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Management Bulletin 14-03


Early Education and Support Division

Subject: Revised Child Care and Development Fee Schedule

Effective July 1, 2014

Number: 14-03

Date: May 2014

Expires: Until Rescinded

Authority: California Education Code (EC), sections 8239, 8263(a)(1), 8273, 8273.1, 8273.2, and 8447(b)(1)

Attention: Executive Officers and Program Directors of Child Development Programs


Purpose

The purpose of this Management Bulletin (MB) is to transmit a revised family fee schedule that becomes effective July 1, 2014. This MB supersedes the family fee schedule information in MB 11-26.

Background

The Budget Act of 2013 (Assembly Bill 86, Chapter 48, Statutes of 2013) directed the Superintendent of Public Instruction to develop a new family fee schedule that was simple and easy to implement.

Policy

The new family fee schedule takes effect on July 1, 2014, and applies both to existing and new families in the program. As in past years, the following exceptions apply:

See MB 06-14 for additional information regarding fee collection for children who are at risk or receiving CPS.

In accordance with EC 8273 families will be assessed a flat monthly fee at the time of initial certification and only be reassessed when a family is recertified or when the family data file is updated due to a change in status. Fees will be assessed and collected in accordance with California Code of Regulations, Title 5 (5 CCR) Section 18109.

Families will be assessed either a flat monthly full-time fee or part-time fee, based on hours of care certified for the month, income, and family size. Families with a certified need of less than 130 hours per month will be assessed a part-time fee while families with a certified need of 130 hours or more per month will be assessed a full-time fee. Contractors cannot, under any circumstances, recalculate fees based on a child’s actual attendance.

Fee Assessment

In accordance with 5 CCR Section 18109, several factors must be considered when calculating family fees. These factors include hours of certified need as documented on the application for services, the family’s income calculated in accordance with 5 CCR sections 18084 and 18096(b), and family size determined in accordance with 5 CCR, Section 18100. Contractors must assess a family’s fee as follows:

  1. At initial enrollment

    When assessing fees for families with predictable schedules, contractors will continue to assess fees in accordance with Title 5 requirements, using the total monthly certified hours of care as documented in the application for services. When the initial enrollment is not on the first day of the month, the contractor can assess a fee based on certified hours for the partial month and another fee for each subsequent month based on certified hours as documented in the application for services. For example: a family works 40 hours per week or full-time; and their initial enrollment date is May 20. For the month of May, the family will utilize less than 130 hours. In this example, the family will be assessed a part-time fee for May and a full-time fee for each subsequent month of service.

    When assessing fees for families with unpredictable or variable schedules, as described in 5 CCR sections 18086(b)(2)(D) and 18086(c)(2), the contractor must use the average hours of the parent’s verified work schedule for the four months immediately preceding the certification. If at the time of initial certification the parent does not have a work history, the contractor will assess a flat monthly fee based on (1) the verified hours the employer expects the parent to work, or (2) the self-employment documentation provided by the parent. The contractor will project the average number of hours the parent is expected to work per month over the next four months.
  1. When updating the family’s data file

    For families with predictable schedules, a change in the family’s circumstances as described in 5 CCR Section 18102 may require that the family fee be reassessed.

    Families with variable or unpredictable work schedule must update their need for services in accordance with 5 CCR, sections 18086(b)(2)(D) and 18086(c)(2), or when their work schedule becomes predictable. When updating the need for services, the contractor can reassess the fee by averaging the actual hours of attendance in the preceding three-four months to determine the monthly average by which the family fee will be based on. When the family’s work schedule becomes predictable, the fee will be reassessed and collected based on the newly certified hours of need determined in accordance with 5 CCR Section 18086.

    The reassessed fee will become effective on the first of the subsequent month and must be collected monthly in accordance with 5 CCR Section 18114.
  1. At recertification

    All families will have their fees reassessed during the annual recertification process as described in 5 CCR Section 18103.

    Contractors will continue to assess fees for families with predictable schedules using the total monthly certified hours of care as documented in the application for services. For families with variable or unpredictable work schedules, the contractor will reassess the fee by averaging the actual hours of attendance in the preceding three-four months to determine the monthly average by which the family fee will be based on.

    The reassessed fee will become effective on the first of the month after the new fee is assessed and must be collected monthly in accordance with 5 CCR Section 18114.

This fee assessment process does not affect how contractors collect family fees. Alternative Payment agencies that have policies allowing providers to collect family fees can continue using those policies.

If you have any questions regarding the new income eligibility levels, or application of the family fee schedule, please contact your assigned Early Education and Support Field Services Consultant or by phone at 916-322-6233.

This Management Bulletin is mandatory only to the extent that it cites a specific statutory and/or regulatory requirement. Any portion of this Management Bulletin that is not supported by a specific statutory and/or regulatory requirement is not prescriptive pursuant to California Education Code Section 33308.5.

Questions:   Early Education and Support Division | 916-322-6233
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