AN ACT TO STABILIZE CHILD CARE PROVIDERS BY INCREASING CHILD CARE SUBSIDY RATES.
Directs the Department of Health and Human Services (DHHS) to increase child care subsidy market rates to the 75th percentile beginning October 1, 2021. Appropriates $13.5 million in recurring funds in fiscal year 2021-2022 and $18 million in recurring funds for fiscal year 2022-2023 from the General Fund to DHHS to implement these market rate increases.
In counties where the county child care payment rate is lower than the statewide rate, sets payment rates at the 75th percentile statewide rate beginning October 1, 2021, except in certain circumstances where application of the statewide rate would inhibit the county’s ability to provide child care for low income children. Appropriates $40.5 million in recurring funds in fiscal year 2021-2022 and $54 million in recurring funds in fiscal year 2022-2023 from the General Fund to DHHS to implement these temporary rate increases. The provisions in this paragraph are effective July 1, 2021, and expire when the State adopts another market rate increase or a change in the methodology to calculate child care market rates.
Amends section 11B.3(c) of SL 2017-57 to set the rate child care providers are paid under the child care subsidy program at the market rate (was, the lower of the market rate or the amount charged privately paying parents) and removes the 20 month limitation on receiving child care subsidies while pursuing post-secondary education. Appropriates $10 million in recurring funds in each year of the 2021-2023 biennium from the General Fund to DHHS to implement these changes.
Directs the DHHS Division of Child Development and Early Education to, by December 1, 2022, submit a report to the Joint Legislative Oversight Committee on Health and Human Services summarizing county level data during the specified time frame on children receiving subsidized child care, child care providers paid by the program, and progress in adopting an alternative rate methodology.
Effective July 1, 2021 unless otherwise specified.
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