Senate Bill S5493

                                
 
BILL NUMBER: S5493

SPONSOR: MONTGOMERY
 
TITLE OF BILL:  An act to amend the social services law, in relation
to limiting co-payments for child care subsidies

 
PURPOSE:

This bill eliminates co-payments for any family receiving child care
assistance whose income is at or below the state income standard respon-
sible for at ten percent of their household income.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 6 of section 410-x of the social services
law, by eliminating co-payments for those who receive child care assist-
ance and have incomes at or below the state income standard, as well as
capping such co-payments at ten percent of the house hold income.

 
EXISTING LAW:  Currently the co-payment of a family receiving child
              

care assistance is set by subtracting the poverty level for the house-
hold size from their income, and then choosing a multiplier between 10
and 35 percent (determined by the locality) to apply against the
balance.

 
JUSTIFICATION:

Under the current system of co-payments, there are families with incomes
below the state income standard paying for child care that they cannot
afford. Further, depending on the county a family lives in, they may be
paying a significantly higher co-payment than the same size family in an
area in which the cost of living is much less.  For example, a family of
three in Yonkers at 200% of poverty, in a county where the multiplier is
33%, has a co-payment of $4,726, and will pay $2,000 a year more than a
family of the same size and income level as a family in New York: City.
This is unfair. A cap of ten percent of the household income assures
equitable treatment across the state.

 
LEGISLATIVE HISTORY:

2007-2008:5.3161- Diedin Committee
2006-2005:S.1298- Diedin Committee
2004-2003:S.5710- Diedin Committee

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect the first of January next succeeding the date
on which it shall have become law.