SENATE BILL REPORT

SB 5659

BYSenators Niemi, Smith and Murray

Establishing new criteria for reimbursed day care by the department of social and health services.

Senate Committee on Children & Family Services

Senate Hearing Date(s):February 8, 1989; February 28, 1989

Majority Report:  That Substitute Senate Bill No. 5659 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Smith, Chairman; Craswell, Vice Chairman; Bailey, Stratton, Vognild.

Senate Staff:Jennifer Strus (786-7472)

                  February 28, 1989

AS REPORTED BY COMMITTEE ON CHILDREN & FAMILY SERVICES, FEBRUARY 28, 1989

BACKGROUND:

The Department of Social and Health Services subsidizes day care costs under several programs.  There are six categories of subsidies available to families:  (1) employment child care for low-income, employed, non-AFDC families; (2) child care for teenage parents who are completing their high school education or GED; (3) seasonal farmworker child care for low-income, agriculturally employed families; (4) Child Protective Services/Child Welfare Services child care for families in need of child care as part of a CPS/CWS case plan; (5) therapeutic child care for young children and their families being served through CPS who need comprehensive child development services and family support; and (6) Indian reservation day care that can be authorized for purposes of employment, high school completion, child protection and/or prevention of child out-of-home placement.

Additionally, child care subsidies are provided through the Family Independence Program and the AFDC program (income disregard).

While child care for CPS families is provided without regard to income, other families must participate in the cost of care if their income exceeds 38 percent of the State Median Income Adjusted for Family Size (SMIAFS), or $1,049.00 per month for a family of four.  Families whose income exceeds 52 percent SMIAFS, or $1435.00 for a family of four, are not eligible for subsidies.  This income participation requirement applies to reservation day care also.

The Department of Social and Health Services' subsidized reimbursement rates to providers are lower than private pay rates which has caused many providers to accept only private pay children.  In addition, the department only reimburses on an availability basis which means that the provider is paid only if the child is present.  Most private pay day care providers are paid on a slot basis; they are paid whether or not the child is present.

SUMMARY:

The Department of Social and Health Services must establish a new rate schedule for all subsidized day care, including regular and reservation day care.

The department, in developing the new rate schedule, must do the following:  (1) reimburse providers on a slot basis; (2) provide child care to teen parents who are completing high school without regard to income; (3) change the maximum income eligibility for employment day care to 70 percent of SMIAFS; and (4) establish rates which vary by child age and geographic area and are at least 90 percent of the prevailing private pay rate paid in the area.

EFFECT OF PROPOSED SUBSTITUTE:

The section requiring DSHS to provide child care to those completing high school without regard to income is removed.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 2, 1989

Senate Committee - Testified: Senator Janice Niemi, prime sponsor; Pat Thibaudeau, Washington Women United (pro)