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 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF
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.
SB199,9,54 (c) Make the loan repayment assistance payments under pars. (a) and (b) from
5the appropriation account under s. 20.235 (1) (cw), subject to the availability of funds.
SB199,9,116 (d) Promulgate rules to implement and administer this section, including rules
7establishing the criteria and procedures for loan repayment assistance and, after
8first consulting with the department of health and family services, defining "child
9care worker" for the purposes of this section. The definition of "child care worker"
10shall include any child care position specified in rules of the department of health and
11family services relating to day care and family day care centers for children.
SB199, s. 10 12Section 10 . 49.135 of the statutes is created to read:
SB199,9,16 1349.135 Local early childhood council grants. (1) Purpose. From the
14appropriation under s. 20.445 (3) (ct), the department shall provide grants, awarded
15under sub. (2), to public agencies or private, nonprofit organizations for the
16establishment or operation, or both, of local early childhood councils.
SB199,9,20 17(2) Grant awards; amounts. (a) Grants shall be awarded by a body consisting
18of 2 representatives of the department of health and family services, 2
19representatives of the department of workforce development and 2 representatives
20of the department of public instruction.
SB199,9,2321 (b) A grant may be awarded only to an applicant that agrees to match the grant
22or to secure a match from local sources, through money or in-kind services, or both,
23as follows:
SB199,9,2524 1. During the first year of the grant, in the amount of at least 25% of the amount
25received for that year.
SB199,10,2
12. During the 2nd and subsequent years of the grant, in the amount of at least
250% of the amount received for each year.
SB199,10,53 (c) Each grant application shall include proof of the applicant's ability to comply
4with par. (b). Any in-kind services proposed under par. (b) are subject to the approval
5of the body awarding grants under par. (a).
SB199,10,17 6(3) Grant awards; criteria. In evaluating applications for grants, the body
7under sub. (2) (a) shall give priority to proposals that involve the planning and
8participation of multiple individuals and organizations, including child care
9providers, as defined in s. 49.001 (1), employers, parents, head start agencies
10designated under 42 USC 9836, child care resource and referral service grant
11recipients under s. 49.134, school districts, private schools, counties, cities, villages,
12towns, tribal governments, providers of early childhood education, early childhood
13family education center grant recipients under s. 48.982 (6), right from the start
14grant recipients under s. 48.982 (7), the Wisconsin works community steering
15committee under s. 49.143 (2) (a) and other individuals and organizations that have
16a demonstrated interest in or knowledge of child care, early childhood education or
17other services for young children and their families.
SB199,10,21 18(4) Use of funds; functions of local early childhood councils. Any amounts
19granted under this section shall be used for the establishment or operation, or both,
20of a local early childhood council. A local early childhood council funded under this
21section shall do all of the following:
SB199,10,2322 (a) Designate an individual to serve as the facilitator of the local early
23childhood council.
SB199,11,224 (b) Conduct an assessment of child care and early childhood education
25programs and other services for young children and their families that are available

1in the community and an assessment of the need for those programs and services in
2the community.
SB199,11,33 (c) Develop a plan to do all of the following:
SB199,11,54 1. Increase the supply and accessibility of high-quality child care and early
5childhood education programs in the community.
SB199,11,116 2. Foster coordination and communication between providers of child care and
7early childhood education, employers, the local public schools, parents, the
8Wisconsin works community steering committee under s. 49.143 (2) (a) and other
9appropriate individuals and organizations in the community to maximize the
10accessibility and quality of, and to minimize duplication in, the programs and
11services that are available in the community for young children and their families.
SB199,11,1412 3. Promote and increase public awareness of the characteristics and
13importance of high-quality child care and early childhood education for young
14children.
SB199,11,1715 (d) Advise the county department under s. 46.215, 46.22 or 46.23 on the
16development of the county department's proposed budget for the expenditure of
17funds allocated under s. 49.175 (1) (o) and (p).
SB199,11,2218 (5) Membership of local early childhood councils. Membership on a local
19early childhood council funded under this section shall be open to all persons and
20organizations in the community with a demonstrated interest in or knowledge of
21child care, early childhood education or other services for young children and their
22families and shall include all of the following persons as members:
SB199,11,2323 (a) One or more parents of young children.
SB199,11,2424 (b) One or more providers of family child care.
SB199,11,2525 (c) One or more providers of center-based child care.
SB199,12,1
1(d) One elected county official.
SB199,12,22 (e) One or more representatives of each of the following:
SB199,12,33 1. A local employer.
SB199,12,44 2. The local school district.
SB199,12,65 3. The county department receiving child care funds under s. 49.175 (1) (o) or
6(p) and any entity administering those funds if different from the county department.
SB199,12,77 4. The local health department, as defined in s. 250.01 (4).
SB199,12,98 5. A local agency providing child care resource and referral services funded by
9a grant under s. 49.134.
SB199,12,11 10(6) Rules. The department, in consultation with the department of public
11instruction, shall promulgate rules to implement this section.
SB199, s. 11 12Section 11. 49.136 (7) (a) of the statutes is amended to read:
SB199,12,1813 49.136 (7) (a) The department shall establish guidelines for eligibility for a
14grant under this section. In establishing those guidelines, the department shall
15provide that no person may be awarded a grant under this section unless that person
16and all employes of that person who provide care and supervision for children have
17received not less than 20 hours of training in child development and safety.
The
18department need not promulgate those guidelines as rules under ch. 227.
SB199, s. 12 19Section 12. 49.137 (6) of the statutes is renumbered 49.137 (6) (b).
SB199, s. 13 20Section 13. 49.137 (6) (a) of the statutes is created to read:
SB199,13,221 49.137 (6) (a) The department shall establish guidelines for eligibility for a
22grant under this section. In establishing those guidelines, the department shall
23provide that no person may be awarded a grant under sub. (2) or (3) unless that
24person and all employes of that person who provide care and supervision for children

1have received not less than 20 hours of training in child development and safety. The
2department need not promulgate those guidelines as rules under ch. 227.
SB199, s. 14 3Section 14. 49.139 of the statutes is created to read:
SB199,13,12 449.139 Child care career education. (1) Child care career education
5scholarships.
From the allocation under s. 49.155 (1g) (d), the department may
6award scholarships of not less than $500 per year nor more than $5,000 per year to
7individuals who are child care providers and to individuals who are employed by a
8child care provider or by a head start agency designated under 42 USC 9836 in the
9direct provision of child care services or in the administration of child care services
10to enable those individuals to earn associate degrees, bachelor's degrees or other
11credentials approved by the department in the fields of child care or early childhood
12education.
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