PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of section 415.9 of Title 18 NYCRR.
Statutory authority:
Social Services Law, sections 20(3)(d), 34(3)(f) and title 5-C
Subject:
Child Care Market Rates.
Purpose:
To revise the child care market rates.
Text of proposed rule:
Paragraph (1) of subdivision (j) of section 415.9 is amended to read as follows:
(1) Effective [October 1, 2011] April 1, 2014, the following are the local market rates for each social services district set forth by the type of provider, the age of the child and the amount of time the child care services are provided per week.
Paragraph (3) of subdivision (j) of section 415.9 is repealed in its entirety and re-enacted as follows:
(3) The market rates are established in five groupings of social services districts. The rates established for a group apply to all districts in the designated group. The district groupings are as follows:
CHILD CARE MARKET RATES
Market rates are established in five groupings of social services districts as follows:
LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARESTANDARD RATE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$98
$91
$91
$91
DAILY
$20
$20
$20
$19
PART-DAY
$13
$13
$13
$12
HOURLY
$3.09
$2.93
$2.93
$3.25
LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CAREENHANCED RATE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$105
$98
$98
$98
DAILY
$21
$21
$21
$20
PART-DAY
$14
$14
$14
$13
HOURLY
$3.33
$3.15
$3.15
$3.50
GROUP 4 COUNTIES:Albany, Dutchess, Orange, and Ulster
DAY CARE CENTER
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$252
$240
$220
$211
DAILY
$58
$55
$49
$43
PART-DAY
$39
$37
$33
$29
HOURLY
$8.50
$8.25
$8.00
$8.25
REGISTERED FAMILY DAY CARE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$200
$199
$190
$188
DAILY
$44
$40
$40
$40
PART-DAY
$29
$27
$27
$27
HOURLY
$7.00
$7.00
$7.00
$7.00
GROUP FAMILY DAY CARE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$225
$204
$200
$200
DAILY
$45
$45
$41
$38
PART-DAY
$30
$30
$27
$25
HOURLY
$8.75
$8.00
$8.00
$8.00
(Group 4 Counties)
SCHOOL-AGE CHILD CARE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$0
$0
$0
$211
DAILY
$0
$0
$0
$43
PART-DAY
$0
$0
$0
$29
HOURLY
$0
$0
$0
$8.25
LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARESTANDARD RATE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$130
$129
$124
$122
DAILY
$29
$26
$26
$26
PART-DAY
$19
$18
$18
$18
HOURLY
$4.55
$4.55
$4.55
$4.55
LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CAREENHANCED RATE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$140
$139
$133
$132
DAILY
$31
$28
$28
$28
PART-DAY
$20
$19
$19
$19
HOURLY
$4.90
$4.90
$4.90
$4.90
GROUP 5 COUNTIES:Bronx, Kings, New York, Queens, and Richmond
DAY CARE CENTER
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$330
$255
$233
$215
DAILY
$56
$53
$47
$43
PART-DAY
$37
$35
$31
$29
HOURLY
$15.75
$17.00
$15.75
$10.75
REGISTERED FAMILY DAY CARE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$175
$160
$150
$150
DAILY
$33
$32
$31
$30
PART-DAY
$22
$21
$21
$20
HOURLY
$16.00
$12.00
$13.25
$13.00
GROUP FAMILY DAY CARE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$200
$185
$175
$175
DAILY
$38
$37
$35
$35
PART-DAY
$25
$25
$23
$23
HOURLY
$18.75
$16.00
$13.25
$14.00
(Group 5 Counties)
SCHOOL-AGE CHILD CARE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$0
$0
$0
$215
DAILY
$0
$0
$0
$43
PART-DAY
$0
$0
$0
$29
HOURLY
$0
$0
$0
$10.75
LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CARESTANDARD RATE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$114
$104
$98
$98
DAILY
$21
$21
$20
$20
PART-DAY
$14
$14
$14
$13
HOURLY
$10.40
$7.80
$8.61
$8.45
LEGALLY-EXEMPT FAMILY CHILD CARE AND IN-HOME CHILD CAREENHANCED RATE
AGE OF CHILD
Under 1½
1½ - 2
3 - 5
6 - 12
WEEKLY
$123
$112
$105
$105
DAILY
$23
$22
$22
$21
PART-DAY
$15
$15
$15
$14
HOURLY
$11.20
$8.40
$9.28
$9.10
SPECIAL NEEDS CHILD CARE
The rate of payment for child care services provided to a child determined to have special needs is the actual cost of care up to the statewide limit of the highest weekly, daily, part-day or hourly market rate for child care services in the State, as applicable, based on the amount of time the child care services are provided per week regardless of the type of child care provider used or the age of the child.
The highest full time market rate in the State is:
WEEKLY
$340
DAILY
$68
PART-DAY
$45
HOURLY
$18.75
Text of proposed rule and any required statements and analyses may be obtained from:
Public Information Office, NYS Office of Children and Family Services, 52 Washington Street, Rensselaer, N.Y. 12144, (518) 473-7793.
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement
1. Statutory authority:
Section 20(3)(d) of the Social Services Law (SSL) authorizes the Commissioner of the Office of Children and Family Services (Office) to establish rules, regulations and policies to carry out the Office’s powers and duties under the SSL.
Section 34(3)(f) of SSL authorizes the Commissioner of the Office to establish regulations for the administration of public assistance and care within the State.
Section 410(1) of the SSL authorizes a social services official of a county, city or town to provide day care for children at public expense and authorizes the Office to establish criteria for when such day care is to be provided.
Title 5-C (sections 410-u through 410-z) of the SSL governs the New York State Child Care Block Grant. It includes provisions regarding the use of funds by social services districts, the types of families eligible for services, the amount of local funds that must be spent on child care services, and reporting requirements. The Office is required to specify certain NYSCCBG requirements in regulation.
Section 410-x(4) of the SSL requires the Office to establish, in regulation, the applicable market-related payment rates that will establish the ceilings for State and federal reimbursement for payments made under the New York Child Care Block Grant.
Federal statute, 42 U.S.C.A. § 9858-c(c)(4)(A), and federal regulation, 45 CFR 98.43(a), require that the State establish payment rates for federally-funded child care subsidies that are sufficient to ensure such equal access to care that is provided to children whose parents/caretakers are not eligible to receive assistance under federal or state programs. Additionally, federal regulation 45 CFR 98.43(b)(2) requires that payment rates be based on a local market survey conducted no earlier than two years prior to the effective date of the approved State plan for the Child Care and Development Fund.
2. Legislative objectives:
The legislative intent of the child care subsidy program is to assist low income families in meeting their child care costs in programs that provide for the health and safety of their children. The legislative intent is to have child care subsidy payment rates that reflect market conditions and that are adequate to enable subsidized families to access child care services comparable to other families not in receipt of a child care subsidy.
The regulations support the legislative objectives underlying Sections 332-a, 334, 335 and 410 and Title 5-C of the SSL to provide child care services to public assistance recipients and low income families when necessary to promote self-sufficiency and protect children. In addition, the regulations provide social services districts with greater local flexibility to provide child care services in the manner that best meets the needs of their local communities.
3. Needs and benefits:
The State is required under the Federal Child Care and Development Fund to adjust child care payment rates with each new State Plan based on a current survey of providers. The current State Plan covers the period October 1, 2013 through September 30, 2015. A current survey of providers was conducted from February to July of 2013. These regulations are needed to adjust existing rates that were established based on a survey done in 2011. Adjustments to the child care market rates reflect both increases and decreases in the five groupings of counties.
Decreases in the child care market rates reflect the market place and provide comparable access for those families in receipt of a child care subsidy to those families that do not receive a child care subsidy, as required by federal and State laws.
4. Costs:
Under section 410-v(2) of the SSL, the State is responsible for reimbursing social services districts for 75 percent (75%) of the costs of providing subsidized child care services to public assistance recipients; and social services districts are responsible for the other 25 percent (25%) of such costs. In addition, the State is responsible for reimbursing social services districts for 100 percent (100%) of the costs of providing child care services to other eligible low-income families. The State reimbursement for these child care services is made from the State and/or federal funds allocated to the New York State Child Care Block Grant, and is limited on an annual basis to each social services district’s New York State Child Care Block Grant allocation for that year.
Under the State Budget for SFY 2013-2014, social services districts received their allocations of $739,036,409 in federal and State funds under the New York State Child Care Block Grant. Social services districts have the option to transfer a portion of their Flexible Fund for Family Services allocations to the New York State Child Care Block Grant to supplement their Block Grant allocations. In addition, social services districts may use block grant funds to serve the optional category of eligible individuals set forth in these regulations. Social services districts may also use block grant funds allocated to them to increase the enhanced rate from 70 percent (70%) up to 75 percent (75%), if social services districts select this option.
5. Local government mandates:
Social services districts will be required to make payments for subsidized child care services based on the actual cost of care up to the applicable market rates. Social services districts will need to review cases to determine whether the payments reflect the actual cost of care up to applicable market rates. Payment adjustments will have to be made, as appropriate.
6. Paperwork:
Social services districts will need to process any required payment adjustments after conducting the necessary case reviews.
7. Duplication:
The new requirements do not duplicate any existing State or federal requirements.
8. Federal standards:
The regulations are consistent with applicable federal regulations. 45 CFR 98.43(a), (b)(2) and (b)(3) require that the State establish payment rates that are sufficient to ensure equal access to comparable care received by unsubsidized families, based on a survey of providers, and consistent with the parental choice provisions in 45 CFR 98.30.
9. Compliance schedule:
These provisions must be implemented effective on April 1, 2014.
10. Alternative approaches:
No alternative approaches were considered because federal regulation requires that payment rates be based on a local market rate survey.
Regulatory Flexibility Analysis
1. Effect on small businesses and local governments:
The adjustments to the child care market rates will affect the 58 social services districts. There is a potential effect on over 20,000 licensed and registered child care providers and an estimated 46,000 informal providers that may provide child care services to families receiving a child care subsidy.
2. Compliance requirements:
Social services districts will be required to make payments for subsidized child care services based on the actual cost of care up to the applicable market rates. Social services districts will need to review cases to determine whether the payments reflect the actual cost of care up to applicable market rates. Payment adjustments will have to be made, as appropriate.
3. Professional services:
Neither social services districts, nor child care providers, should have to hire additional professional staff in order to implement these regulations.
4. Compliance costs:
Under section 410-v(2) of the Social Services Law, the State is responsible for reimbursing social services districts for 75 percent (75%) of the costs of providing subsidized child care services to public assistance recipients; social services districts are responsible for the other 25 percent (25%) of such costs. In addition, the State is responsible for reimbursing social services districts for 100 percent (100%) of the costs of providing child care services to other eligible low-income families. The State reimbursement for these child care services is made from the State and/or federal funds allocated to the New York State Child Care Block Grant, and is limited on an annual basis to each district’s State Child Care Block Grant allocation for that year.
Under the State Budget for SFY 2013-14, social services districts received their allocations of $739,036,409 in federal and State funds under the New York State Child Care Block Grant. Social services districts have the option to transfer a portion of their Flexible Fund for Family Services allocations to the New York State Child Care Block Grant to supplement their Block Grant allocations.
Social services districts will be required to provide an enhanced market rate, on behalf of parents for subsidized child care services, to legally-exempt family child care and in-home child providers who have completed ten hours of training annually, as approved by the legally-exempt caregiver enrollment agency. Such an enhanced rate will be at least seventy percent (70%) of the family child care rate. Social services districts have the option to pay up to seventy-five percent (75%) of the family child care rate as the enhanced market rate, if the social services district selects this option in its Children and Family Services Plan.
5. Economic and technological feasibility:
The child care providers and social services districts affected by the regulations have the economic and technological ability to comply with the regulations.
6. Minimizing adverse impact:
The market rates were developed in accordance with federal guidelines for conducting a survey of child care providers and with standard statistical methodology to minimize adverse impact. The Office applied standard statistical methods to choose a sample of 4,474 licensed and registered child care providers so that the survey was representative throughout the State. The rates were analyzed to establish the market rates at the 69th percentile of the amounts charged. The market rates are clustered into five distinct groupings of counties based on similarities in rates among the counties in each group. As a result, the rates established for counties are based on the actual prices for care that were reported in the survey within the counties. Adjustments to the child care market rates reflect the market place and provide access comparable to those families not receiving a child care subsidy.
Adjustments to the child care market rates reflect both increases and decreases in the five groupings of counties. Decreases in the child care market rates reflect the market place and provide comparable access for families receiving a child care subsidy to those families not receiving a child care subsidy, as required by federal and State laws. Increases in the rates will enable social services districts to provide temporary assistance recipients and low-income families receiving subsidized child care services with access to those child care providers who charge more than the previous market rates.
The market rates for legally-exempt family child care and in-home child care were established based on a 65 percent (65%) differential applied to the market rates established for family day care. This differential reflects the higher costs associated with meeting the higher regulatory standards to become a registered family day care provider. The enhanced market rate for legally-exempt family and in-home child care providers is based on a 70 percent (70%) differential applied to the child care market rates established for registered family day care. The 70 percent (70%) reflects an incentive to legally exempt providers to pursue a minimum of ten hours of approved training. Additionally, the regulation allows local social services districts, through their Child and Family Services Plans, to increase the enhanced market rate up to 75 percent (75%) of the applicable registered family day care market rate.
The regulations recognize that there may be differences in the needs among social services districts. To the extent allowed by statute, the regulations provide social services districts with flexibility in designing their child care subsidy programs in a manner that will best meet the needs of their communities.
7. Small business and local government participation:
In accordance with federal regulatory requirements, OCFS conducted a telephone survey of a sample of regulated providers. Prior to conducting the telephone survey, a letter was sent to all regulated child care providers to inform them that they might be included among the sample of providers called to participate in the market rate survey. A copy of the questions was also sent so that providers could prepare responses. A market research firm conducted the telephone survey in English and in Spanish, as needed, and had the resources available to assist providers in other languages, if needed as well. Rate data was collected from 4,474 providers and that information formed the basis for the updated market rates.
Rural Area Flexibility Analysis
1. Types and estimated numbers of rural areas:
The regulations will affect the 44 social services districts located in rural areas of the State and the child care providers located in those social services districts.
2. Reporting, recordkeeping, and other compliance requirements and professional services:
The regulations will not result in any new reporting or recordkeeping requirements for social services districts.
Social services districts will be required to make payments for subsidized child care services based on the actual cost of care up to the new market rates. Social services districts will need to review cases to determine if the payments reflect the actual cost of care up to the appropriate market rate. Neither social services districts, nor child care providers, should have to hire additional professional staff in order to implement these regulations.
Social services districts will be required to provide an enhanced market rate, on behalf of parents for subsidized child care services, to legally-exempt family child care and in-home child providers who have completed ten hours of training annually, as approved by the legally-exempt caregiver enrollment agency. Such an enhanced rate will be at least seventy percent (70%) of the family child care rate. Social services districts do have the option to pay up to seventy five percent (75%) of the family child care rate as the enhanced market rate, if the social services district selects this option in its Children and Family Services Plan.
3. Costs:
Under the State Budget for SFY 2013-2014, social services districts received their allocations of $739,036,409 in federal and State funds under the New York State Child Care Block Grant. Social services districts have the option to transfer a portion of their Flexible Fund for Family Services allocations to the New York State Child Care Block Grant to supplement their New York State Child Care Block Grant allocations.
Under section 410-v(2) of the Social Services Law, the State is responsible for reimbursing social services districts for 75 percent (75%) of the costs of providing subsidized child care services to public assistance recipients; social services districts are responsible for the other 25 percent (25%) of such costs. In addition, the State is responsible for reimbursing social services districts for 100 percent (100%) of the costs of providing child care services to other eligible low-income families. The State reimbursement for these child care services is made from the State and/or federal funds allocated to the State Child Care Block Grant, and is limited on an annual basis to each social services district’s State Child Care Block Grant allocation for that year.
In addition, social services districts may use block grant funds to serve the optional category of eligible individuals set forth in these regulations. Social services districts may also use block grant funds allocated to them to increase the enhanced rate from 70 percent (70%) up to 75 percent (75%), if social services districts select this option in its Children and Family Services Plan.
4. Minimizing adverse impact:
The market rates were developed in accordance with federal guidelines for conducting a survey of child care providers and with standard statistical methodology to minimize adverse impact. The Office applied standard statistical methods to choose a sample of 4,474 licensed and registered child care providers so that the survey was representative throughout the State. The rates were analyzed to establish the market rates at the 69th percentile of the amounts charged. The market rates are clustered into five distinct groupings of counties based on similarities in rates among the counties in each group. As a result, the rates established for counties are based on the actual prices for care that were reported in the survey within the counties. Adjustments to the child care market rates reflect the market place and provide access comparable to those families not receiving a child care subsidy.
Adjustments to the child care market rates reflect both increases and decreases in the five groupings of counties. Decreases in the child care market rates reflect the market place and provide comparable access for families receiving a child care subsidy to those families not receiving a child care subsidy, as required by federal and State laws. Increases in the rates enable social services districts to provide temporary assistance recipients and low-income families receiving subsidized child care services with access to those child care providers who charge more than the previous market rates.
The market rates for legally-exempt family child care and in-home child care were established based on a 65 percent (65%) differential applied to the market rates established for family day care. This differential reflects the higher costs associated with meeting the higher regulatory standards to become a registered family day care provider. The enhanced market rate for legally-exempt family and in-home child care providers is based on a 70 percent (70%) differential applied to the child care market rates established for registered family day care. The 70 percent (70%) differential reflects an incentive to legally exempt providers to pursue a minimum of ten hours of approved training. Additionally, the regulation allows local social services districts, through their Child and Family Services Plans, to increase the enhanced market rate up to 75 percent (75%) of the applicable registered family day care market rate.
The regulations recognize that there may be differences in the needs among social services districts. To the extent allowed by statute, the regulations provide social services districts with flexibility in designing their child care subsidy programs in a manner that will best meet the needs of their communities.
5. Rural area participation:
Federal regulation 45 CFR 98.43(b)(2) requires that payment rates be based on a local market survey conducted no earlier than two years prior to the effective date of the approved State plan for the Child Care and Development Fund. In accordance with the federal regulatory requirements, OCFS conducted a telephone survey of a sample of regulated providers. The sample drawn was representative of the regions across the State and, therefore, providers located in rural areas were appropriately represented in the survey. Prior to conducting the telephone survey, a letter was sent to all regulated child care providers to inform them that they might be included among the sample of providers called to participate in the market rate survey. A copy of the questions was also sent so that providers could prepare responses. A market research firm conducted the telephone survey in English and in Spanish, as needed, and had resources available to assist providers in other languages. Rate data was collected from 4,474 providers and that information formed the basis for the updated market rates.
Job Impact Statement
Section 201-a of the State Administrative Procedures Act requires a job impact statement to be filed if proposed regulations will have an adverse impact on jobs and employment opportunities in the State.
Adjustments to the child care market rates reflect both increases and decreases. Decreases in the child care market rates reflect the market place and OCFS believes that they are not substantial enough to cause the loss of jobs in child care programs.
