Every year, the California Department of Social Services (CDSS) must establish a family fee schedule for families who receive subsidized child care. The family fee Is based on State Median Income. The family fee is a flat rate based on hours of child care needed, family income, and family size.
Family fees cannot be based on the cost of care or the amount of the subsidy payment. Family fees cannot exceed one percent of the family’s adjusted income. Fees accrued but uncollected prior to October 1, 2023 can be forgiven.
The new Family Fee Schedule applies to various CDSS subsidized child care programs. Family fees can be assessed at initial certification, recertification, or when the family requests a reduction and provides documentation to support that.
Families are exempt from paying families when: the children are at risk of abuse, neglect or exploitation, the children are receiving Child Protective Services, the family is receiving CalWORKs, the family is receiving services for children with special needs, the family is experiencing homelessness (only in pilot counties), and families with income below 75 percent of the state median income.
When the family has fluctuating income, they can provide up to 12 months of income information to determine the family fee. The family’s adjusted income in that situation is the average income for at least the previous two months.
All families have their family fees reassessed at annual recertification. The contractor must issue a Notice of Action if the family fee changes. Family fees cannot be increased for any reason during the eligibility period.
If the new family fee schedule causes a reduction in a family’s fee, the contractor must decrease the fee and send a Notice of Action. (CCB 24-13, July 8, 2024.)