ANNUAL JOINT LEGISLATIVE BUDGET COMMITTEE CHILD CARE REPORT FOR THE PERIOD JULY 1, 2015 – JUNE 30, 2016 Pursuant to A.R.S. § 46-810, the annual report for members of the Joint Legislative Budget Committee (JLBC) is provided. The information reflects statewide data for state fiscal year (SFY) 2016, and provides comparative information from SFY 2015. 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 Arizona Department of Economic Security (AZDES). Child Care Program Temporary Assistance for Needy Families (TANF) Cash Assistance Related Employed Child Care Jobs Child Care Transitional Child Care (TCC) TCC Extension Low Income Working Special Circumstances Dept. of Child Safety Totals Ave rage Monthly Se rve d FAMILIES CHILDREN Familie s Se rve d Childre n Se rve d Pe rce nt Pe rce nt SFY 2016 SFY 2015 Change SFY 2016 SFY 2015 Change 346 792 305 1,042 13.4% -24.0% 654 1,472 580 1,925 12.8% -23.5% 1,566 918 6,563 274 5,855 16,314 1,473 977 4,479 163 5,423 13,862 6.3% -6.0% 46.5% 68.1% 8.0% 17.7% 3,053 1,865 12,590 463 9,903 30,000 2,853 1,956 8,989 275 9,256 25,834 7.0% -4.7% 40.1% 68.4% 7.0% 16.1% Summary caseload data from AzCCATS. 2. The total number of dollars spent on child care for each of the child care programs administered by the AZDES. 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 Dept. of Child Safety Totals Annual JLBC Child Care Report September 16, 2016 SFY 2016 $ 2,562,600.00 $ 5,919,400.00 $ 12,207,600.00 $ 7,760,300.00 $ 51,246,900.00 $ 1,531,000.00 $ 48,166,800.00 $ 129,394,600.00 SFY 2015 $ 2,287,026.10 $ 7,877,999.80 $ 11,360,588.96 $ 7,936,097.86 $ 35,040,843.18 $ 1,080,770.10 $ 44,761,717.66 $ 110,345,043.66 Pe rce nt Change 12.0% -24.9% 7.5% -2.2% 46.2% 41.7% 7.6% 17.3% Page 1 3. The number of recipients eligible for Transitional Medical Assistance (TMA) and Child Care benefits. SFY 2016 SFY 2015 Percent Change Transitional Medical Assistance Eligible 47,247 20,015 136.06% Transitional Child Care Eligible 5,726 5,451 5.04% TMA data are from the Family Assistance Administration bulletin for the appropriate period. 4. The number of recipients who accept TMA 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 2016 Received Transitional Medical Assistance < 12 months Received Transitional Medical Assistance > 12 months Received Transitional Child Care < 12 months Received Transitional Child Care > 12 months SFY 2015 Percent Change 47,247 20,015 136.06% Not Applicable Not Applicable Not Applicable 3,541 2,913 21.56% 1,195 1,942 -38.47% TMA has not been available after 12 months since SFY 2003. 5. The number of applicants waiting for services under the state child care subsidy and federal child care programs for working families. SFY 2016 Number of applicants waiting for service at the beginning of SFY 496 SFY 2015 Percent Change 5,623 -91.18% The number of children on the waiting list at the beginning of the SFY decreased in SFY 2016 compared to SFY 2015. This decrease is attributed to the AZDES conducting six releases of the waiting list during SFY 2015, allowing a total of 15,594 children the opportunity to access child care. In addition to the releases of the waiting list, Priority Groups 1 and 2, which are families with income at or below 110% of the Federal Poverty Level (FPL) were opened for immediate service, and are not currently subject to the waiting list. Families with income above 110% FPL are still subject to the waiting list. The AZDES 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 16, 2016 Page 2 6. Co-payment levels for each of the child care programs administered by the AZDES. Both federal Child Care Development Fund (CCDF) regulations and Arizona statute require the AZDES 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 AZDES sliding fee scale (see Table 1), effective October 1, 2015, consists of six fee levels. Parents are required to pay between one and 10 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 the AZDES pays. Eligibility for child care services continues to be set at 165 percent of the FPL as specified in A.R.S. § 46-803. The sliding fee scale for SFY 2016 was revised to reflect changes in federal poverty guidelines for 2016. 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 co-payment 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 AZDES. CO-PAYMENTS COLLECTED 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 Dept. of Child Safety Totals SFY 2016 $ $ $ $ $ $ $ $ 1,075,700 796,000 5,627,900 103,500 7,603,100 SFY 2015 $ $ $ $ $ $ $ $ 990,114 833,941 3,862,972 59,236 5,746,263 Percent Change 8.6% -4.5% 45.7% 74.7% 32.3% The increase in co-payments collected is attributable to the overall increase in the number of children served and a shift of children from mandated service eligibility categories that do not require co-payments. Regardless of any required co-payments, all families must pay any difference in cost between the maximum that the AZDES pays and the amount the child care provider actually charges. Annual JLBC Child Care Report September 16, 2016 Page 3 8. The total number of payments to relatives for child care and the number of children served. SFY 2016 Total number of payments to relatives for child care Number of children served $ 2,871,984.50 $ 2,438 SFY 2015 Percent Change 2,642,537.50 2,532 8.68% -3.71% 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 2016 were the same as the rates for SFY 2015, which reflected the 75th percentile of the 2000 market rate survey (see Table 2). In order for the AZDES to comply with the Child Care and Development Block Grant (CCDBG) recommendation to set provider rates at a current market rate, the AZDES would on average, need to increase rates by 44 percent. 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 TANF 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 the AZDES does not promote or track the provision of unpaid child care services by TANF 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: 1) Encouraging the use of untrained and uncompensated Cash Assistance recipients as child care providers could jeopardize the safety of children, and could place the AZDES in a position of liability for any resultant harm or injury. 2) In accordance with CCDF 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. 3) 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). The AZDES administers this program via contracts with community-based agencies and community colleges throughout Arizona, who deliver a 60hour 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 Annual JLBC Child Care Report September 16, 2016 Page 4 facilities, Head Start programs, or to become self-employed as an AZDES 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. 4) 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 16, 2016 Page 5 ARIZONA DEPARTMENT OF ECONOMIC SECURITY CC-229-PD (10-15) CHILD CARE ASSISTANCE GROSS MONTHLY INCOME ELIGIBILITY CHART AND FEE SCHEDULE Effective October 1, 2015 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 – 834 835 – 981 982 – 1,325 1,326 – 1,423 1,424 – 1,521 1,522 – 1,619 2 0 – 1,129 1,130 – 1,328 1,329– 1,793 1,794 – 1,926 1,927 – 2,059 2,060 – 2,192 3 0 – 1,424 1,425 – 1,675 1,676– 2,262 2,263 – 2,429 2,430 – 2,597 2,598 – 2,764 4 0 – 1,718 1,719 – 2,021 2,022 – 2,729 2,730 – 2,931 2,932 – 3,133 3,134 – 3,335 5 0 – 2,013 2,014 – 2,368 2,369 – 3,197 3,198 – 3,434 3,435 – 3,671 3,672 – 3,908 6 0 – 2,308 2,309 – 2,715 2,716 – 3,666 3,667 – 3,937 3,938 – 4,209 4,210 – 4,480 7 0 – 2,602 2,603 – 3,061 3,062 – 4,133 4,134 – 4,439 4,440 – 4,745 4,746 – 5,051 8 0 – 2,897 2,898 – 3,408 3,409 – 4,601 4,602 – 4,942 4,943 – 5,283 5,284 – 5,624 9 0 – 3,192 3,193 – 3,755 3,756 – 5,070 5,071 – 5,445 5,446 – 5,821 5,822 – 6,196 10 0 – 3,486 3,487 – 4,101 4,102 – 5,537 5,538 – 5,947 5,948 – 6,357 6,358 – 6,645** 11 0 – 3,781 3,782 – 4,448 4,449 – 6,005 6,006 – 6,450 6,451 – 6,783** 12 0 – 4,076 4,077 – 4,795 4,796 – 6,474 6,475 – 6,922** 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 Department of Child Safety/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 2015 poverty guidelines. The Arizona state statutory limit for child care assistance is 165% of the Federal Poverty Level. ** Federal Child Care & Development Fund (CCDF) statutory limit is 85% of the Federal Fiscal Year 2016 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. 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 4/1/09) 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 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 24.00 16.00 22.00 16.00 23.00 23.00 20.00 14.00 19.00 12.50 21.20 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 20.00 15.00 20.00 16.00 22.00 13.95 18.00 12.00 19.00 12.00 18.50 16.00 18.00 14.00 20.00 15.81 17.00 13.95 18.00 12.00 19.00 12.00 18.50 17.00 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 20.00 14.00 19.00 12.00 18.00 10.00 18.00 10.50 20.00 12.00 18.00 10.00 20.00 13.00 18.00 12.00 17.00 10.00 17.00 10.50 20.00 11.00 17.00 10.00 18.00 12.00 18.00 12.00 16.00 10.00 17.00 10.50 18.00 10.00 16.00 10.00 17.00 12.00 18.00 11.00 16.00 10.00 16.00 10.00 18.00 10.00 16.00 10.00 GROUP HOMES CERTIFIED FAMILY HOMES & CERTIFIED IN-HOME PROVIDERS 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 co-payment. 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