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.)

The California Department of Social Services (CDSS) has issued a new Schedule of Income Ceilings for subsidized child care.  The schedule applies to direct service and voucher-based child care and development contracts administered by CDSS.  The updated schedule is used to determine income eligibility for state subsidized child care and development programs, and priority for enrollment in those programs.  The new schedule is to be used effect8ve July 1, 2024.

Contractors must enroll families into CDSS administered subsidized child care in priority order.  First priority is neglected or abused children who are in child protective services, or who are at risk of being abused and neglected with a written referral from a medical, legal or social services agency.

Second priority is income eligibility, with lower income families receiving higher priority.  If two or more families have the same priority, a family with an exceptional needs child is admitted first.  Families with a primary lowest income receive the highest priority.  Families who used a primary language other than English also have second tier priority.

Families who receive means tested government benefits (CalWORKs, CalFresh etc) must be prioritized based on the income they state on their application for the means tested government program.

The Income Ranking Table does not apply to CalWORKs Stages One, Two, or Three child care. (CCB 24-12, July 1, 2024.)

The California Department of Social Service (CDSS) has issued a Child Care Bulletin (CCB) regarding the implementation of Assembly Bill (AB) 2806 which implements new rules limiting the expulsion and suspension of children in child care and development programs. AB 2806 mandates that the CDSS contracting agencies, in consultation with parents and guardians, must take certain measures before expelling or suspending children from services. The intent of the legislation is to significantly reduce the number of children expelled or suspended from programs. Additionally, the legislation provide special safeguards for children with Individualized Education Programs (IEP) or Individualized Family Support Plans (IFSP), ensuring their disabilities are appropriately addressed in cases of disciplinary action within educational settings. A child cannot be suspended for more than 10 days without re-convening with Local Education Agency parents and relevant members to consider special support services.

Effective January 21, 2023 child care contractors in programs like general child care and development CCTR (centers only), migrant child care and development programs excluding migrant alternative payment programs (CMIG), and childcare and development service for children with severe disabilities (CHAN), are mandated to comply with certain requirements before expelling a child. This does not apply to licensed family child care providers until a joint labor-management committee makes recommendations.

Programs cannot suspend a child due to behavior or urge parents to pick up their children prematurely. Suspension should only occur in exceptional circumstances where there is a safety threat that can otherwise be resolved. Before deciding on suspension programs must collaborate with parents or legal guardians to use resources to try and avoid suspension. If the suspension is still deemed necessary, programs must facilitate the child’s return to participation by engaging with parents, developing a plan, offering referrals to community services, and, if the child has an IFSP or IEP with written parental consent, contacting the agency responsible for seeking consultation.

Programs cannot expel a child due to behavior or encouraging parents to voluntarily enroll their child in programs due to behavior. Before expulsion, programs must take immediate action including consulting parents, mental health professionals, and teachers to ensure the child’s safety in the program. If the child has an IFSP or IEP and with written parental consent, the agency responsible should be contacted to seek consultation and if appropriate comprehensive screenings to address the child’s needs. If after all this a program determines that a child’s participation is a serious safety threat, it should assist the parents in finding other suitable enrollment.

Contractors must follow due process requirements when proposing disenrollment.

Beginning July 1, 2023, upon enrolling, programs are required to inform parents and legal guardians in writing about limitations on expulsion and suspension along with information on how to appeal both. In the event a child is suspended or expelled they must be issued a “Notice of Action, Recipient of Services,” as described in Section 18095 of Title 5 of the California Code of Regulations. If a child is suspended guardians must be notified 24 hours in advance. Parents and guardians must appeal within 14 days of being notified of expulsion or suspension.

Future guidance for data collection will be provided for contractors but for now, they must maintain records on the number of times expulsion/suspension was initiated, the outcome, and how long a child was excluded. The data should include for each child, at a minimum, age, sex, race, ethnicity, foster status, home language, disability, and whether the child has an IFSP or IEP.  (CCB 23-24, September 6, 2023.)

 

The California Department of Social Service (CDSS) has issued a Child Care Bulletin (CCB) to guide counties and contractors regarding the implementation of Assembly Bill (AB) 116. The bill authorized the restructuring of Family Fee Schedules and allows exceptions to the payment of certain family fees in the following programs: Alternative Payment Programs (CAPP), Migrant Alternative Payment Programs (CMAP), Migrant Child Care and Development Programs (CMIG), General Child Care and Development Programs (CCTR), Family Child Care Home Education Networks (CFCC), and California Work Opportunity and Responsibility to Kids (CalWORKs) Stages One, Two (C2AP), and Three (C3AP).

Families are exempt from paying fees if they meet the following circumstances: families with children identified as at risk of abuse, neglect, or exploitation; families with children who are receiving Child Protective Services; families receiving CalWORKs cash aid; families receiving Child Care and Development Services for Children with Special Needs; families enrolled in the Federal Based Migrant Program; families eligible for child care based on “experiencing homelessness”; and families with an adjusted monthly family income below 75 percent of the state median family income.

CDSS must establish a family fee schedule for families receiving child care and development services based on the most recent census data on median family income. AB 116 establishes that family fees cannot be based on the cost of care or the amount of subsidy payment. Family fees also cannot exceed 1 percent of the family’s adjusted monthly income. If a family’s monthly income is below 75 percent of the state median income, they will not be assessed a family fee. AB 116 also waives any family fees accrued but uncollected before October 1, 2023. However, child care providers receiving subsidies should not absorb a reduction in pay because of waivers or reductions of family fees.

Family fees must be assessed at three points: initial certification, recertification, and when a family requests a reduction to their family fees.

At initial certification, contractors will assess fees using the monthly certified need. For families with fluctuating incomes, contractors must allow families to provide up to 12 months of income information to determine income eligibility or calculate family fees. The adjusted monthly income from these households should be calculated using the average total countable income from at least two months. When a family’s initial enrollment is not the first day of the month, the contractor must assess a fee based on the certified hours for the partial month and another fee for the months after based on the certified need that is documented. If a change is made to the family fee at any point a written Notice of Action (NOA) must be issued.

Family fees should be assessed but not collected through September 30, 2023. Contractors should instruct providers to suspend collecting family fees during the period that fees are waived. Fee waivers are not permanent changes to statutes or regulations. When family fees are waived, contractors should reimburse the child care provided for the full amount without deducting family fees. Contractors should have policies in place to communicate the due date for payment of fees to parents.

Childcare and development contractors are required to report the amount of family fees collected and family fees that were assessed but waived.

Delinquent Family Fee Plans including outstanding fees were resumed July 1, 2021. However, families cannot be terminated due to these outstanding fees and families have the option to pay off any balance that existed before March 2020 with the amount paid being credited to their accounts. Additionally, counties and contractors can forgive family fees accrued but uncollected before October 1, 2023.  (CCB 23-22, August 31, 2023.)