Policies for TANF Families Served Under the CCDF Child Care Subsidy - PowerPoint PPT Presentation

Policies for TANF Families Served Under the CCDF Child Care Subsidy Program Sarah Minton, Christin Durham, Erika Huber, Linda Giannarelli Presentation for NAWRS/NASTA 2012 URBAN INSTITUTE

Context • Many TANF families receive child care help directly from the TANF program, but… • Other TANF families receive child care subsidies through Child Care and Development Fund (CCDF) programs. What are the rules for TANF families in the CCDF program? URBAN INSTITUTE

Overview of This Presentation The Child Care and Development Fund (CCDF) 1. • Overlap with child care for TANF recipients 2. CCDF Policies • Focus on policies for TANF recipients • Using data from the CCDF Policies Database URBAN INSTITUTE

The Child Care and Development Fund (CCDF) • CCDF is the largest source of child care subsidies for low-income families. • CCDF is part of a federal block grant and is funded with both federal and state matching funding. • CCDF was authorized in 1996 under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). • CCDF is not an entitlement program. URBAN INSTITUTE

How CCDF Generally Works for Eligible Families • States set maximum rates they will reimburse providers. • Families locate child care. • Families pay a copayment (a portion of the cost of care). • States pay the remainder of the cost of care to the provider, up to the maximum reimbursement rate. URBAN INSTITUTE

CCDF and TANF Child Care Spending in FFY 2009 • Total CCDF: $9.1 billion TANF Direct • Approximate percent from TANF funds transferred to CCDF: 20% TANF Transferred CCDF • TANF funds spent directly on child care:$1.8 billion URBAN INSTITUTE

Families served through CCDF in FFY 2009 CCDF Families Receiving TANF in the Average Month • ACF Administrative Data: • 957,300 families served 16% in the average month Yes No • 1,638,000 children served in the average month URBAN INSTITUTE

Administrative Structure of CCDF and TANF- Funded Child Care • Three variations of state administrative structures for CCDF and TANF-funded child care Same caseworkers and administrative structure 1. Separate caseworkers and administrative structure 2. Combination of the two 3. URBAN INSTITUTE

What We Cover in the CCDF Policies Database • Policies for children served through the primary CCDF program in each state • Policies for families receiving TANF only if: • They are served under the primary CCDF program, and/or • The CCDF and TANF-funded programs share administrative procedures/manuals • This presentation captures policies under CCDF-funded child care • Policies for TANF-funded child care are picked up only if the program shares administrative procedures/manuals with CCDF-funded care URBAN INSTITUTE

CCDF Rules • Federal rules establish general limits • States set detailed rules • State policies may vary for subgroups, such as TANF families URBAN INSTITUTE

Federal Guidelines Family Income – below 85 percent of State Median Income Children’s Age – under age 13 or under age 19 if mentally or physically incapacitated or under court supervision Reason for Care – parents working, attending job training, or in an education program or children in need of or receiving protective services URBAN INSTITUTE

Select State Rules in Effect October 1, 2009 • Eligibility and Income Guidelines • Priority Policies • Redetermination Requirements • Copayment Policies URBAN INSTITUTE

Allowable Activities for CCDF • In all states employment is an eligible activity. • Almost every state allows for education and training activities. • Job search activities are allowed in more than half of the states. • Families receiving TANF can qualify based solely on TANF activities in 48 states. URBAN INSTITUTE

Eligible TANF Activities AK WA NH ME MT ND VT MN OR ID MA WI SD NY MI WY RI CT IA PA NE NJ NV OH IN UT IL DE WV CO CA MD VA KS MO KY DC HI NC TN OK AZ AR NM SC AL GA MS TX LA FL Which TANF Activities are Approved: TANF work program and other TANF activities TANF work program only No TANF activities For full details, see the CCDF Policies Database. URBAN INSTITUTE

Maximum Monthly Income to Become Eligible for CCDF AK WA NH ME MT ND VT MN OR ID MA WI SD NY MI WY RI CT IA PA NE NJ OH NV IN UT IL DE WV CO* CA MD VA*** KS MO DC KY HI NC TN OK AZ AR NM SC AL GA MS Monthly Income Threshold TX** for a Three-Person Family: LA $1,831 < $2,000 FL $2,000 < $2,500 $2,500 < $3,000 For full details, see the CCDF Policies Database. $3,000 < $3,500 *Policies coded for Denver, Colorado. $3,500 or greater **Policies coded for the Gulf Coast Region. ***Policies coded for Group III areas. URBAN INSTITUTE

If States Have Any Priority Policies AK WA NH ME MT ND VT MN OR ID MA WI SD NY MI WY RI CT IA PA NE NJ OH NV IN UT IL DE WV CO CA MD VA KS MO DC KY HI NC TN OK AZ AR NM SC AL GA MS TX LA FL If State Has Priority Policies: Yes No Information not available For full details, see the CCDF Policies Database. URBAN INSTITUTE

Priority Policies Related to TANF Subsidy guaranteed Priority, subsidy not gauranteed Varies No priority 50 40 32 States 30 21 18 20 10 10 10 7 7 5 4 1 1 1 0 TANF Recipients Families Transitioning Off Families At Risk of TANF Becoming Dependent on TANF For full details, see the CCDF Policies Database. URBAN INSTITUTE

Redetermination Requirements for Most Families AK WA NH ME MT ND VT MN OR ID MA WI SD NY MI WY RI IA CT PA NE NJ OH NV IN UT DE IL WV CO CA MD VA KS MO DC KY HI NC TN OK AZ AR NM SC AL GA MS TX LA FL Redetermination Period: 6 months 12 months Varies by local area For full details, see the CCDF Policies Database. URBAN INSTITUTE

Redetermination Exemptions for TANF Recipients AK WA NH ME MT ND VT MN OR ID MA WI SD NY MI WY RI IA CT PA NE NJ NV OH IN UT IL DE WV CO CA MD VA KS MO DC KY HI NC TN OK AZ AR NM SC AL GA MS TX LA If TANF Recipients are FL Exempt from Redetermination: Yes No For full details, see the CCDF Policies Database. URBAN INSTITUTE

Copayment Policies • Most families are required to pay a copayment. • Copayments generally increase with income. • States set the exact formula and income ranges. • How states define income varies. URBAN INSTITUTE

Copayment Exemptions for TANF Recipients Yes Varies 50 40 30 States 2 29 25 25 20 10 0 TANF Families with No TANF Families with Child-Only TANF Families Earned Income Earned Income For full details, see the CCDF Policies Database. URBAN INSTITUTE

Treatment of TANF Income When Determining Copayments AK WA NH ME MT ND VT MN OR ID MA WI SD NY MI WY RI CT IA PA NE NJ NV OH IN DE UT IL WV CO CA MD VA KS MO DC KY HI NC TN OK AZ AR NM SC AL MS GA TX If TANF Income is Counted: LA Fully counted FL Varies/partially counted Not counted Eligibility determined by TANF Caseworker For full details, see the CCDF Policies Database. URBAN INSTITUTE

Example Family Copayment Copayment = 5% of Income State excludes TANF income when calculating copayment Family 1 Family 2 Earnings $848 $628 TANF $0 $220 Total Income $848 $848 Total Countable Income $848 $628 (TANF excluded) Monthly Copayment $42 $31 URBAN INSTITUTE

Summary • CCDF is a significant source of child care subsidies for TANF families. • 16 percent of CCDF families receive TANF. • CCDF policies often vary for TANF families. • Families can qualify based solely on TANF activities in 48 states. • TANF families are guaranteed CCDF subsidies in 21 states. • TANF families are exempt from redetermination requirements in 3 states. • TANF families pay no copayment in 29 states. • TANF income is excluded when calculating copayment in 17 states. • Future work understanding the overlap between CCDF and TANF- funded child care policies URBAN INSTITUTE

Sources for CCDF Information • The state data used in this presentation are taken from the CCDF Policies Database. Additional information can be found on the OPRE project website: • http://www.acf.hhs.gov/programs/opre/cc/ccdf_policies/ • Federal CCDF regulations as well as program data and statistics may be accessed via the Office of Child Care’s website: • http://www.acf.hhs.gov/programs/ccb/index.html URBAN INSTITUTE

Contact Us Linda Giannarelli , Project Director lgiannar@urban.org The Urban Institute Sarah Minton , Project Manager sminton@urban.org The Urban Institute Christin Durham , Project Manager cdurham@urban.org The Urban Institute URBAN INSTITUTE

Funding for this Project • The CCDF Policies Database is funded by the Office of Planning, Research and Evaluation, under the Administration for Children in Families, the U.S. Department of Health and Human Services. • The views expressed in this presentation do not necessarily reflect the views or policies of the Office of Planning, Research and Evaluation, the Administration for Children and Families, the U.S. Department of Health and Human Services, the Urban Institute, or the Urban Institute’s trustees or funders. URBAN INSTITUTE