Senate Bill S4472C

                                 
BILL NUMBER: S4472

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, childcare 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 CC F) program, which helps states administer child
care assistance. It is implemented solely at the discretion of New York
State. Removing this battier will allow more families to be served, and
ensure our providers are reimbursed at the appropriate cost for care.

 
LEGISLATIVE HISTORY:

2023-24: S.3070 - Referred to Social Services

 
FISCAL IMPACT:

To Be Determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

                                 
BILL NUMBER: S4472A

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 be equal to the applicable
market-related payment established 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 (CCDF) 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:

2023-24: S.3070 (Ramos)- Referred to Social Services / A.2019 (Clark) -
Referred to Ways and Means

2021-22: A.10596 (Clark) - Referred to Children and Families

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

                                 
BILL NUMBER: S4472B

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the social services law, in relation to implementing a
cost estimation model and 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 while also expanding options in the rate setting method-
ology to also include a cost estimation model for child care assistance.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill would amend social services law § 410-x (4) to
establish that child care assistance shall be established by Office of
Children and Family Services regulations, in accordance with the mark-
et-rate survey or approved alternative methodology. 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 would amend social services law § 410-x by establishing subdi-
vision 5-a to require OCFS to utilize a cost estimation model to deter-
mine the actual costs of providing day care in each setting, age group
and for each level of quality provided.

Section 3 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 (CCDF) 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.

Additionally, every two years OCFS conducts a market rate survey among
licensed, registered and legally-exempt child care providers. The survey
collects data on what child care providers are charging for child care.
The data collected is then used to set a payment rate to providers for
subsidized care. While useful in setting rates, the market rate survey
does not necessarily reflect the actual costs of providing child care.
Child care providers have many fixed costs such as maintaining adequate
staff, complying with building codes as well as regulatory and licensing
requirements; yet they can only charge what the market is willing to
pay. When corresponding subsidy rates are not high enough, the quality
of child care sometimes suffers as providers struggle to make ends meet.

This bill states that a cost estimation model can be utilized for each
category of care for which a market rate is determined. A cost esti-
mation model provides valuable data on the actual cost of providing
child care, not just what price is charged to parents. Such information
can then be used to determine the adequacy of the rate paid to provid-
ers, as well as inform policy decisions to ensure child care providers
remain stable.

 
LEGISLATIVE HISTORY:

2023-24: S.3070 (Ramos)- Referred to Social Services / A.2019 (Clark)-
Referred to Ways and Means

2021-22: A.10596 (Clark) - Referred to Children and Families

 
FISCAL IMPACT:

To be determined.

 
EFFECTIVE DATE:
This law will take effect immediately.