Child Care

CHILD CARE
Prepared by:
Melinda Hugdahl, Staff Attorney
Legal Services Advocacy Project
651-222-3749, ext. 107
mthugdahl@mnlsap.org


I. APPLICATION, ELIGIBILITY, AND PAYMENTS
Chapter 175, Articles 1-6 (HF 1728)
Amends Minn. Stat. §§ 119B.08, subd. 2; 119B.09, subd. 1; 119B.011, subd. 3; 119B.12, subd. 1; 119B.13, subd. 6; and 119B.15
Effective August 1, 2009

A. Application
Adds an application for child care assistance as an addendum to the combined application for the Diversionary Work Program, Minnesota Family Investment Program (MFIP), or food support.
Amends Minn. Stat. § 119B.011, subd. 3

B. Eligibility
Changes eligibility for families from those with incomes less than 67% of State Median Income (SMI) to those with incomes at or below 67% of SMI.
Amends Minn. Stat. § 119B.09, subd. 1

C. Payments and Co-payments

1. Direct Payments to Parents and Vendors
Eliminates child care assistance provider payments directly to parents and vendors and modifies payment timelines to providers for consistency with the new Minnesota Electronic Child Care Payment and Eligibility (MEC2) System.
Amends Minn. Stat. § 119B.13, subd. 6

2. Effect of Tax Deductions
Eliminates consideration of tax deductions from the determination of child care assistance copayment amounts. Requires any changes to copayments must to be implemented on the first Monday of the service period following the effective date of the change.
Amends Minn. Stat. § 119B.012, subd. 1

3. Frequency of Payments
Changes the frequency of payments to child care providers from quarterly to monthly.
Amends Minn. Stat. § 119B.08, subd. 2


II. APPROPRIATIONS/FORECAST ADJUSTMENTS
Chapter 79, Articles 12 and 13 (HF 1362)
Effective May 15, 2009

A. Basic Sliding Fee (BSF) Child Care

  • Appropriates:
    • $40,104,000 in Fiscal Year (FY) 2010 ($7,045,000 of which is from federal stimulus funds); and
    • $45,096,000 in FY 2011 ($6,974,000 of which is from federal stimulus funds).
  • Provides that an additional $261,000 in each fiscal year represents federal stimulus money for School Readiness Service Agreements. Specifies that the federal stimulus money is a onetime appropriation, and allows any unspent amount in the first year to be spent in the second year.
  • Requires the Department of Human Service (DHS) to spend $5,244,000 in FY 2010 from the child care development fund unexpended balance on BSF, but reduces the general fund base for BSF by $260,000 in both FY 2012 and FY 2013.
  • Allocates BSF funds to counties as follows: first, by the guaranteed floor amount; then, for any remaining balances, proportionally, considering factors of transition year child care, length of BSF waiting list, county cost, and total expenditures.

B. Child Care Development Grants

  • Appropriates:
    • $1,487,000 in FY 2010 (of which $375,000 is from federal stimulus funds);
    • $1,487,000 in FY 2011 (of which $375,000 is from federal stimulus funds);
    • $633,000 in FY 2010 and 201l from federal stimulus funds for coaching, training, and preparation for a statewide child care quality rating system;
    • $184,000 in FY 2010 from federal stimulus funds to promote the Minnesota Early Learning Foundation (MELF) program; and
    • $1,200,000 in FY 2011 from the general fund to implement the Parent Aware system statewide by continuing the MELF pilots through June 20, 2011.
  • Specifies that that all are one-time appropriations, but allows funds unspent in the first year to e spent in the second year.
  • Specifies that the appropriations cover funding to: (1) the Parent Aware rating system pilot, including the MELF pilot projects; and (2) the Family, Friend and Neighbor pilot programs, but directs the $375,000 of federal stimulus funding each fiscal year to programs receiving grants prior to June 30, 2009, or to new programs.

C. MFIP Child Care Assistance Grants

  • Receives an additional $4,933,000 in a forecast adjustment from the 2008 appropriation.
  • Appropriates:
    • For FY 2010:
      • $61,171,000 from the general fund;
      • $1,022,000 from federal stimulus funds.
    • For FY 2011:
      • $65,214,000 from the general fund; and
      • $406,000 is appropriated from federal stimulus funds.
  • Provides that funds available from the child care development block grant of federal stimulus bill must be used for MFIP child care, unless specifically earmarked for other uses. Authorizes DHS to make adjustments necessary to utilize all federal stimulus money available.

D. Transitional Year Child Care

  • Transfers from the Temporary Assistance for Needy Families (TANF) fund (to be shared with MFIP):
    • $5,909,000 in FY 2010;
    • $9,808,000 in FY 2011;
    • $10,826,000 in FY 2012; and
    • $4,026,000 in FY 2013.

III. EARLY LEARNING STUDY
Chapter 96, Article 6, Section 10 (HF 2)
Effective August 1, 2009

Requires DHS and the Department of Education (DOE) to develop a study on how to: (1) transition basic sliding fee child care, MFIP child care, and child care development grants to DOE; and (2) develop an early learning system with a single set of standards . Requires a report to the Legislature by February 15, 2010.


IV. HEAD START/EARLY CHILDHOOD FAMILY EDUCATION (ECFE)
Chapter 96, Article 6, Sections 1 and 11 (HF 2)
Amends Minn. Stat. § 119A.52
Effective July 1, 2009

A. Appropriations

Appropriates:
- To ECFE:
- $22,955,000 in FY 2010; and
- $22,547,000 in FY 2011
- To Head Start:
- $20,100,000 in FY 2010 and FY 2011

B. Substantive Changes
Provides that funding for Head Start agencies without a federal Early Head Start rate will be determined using the state average federal cost per child for Early Head Start. Exempts approved programs with innovative initiatives targeted at high-risk populations from various procedures and corrective action plan requirements.
Amends Minn. Stat. § 119A.52


V. RETROACTIVITY
Chapter 79, Article 2, Sections 1 and 2 (HF 1362)
Amends Minn. Stat. §§ 119B.09, subd. 7; and 119B.13, subd. 6
Effective October 1, 2009

A. Participants
Limits receipt of retroactive MFIP child care assistance to a maximum of six months from the date of the child care assistance application, regardless of termination of payments under Minn. Stat. §119B.07, subd. 7(b).
Amends Minn. Stat. § 119B.09, subd. 7

B. Providers
Requires submission of bills within 60 days of the last date of service on the bill if the provider has been issued an authorization of care and billing form for a family. Limits applicability of retroactive payments to a maximum of six months from the date the provider is sent the authorization of care and billing form if the provider has no authorization of care.
Amends Minn. Stat. § 119B.13, subd. 6


VI. SCHOOL READINESS CONNECTIONS PROGRAM
Chapter 175, Article 1, Section 7 (HF 1728)
Amends Minn. Stat. § 119B.231, subd. 3
Effective August 1, 2009

Allows a family to maintain eligibility for the School Readiness Service Agreement (SRSA) rate at any time following initial approval if authorized activities decrease to an average of 35 hours or less per week, eliminating the existing 12-month period following initial approval as the only window where a family could maintain eligibility if activities decreased.


VII. SIDS/SHAKEN BABY SYNDROME PREVENTION
Chapter 26 (SF 978)
Amends Minn. Stat. §§ 245A.144; 245A.1444; 245A.40, subd. 5; and 245A.50, subd. 5
Effective August 1, 2009

Chapter 142, Article 2, Sections 19 and 21 (SF 1447)
Amends Minn. Stat. §§ 245A.1435 and 245A.50, subd. 5
Effective August 1, 2009

A. Risk Reduction
Provides that a parent directive to a license holder, authorizing a sleeping position other than on the child's back, must be on a form prescribed by DHS and must include a statement that the parent or guardian has read information related to the reduction of Sudden Infant Death Syndrome (SIDS). Requires the license holder to put children up to and including children twelve months of age on a firm mattress with only a fitted crib sheet.
Amends Minn. Stat. § 245A.1435

B. Training
Expands the requirement to receive training on Shaken Baby Syndrome before providing care from infants to children under school age. Reduces the training from one hour to one half-hour in length, and requires that the training be completed at least once every five years. Mandates that the training include: (1) risk factors; (2) ways to reduce Shaken Baby Syndrome; and (3) license holder communication with parents.
Amends Minn. Stat. § 245A.50, subd. 5


VIII. QUALITY RATING SYSTEM (PARENT AWARE)
Chapter 96, Article 6, Section 4 (HF 2)
Adds Minn. Stat. § 124D.142
Effective July 1, 2009

Creates a statewide, voluntary child care quality rating and improvement system, based upon the Parent Aware rating system pilot, which includes: (1) opportunities to improve educational outcomes for children so they are ready for school; (2) ways to increase publicly funded and regulated quality early learning and care facilities; (3) tracking access to early childhood learning; and (4) increasing the number of children prepared for kindergarten, especially children in low-income families. Makes a program or provider choosing to be rated eligible for public funding. Requires that, until the statewide system is created, the state must use the Parent Aware pilot programs used in the Minnesota Early Learning Foundation (MELF) areas and additional pilot sites as supported by public or private funds.