What Can Data tell us about the Cost of New York’s Variable Co-Payments?

June 1, 2008

If we are to assess the cost of changing co-payments in any way, it is important to know the number of families in each income bracket over the poverty level.  This is because the cost of providing child care varies by county only with respect to these families.  There is no cost to changing the co-payment multiplier for families below the poverty level, because the cost of providing child care, except for a modest co-payment ($3 per/week in New York City; $1 per/week in the rest of the state) is the entire cost of care.

For families above the poverty level, the cost of providing child care depends upon the co-payment multiplier chosen by the county, and the income levels of those receiving a subsidy.  For example, in all counties the cost of subsiding a parent at 125% of poverty is more than a parent at 175% of poverty.  The dollar amount of the cost however, depends upon the multiplier chosen.

For example, if legislation were enacted that capped parent co-payments at 10% of household income, that legislation would have no effect in counties with multipliers of 10%, 15%, 17.5%  or 20% because these multipliers result in a co-payment at or below 10% of household income.

The cost of adjusting the co-payment to capital at 10% can only be calculated by analyzing the actual number of households at or above 175% poverty in 25% and 30% co-pay counties and the number of households at or above 150% poverty in 35% co-pay counties.  This is because it is only these households that would be affected if a 10% cap were imposed.

Unfortunately, data showing utilization of subsidies by income is not available on New York State computers.  In response to a freedom of information act request that we filed with local social services districts we learned that most districts do not capture this information.  Attached is data independently collected by Dutchess, New York City, Orange and Schenectady Counties.