BILL #    SB 1165

TITLE:     child care assistance; rates

SPONSOR:    Brophy McGee

STATUS:   As Amended by HHS

PREPARED BY:    Chris Gustafson

 

 

Description

 

The bill requires the Department of Economic Security (DES) to annually review and adjust the sliding fee scale and formula for determining child care assistance.

 

Estimated Impact

 

The bill does not have a cost as the bill only codifies in statute what DES is currently doing via rule.

 

Analysis

 

DES administers a child care subsidy for individuals who meet certain income and work requirements, funded by the federal Child Care and Development Fund (CCDF) Block Grant.  Individuals who receive the subsidy must also pay a co-pay of between $1.00 and $5.00 per day depending on income level.  To be eligible for the subsidy, an individual must, among other things, have an annual income that is 165% of federal poverty or lower at the time of application.

 

Because the federal poverty rate is updated annually, and Arizona statute ties child care eligibility to the federal poverty level, income eligibility for the program changes slightly every year.  The federal government requires DES to change their eligibility standards to comply with these income changes.   DES currently updates the fee scale annually using the rulemaking process outlined in A.R.S § 41-1021.  The bill would codify this update in statute.

 

To the extent the bill changes the process for the annual fee scale update, not the update itself, the bill would have no fiscal impact.  DES currently has the authority to change the fee scale and provider rates elsewhere in statute.

 

Local Government Impact

 

None

 

2/9/18