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.)