Wisconsin SharesChild Care Subsidy

Who Uses Wisconsin Shares?201384,591 children49,655 families$235M

5 Year Decline Since 2009

2009: 97,135 children 54,468 families $338M issuances

Purpose Subsidize child care for low income

parents who need child care to: Work in unsubsidized employment, or Prepare for employment while

participating in specific “approved” activities.

Key Points Approximately 3,500 child care

providers participating in WI Shares out of total of 6,000

17% of families are in W-2 & 83% employed

Approximately 85% receive FoodShare Overpayment requirement

Key Points cont… Not a “case management” type

program-more “income maintenance” (ESS workers have up to 900 cases)

Shared IT system for eligibility: CC, FS, HealthCare, W-2 (different

agencies) Milwaukee: MiLES and MECA BOS: counties and tribes

IT Overview Handout - IT Systems

Part 1: Basic Eligibility Need child care for “approved activity” Children birth to 12, 13-18 if special needs Child must be a citizen (not parents) Resident of Wisconsin SSN Parents in family must cooperate with

Child Support Low Income (defined later)

Approved Activities Are defined in Child Care Development

Fund (CCDF) block grant federal regs. Set by Wisconsin statute Part of approved state plan for CCDF Limited to statute and plan approved Included in FIP & QA review criteria Proposed CCDF regs. change this June

for 2015 state plan-significant changes

Wisconsin Shares Approved Activities s49.155(1m) Learnfare participation (teen parent in

W-2 family),

To obtain HS diploma or GED/HSED if: 18 or 19 < 18 resides with parent, kinship care

relative, foster home, or independent living supervised by an adult.

Unsubsidized Employment Unsubsidized employment

Includes training provided by employer during work hours

W-2 Employment Position Paid W-2 placements

Community Service Job placement Transitional placement Trial job (replacement)

CMF-upfront job search. Not for case management only:

ex: caretaker of a newborn placement Unless case management and

employment because of employment

FoodStamp Employment and Training Program (FSET) Job Search or Work Experience only-not

education or other components

Transform Milwaukee Job New program 2/2014 Only subsidized employment allowed

under current law

Work and Training/Education Maintain employment and ESL/basic

skills/GED-HSED, tech school or other course of study approved by the department

2 year limit Gov. Thompson changed “obtain” to

“maintain” employment Policy is 5 hours/week – or 20

hours/month

Defining “Parents” Biological, Adoptive, Relative, or A person taking the place of a parent

“Family” Income Limits 185% FPL for new applicants 200% FPL for on-going case Foster child and children living with

relatives per a court order & receiving Kinship Care benefits: Child’s biological or adoptive family

income can be no more than 200% FPL

Federal Poverty Level (FPL) 2014 Annual Income Levels

Size of family

100 % 110 % 125 % 150 % 175 % 185 % 200 %

unit Highest Level On-going

  Applicant Cases

1 $11,490 $12,639 $14,363 $17,235 $20,108 $21,257

$22,980

2 $15,510 $17,061 $19,388 $23,265 $27,143 $28,694

$31,020

3 $19,530 $21,483 $24,413 $29,295 $34,178 $36,131

$39,060

4 $23,550 $25,905 $29,438 $35,325 $41,213 $43,568

$47,100

5 $27,570 $30,327 $34,463 $41,355 $48,248 $51,005

$55,140

6 $31,590 $34,749 $39,488 $47,385 $55,283 $58,442

$63,180

7 $35,610 $39,171 $44,513 $53,415 $62,318 $65,879

$71,220

8 $39,630 $43,593 $49,538 $59,445 $69,353 $73,316

$79,260

For all states (except Alaska and Hawaii) and for the District of Columbia.

FPL% Monthly Income Limits and Wisconsin Shares Families

Size of Family

Unit

FPL % Monthly Income Limits

100% FPL

110% FPL

125 % FPL 150% FPL

175% FPL 185% FPL

200% FPL

1 $958 $1,053 $1,197 $1,436 $1,676 $1,771 $1,915 2 $1,293 $1,422 $1,616 $1,939 $2,262 $2,391 $2,585 3 $1,628 $1,790 $2,034 $2,441 $2,848 $3,011 $3,255 4 $1,963 $2,159 $2,453 $2,944 $3,434 $3,631 $3,925 5 $2,298 $2,527 $2,872 $3,446 $4,021 $4,250 $4,595 6 $2,633 $2,896 $3,291 $3,949 $4,607 $4,870 $5,265 7 $2,968 $3,264 $3,709 $4,451 $5,193 $5,490 $5,935 8 $3,303 $3,633 $4,128 $4,954 $5,779 $6,110 $6,605

Most Wisconsin Shares Families

135% or less

Wisconsin Share Limits

Why is “Family” Important?: Defined by s. 49.141(1)(s) stats for CC and W-2

A consistent definition is required to ensure consistent application of income guidelines for eligibility determination.

Determines whose income to count in a household.

Determines who in the household is required to be in an activity to qualify as “needing” child care (multiple parent families).

Definition: A custodial parent & all their dependent

children & all dependent children of the dependent child.

Example: Mom, teen parent, teen parent’s baby=family of

3.

Definition (cont.) And…….any nonmaritial coparent

residing in the house, and their dependent children, or……(next slide)

Example: Mom, boyfriend, their child if paternity was established on the boyfriend=family of 3. Mom, boyfriend, their child. If paternity is not established=family of 2 and a referral is made to child support.

Definition (cont). Or…..spouse of the custodial parent

living in the house, and the spouse’s child(ren) (if the wife were not their parent).

Example: Mom, her child, her husband, his child=a family of 4

Two-Parent Families Strict rules for 2-parent families

participation in DCF 201

Both parents either work or other approved activities unless one parent is unable to work and is unable to care for the children, as verified by a doctor, psychiatrist or psychologist.

Two or More Parents: The two-parent requirement is also

applied to teen parents and their parent(s).

Example:If a teen is in school, the grandmother must need child care so that she can work unless she is unable to work and is unable to care for the child.

FPL & Co-Payments Federal regulations and Wisconsin

Statutes require families to contribute to their cost of child care.

Co-payment amounts are assessed based upon family size, FPL, and the number of children in subsidized child care.

Co-payment levels are located at: http://dcf.wisconsin.gov/childcare/wishares/default.htm

Family of 4 at 100% FPL

The annual income limit is $23,550/year or $1,963/month If they earned minimum wage ($7.25/hr) and one parent

worked full time and the other about 23 hours per week, and they worked at the same time-their authorization would be probably be for 23 hours per week (or more for transportation).

Since they have overlapping work schedules, the second parent only needs child care for their working time.

If they had 2 children in child care, their co-payment would be $31 per week for both children.

Family of 4 at 185% FPL An income limit is $43,568/year or $3,630/month

If both parents worked full time and there was no other countable income they could make no more than $10.55 an hour ($3,630/344 hours=$10.55).

If they had 2 children in child care, their co-payment would be $86 per week for both children

Authorizations Parental choice of providers (fed and

state policy), but the provider: Must be regulated Participating in YoungStar Fingerprinting requirement Give their private rates to local

authorization agency Give their tax information to regulator

Part II Authorizations

Co-payments

Payments: Gross Amounts/ YoungStar

Adjustment/Net

Authorization Type Attendance-based

Enrollment-based

Authorization Notices Sent to parents

Sent to child care providers

Sent weekly for all changes: co-pay/rate changes, # of hours changed, provider changes

Authorization Criteria 17 assessment items:

Automation verses “case management” approach

How can Call Centers manage this level of detail for authorization?

Rates: DCF set’s rates for licensed providers

(MRS) Certified rate is 75% of LFAM Provisionally certified rate is 50% LFAM

Created by provider type and age groups

Currently by zone/% of urbanization

Co-pay Most families have a co-pay amount

assessed and deducted from their payments.

Providers expected to collect: Some do/some don’t collect.

Subsidy amount + co-pay may not meet provider price/parent’s pay difference, too.

Process Flow Step 1/Part I: Application/eligibility

confirmed (verification complete)

Step 2/Part II: Authorization

Parental choice of providers: Contingent regulated, participate in YS,

soon fingerprinting requirement

Calculating Payments Rate minus co-payment= “starting rate” Attendance submitted and processed Gross payment amount determine YoungStar adjustment applied Add Gross and YS adjustment=Net

Amount