopted a child may petition for placement of a child for adoption under s.
48.837, Stats., (nonrelative adoptions); and
Before a proposed adoptive parent who has not previously adopted a child may bring a child into Wisconsin for adoption under s.
48.839, Stats., (international adoptions).
Under s.
48.84, Stats., preadoption training must be provided by a licensed child welfare agency, a licensed private adoption agency (child placing agency), the state adoption information exchange under s.
48.55, Stats., the state adoption center under s.
48.55, Stats., a state-funded foster care and adoption resource center, or a state-funded post adoption resource center. The number of hours of training necessary, the training content, including information on issues that may confront adoptive parents, generally, and that may confront adoptive parents of special needs and international children must be established by the Department by rule.
Under s.
48.84, Stats., the annual cost to the Department of training first-time adoptive parents for special needs adoptions of children in the public child welfare system is estimated to be $135,000 ($74,250 GPR and $60,750 FED). In addition, state law may require first time adoptive parents who use private adoption agencies to be trained by the Department. This would be an additional cost to the Department.
The costs identified above result from the creation of s.
48.84 in
2005 Act 293, rather than this proposed rule. Therefore, this rule has no fiscal effect.
Licensed private adoption agencies are among the entities that may provide the preadoption training under s.
48.84 (1), Stats. There are 28 such agencies in the state. According to a February, 2007 Department survey, at least 25 of the 28 licensed agencies already require and provide training to first-time adoptive parents. The training currently being provided and the training required to be provided under the proposed rule is substantially similar. Consequently, any costs that these agencies may incur under the proposed rule should be nominal.
Obtaining Copies of Rules and Fiscal Estimate
A copy of the full text of the rules and the fiscal estimate can be obtained at no charge from the Wisconsin Administrative Rules Website at:
Contact Person
Dale Langer
Manager, Adoption and Consultation Section
Division of Children and Family Services
DHFS/DCFS
P.O. Box 8916
Madison, Wisconsin 53708-8916
(608) 266-3595
Fax (608) 264-6750
Notice of Hearing
Workforce Development
NOTICE IS HEREBY GIVEN that pursuant to Section
49.155 (6) and s.
227.11 (2) (a), Stats., the Department of Workforce Development proposes to hold a public hearing to consider rules relating to child care rates and affecting small businesses.
Hearing Information
May 7, 2007 Madison
Monday G.E.F. 1 Building, A415
1:30 p.m. 201 E. Washington Avenue
Interested persons are invited to appear at the hearing and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing.
Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances regarding communication or accessibility at the hearing, please call (608) 267-9403 at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.
Analysis Prepared by the Department of Workforce Development
Statutory authority: Note: Complaint forms are available from the Department of Regulation and Licensing, Division of Enforcement, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708, or from the department's website at:
http://drl.wi.gov. and 227.11, Stats.
Explanation of agency authority.
own and operate 50 or fewer truck tractors Each county shall set the rate for licensed providers so that at least 75% of the number of places for children within the licensed capacity of all child care providers in the county can be purchased at or below that maximum rate. The maximum reimbursement rate for Level I certified providers may not exceed 75% of the rate established for licensed providers, and the maximum reimbursement rate for Level II certified providers may not exceed 50% of the rate established for licensed providers.
Summary of the proposed rule. Under s.
DWD 56.06, the Department or each county must survey all licensed providers each year to determine the child care prices they charge the general community. The county or tribal agency annually sets maximum reimbursement rates based on the survey, unless the Department sets multi-county rates. The maximum rate for licensed providers is set so that at least 75% of the number of places for children within the licensed capacity of all child care providers in the county can be purchased at or below that maximum rate. Separate maximum rates are set for licensed group child care centers, licensed family child care centers, Level I certified family child care providers, and Level II certified family child care providers. Separate maximum rates are also set for children in various age groupings. The current rates are multi-county rates set by the Department in 2006.
In past years, the adjusted rates based on the annual survey have generally become effective January 1 of the new year. This rule provides that the rates will not be adjusted for the year beginning January 1, 2007, and the rates effective on December 31, 2006, will remain in effect.
Summary of related federal regulations. Under
45 CFR 98.43, a state must certify that state payment rates for the provision of child care services funded under the Child Care and Development Fund are sufficient to ensure equal access to child care services for eligible families as families not eligible for child care assistance. At a minimum, the state must show that it considered 3 key elements in determining that its child care program provides equal access for eligible families: 1) Adequate payment rates based on a local market rate survey conducted no earlier than two years prior to the effective date of the current plan; 2) Choice of the full range of categories and types of providers; and 3) Affordable copayments.
In the commentary issued with the regulation, the Administration for Children and Families notes that rates established at least at the 75th percentile of the market rate would be regarded as providing equal access. Under the former title IV-A child care program, states were required to set rates at this level. (63 FR 39936, 39959, July 24, 1998)
Comparison with rules in adjacent states. A 2006 study by the National Women's Law Center, entitled State Child Care Assistance Policies 2006: Gaps Remain, With New Challenges Ahead compared state 2006 reimbursement rates to market rates for child care centers. The study found that Wisconsin was one of 9 states that had reimbursement rates at or above the 75th percentile of the market rate in 2006 and one of 22 states that had reimbursement rates at or above 75th percentile of the market rate in 2001. The Department does not have comparative information on 2007 rates.
Michigan. Reimbursement rates have not been increased since 1997. Rates in 2006 were at the 75th percentile of 1996 market rates. In Wayne County, the percentage difference between the state rate and the 75th percentile of the market rate was -42% for center care of a 4-year-old and -46% for care of a one-year-old.
Minnesota. In Hennepin County, the percentage difference between the state 2006 rate and the 75th percentile of the market rate was -10% for center care of a 4-year-old and -12% for care of a one-year-old.
Illinois. In Cook County, the percentage difference between the state 2006 rate and the 75th percentile of the market rate was -33% for center care of a 4-year-old and -25% for care of a one-year-old.
Iowa. The percentage difference between the statewide 2006 rate and the 75th percentile of the market rate was -4% for center care of a 4-year-old and -6% for care of a one-year-old.
Summary of factual data and analytical methodologies. The child care subsidy budget is expected to have a substantial deficit by the end of state fiscal year 2006-07. While many factors will have an impact on the program's final fiscal balance, current spending patterns at current rates suggest that the program will exceed its 06-07 budget authorization by approximately $46 million. This is due to flat federal funding, rising caseload, and increased provider costs.
By not increasing the maximum county rates reimbursed to child care providers, the Department will avoid the increased cost of using the rates based on the 2006 provider survey. By comparing the current rates used for the reimbursement versus the rates that would otherwise go into effect and annualizing the results, it is estimated that the Department will realize about $8,400,000 in annual savings in federal block grant funds.
Effect of rule on small businesses. The rule will affect small businesses but will not have a significant economic impact on a substantial number of small businesses. The Department's Small Business Regulatory Coordinator is Jennifer Jirschele,
jennifer.jirschele@dwd.state.wi.us, (608) 266-1023.
Analysis used to determine effect on small businesses. Pursuant to direction by the Small Business Regulatory Review Board, the Department adopted the following definitions to use in making the determination of whether a rule will have a significant economic impact on a substantial number of small businesses:
“Significant economic impact" means the rule increases overall expenses of small businesses by more than 5% per year or the rule decreases overall revenue of small businesses by more than 5% per year.
“Substantial number" means more than 25% of the businesses affected by the scope of the rule.
The total child care subsidy annual budget is $300 million. The Department estimates that $270 million is annually paid to 7,000 child care providers that are small businesses. Not increasing the child care subsidy maximum rates is estimated to decrease annual revenue to all child care providers by $8.4 million and decrease revenue to child care providers that are small businesses by $7.56 million. On average, the annual child care funds to a child care provider that is a small business is $38,571. The average decreased revenue from the child care subsidy program to a provider due to not increasing the child care subsidy maximum rates is $1,080 or 2.8%. The percentage decrease in overall revenue to a provider will be significantly less than 2.8% due to revenue from private pay families and copayments from families receiving child care assistance.
Adm 47.02 (2) is repealed.
Agency Contact
Place where comments are to be submitted and deadline for submission. An electronic copy of the proposed rules is available at
http://www.dwd.state.wi.us/dwd/hearings.htm. A copy of the proposed rules is also available at
http://adminrules.wisconsin.gov. This site allows you to view documents associated with this rule's promulgation, register to receive email notification whenever the Department posts new information about this rulemaking order, and submit comments and view comments by others during the public comment period. You may receive a paper copy of the rule or fiscal estimate by contacting:
Elaine Pridgen
Office of Legal Counsel
Dept. of Workforce Development
P.O. Box 7946
Madison, WI 53707-7946
(608) 267-9403
Written comments on the proposed rules received at the above address, email, or through the
http://adminrules.wisconsin.gov web site no later than May 9, 2007, will be given the same consideration as testimony presented at the hearing.
