Initial Regulatory Flexibility Analysis
This rulemaking does not affect small businesses.
Fiscal Estimate
This rulemaking will no have any fiscal effect and will not have a significant effect on the private sector.
Notice of Hearing
Workforce Development
(Workforce Solutions, Chs.
DWD 11—)
NOTICE IS HEREBY GIVEN that pursuant to ss.
49.155 and
227.11 (2) (a), Stats., the Department of Workforce Development proposes to hold a public hearing to consider rules relating to child care enrollment underutilization and affecting small businesses.
Hearing Information
June 20, 2007
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MADISON
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Wednesday
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G.E.F. 1 Building, A415
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1:30 p.m.
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201 E. Washington Avenue
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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
Statutes interpreted: Section
49.155, Stats.
Explanation of agency authority. The Department administers the child care subsidy program under s.
49.155, Stats., and reimburses child care providers for services provided pursuant to s.
49.155 (3m), Stats.
Summary of the rule. The current s.
DWD 56.04 (2) (d) provides that a child care administrative agency shall authorize payment to licensed group and family day care centers based on authorized units of service except as follows:
• The agency may authorize payment to licensed providers based on units of service used by each child up to the maximum number of authorized units, with the reimbursement rate increased by 10% to account for absent days, if the schedule of child care to be used is expected to vary widely.
• The agency may authorize payment to licensed providers based on units of service used by each child, up to the maximum number of authorized units, if the agency has documented 3 separate occasions where the provider significantly overreported the attendance of a child.
The current methodology for authorizing payment to licensed providers has caused the child care subsidy program to pay for significant amounts of time when care is not actually being provided. This rule attempts to control costs by reducing payments to licensed child care providers for authorized child care services that are significantly underused. The rule will repeal the presumption of enrollment authorization for licensed providers and provides that a local child care administrative agency shall authorize on either an enrollment or attendance basis as follows:
• The agency shall authorize the number of hours needed on an enrollment basis if the need for care is anticipated to be approximately the same number of hours each week.
• The agency shall authorize payment based on the hours of actual attendance by each child if the need for care is anticipated to vary from week to week or if the child has a history of variable attendance.
• The agency may authorize payment on the hours of actual attendance if the agency has documented 3 separate occasions where the provider significantly overreported the attendance of a child.
For any week in which a child whose authorized payments are on an enrollment basis attends less than 50% of the of the authorized hours of care, payment shall be made on the basis of actual hours of attendance used, unless the agency determines that the absence is for a reason approved by the Department, such as short-term illness of the child or death in the family. This policy does not apply to a child with a special needs authorization.
Payment to certified providers is based on a child's attendance and remains unchanged in this rule.
In addition the rule increases the penalties for a provider who submits false or inaccurate attendance reports. The current s.
DWD 56.04 (5) (c) allows for the child care administrative agency to refuse to issue new child care authorizations to a provider for a period of time not to exceed 6 months, revoke existing child care authorizations to the provider, or refuse to issue payment to the provider until the violation is corrected. This rule provides additional penalties in the following situations:
• If it is the provider's second documented instance of submitting an inaccurate attendance report or the inaccurate report resulted in or would have resulted in an overpayment of $1000 or more, the agency may refuse to issue new child care authorizations to a provider for a period of time not to exceed 1 year.
• If it is the provider's third or subsequent documented instance of submitting an inaccurate attendance report or the inaccurate report resulted in or would have resulted in an overpayment of $5000 or more, the agency may refuse to issue new child care authorizations to a provider for a period of time not to exceed 5 years.
Summary of factual data and analytical methodologies. By paying the hourly rate for actual attendance to child care providers when attendance is under 50% of the authorized level for the child care subsidy program, the Department will avoid paying for significant amounts of time where care is not actually being provided. By comparing the amount currently paid for enrollment authorizations against the amount that would be paid if underutilized authorizations of 50% or less are paid for actual hours of care, it is estimated that the Department will realize $20,387,000 in annual savings in federal block grant funds.
Summary of related federal regulations. NA
Comparison with rules in adjacent states:
Michigan. A provider may only receive payment for a child's hours of attendance, except for absences due to the child's illness, not to exceed 2 consecutive weeks, and state holidays.
Illinois. Payment to licensed and license-exempt child care centers are based on authorized days if the total of days attended for all publicly-funded children at the center location are 80% of the authorized days for the month.
Payment to licensed home providers are based on authorized days if the total of days attended for all children in a family are 80% of the family's authorized days for the month.
Payment to license-exempt home providers are based only on attendance.
Iowa. Payment is based on authorized days with payment allowed for a child not in attendance not to exceed 4 days per calendar month.
Minnesota. Payment is based on authorized days except child care providers may not be reimbursed for more than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more than 10 consecutive full-day absent days, unless the child has a documented medical condition that causes more frequent absences.
Effect 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. The Legislature and Governor set the funding level for the Wisconsin Shares Child Care Subsidy. In the current fiscal year, that amount is $343 million, after the addition of $30 million from the budget adjustment act.
These rules do not affect the amount of funding in the program. All of the allocated funding will be spent as subsidies for child care for the children of working families. We do not anticipate that the proposed rules will in any way change the extent to which these dollars are spent on small businesses.
Agency Contact Person
Place to Submit Comments 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 June 21, 2007, will be given the same consideration as testimony presented at the hearing.
