Summary of Factual Data and Analytical Methodologies
The rules include changes related to federal regulations implementing the Child Care Development Block Grant Act of 2014 and rules required under 2017 Wisconsin Acts 59 and 269. Summary of Related Federal Law
(a) For a family to be eligible for child care assistance, the following requirements must be met at the time of eligibility determination or redetermination:
- The child shall be under 13 years of age or, at a State’s option, under age 19 and physically or mentally incapable of caring for himself or herself.
- The family’s income may not exceed 85 percent of the State’s median income (SMI) for a family of the same size.
- The family’s assets may not exceed $1,000,000 (as certified by a family member).
- The child’s parents shall be working or attending a job training or educational program; or the child shall be receiving, or need to receive, protective services, which may include specific populations of vulnerable children as identified by the State.
- A State may waive income and asset requirements for the family of a child who is receiving, or needs to receive, protective services, on a case-by-case basis or, if defined in the State plan, for all children in foster care.
(b) A State may establish additional eligibility conditions, but these conditions may not impact eligibility at any time other than eligibility determination or redetermination.
(a) A State shall redetermine a family’s eligibility for child care assistance no sooner than 12 months following the initial determination or most recent redetermination, subject to the following:
- During the period of time between determinations or redeterminations of eligibility, the family shall be considered eligible and shall receive services at least at the same level, regardless of the following:
- A change in family income as long as the family’s income does not exceed 85% of the SMI for a family of the same size.
- A temporary change or cessation of work or attendance at a training program that does not exceed 3 months.
- A State may discontinue assistance due to a parent’s loss of work or cessation of attendance at a job training or educational program that is not a temporary change, but assistance must be continued at least at the same level after each such loss or cessation until the earlier of the following:
- 3 months after the parent’s loss of work or cessation of attendance at the job training or educational program.
- The parent’s next annual redetermination of eligibility.
- Notwithstanding the 12-month eligibility period, a State may discontinue assistance prior to a family’s next redetermination in the following limited circumstances:
- Excessive unexplained absences despite multiple attempts by the State to contact the family and provider, including prior notification of possible discontinuation of assistance. If the State chooses this option, it shall define the number of unexplained absences that shall be considered excessive.
- A change in residency outside of the State.
- Substantiated fraud or intentional program violations that invalidate prior determinations of eligibility.
- A State cannot increase family co-payment amounts within the minimum 12-month eligibility period, except during the graduated phase-out under (b).
(b) A State may establish initial income eligibility for a family at a level less than the CCDF level of 85 percent of the SMI for a family of the same size but must provide a graduated phase-out by implementing two-tiered eligibility thresholds, with the second tier used at the time of eligibility redetermination.
- The second tier may be set at 85 percent of the SMI or an amount that is lower than 85 percent of the SMI and higher than the State’s initial eligibility level.
- To help families transition off of child care assistance, a State may gradually adjust co-pay amounts for families under graduated phase-out conditions. During the graduated phase-out, the State may require additional reporting on changes in family income, provided the requirements do not constitute an undue burden.
(c) A State shall establish processes for initial determination and redetermination of eligibility that take into account irregular fluctuation in earnings and ensure that temporary increases do not affect family eligibility or co-payments, including temporary increases that result in family income exceeding 85 percent of the SMI.
(e) A State shall require families to report a change at any point during the minimum 12-month period, limited to the following:
- If the family’s income exceeds 85 percent of the SMI, taking into account irregular income fluctuations.
- At the option of the State, the family has experienced a non-temporary cessation of work, training, or education.
- A State may impose additional requirements on parents to report a change in circumstances as long as the requirements do not constitute an undue burden on families. Any additional reporting requirements shall be limited to items that impact a family’s CCDF eligibility or those that enable the State to contact the family or pay providers.
- During a period of graduated phase-out, a State may require additional reporting on changes in family income for the gradual adjustment of family copayments, if desired.
- A State must allow families the option to voluntarily report changes on an ongoing basis.
- The State is required to act on information provided by the family that will reduce the family’s copayment or increase the family’s subsidy.
- The State is prohibited from acting on information that would reduce the family’s subsidy, unless the information provided indicates any of the following:
- The family’s income exceeds 85 percent of the SMI, taking into account irregular income fluctuations.
- At the option of the State, the family has experienced a non-temporary change in the work, training, or educational status.
- A State shall establish, and periodically revise, by rule, a sliding fee scale for families that receive CCDF child care services that meets all of the following conditions:
- Helps families afford child care and enables choice of a range of child care options.
- Is based on income and the size of the family and may be based on other factors as appropriate, but may not be based on the cost of care or amount of subsidy payment.
- Provides for affordable family co-payments that are not a barrier to families receiving assistance under this part.
- A State may waive co-payments for any of the following:
- Families whose incomes are at or below the poverty level for a family of the same size.
- Families that have children who receive or need to receive protective services.
- Families that meet other criteria established by the State.
Comparison to Adjacent States
Minnesota
Minnesota enforces child support cooperation at a parent’s eligibility determination and redetermination. Termination due to fraud or intentional program violation may only occur if an administrative hearing or court finds that the parent wrongfully obtained or attempted to obtain assistance or if the parent enters into a consent agreement.
Michigan
Michigan has a 12-month eligibility period regardless of a change in the family’s need for child care. Copayments are lower if the child care provider has a higher quality of care rating. Michigan does not discontinue assistance for excessive unexplained absences. Termination for fraud or intentional program violation may only occur if an administrative hearing or court finds that the parent wrongfully obtained or attempted to obtain assistance or if the parent enters into a consent agreement.
Iowa
Iowa establishes eligibility periods of up to 18-months in the following situations:
- A family needs a child care subsidy to attend post-secondary education, and they will exhaust the 24-month limit on assistance for participation in post-secondary education within 6 months from the end of a 12-month certification period.
- A family includes a child who will turn 13 years old within 6 months from the end of a 12-month certification period.
Iowa does not terminate assistance for excessive unexplained absences and does not disqualify parents for intentional program violations.
Illinois
General statutory authority for a 12-month eligibility period was enacted on 8/17/18, and implementation details were not found on the agency website. Illinois does not disqualify parents for intentional program violations.
Effect on Small Businesses
The rules will affect small businesses, including child care providers that are small businesses as defined in s. 227.114 (1), Stats. The effect will be minimal. Analysis Used to Determine Effect on Small Businesses
The rules will have a positive effect on child care providers. Providers will receive a more stable income from families who receive a child care subsidy. There will be less fluctuation from month to month in the amount of the subsidy, and parents will have longer authorizations approving payment for a specific number of hours.
Agency Contact
Rose Prochazka, Chief
Wisconsin Shares Policy Section
(608) 422-6078
