Expanding the Patchwork

Inequity in Child Care Subsidy Eligibility and Administration is Greater Now than in 2002

December 1, 2006

Author: Saima Akhtar| Susan C. Antos

In New York State, parents with incomes under 200% of  poverty are  eligible to receive assis­tance paying for child care while they work.[1]  In a few locations (parts of Manhattan, the  Bronx, Yonkers, Al­bany and Monroe counties), facilitated enrollment projects have been estab­lished under  special  state budget author­ity, which  have eligi­bility levels up to 275% of poverty.  New York funds most of this child care as­sistance with hun­dreds of thousands of dollars in federal   block grant funds.  These federal dollars make up approximately 85% of all money spent in New York on child care subsidies, the rest being equally divided between state and local funding.   How­ever, eligibility for this federal benefit varies de­pending upon where the parent lives: the hap­penstance of geography determines whether a family receives an affordable child care subsidy, and also determines the conditions of eligibility.

Four years  ago, Empire Justice  Center released a report,  Child Care in New York State: A Patch­work of Policies: A county-by county review of  subsidy administration, which reviewed the dif­ferences in child care policies among  New  York’s 58 social services districts.[2]  The report  reviewed the different options allowed within the regulatory structure of the New York State Child Care Block Grant, and concluded that there was a wide disparity of cost to parents and the treat­ment of child care providers depending on their county residence.  A Patchwork of Policies con­cluded that New York State should create a sys­tem that makes quality paramount and should establish consistent policy to assure that the early learning experiences of New York’s low income children are not determined solely by their county of residence.

This article revisits the administration  of  child care subsidy  programs in New  York four years after the issuance of  a  Patchwork of Poli­cies, to determine if  access to child care  benefits has become  more equitable.  The Empire Justice Cen­ter has reviewed the Annual Plan Updates that each of New York’s 58 social services dis­tricts has submitted to the Office of Children and Family Services.[3] These plans set forth in detail the eligibility policies of each local district. This article will focus on ten key differences in child care policy among the 58 social services dis­tricts, and will illustrate that the variation among counties has actually increased.  These county by county variations are set forth in the chart ac­companying this article.

Parental Co-Payments

For families that are not on public assistance, the size of a child care subsidy is calculated by taking the amount of the household’s annual in­come, subtracting the poverty level, and applying a multiplier of 10% - 35% against the resulting amount.[4] the resulting number is then divided by 12 to determine the amount of the monthly “family share,” or co-payment.  This amount is the same regardless of the number of children in care or the type of care utilized by the family.  The choice of a co-payment multiplier, is chosen by the county, and is based upon no standard­ized criteria.  This county option, by far, creates the greatest inequity among districts.

The co-payment disparities among counties are as troubling now as they were four years ago.  In Livingston and three other counties, a family of three with earnings of $33,200 (200% of the pov­erty level), pays a family share of $1,660 dollars per year for child care.[5] However, if the same family moves across the county line into Gene­see County, they will be asked to pay a family share of $5,810 per year for their child care. This is a difference of $4,150, and constitutes 17.5% of the household’s total annual income. Eighteen other counties charge co-payments at  rates between the amounts charged by Livingston and Genesee.[6]  New York City, which uses a 25.5% multiplier, applies a 10% overall  cap, so that if the multiplier results in a parent  co-payment which exceeds 10% of the house­hold income, the co-payment will not exceed the cap.  New York City also makes a downward ad­justment if the children in the household only re­ceive part-time care.

Pay Differential for Accreditation

The rate of payment to a child care provider, who receives a subsidy from the state, is limited to the “market rate,” which equals 75% of the me­dian cost of care in a geographic area.  This rate is established biennially by the Office of Children and Family Services, and is broken down by type of care, age of the child and geographic area.[7]

For regulated child care providers who meet ad­ditional accreditation standards of a national child care organization, districts may opt to pay a higher rate for care so long as the actual cost of care exceeds market rate.  The accreditation means that the child care provider is meeting not only the State’s health and safety requirements, but also a number of additional standards related to things like teaching, assessment of children in the program, or the management of the child care program.  In both 2002 and 2006, nine dis­tricts provide accredited child care programs with a higher payment rate than programs without the accreditation.[8] Albany and Steuben Counties pay accredited child care providers at a rate that is 10% higher than market rate.  In Chautauqua, Madison, Monroe, Putnam, Tompkins and Washington Counties and New York City, an ac­credited provider is eligible for payment at a 15% higher rate.

Child Care during Non-Traditional Work Times

State regulations permit local Social Services districts the option of paying a  rate which is higher than market rate for child care provided during non-traditional work hours such as late night, over night or weekends, when the actual cost of this care exceed the market rate.  In 2002, only nine counties provided this differen­tial; currently, twelve districts opt to provide some additional payment for child care during non-traditional hours.   The rate differential for care during non-traditional hours is supplemental to the accreditation rate differential at the discre­tion of the county.[9] In Steuben County; a pro­vider receives a 5% differential for providing care during non-traditional hours; an accredited pro­gram that provides weekend care would be eligi­ble for a 15% differential.  In Albany County, a provider may receive a 10% higher payment rate for either care during non-traditional hours or running an accredited program.   However, an accredited provider offering weekend care is only eligible for a 15% payment differential, rather than the 20% which might be expected based on the type and time of care.

Daytime Care for a Child Whose Parent Works Nights

Districts have the option to pay for daytime child care for a parent who works nights, creating a safe and nurturing setting for the child while the parent gets some much needed sleep.[10] In 2002, only 27 social services districts reported that they offered a child care subsidy for daytime child care while a parent who worked at night was sleeping.  Now, forty-nine districts provide subsidized daytime child care for parents who need to sleep because of their work hours.  However, the sleep coverage provided is vari­able from district to district.  Steuben County of­fers only five hours, while all the surrounding counties all offer eight hours of sleep time.  Hamilton County provides no sleep care, while immediately adjacent Fulton and Warren coun­ties provide six and eight hours of sleep care re­spectively.  Again, the benefit to the family is de­pendant only on geography.

Child Care Beyond 24-hours

State regulations permit districts the option of paying for child care for periods longer than 24 hours.[11] Only 14 of the 58 districts provide for child care over 24 hours.

In addition to emergency situations, child care beyond 24 hours benefits parents who travel for work or have jobs subject to compulsory over­time.  Allegany County will pay for care over 24 hours up to seven times per year in cases of emergency or where the parent’s activities re­quire it.  Franklin County will pay for care over 24 hours in emergencies with justification, but prior approval is preferred.  In Schoharie County, paid child care extending beyond 24 hours must be pre-approved for a specific time-limited period of up to three months.

Counting Older Children in the Child Care Services Unit

Recent amendments to the child care regula­tions provide local social services districts with the option of including the presence and income of 18, 19 and 20 year olds in the child care assistance unit when calculating the household eli­gibility for a subsidy.[12]  This option relies on the  unrealistic assumption that  a young adult who works will turn his or her income over to a parent  in order to contribute to the household finances, and  may penalize families  who have working older teenagers who live at home.

Twenty-nine districts count an 18, 19, or 20 year old child as part of the household receiving child care assistance, and count income earned by the grown child in the calculation of household eligibility for child care assistance. In these coun­ties, a young adult in the household who works  20 hours per week for 50 weeks earning mini­mum wage ($7.15 per hour starting in 2007), is  considered to contribute $7,150 to the house­hold.  In such a scenario, a mother with wages of $13,200 (the poverty level for a household of two) with two children - one age 18 and one age 4, would have a $1 per week co-payment[13] if the teenager is not included in the assistance unit. Including the teen’s income makes the family a household of three, but pushes their income to $20,350, almost 125% of poverty, increasing their co-payment to $26 per week in a county with a 35% co-pay multiplier.  By deeming the income of older children toward the total house­hold income, families with older children who work pay amounts in excess of other families of the same size.  Interestingly, the income of teens is not counted in determining public assistance eligibility or degree of need,[14] so deeming in­come for child care eligibility is inconsistent with the rules applied in the family assistance program.

Interestingly, there are some situations when the choice of this option actually benefits the family.  For example, when the older child has little or no income, including the 18, 19 or 20 year old in­creases the household size used to determine eligibility against the same or only slightly larger income that would be applied if the older child was excluded.  Thus in a household of three, a mother with wages of $16,600 ( the poverty level  for a household of three) with two children - one age 18 and one age 8, would have a $23 per week co-payment in a county with a 35% multi­plier if  the teenager with no  income is not in­cluded in the assistance unit. If the unemployed teen is included in the assistance unit, the co­payment would be $1.00.  In response to this quandary, some districts, like Rockland and Nassau, have opted to count the older child in the child care services unit only when it is a benefit to the household.

Child Care During a Break in the Parent’s Activity

Local districts may, but are not required to pay for child care which is utilized when a parent has a break in employment or education for up to a one month period.[15] Paying for child care during breaks in parental activity means that a parent is not required to lose a valued child care provider when the parent is between jobs, or on a short educational break. Almost half of the districts (23) pay for some child care during such periods. Lewis County provides two weeks of child care while a parent has a break in approved activities. A parent in Madison County is allowed up to a four week break in activities while receiving child care assistance.  Nassau County provides two weeks of assistance for parents with breaks in scheduled activities, teen parents on a break from school, or individuals switching jobs with a definite starting date and job offer.  In Warren County, a parent may receive two weeks of child care for a break in activity, while waiting to begin a scheduled activity, or when scheduled to begin employment.

Transportation

Districts also have the option to pay for transportation that brings children to and from the child care provider.[16] only ten of the 58 districts provide this vital service in any manner. Ulster County limits its trans­portation coverage to children attending summer camps. The cost is capped at $100 per summer.  In comparison, Chautauqua County pays for all children attend­ing before - or after - school programs offered by the YWCA, and to move children between li­censed child care providers and schools, on a case by case basis.  

Inconsistent Absence Policies Affect Providers

Some of the disparities in the administration of child care benefits especially affect child care providers.  State regulations permit, but do not require, local districts to make payments for chil­dren who are temporarily absent from child care.[17] When a child is absent from child care on a regularly scheduled care day, 53 of 58 dis­tricts have elected to pay for child care.  How­ever, there is wide variation among the districts as to which absences will be paid for and how many are covered.  Oneida County will pay for four missed days of scheduled child care per month and 24 days in six months without any specific reason for the absences.  New York City allows 12 missed days in one month and 40 days in six months, but specifies that the ab­sence must be caused by one of eight reasons. Furthermore, New York City reserves the right to monitor and not pay for overused absences.

Program Closures

Another policy which disproportionately affects child care providers is whether the social ser­vices district will pay the child care provider if the program is closed for a holiday, severe whether or other emergency.[18]  If a child care program  must be closed on a regularly scheduled day, 13 districts will pay for the closed programs.  Even among this minority of counties, the criteria for payment vary dramatically.  Columbia County will pay specified holiday closures for non­exempt providers where there is an existing let­ter of intent with the county.  In Monroe County, only day care centers are eligible for four paid closures or less.  Washington County pays for 5 days of program closure for day care, group fam­ily day care, and school aged child care but not family day care.  In Schuyler County, day care, group family day care, and family day care pro­viders are eligible for 5 days of program closure with a letter of intent from the district.

Conclusion

Four years after Empire Justice Center released A Patchwork of Policies, the child care system remains as fragmented as ever.  Under the new gubernatorial administration, New York State should create a system that makes quality para­mount and establishes consistent policy to as­sure that the early learning experiences of New York’s low income children are not determined solely by their county of residence.  Empire Jus­tice Center is part of a coalition of over 60 advo­cacy organizations called Winning Beginning New York, which have called for the creation of an Early Learning Commission.  This Commis­sion would be charged with creating a unified early care and education system in New York State.  The creation of this Commission would be an important first step in establishing an equi­table system for the administration of child care subsidies in New York State. 

Footnotes

1   Social Services Law §410-w.

2 The full report, Child Care in New York State:  A Patchwork of Policies, is available at www.empirejustice.org.

3  Data is taken from the 2004-2006 Annual Plan updates filed with the New York State Office of Children and Family Ser­vices pursuant to 05 OCFS-LCM-08.  In cases where the most recent annual plan was not available, the 2002-2003 Annual Plan update was used. 

4   18 NYCRR §415.3(f).

5 Those counties are Cattaraugus, Otsego and Schoharie.

6. For a detailed comparison of family share burdens based on income level and household size, please see www.empirejustice.org.

7.  Social Services Law§410-x(4); 05 OCFS LCM-17.

8.  18 NYCRR §415.9(h).

9.  18 NYCRR §415.9(h).

10  18 NYCRR §415.4(c)(3).

11  18 NYCRR §415.1(a).

12  18 NYCRR §415.1(1).

13  18 NYCRR §413.3(f)(4).

14  Social Services Law 131-a(8), 131-a(10).

15  18 NYCRR §415.2(c)(2).

16  18 NYCRR §415.7(a)(3).

17  18 NYCRR §415.6(b).

18  18 NYCRR §415.6(c). 

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