Janice K. Brewer Governor Clarence H. Carter Director Mr. John Arnold Director, Governor's Office of Strategic Planning and Budgeting 1700 West Washington Phoenix, Arizona 85007 Dear Director Arnold: The Arizona Department of Economic Security is submitting the Child Care Report as required by A.R.S. § 46-810. If you have any questions, please contact James J. Apperson, Assistant Director, Division of Employment and Rehabilitation Services, at (602) 542-4910 or me, at (602) 542-5757. Sincerely, Clarence H. Carter Director Enclosure cc: Members of the Joint Legislative Budget Committee Richard Stavneak, Director, Joint Legislative Budget Committee 1717 W. Jefferson, S/C 010A, Phoenix, AZ 85007  P.O. Box 6123, Phoenix, AZ 85005 Telephone (602) 542-5678  Fax (602) 542-5339  www.azdes.gov ANNUAL JLBC CHILD CARE REPORT FOR THE PERIOD JULY 1, 2013 – JUNE 30, 2014 Pursuant to A.R.S. § 46-810, the annual report for members of the Joint Legislative Budget Committee is provided. The information reflects statewide data for state fiscal year (SFY) 2014, and provides comparative information from SFY 2013. The caseload and financial data for this report were gathered from the Arizona Child Care Automated Tracking System (AzCCATS), except where otherwise noted. 1. The number of families served and total number of children served by each of the child care programs administered by the Department of Economic Security (Department or DES). Child Care Program TANF Cash Assistance Related Employed Child Care Jobs Child Care Transitional Child Care Transitional Child Care Extension Low Income Working Special Circumstances Department of Child Safety Totals Familie s Se rve d Childre n Se rve d Pe rce nt Pe rce nt SFY 2014 SFY 2013 Change SFY 2014 SFY 2013 Change 342 1,110 1,610 318 1,488 1,615 7.5% -25.4% -0.3% 641 2,048 3,080 603 2,669 3,082 6.3% -23.3% -0.1% 1,047 3,509 126 4,890 12,634 1,304 3,959 148 4,734 13,566 -19.7% -11.4% -14.9% 3.3% -6.9% 2,077 7,280 222 8,413 23,761 2,633 8,143 272 8,294 25,696 -21.1% -10.6% -18.4% 1.4% -7.5% Summary caseload data from the Arizona Child Care Automated Tracking System (AzCCATS). 2. The total number of dollars spent on child care for each of the child care programs administered by the Department of Economic Security. EXPENDITURES Child Care Program TANF Cash Assistance Related Employed Child Care Jobs Child Care Transitional Child Care Transitional Child Care Extension Low Income Working Special Circumstances Department of Child Safety Totals Annual JLBC Child Care Report September 15, 2014 SFY 2014 $ $ $ $ $ $ $ $ 2,568,977 8,169,324 12,374,061 8,570,185 28,026,783 862,002 40,388,808 100,960,140 SFY 2013 $ $ $ $ $ $ $ $ 2,325,414 10,543,380 12,391,474 10,512,661 30,729,466 1,074,612 39,497,787 107,074,794 Pe rce nt Change 10.5% -22.5% -0.1% -18.5% -8.8% -19.8% 2.3% -5.7% Page 1 3. The number of recipients eligible for Transitional Medical Assistance and Child Care benefits. SFY 2014 SFY 2013 Percent Change Transitional Medical Assistance Eligible 38,757 45,598 -15.00% Transitional Child Care Eligible 5,617 6,290 -10.70% TMA data are from the Family Assistance Administration bulletin for the appropriate period. 4. The number of recipients who accept Transitional Medical Assistance and Child Care benefits specifying how many recipients have received these services for less than 12 months and those who have received these services for more than 12 months. SFY 2014 SFY 2013 Percent Change Received Transitional Medical Assistance < 12 months 38,757 45,598 Received Transitional Medical Assistance > 12 months Not Applicable Not Applicable Received Transitional Child Care < 12 months 3,023 3,052 Received Transitional Child Care > 12 months 2,026 2,538 TMA has not been available after 12 months since SFY 2003. -15.00% Not Applicable -0.95% -20.17% 5. The number of applicants waiting for services under the state child care subsidy and federal child care programs for working families. SFY 2014 Number of Applicants Waiting For Service At The Beginning of State Fiscal Year (SFY) 5,623 SFY 2013 Percent Change 6,407 -12.24% The number of children on the waiting list at the beginning of SFY 2014 decreased in comparison to the beginning of SFY 2013. This decrease is attributed to no releases of the waiting list during SFY 2014. The waiting list is not static. New families apply for Child Care Services and are placed on the waiting list. The Department requests that families periodically re-verify their eligibility; those who do not comply are removed from the waiting list. Annual JLBC Child Care Report September 15, 2014 Page 2 6. Co-payment levels for each of the child care programs administered by the Department of Economic Security. Both federal Child Care Development Fund (CCDF) regulations and Arizona statute require the Department to develop a sliding fee scale, which maintains child care cost-sharing between the state and families. Arizona laws 2005, Chapter 328, requires that co-payments be imposed for all children in non-mandatory categories, including low-income working, teen parent in high school, and special circumstances, but not Department of Child Safety (DCS) referred families receiving child care assistance. The DES sliding fee scale (see Table 1), effective July 1, 2013, consists of six fee levels. Parents are required to pay between one and ten dollars per day per child regardless of the number of children in the family. Families are also responsible for paying the full difference in cost between the child care provider’s actual charges and the maximum that DES pays. Eligibility for Child Care Services continues to be set at 165 percent of the federal poverty level as specified in A.R.S. § 46-803. The sliding fee scale for SFY 2014 was revised to reflect changes in federal poverty guidelines for 2014. Child care assistance for families eligible under the block grant eligibility categories (lowincome working, teen parent, and unable/unavailable) is limited to six children in the eligible family at any given time. Co-payments will be assigned to all eligible children who require assistance, A.R.S. § 46-803.K2. For families receiving Transitional Child Care (TCC), no copayment is required beyond the third child in the family, and there is no limit to the number of eligible children who may be authorized for assistance. 7. The amount of co-payment money collected for each of the child care programs administered by the Department of Economic Security. Child Care Program TANF Cash Assistance Related Employed Child Care Jobs Child Care Transitional Child Care Transitional Child Care Extension Low Income Working Special Circumstances Department of Child Safety Totals SFY 2014 $ $ $ $ $ $ $ $ 1,054,068 865,916 3,153,119 52,655 5,125,758 SFY 2013 $ $ $ $ $ $ $ $ 1,046,138 1,003,710 3,634,927 67,857 5,752,632 Percent Change 0.8% -13.7% -13.3% -22.4% -10.9% Summary disbursement data from the Arizona Child Care Automated Tracking System (AzCCATS). Children served which have caused the percent of children in co-pay required services to decline. Regardless of any required co-payments, all families must pay any difference in cost between the maximum that DES pays and the amount the child care provider actually charges. Annual JLBC Child Care Report September 15, 2014 Page 3 8. The total number of payments to relatives for child care and the number of children served. SFY 2014 Total Number Of Payments To Relatives For Child Care Number Of Children Served $ 2,643,242.50 $ 2,397 SFY 2013 Percent Change 3,282,636.00 3,087 -19.48% -22.35% 9. Any changes in payment rate schedules and maximum provider rates from the previous fiscal year and the reason for those changes. Maximum reimbursement rates for SFY 2014 were the same as the rates for SFY 2013, which reflect the 75th percentile of the 2000 market rate survey (see Table 2). 10. The number of families providing child care as a work activity in order to meet the Federal Work Participation Rates established pursuant to Public Law 104-193. Public Law 104-193, as modified by Public Law 109-171, identifies 12 activities as allowable work activities for individuals receiving Temporary Assistance to Needy Families Cash Assistance. This list includes “the provision of Child Care Services to an individual who is participating in a community service program.” A.R.S. § 46-101.24 does not include the preceding as a countable work activity, and DES does not promote or track the provision of unpaid Child Care Services by Cash Assistance recipients for the children of other Cash Assistance recipients for the purpose of meeting the work participation rate. The rationale for not using this unpaid child care activity is described below: a) Encouraging the use of untrained and uncompensated Cash Assistance recipients as child care providers could jeopardize the safety of children, and could place the Department in a position of liability for any resultant harm or injury. b) In accordance with Child Care and Development Fund regulations, Arizona utilizes a parental choice model within the Child Care Assistance program. Requiring Cash Assistance recipients to utilize other Cash Assistance recipients in the provision of Child Care Services would be inconsistent with the parental choice requirement, which requires that the parent be allowed to select among different provider types. c) Cash Assistance recipients who express the interest and aptitude to pursue employment in the child care field should be encouraged to do so through the “Child Care Professional Training Program” (CCPT). DES administers this program via contracts with communitybased agencies and community colleges throughout Arizona, who deliver a 60-hour child care orientation and training curriculum. Upon completion of the CCPT course, a Cash Assistance recipient will be better prepared to pursue employment with child care facilities, Head Start programs, or to become self-employed as a DES certified family child care provider. Any Cash Assistance recipients who are trained and compensated for the provision of Child Care Services would be represented in the “unsubsidized employment” category. Annual JLBC Child Care Report September 15, 2014 Page 4 d) Developing and managing a process to track the hours of unpaid child care activities would be administratively burdensome at best. It is doubtful if the benefits of this proposition would outweigh the costs since the activity would not lead to gainful employment and would not assist the Cash Assistance recipient in becoming self-sufficient. Annual JLBC Child Care Report September 15, 2014 Page 5 ARIZONA DEPARTMENT OF ECONOMIC SECURITY CC-229 (7-13) CHILD CARE ASSISTANCE GROSS MONTHLY INCOME ELIGIBILITY CHART AND FEE SCHEDULE Effective July 1, 2013 FEE LEVEL 1 (L1) MAXIMUM INCOME EQUAL TO OR LESS THAN 85% FPL* FEE LEVEL 2 (L2) MAXIMUM INCOME EQUAL TO OR LESS THAN 100% FPL* FEE LEVEL 3 (L3) MAXIMUM INCOME EQUAL TO OR LESS THAN 135% FPL* FEE LEVEL 4 (L4) MAXIMUM INCOME EQUAL TO OR LESS THAN 145% FPL* FEE LEVEL 5 (L5) MAXIMUM INCOME EQUAL TO OR LESS THAN 155% FPL* FEE LEVEL 6 (L6) MAXIMUM INCOME EQUAL TO OR LESS THAN 165% FPL* 1 0 – 815 816 – 958 959 – 1,294 1,295 – 1,390 1,391 -– 1,485 1,486 – 1,581 2 0 – 1,100 1,101 – 1,293 1,294– 1,746 1,747 – 1,875 1,876 – 2,005 2,006 – 2,134 3 0 – 1,384 1,385 – 1,628 1,629 – 2,198 2,199 – 2,361 2,362 – 2,524 2,525 – 2,687 4 0 – 1,669 1,670 – 1,963 1,964 – 2,651 2,652 – 2,847 2,848 – 3,043 3,044 – 3,239 5 0 – 1,954 1,955 – 2,298 2,299 – 3,103 3,104 – 3,333 3,334 – 3,562 3,563 – 3,792 6 0 – 2,239 2,240 – 2,633 2,634 – 3,555 3,556 – 3,818 3,819 – 4,082 4,083 – 4,345 7 0 – 2,523 2,524 – 2,968 2,969 – 4,007 4,008 – 4,304 4,305 – 4,601 4,602 – 4,898 8 0 – 2,808 2,809 – 3,303 3,304 – 4,460 4,461 – 4,790 4,791 – 5,120 5,121 – 5,450 9 0 – 3,093 3,094 – 3,638 3,639 – 4,912 4,913 – 5,276 5,277 – 5,639 5,640 – 6,003 10 0 – 3,378 3,379 – 3,973 3,974 – 5,364 5,365 – 5,761 5,762 – 6,159 6,160 – 6,556 11 0 – 3,662 3,663 – 4,308 4,309– 5,816 5,817 – 6,247 6,248 – 6,678 6,679 – 6,710** 12 0 – 3,947 3,948 – 4,643 4,644– 6,269 6,270 – 6,733 6,734 – 6,847** Per child in care full day = $1.00 part day = $0.50 full day = $2.00 part day = $1.00 FAMILY SIZE MINIMUM REQUIRED COPAYMENTS full day = $3.00 part day = $1.50 full day = $5.00 part day = $2.50 full day = $7.00 part day = $3.50 full day = $10.00 part day = $5.00 For families receiving Transitional Child Care (TCC) there is no co-pay assigned beyond the 3rd child in the family Full day = Six or more hours; Part day = Less than 6 hours Families receiving Child Care Assistance based on Child Protective Services/Foster Care, the Jobs Program or those who are receiving Cash Assistance (CA) and are employed, may not have an assigned fee level and may not have a minimum required co-payment. However, all families may be responsible for charges above the minimum required co-payments if a provider’s rates exceed allowable state reimbursement maximums and/or the provider has other additional charges. * Federal Poverty Level (FPL) = US DHHS 2013 poverty guidelines. The Arizona state statutory limit for child care assistance is 165 percent of the Federal Poverty Level. ** Federal Child Care & Development Fund (CCDF) statutory limit is 85 percent of the State median income (SMI). Equal Opportunity Employer/Program • Under Titles VI and VII of the Civil Rights Act of 1964 (Title VI & VII), and the Americans with Disabilities Act of 1990 (ADA), Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, and Title II of the Genetic Information Nondiscrimination Act (GINA) of 2008; the Department prohibits discrimination in admissions, programs, services, activities, or employment based on race, color, religion, sex, national origin, age, disability, genetics and retaliation. The Department must make a reasonable accommodation to allow a person with a disability to take part in a program, service or activity. For example, this means if necessary, the Department must provide sign language interpreters for people who are deaf, a wheelchair accessible location, or enlarged print materials. It also means that the Department will take any other reasonable action that allows you to take part in and understand a program or activity, including making reasonable changes to an activity. If you believe that you will not be able to understand or take part in a program or activity because of your disability, please let us know of your disability needs in advance if at all possible. To request this document in alternative format or for further information about this policy, contact (602) 542-4248; TTY/TDD Services: 7-1-1. • Free language translations for DES services are available upon request. • Español al reverso. CC-229 (7-13) REVERSE ARIZONA DEPARTMENT OF ECONOMIC SECURITY TABLA DE INGRESOS MENSUALES PARA ELEGIBILIDAD Y LAS TARIFAS DE PAGO POR CUIDADO DE NIÑOS Entra en vigor a partir del 1 de julio 2013 Tamaño de la familia NIVEL DE TARIFA 1 (L1) INGRESO MÁXIMO IGUAL O MENOR QUE 85% FPL* NIVEL DE TARIFA 2 (L2) INGRESO MÁXIMO IGUAL O MENOR QUE 100% FPL* NIVEL DE TARIFA 3 (L3) INGRESO MÁXIMO IGUAL O MENOR QUE 135% FPL* NIVEL DE TARIFA 4 (L4) INGRESO MÁXIMO IGUAL O MENOR QUE 145% FPL* NIVEL DE TARIFA 5 (L5) INGRESO MÁXIMO IGUAL O MENOR QUE 155% FPL* NIVEL DE TARIFA 6 (L6) INGRESO MÁXIMO IGUAL O MENOR QUE 165% FPL* 1 0 – 815 816 – 958 959 – 1,294 1,295 – 1,390 1,391 -– 1,485 1,486 – 1,581 2 0 – 1,100 1,101 – 1,293 1,294– 1,746 1,747 – 1,875 1,876 – 2,005 2,006 – 2,134 3 0 – 1,384 1,385 – 1,628 1,629 – 2,198 2,199 – 2,361 2,362 – 2,524 2,525 – 2,687 4 0 – 1,669 1,670 – 1,963 1,964 – 2,651 2,652 – 2,847 2,848 – 3,043 3,044 – 3,239 5 0 – 1,954 1,955 – 2,298 2,299 – 3,103 3,104 – 3,333 3,334 – 3,562 3,563 – 3,792 6 0 – 2,239 2,240 – 2,633 2,634 – 3,555 3,556 – 3,818 3,819 – 4,082 4,083 – 4,345 7 0 – 2,523 2,524 – 2,968 2,969 – 4,007 4,008 – 4,304 4,305 – 4,601 4,602 – 4,898 8 0 – 2,808 2,809 – 3,303 3,304 – 4,460 4,461 – 4,790 4,791 – 5,120 5,121 – 5,450 9 0 – 3,093 3,094 – 3,638 3,639 – 4,912 4,913 – 5,276 5,277 – 5,639 5,640 – 6,003 10 0 – 3,378 3,379 – 3,973 3,974 – 5,364 5,365 – 5,761 5,762 – 6,159 6,160 – 6,556 11 0 – 3,662 3,663 – 4,308 4,309– 5,816 5,817 – 6,247 6,248 – 6,678 6,679 – 6,710** 12 0 – 3,947 3,948 – 4,643 4,644– 6,269 6,270 – 6,733 6,734 – 6,847** COPAGOS MÍNIMOS REQUERIDOS Por niño bajo cuidado día completo = $1.00 día parcial = $0.50 día completo = $2.00 día parcial = $1.00 día completo = $3.00 día parcial = $1.50 día completo = $5.00 día parcial = $2.50 día completo = $7.00 día parcial = $3.50 día completo = $10.00 día parcial = $5.00 Para las familias que reciben Cuidado de los niños transición (TCC) no hay un copago asignado después del 3 er niño en la familia Día completo = 6 o más horas; día parcial = menos de 6 horas Familias recibiendo Asistencia para el Cuidado de Niños a base de su participación con Servicios Protectores de Menores y Crianza Temporal, el Programa Jobs o que reciben Asistencia Efectivo (CA) y que trabajan, tal vez no tengan un nivel de tarifa asignado ni copago mínimo requerido. Sin embargo, todas las familias pueden ser responsables por pagar los cargos que excedan a los copagos mínimos requeridos si las tarifas de sus proveedores exceden a las cantidades máximas permisibles en reembolsos estatales y/o los proveedores cobran otros cargos adicionales. * Índice de Pobreza Federal (FPL) = guías de pobreza del US DHHS para 2013. El límite estatutario estatal de Arizona para asistencia con cuidado de niños es 165% del índice de pobreza federal. ** El límite legal del Fondo Federal para Cuidado de Niños y desarrollo infantil (CCDF por sus siglas en inglés) es 85% del ingreso promedio del Estado (SMI por sus siglas en inglés). Programa y Empleador con Igualdad de Oportunidades • Bajo los Títulos VI y VII de la Ley de los Derechos Civiles de 1964 (Títulos VI y VII) y la Ley de Estadounidenses con Discapacidades de 1990 (ADA por sus siglas en inglés), Sección 504 de la Ley de Rehabilitación de 1973, Ley contra la Discriminación por Edad de 1975 y el Título II de la Ley contra la Discriminación por Información Genética (GINA por sus siglas en inglés) de 2008; el Departamento prohíbe la discriminación en la admisión, programas, servicios, actividades o empleo basado en raza, color, religión, sexo, origen, edad, discapacidad, genética y represalias. El Departamento tiene que hacer las adaptaciones razonables para permitir que una persona con una discapacidad participe en un programa, servicio o actividad. Esto significa por ejemplo que, si es necesario, el Departamento tiene que proporcionar intérpretes de lenguaje de señas para personas sordas, un establecimiento con acceso para sillas de ruedas o material con letras grandes. También significa que el Departamento tomará cualquier otra medida razonable que le permita a usted entender y participar en un programa o en una actividad, incluso efectuar cambios razonables en la actividad. Si usted cree que su discapacidad le impedirá entender o participar en un programa o actividad, por favor infórmenos lo antes posible de lo que usted necesita para acomodar su discapacidad. Para obtener este documento en otro formato u obtener información adicional sobre esta política, llame al (602) 542-4248; Servicios de TTY/TDD: 7-1-1. • Traducción gratuita relacionada a los servicios de DES, está disponible a solicitud del cliente. • English on the reverse. ARIZONA DEPARTMENT OF ECONOMIC SECURITY Division of Employment & Rehabilitation Services Child Care Administration MAXIMUM REIMBURSEMENT RATES FOR CHILD CARE Based on the 75th percentile of the 2000 Child Care Market Rate Survey (effective for services provided on or after April 1, 2009) CENTERS Age Group Birth < 1 yr: Full day Part day 1 yr < 3 yrs: Full day Part day 3 yrs < 6 yrs: Full day Part day 6 yrs < 13 yrs: Full day Part day District I District II District III District IV District V District VI 30.20 22.40 27.00 19.80 22.40 18.40 21.00 19.00 30.00 25.00 32.00 25.00 26.60 20.00 25.00 18.16 20.80 18.00 19.00 18.00 28.00 15.00 20.80 17.60 23.80 17.00 22.09 16.00 20.00 15.00 18.00 16.00 20.00 12.40 19.00 13.00 23.40 16.00 22.00 15.00 17.00 14.00 17.00 15.00 20.00 13.33 19.00 13.00 Age Group District I District II District IV District V District VI GROUP HOMES District III Birth < 1 yr: Full day 24.00 22.00 23.00 20.00 19.00 21.20 Part day 16.00 16.00 23.00 14.00 12.50 18.00 22.00 15.00 22.00 16.00 22.00 15.00 18.00 12.00 19.00 12.00 21.25 17.00 Full day 20.00 20.00 22.00 18.00 19.00 18.50 Part day 15.00 16.00 13.95 12.00 12.00 16.00 1 yr < 3 yrs: Full day Part day 3 yrs < 6 yrs: 6 yrs < 13 yrs: Full day 18.00 20.00 17.00 18.00 19.00 18.50 Part day 14.00 15.81 13.95 12.00 12.00 17.00 CERTIFIED FAMILY HOMES & CERTIFIED IN-HOME PROVIDERS Age Group Birth < 1 yr: Full day District I District II District III District IV District V District VI 20.00 18.00 10.00 18.00 10.50 18.00 14.00 19.00 12.00 20.00 Part day 1 yr < 3 yrs: 12.00 10.00 Full day Part day 20.00 13.00 18.00 12.00 17.00 10.00 17.00 10.50 20.00 11.00 17.00 10.00 3 yrs < 6 yrs: Full day Part day 6 yrs < 13 yrs: 18.00 12.00 18.00 12.00 16.00 10.00 17.00 10.50 18.00 10.00 16.00 10.00 Full day Part day 17.00 12.00 18.00 11.00 16.00 10.00 16.00 10.00 18.00 10.00 16.00 10.00 The actual reimbursement amount is equal to the reimbursement rate minus any DES designated co-payment. However, in no event shall the amount reimbursed exceed the lesser of the provider’s actual charges or the maximum reimbursement rate minus any DES designated copayment. Payment Rates for Non-Certified Relative Providers (NCRPs) will be $10.50 for Full day and $6.00 for Part day, minus any DES designated copayment. This rate will be paid to NCRPs statewide for care provided to children of all ages. The maximum reimbursement rates may be increased by ten percent, for child care providers who are nationally accredited. Full day = six or more hours per day. Part day = less than six hours per day. DES defines six local areas based upon geographic proximity/common characteristics, as Districts. They are comprised of the following counties: District I - Maricopa District IV - La Paz, Mohave and Yuma District II - Pima District V - Gila and Pinal District III - Apache, Coconino, Navajo and Yavapai District VI - Cochise, Graham, Greenlee and Santa Cruz