Assigned to HHS FOR
COMMITTEE
Assigned to HHS FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
child care assistance; tiered reimbursement
Purpose
Requires the Department of Economic Security (DES) to pay at least 33 percent of quality set-aside monies for tiered reimbursement of qualified child care providers.
Background
DES provides services for low-income households and others in need. The Division of Employment and Rehabilitation Services provides child care administration services to eligible families. The amount of child care assistance for each family is determined using a sliding fee scale and formula that is based on: 1) income and earnings of the family; 2) family size; 3) number of children receiving child care assistance; 4) child support from a parent living outside of the home; 5) income and earnings of adult members of the home who claim a member of the family as a dependent on an income tax return; and 6) other factors of similar nature (A.R.S. § 46-805).
Statute allows DES to pay different levels of child care assistance according to the: 1) category of child care provider; 2) age of children; 3) geographic area; 4) level of national accreditation or other state-approved quality indicator; and 5) varying child care costs for children with special needs (A.R.S. § 46-805).
The federal Child Care and Development Fund (CCDF) assists low-income families in obtaining child care. Federal law specifies a minimum percentage of aggregate funds that each state must use for activities that either improve the quality of child care services or increase options for and access to high-quality child care. In FYs 2016 and 2017, the required minimum was seven percent. In FYs 2018 and 2019, the required minimum is eight percent. In FY 2020 and each succeeding fiscal year, the required minimum is nine percent. Additionally, no less than three percent in each fiscal year must be used to carry out activities that relate to the quality of care for infants and toddlers (45 C.F.R. § 98.50).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires DES, each federal fiscal year, to pay at least 33 percent of quality set-aside monies for tiered reimbursement of child care providers that meet quality standards.
2. Defines quality set-aside monies as the total amount of CCDF monies that must be used for activities that do at least one of the following:
a) improve the quality of child care services;
b) increase parental options for and access to high quality child care; or
c) relate to the quality of care for infants and toddlers.
3. Defines tiered reimbursement as a child care assistance system that is offered by DES and provides higher payments for child care services that meet higher quality standards.
4. Defines quality standard as accreditation from a national organization or state-approved quality indicator that is recognized by DES.
5. Makes conforming changes.
6. Becomes effective on the general effective date.
House Action
HEALTH 2/08/18 DP 9-0-0-0
3rd Read 2/21/18 60-0-0
Prepared by Senate Research
March 2, 2018
CRS/JN/lat