SB199: Bill Text

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. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table

SB199, s. 2 Section 2. 20.235 (1) (cw) of the statutes is created to read:

SB199,6,6 20.235 (1) (cw) Child care worker loan repayment assistance. Biennially, the amounts in the schedule for the child care worker loan repayment assistance program under s. 39.385.

SB199, s. 3 Section 3. 20.435 (5) (bc) of the statutes is amended to read:

SB199,6,11 20.435 (5) (bc) Health care for low-income families and eligible individuals. As a continuing appropriation, the amounts in the schedule A sum sufficient for the badger care health care program for low-income families and eligible individuals under s. 49.665.

SB199, s. 4 Section 4. 20.435 (5) (jz) of the statutes is amended to read:

SB199,7,4 20.435 (5) (jz) Badger care premiums. All moneys received from payments under s. 49.665 (5) to be used for the badger care health care program for low-income families and eligible individuals under s. 49.466 49.665.

SB199, s. 5 Section 5. 20.435 (5) (o) of the statutes is amended to read:

SB199,7,8 20.435 (5) (o) Federal aid; medical assistance. All federal moneys received for meeting costs of medical assistance administered under ss. s. 49.45 and, to the extent permitted under federal law, s. 49.665.

SB199, s. 6 Section 6. 20.435 (5) (p) of the statutes is amended to read:

SB199,7,14 20.435 (5) (p) Federal aid; health care for low-income families. All federal moneys received for the badger care health care program for low-income families under s. 49.665, to be used for that the purpose of providing health care coverage to low-income families that are eligible under s. 49.665 (4) (a) for the badger care health care program.

SB199, s. 7 Section 7. 20.445 (3) (cm) of the statutes is amended to read:

SB199,7,23 20.445 (3) (cm) Wisconsin works child care. The As a continuing appropriation, the amounts in the schedule for paying child care subsidies under s. 49.155. Before October 1, 1997, moneys appropriated under this paragraph may be used to fund child care costs of individuals who secure unsubsidized employment and lose eligibility for aid to families with dependent children as provided under s. 49.191 (2), for child care and related transportation costs under s. 49.26 (1) (e), for at-risk and low-income child care under s. 49.132, 1995 stats., and for child care costs under ss. 49.191 (1) and 49.193 (8).

SB199, s. 8 Section 8. 20.445 (3) (ct) of the statutes is created to read:

SB199,8,3 20.445 (3) (ct) Local early childhood council grants. As a continuing appropriation, the amounts in the schedule for grants for local early childhood councils under s. 49.135.

SB199, s. 9 Section 9. 39.385 of the statutes is created to read:

SB199,8,7 39.385 Child care worker loan repayment assistance program. (1) There is established, to be administered by the board, a loan repayment assistance program for resident child care workers who meet all of the following requirements:

SB199,8,11 (a) Have graduated on or after May 1, 1999, with a bachelor's degree from an institution of higher education, as defined in s. 39.32 (1) (a), located in this state or a degree under an associate degree program, as defined in s. 38.01 (1), in an area relating to early childhood education.

SB199,8,13 (b) Are currently in loan repayment on any student loan, which loan repayment status is not in default, as determined by the applicable lender.

SB199,8,15 (c) Have been continuously employed on a full-time basis in this state for at least 12 months as a child care worker.

SB199,8,16 (2) The board shall:

SB199,8,24 (a) Reimburse a child care worker for 10% of the outstanding principal amount of any student loans of the child care worker or $1,000, whichever is less, for the 12-month period of eligibility under sub. (1). As a condition of eligibility for loan repayment assistance under this paragraph, the child care worker shall submit to the board, on a form prescribed by the board, a statement certified by the lender of an applicable student loan, within 30 days previous to the filing of the submission, certifying that the loan repayment status of the borrower is not in default and the outstanding principal amount of the applicable student loan.

SB199,9,3 (b) For each succeeding 12-month period of eligibility under sub. (1), reimburse the child care worker as determined under par. (a). No child care worker is eligible for more than 5 loan repayment assistance payments under this section.

SB199,9,5 (c) Make the loan repayment assistance payments under pars. (a) and (b) from the appropriation account under s. 20.235 (1) (cw), subject to the availability of funds.

SB199,9,11 (d) Promulgate rules to implement and administer this section, including rules establishing the criteria and procedures for loan repayment assistance and, after first consulting with the department of health and family services, defining "child care worker" for the purposes of this section. The definition of "child care worker" shall include any child care position specified in rules of the department of health and family services relating to day care and family day care centers for children.

SB199, s. 10 Section 10 . 49.135 of the statutes is created to read:

SB199,9,16 49.135 Local early childhood council grants. (1) Purpose. From the appropriation under s. 20.445 (3) (ct), the department shall provide grants, awarded under sub. (2), to public agencies or private, nonprofit organizations for the establishment or operation, or both, of local early childhood councils.

SB199,9,20 (2) Grant awards; amounts. (a) Grants shall be awarded by a body consisting of 2 representatives of the department of health and family services, 2 representatives of the department of workforce development and 2 representatives of the department of public instruction.

SB199,9,23 (b) A grant may be awarded only to an applicant that agrees to match the grant or to secure a match from local sources, through money or in-kind services, or both, as follows:

SB199,9,25 1. During the first year of the grant, in the amount of at least 25% of the amount received for that year.

SB199,10,2 2. During the 2nd and subsequent years of the grant, in the amount of at least 50% of the amount received for each year.

SB199,10,5 (c) Each grant application shall include proof of the applicant's ability to comply with par. (b). Any in-kind services proposed under par. (b) are subject to the approval of the body awarding grants under par. (a).

SB199,10,17 (3) Grant awards; criteria. In evaluating applications for grants, the body under sub. (2) (a) shall give priority to proposals that involve the planning and participation of multiple individuals and organizations, including child care providers, as defined in s. 49.001 (1), employers, parents, head start agencies designated under 42 USC 9836, child care resource and referral service grant recipients under s. 49.134, school districts, private schools, counties, cities, villages, towns, tribal governments, providers of early childhood education, early childhood family education center grant recipients under s. 48.982 (6), right from the start grant recipients under s. 48.982 (7), the Wisconsin works community steering committee under s. 49.143 (2) (a) and other individuals and organizations that have a demonstrated interest in or knowledge of child care, early childhood education or other services for young children and their families.

SB199,10,21 (4) Use of funds; functions of local early childhood councils. Any amounts granted under this section shall be used for the establishment or operation, or both, of a local early childhood council. A local early childhood council funded under this section shall do all of the following:

SB199,10,23 (a) Designate an individual to serve as the facilitator of the local early childhood council.

SB199,11,2 (b) 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.

SB199,11,3 (c) Develop a plan to do all of the following:

SB199,11,5 1. Increase the supply and accessibility of high-quality child care and early childhood education programs in the community.

SB199,11,11 2. Foster coordination and communication between providers of child care and early childhood education, employers, the local public schools, parents, the Wisconsin works community steering committee under s. 49.143 (2) (a) and other 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.

SB199,11,14 3. Promote and increase public awareness of the characteristics and importance of high-quality child care and early childhood education for young children.

SB199,11,17 (d) Advise the county department under s. 46.215, 46.22 or 46.23 on the development of the county department's proposed budget for the expenditure of funds allocated under s. 49.175 (1) (o) and (p).

SB199,11,22 (5) Membership of local early childhood councils. Membership on a local early childhood council funded under this section shall be 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 and shall include all of the following persons as members:

SB199,11,23 (a) One or more parents of young children.

SB199,11,24 (b) One or more providers of family child care.

SB199,11,25 (c) One or more providers of center-based child care.

SB199,12,1 (d) One elected county official.

SB199,12,2 (e) One or more representatives of each of the following:

SB199,12,3 1. A local employer.

SB199,12,4 2. The local school district.

SB199,12,6 3. The county department receiving child care funds under s. 49.175 (1) (o) or (p) and any entity administering those funds if different from the county department.

SB199,12,7 4. The local health department, as defined in s. 250.01 (4).

SB199,12,9 5. A local agency providing child care resource and referral services funded by a grant under s. 49.134.

SB199,12,11 (6) Rules. The department, in consultation with the department of public instruction, shall promulgate rules to implement this section.

SB199, s. 11 Section 11. 49.136 (7) (a) of the statutes is amended to read:

SB199,12,18 49.136 (7) (a) The department shall establish guidelines for eligibility for a grant under this section. In establishing those guidelines, the department shall provide that no person may be awarded a grant under this section unless that person and all employes of that person who provide care and supervision for children have received not less than 20 hours of training in child development and safety. The department need not promulgate those guidelines as rules under ch. 227.

SB199, s. 12 Section 12. 49.137 (6) of the statutes is renumbered 49.137 (6) (b).

SB199, s. 13 Section 13. 49.137 (6) (a) of the statutes is created to read:

SB199,13,2 49.137 (6) (a) The department shall establish guidelines for eligibility for a grant under this section. In establishing those guidelines, the department shall provide that no person may be awarded a grant under sub. (2) or (3) unless that person and all employes of that person who provide care and supervision for children have received not less than 20 hours of training in child development and safety. The department need not promulgate those guidelines as rules under ch. 227.

SB199, s. 14 Section 14. 49.139 of the statutes is created to read:

SB199,13,12 49.139 Child care career education. (1) Child care career education scholarships. From the allocation under s. 49.155 (1g) (d), the department may award scholarships of not less than $500 per year 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 designated under 42 USC 9836 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 the department in the fields of child care or early childhood education.