BILL NUMBER: S3070

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the social services law, in relation to implementing
automatic market rate increases for child care assistance

 
PURPOSE:

To address the unintended consequences that child care providers who
serve families and children on subsidies, experience in receiving market
rate increases for the cost of care.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would amend social services law § 410-x (4) to
establish that child care assistance shall reflect the actual cost of
care, and equal 100% of the applicable market-related payment estab-
lished by OCFS regulations. Payment rates should account for variance in
costs for providing care in different settings, to children of different
ages, and to children with special needs.
              

Section 2 of the bill establishes the effective date.

 
JUSTIFICATION:

In New York, child care providers that exclusively serve families and
children on subsidies must complete extensive paperwork to receive mark-
et-rate payment increases, as their operating costs increase.  This
unnecessarily disadvantages providers that serve low-income families,
and hits home-based providers acutely.  Providers may choose to offer
child care to private pay, low-income families that don't qualify for
subsidies, and still serve subsidized families.

However, under the current system providers who serve private pay, low-
income families are still penalized because they are paid less than the
market-rate for any subsidized families served.  Counties that allocate
subsidy slots using contract systems are allowed to lock programs into
old market rates, even when the rate increases mid-contract, for the
duration of the contract. The date their contract is up for renewal is
due to no fault of the provider, and does not take into account whether
their costs to provide care have increased since the previous market
rate was established.

This burdensome process is not a requirement of the federal Child Care
and Development Fund CCF) program, which helps states administer child
care assistance. It is implemented solely at the discretion of New York
State. Removing this barrier will allow more families to be served, and
ensure our providers are reimbursed at the appropriate cost for care.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.