Senate Bill S4116

                                BILL NUMBER:S4116A

TITLE OF BILL:
An act to amend the social services law, in relation to the treatment of
earned income of a child under the age of 18 and the income of an 18,
19, or 20 year old household member when determining the eligibility of
a household for a child care subsidy

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to establish uniform budgeting rules across
the State when determining a family's eligibility for child care assist-
ance, and the amount of the family share.

SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill amends §410-w of the social Services Law by
adding a new paragraph two requiring the income of a child under the age
of eighteen to be disregarded when determining eligibility for a child
care subsidy. The income of youth in the household ages 18-20 would be
disregarded unless including such income would benefit the family by
either lowering the amount of the family share or making such family
eligible for child care assistance.

Subdivisions 2, 3, 4, 5 and 6 of section 410-w of the social services
law are renumbered.

Section two sets an effective date of immediately.
              

JUSTIFICATION:
This bill addresses the treatment of the earned income of teenagers in
households where the parent or caretaker of the teenager applies for a
child care subsidy on behalf of a younger child in the household.
First, the bill would make the treatment of earnings for children under
the age of 18 consistent with public assistance budgeting.  Second, the
bill would set forth a uniform rule for the treatment of 18, 19 and 20
year olds. Currently, social services districts are free to develop
differing budgeting rules for older teens, so they vary from county to
county.

When financial eligibility for a child care subsidy is determined, the
general rule is to look at the size of the household and the income of
those in the household. Currently state regulations only exempt the
earned income of a child under the age of 14 when determining eligibil-
ity for a child care subsidy. This rule is inconsistent with budgeting
for cash public assistance programs, which disregards all of the earned
income of a child under the age of 18. This bill would amend the social
Services Law to make child care budgeting consistent with public assist-
ance budgeting.

State regulations currently allow local districts to determine whether
to count the income of 18, 19 or 20 year olds when determining a
parent's financial eligibility for child care for a younger child in the

household. This is in direct contrast to public assistance eligibility,
where the income of older teens (18, 19 and 20 year olds) is disre-
garded, but they are included in the household size for determining the
financial need of the family. This hill proposes that a similar rule be
adopted for child care budgeting unless doing so would disadvantage the
family.

Currently there is no uniform state policy on how to budget the income
of older teens when calculating the eligibility of the family for child
care subsidy, and as a result, local policy varies dramatically across
the state. Local districts have the option of considering the income of
these young adults when determining the financial eligibility of their
parents and younger siblings for a child care subsidy.

Therefore, a risk arises that the presence of the adult child in the
household could harm the family for the purpose of calculating child
care subsidy benefits because any income earned by the adult child would
be included as part of the family income, thereby pushing the family
into a higher income bracket and making them ineligible. This rule
effectively results in a requirement that 18-20 year olds in low income
families apply their earnings to the cost of child care for their young-
er siblings. This policy also penalizes the parent with a higher co-pay-
ment when the child fails to make his income available.  When the adult
child is unconditionally counted as part of the child-care services
unit, a family with an adult child who works will pay a larger family
share than a family whose adult child does not work. In no other social
welfare program do we have budgeting rules which vary based upon the
choice of the county, a choice which can be changed simply by amending
their consolidated services plan.

PRIOR LEGISLATIVE HISTORY:
None.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediate.