Management Bulletin 20-19aManagement Bulletin 20-19a Updated Guidance on Family Fees for Fiscal Year 2020-21.
Early Learning and Care Division
Subject: Updated Guidance on Family Fees for Fiscal Year (FY) 2020–21
Date: December 9, 2020
Expires: June 30, 2021
Authority: The 2020–21 Budget Act (including Control Section 11.90); Senate Bill (SB) 820 (Chapter 24, Statutes of 2020), Education Omnibus Trailer Bill; and Executive Order (EO) 20/21-129
Attention: Executive Officers and Program Directors of all Early Learning and Care Programs
This Management Bulletin (MB) is to notify and provide updated guidance regarding federal and state requirements on the collection of Family Fees for Fiscal Year (FY) 2020–21 to state-subsidized early learning and care (ELC) programs following the enactment of Senate Bill (SB) 820 and augmentation of federal funding provided by Executive Order (EO) 20/21-129.
These requirements only apply to FY 2020–21 pursuant to Chapter 24 of the Statutes of 2020.
California Education Code (EC) sections 8273–8273.3 refers to state requirements to establish a family fee schedule, the assessment of those fees, and the applicable exemptions as set by state budget and federal law.
Specifically, the State is required by law to:
- Establish a fee schedule for families using subsidized child care that is simple and easy to implement for contractors, which is consistent on a monthly basis and based on income, and differentiates between part-time and full-time service needs. No recalculation of a family fee shall occur if attendance varies from enrollment unless a change in need for care is assessed.
- Design the family fee schedule based on the most recent census data available on state median family income in the past 12 months, adjusted for family size, and shall not exceed 10 percent of the family’s monthly income. The state is required to submit the adjusted fee schedule to the Department of Finance for verification that it meets all requirements as stipulated by law. Family fees are required by law to be assessed at initial enrollment and reassessed at update of certification or recertification.
The California Code of Regulations, Title 5 (5 CCR), sections 18108 through 18116 set forth family fee requirements for all ELC programs.
On September 15, 2020, contractors were reminded via an email to subscribers of the Early Learning and Care Division's (ELCD) distribution list that family fees for all families were waived for July and August 2020, pursuant to the Superintendent’s authority provided by EC Section 8209. The email also provided directives for contractors to issue a refund or a credit for future services to families that had paid fees for July and/or August 2020, based on the contractor’s internal policy for refunds/credits of those fees. Further, this email provided interim guidance on upcoming legislation to waive family fees for the months of September 2020 through June 2021, for families not receiving in-person services due to center closure, COVID-19 related limitations, or choosing to shelter-in-place.
On September 18, 2020, the Governor signed SB 820, which: (1) statutorily waives family fees for all subsidized children in July and August 2020, and provides additional funds to contractors to augment contracts for fees waived; (2) allows families who were disenrolled, either voluntarily or involuntarily, due to delinquent family fees to re-enroll without the need for additional eligibility documentation; (3) waives family fees for September 2020 through June 2021, for families where all children in the family enrolled in care remain at home for ELC distance learning or are sheltering-in-place; and (4) specifies that if additional federal funds are not received, childcare providers will have to absorb those costs.
Updated: On October 19, 2020, the Department of Finance (DOF) sent a letter to the Chair of the Joint Legislative Budget Committee (JLBC), pursuant to Control Section 11.90 of the 2020 Budget Act, requesting that $110 million from the Federal Coronavirus Relief Fund be used to augment state subsidized childcare contracts, including covering the waived family fees for families not receiving in-person care. The request was approved by the Chair of the JLBC on October 21, 2020. On October 28, 2020, EO 20/21-129 was signed by the Governor to provide for the transfer of federal funds for these purposes. Pursuant to directives from the JLBC and DOF, the California Department of Education (CDE) is authorized to allocate up to $110 million to augment state subsidized childcare contracts for multiple purposes, including the use of $30 million to cover the waived family fees. This funding will help reduce the impact to contractors and providers absorbing fees as previously directed in SB 820, and will be used for those purposes until all funding is exhausted.
All family fees were waived for the months of July and August 2020. Any families disenrolled during this time due to delinquent family fees can be reenrolled without having to provide additional eligibility documentation.
As required by SB 820, family fees are waived from September 1, 2020, to June 30, 2021, for families, when all children in the family enrolled in subsidized ELC programs remain at home: (1) either for distance learning services when the facility is closed, when all currently enrolled children are not able to receive in-person services due to a public health order, or (2) for families sheltering-in-place due to COVID-19.
Family Fees for July and August 2020
Family fees for all families were waived for July and August 2020. Families should have received a refund, or credit for future services, for July and August fees, depending upon the contractor's internal policy. Families disenrolled by the contractor or who chose to disenroll due to the imposition of family fees for July and August 2020, could be reinstated if funding and space is available without the need for additional eligibility documentation. These families would receive priority and should be enrolled before any families from the agency’s eligibility list. Contractors must inform these families of the applicability of family fees, which resumed starting in September 2020, based upon whether their children are receiving in-person services as set forth below. As always, contractors should continue to work with families to ensure retention of certified childcare services. Any change to the certified need must be based upon a request by the parent in accordance with EC section 8263(h).
If contractors do not have available space to reinstate the family’s services, the contractor may attempt to transfer enrollment to another contractor who has availability and, if not possible, refer the family to the local Resource and Referral program for additional subsidized childcare options.
Family Fees for September through June 2021
The SB 820 specifies that family fees are waived for the remainder of the year only for families not receiving in-person services or sheltering-in-place (sheltering-in-place is defined as a family choosing not to send their child to care because of COVID-19). The SB 820 states that family fees will be waived for any months from September 1, 2020 to June 30, 2021, for families where all children in the family enrolled in subsidized ELC services remain at home for that month: 1) either for ELC distance learning because of closure of the facility, when all currently enrolled children are not able to receive in-person services due to a public health order, or 2) for families sheltering-in-place due to Covid-19. Unlike the family fee waiver policy for July and August 2020, SB 820 is restrictive and does not allow the CDE to waive family fees for all families for September 2020 through June 2021.
Families whose children receive in-person services will continue to pay the family fee per the current Notice of Action (NOA) on file. Pursuant to 5 CCR Section 18084.2(a) of the 12-Month Eligibility Implementation Guidance issued with MB 17-14, families may at any time request a reassessment of family fees based on income or other changes. This information can be used to reduce family fees but cannot be used to make any other changes to a family’s service agreement unless requested by the family. For instance:
- Families may voluntarily request a reassessment of the family fees if they are currently paying a full-time fee, but are no longer receiving the same income as previously reported at the time of certification or recertification; or
- Families may voluntarily request a reassessment of the family fee if they are currently paying a full-time fee and using full-time care, but want to reduce their hours of service.
In both of these cases the family fee would be reassessed in order to now determine if the family qualifies for a reduction to a part-time (or zero) fee. Family fees will not be adjusted for absences in instances in which a family is certified for full-time care, and intended, at the time of paying the fee, to use in-person services, but does not attend for all of their certified hours in any given month.
As contractors certify or recertify families during this time, they must continue to calculate the appropriate family fee and indicate such fee on the NOA as typically done. The NOA shall indicate the family fee assessed, as well as indicate if there is any waiver to the family fee as set forth below. School-age families should be assessed a vacation schedule and school schedule for family fees at initial enrollment. The family should pay the vacation schedule while receiving full-time in-person ELC services. When the family transitions to in-person TK-12 services, then the family should pay the fees required during the school schedule.
For direct service contractors, if all of the children in a family will not receive in-person services for the month due to a program closure due to COVID-19, all currently enrolled children are not able to receive in-person services due to a public health order, or the family is sheltering in place because of COVID-19, the family fee assessed for that month will be waived. Written documentation should include the effective date(s) of when the family did not receive in-person services and indicate the action taken to refund family fees or credit for future services, if applicable. When the family returns to or begins in-person care, the assessed family fee would begin the first day the family indicates they will return to in-person services and will be calculated as specified in MB 20-13.
The (AP) contractors and direct service contractors who provide services through a Family Child Care Home Education Network (FCCHEN) should require providers to report dates of closure due to COVID-19 or days in which all of the children in the family are not attending care because of COVID-19 on the attendance record and/or invoice. Written documentation should include the effective date(s) of when the family did not receive in-person services and indicate the action taken to refund family fees or credit for future services. When the family returns to or begins in-person care, the assessed family fee would begin the first day the family indicates they will return to in-person services and will be calculated as specified in MB 20-13.
In instances where a direct service contractor or provider must close unexpectedly including a positive COVID-19 case of an employee or provider or are required to limit in person services in response to a local or public health order or guidance, the family should receive a refund or credit for their family fee as specified below:
- When the family paid a full-time or part-time fee as specified on their NOA and the provider was closed for the entire month due to a written state or local public health order or guidance or needed to limit availability for in-person services due to staffing/group size restrictions, the family fees paid for the month of closure should be refunded or credited (depending on contractor policy). For families no longer enrolled in the program a refund must be issued.
- When the family paid a full-time fee at the beginning of the month as specified on their NOA, but the provider was unexpectedly closed due to a written state or local public health order or guidance or needed to limit availability for in-person services due to staffing/group size restrictions, the family should be refunded or credited (depending on contractor policy) the difference between the full-time fee and the part-time fee, if the hours of in-person service due to the closure were less than 130 hours. For families no longer enrolled in the program a refund must be issued.
If part-time fees were paid at the beginning of the month and the direct service contractor or provider was closed unexpectedly or suddenly had to limit in person services due to staffing/group size restrictions, as long as some in-person care was provided, the part-time fees would still be applicable.
As a result, contractors will need to determine on a monthly basis whether any credit or refund (depending on contractor policy) is necessary to families based on the amount of in-person services received when the contractor or provider has closed for some period of time or the family has not received in person services due to imposed COVID-19 restrictions on group size or ratios. If a credit is necessary, the credit should be applied to the month following the determination of the refund or credit.
Families on Delinquent Family Fee Plans
For families that have a delinquent family fee plan, contractors should have placed the plan on hold for the months of July and August 2020. Families should not have been terminated due to outstanding fees owed for those months or while repayment plans were on hold. Families disenrolled by the contractor due to delinquent family fees during a period in which family fees are waived can be reinstated. If contractors do not have available space to reinstate the family’s services, the contractor may attempt to transfer their enrollment to a contractor with availability and, if unable to do so, refer the family to the local Resource and Referral program for additional subsidized childcare options. Delinquent family fee plans, including outstanding fees for March, resumed in September 2020, for families attending in-person care. Families sheltering-in-place or receiving distance learning services due to COVID-19 must pay outstanding fees or resume payment plans when the family returns to in person care. Family fees waived for July and August 2020, will not be included in the delinquent family fee plan. Families that wish to pay off any outstanding family fee balance during the period in which family fees are waived may do so and such amount shall be credited to their account.
Contractor Reporting and Reimbursement
The Child Development and Nutrition Fiscal Services (CDNFS) attendance and fiscal reports have been revised to allow CDE to collect information on the amount of family fees waived. All contractors will be required to report the amount of family fees collected and the amount of family fees that were assessed but waived, under the circumstances provided in the directive above, beginning with the September 2020, report period, due on October 20, 2020. Reporting fees according to this directive will ensure the CDE is reimbursing contractors accurately.
Contractors will report the amount of family fees collected on the line Family Fees Collected for Certified Children (September–June). Contractors are reminded that family fees reported on the line Family Fees Collected for Certified Children (September–June) must be based on the amount of fees the contractor expects to collect in the report month, regardless of when the revenue is actually received. Family fees are in lieu of contract payments and therefore family fees reported on this line will be subtracted from contract reimbursement.
Two (2) new lines have been added to the CDNFS Fiscal Reports entitled, Waived Family Fees for Certified Children (July and August) and Waived Family Fees for Certified Children (September–June). For FY 2020–21, all contractors must report the amount of family fees that were assessed, but waived between July 1, 2020 and August 31, 2020, on the line Waived Family Fees for Certified Children (July and August). Family fees that were assessed, but waived between September 1, 2020 and June 30, 2021, will be reported on the line Waived Family Fees for Certified Children (September–June). Any amount reported on these lines should represent the amount of fees that would have been collected from families if family fees had not been waived.
Contractors who have previously submitted a July and August report through the Child Development Provider Accounting Reporting Information System (CPARIS), and did not include the amount of family fees that were waived, should submit a revision to their previously submitted report. Contractors who report fiscal information through the Alternative Payment/CalWORKs Online Reporting System may reflect any revisions in the prior period of the September 2020 report.
The SB 820 provides additional funds to cover family fees for July and August. Contractors will receive an augmentation to their contract to cover the family fees waived in July and August 2020.
Pursuant to SB 820, direct service contractors, AP providers, and FCCHEN providers were required to absorb the cost of the waived family fees between September 1, 2020 and June 30, 2021, if additional federal funds were not provided.
The CDE notified contractors that the absorption of the waived family fees for September 2020 through June 2021, was to be implemented as follows:
- Direct service contractors would not receive reimbursement through their contract to cover the cost of the waived family fees, and therefore must have considered the cost of waiving family fees when estimating revenue and expenditures to ensure expenditures do not exceed their total contract amount.
- The AP contractors who collected family fees directly would not have received reimbursement through their contract to cover the cost of the waived family fees and therefore would have adjusted the amount reimbursed to the provider by the amount of family fees that would have been collected if fees were not waived. For example, if a provider typically was reimbursed $700 and the contractor collected $50 in family fees directly from the family, the contractor normally reimbursed the provider $700. However, the reimbursement to the provider would have been $650 for the months of September 2020 through June 2021.
- The AP providers that typically collected the family fee would have received reimbursement from their AP contractor as usual, but would not have collected the fee from the family. For example, if a provider typically collected $30 in family fees directly from the family and was reimbursed $600 from the AP contractor, the provider’s total income would have been $630. For the months of September 2020 through June 2021, the reimbursement to the provider would have continued to be $600 from the AP contractor, and the provider would no longer have collected $30 from the family.
Updated: As set forth in EO 20/21-129, the DOF requested, and the JLBC approved, the transfer of $30 million in federal Coronavirus relief funds which will be used to offset the cost of waived fees for direct service contractors, AP providers, and FCCHEN providers with families enrolled who have family fees waived pursuant to the directive above. The CDE recognizes this allocation of additional funds may not cover the full annual cost, but these funds should significantly mitigate fiscal impact. Contractors must ensure that the data reported in the new family fee lines are reported accurately to ensure the monthly reimbursement calculation is correct. As a result of this additional funding, between September 2020 through June 2021, reimbursement will be implemented as described below.
- Direct service contractors will continue to report the waived family fees on the line Waived Family Fees for Certified Children (September through June). However, CDNFS will not reduce a contractor's reimbursement based on the amount reported on this line. In doing so, contractors will be eligible for reimbursement through the monthly apportionment process. Any amounts due for previous months will be paid in the contractor’s next apportionment payment.
- The AP contractors will continue to report the waived family fees on the line Waived Family Fees for Certified Children (September through June) for all children enrolled who have had their family fee waived during this time period. However, CDNFS will not reduce a contractor's reimbursement based on the amount reported on this line. In doing so, contractors will be eligible for reimbursement through the monthly apportionment process. Any amounts due for previous months will be paid in the contractor’s next apportionment payment.
- The AP contractors who collect family fees directly from the family will receive reimbursement through their contract beginning with the January apportionment payment to cover the cost of the family fee waiver until funds are exhausted. For example, if a provider typically is reimbursed $700 and the contractor typically collects $50 in family fees directly from the family, the CDE will reimburse the contractor $700 to cover the cost of the fee that would have otherwise been collected from the family. This payment to the contractor ensures that the provider can be reimbursed for family fees waived.
- The AP contractors who require the provider to collect the family fee directly must provide reimbursement to the provider in the amount that they would have otherwise collected from the family. For example, if a provider typically collects $30 in family fees directly from the family and is reimbursed $600 from the AP contractor, the provider’s total income is $630. For the months of September 2020 through June 2021, or until funds are exhausted, the provider will receive full reimbursement from the contractor, and will not collect fees directly from the family. The CDE will reimburse the contractor, beginning with the January apportionment payment to cover the cost of the fee that would have otherwise been collected from the family. In this example, the CDE will reimburse the contractor $630. This payment to the contractor ensures that the provider can be reimbursed for the family fees waived.
- Reimbursement to providers for the waived family fees from services provided in December 2020 through June 2021 must be made as contractors are processing monthly attendance records, beginning with the provider payment(s) processed in January 2021.
- For September, October, and November, where reimbursement to providers was already reduced due to waived family fees, contractors must provide reimbursement to providers no later than when the provider payment is processed in January 2021. The CDE urges contractors, if possible, to make these payments sooner while not affecting the timeliness of January provider payments for December services.
- Contractors who have reported waived family fees in FY 2020–21 for General Child Care (CCTR), California State Preschool (CSPP), Migrant Childcare (CMIG), Family Childcare Homes (CFCC), California Alternative Payment (CAPP), and California Migrant Alternative Payment (CMAP) contracts can expect a forthcoming contract amendment to increase the maximum reimbursable amount to cover waived family fees.
The CDE will monitor the need and usage of allocations and will issue further guidance if the $30 million allocation is not sufficient.
State Guidelines--CDE and ELCD-Specific
The CDE, ELCD has developed a COVID-19 guidance and resource page that includes answers to frequently asked questions, all management bulletins issued to implement pertinent legislation, and other relevant resources at https://www.cde.ca.gov/sp/cd/re/elcdcovid19.asp.
To be informed of updated information, please sign up for ELCD's email list at https://www.cde.ca.gov/sp/cd/ci/progspeclist.asp.
The CDE has developed a guidebook for the safe reopening of California’s public schools, which can be found at https://www.cde.ca.gov/ls/he/hn/documents/strongertogether.pdf.
Social and Physical Distancing Guidance and Healthy Practices for ELC Facilities
All contractors must follow healthy and safe practices and adhere to local and state public health orders in all early learning or childcare settings.
The California Department of Public Health (CDPH) issued public health guidance regarding cohorts/small groups of children in licensed and license exempt childcare settings, and before and after school programs. The CDPH guidance can be accessed at https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/small-groups-child-youth.aspx.
The CDE worked collaboratively together with the California Department of Public Health, the California Department of Social Services (CDSS) and the California Division of Occupational Safety and Health (Cal/OSHA) at the California Department of Industrial Relations, to issue joint updated guidance on the following topics:
- Childcare which can be accessed at https://covid19.ca.gov/pdf/guidance-childcare.pdf
- Support for working families can be accessed at https://covid19.ca.gov/pdf/guidance-supportworkingfamilies.pdf
The CDSS Community Care Licensing Division has developed Provider Information Notices (PINs) to formal communicate important license-related information to CCLD-licensed providers. These PINs can be found on the CDSS web page at https://www.cdss.ca.gov/inforesources/community-care-licensing/policy/provider-information-notices/child-care.
For the state’s Early Learning and Care playbook for caring for children and getting back to work, visit https://californiaall.org/home.
Choosing to Reopen and What it Looks Like to Reopen Facilities
The Center for Disease Control (CDC) has released guidance to assist providers in making the decision to reopen. You can find the Child Care Decision Tree at https://www.cdc.gov/coronavirus/2019-ncov/community/schools-childcare/Childcare-Decision-Tree.pdf.
For more information about COVID-19 guidance from the Office of Head Start, including the Collaborating Actively in Meaningful Planning (CAMP) series, please visit their website at https://eclkc.ohs.acf.hhs.gov/about-us/coronavirus/responding-covid-19.
Other State and Federal Guidelines regarding Child Care and COVID-19
For more information about federal and state guidance and response to COVID-19, please refer to the following:
- The CDC website at https://www.cdc.gov/coronavirus/2019-ncov/community/schools-childcare/index.html.
- The California Department of Public Health’s website at https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/Immunization/ncov2019.aspx.
- The California COVID-19 Response website at https://covid19.ca.gov/.
The CDC recently released additional guidance for child care providers in The Supplemental Guide for Child Care which can be found at: https://www.cdc.gov/coronavirus/2019-ncov/community/schools-childcare/guidance-for-childcare.html.
Staff Development Resources
Contractors should provide staff development using, but not limited to, the resources located on the CDE, ELCD COVID-19 Guidance web page at https://www.cde.ca.gov/sp/cd/re/elcdcovid19.asp, as well as the resources below:
- View resources, including eight (8) comprehensive 60-80-minute Health and Safety Modules for Child Care, located on the California Early Childhood Online web page at https://www.caearlychildhoodonline.org/.
- Contact your local Quality Counts California to participate in professional communities of practice at https://qualitycountsca.net/quality-partners/.
- Contact the Resource and Referral Network for professional development opportunities. Resources are also available at https://rrnetwork.org/provider-services/provider-support-resources.
- View professional development resources at the Head Start Early Childhood Knowledge Center web page at https://eclkc.ohs.acf.hhs.gov/professional-development/article/professional-development-go.
Contractors should also contact the local R&R agency at https://www.cde.ca.gov/sp/cd/re/rragencylist.asp and the local QCC consortia to identify additional resources to meet the needs of children, families, and staff.
Contacting your Program Quality Implementation Office Regional Consultant
If you have any questions regarding the information in this MB, please contact your assigned ELCD, Program Quality Implementation Office Regional Consultant via the ELCD Consultant Regional Assignments web page at https://www.cde.ca.gov/sp/cd/ci/assignments.asp or by phone at 916-322-6233.
This MB is mandatory only to the extent that it cites a specific statutory and/or regulatory requirement. Any portion of this MB that is not supported by a specific statutory and/or regulatory requirement is not prescriptive pursuant to California EC Section 33308.5.
Stephen Propheter, Director
Early Learning and Care Division