SB12-022, Child Care Assistance for Working Familes

 SB12-022

MAINTAINING CHILD CARE ASSISTANCE FOR WORKINGFAMILIES

Sponsors: Sen. Williams (Boyd, Hudak), Rep. Massey (Fields, Kefalas)

 Staff Name: Lou Irwin

 What the Bill Does:
SB12-022 creates a pilot program in the Department of Human Services (DHS) that allows up to 10 counties to continue providing extended child care assistance for a period of 2 years after a person receiving assistance has exceeded the county eligibility limit, while requiring parents receiving extended assistance to pay an increasing portion of the child care costs according to a schedule over the two-year period that allows for a gradual transition off of assistance.

Colorado Context:
Current law encourages but does not require counties to continue child assistance for 6 months to families whose income rises above eligibility cutoff levels.  This is to avoid the sudden discontinuation of assistance, which could leave the family unable to pay for child care and other expenses that exceed the increase in the family’s income.  The intent of this bill is to cushion this “cliff effect” by extending the period of assistance while the family gradually assumes a greater proportion of the expenses for child care.

National Context:
States have traditionally had a fair amount of latitude in determining the specific features of their federally funded child care assistance programs. Receipt of child care assistance is typically a function of income eligibility criteria. Six states (Alabama, Colorado, Florida, Michigan, Texas, and Wisconsin) currently have provisions for extended child care benefits during transitional periods after the income eligibility threshold is exceeded. [i]  Many policymakers and advocates across share concerns that capped federal funding will increase the share of child care funds dedicated to welfare families, crowding out access for working poor families. Both Florida and Washington have provided additional child care funding targeted specifically to the non-welfare low-income population to avoid such crowding out.

Bill Provisions: 

• Establishes a pilot program in which up to 10 counties can modify their extended child care assistance programs by
  • continuing to provide for child care benefits  for 2 years after a person receiving assistance has exceeded the county income eligibility limit; and
  • requiring parents receiving extended assistance to pay an increasing portion of the child care costs according to a schedule over the two-year
• Requires persons receiving assistance under a pilot program to
  • report changes in income during the two-year period, and
  • have their eligibility re-determined after 12 months.
• Prohibits counties from providing assistance under the pilot to persons with income above the federal eligibility limit
• Encourages counties in the pilot program to seek public-private partnerships to supplement their child care assistance
• Requires counties to apply to the DHS to participate in the program
• Initiates the pilot program on July 1, 2012, and repeals it on July 1, 2016
• Requires the DHS is to compile data submitted by counties participating in the pilot program

Fiscal Impact:  None for the state.  Data collection will be fairly minimal and within existing capabilities.  Counties which extend benefits under the pilot program may have to serve a smaller number of families if their human services budgets are not increased. 

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