Section 49.155 (1) (bm), Stats., as created by 2017 Wisconsin Act 59, provides that “liquid assets” does not include any financial resources designated by the department by rule as excluded for the purpose of the limit on the total liquid assets of a family under s. 49.155 (1m) (cm), Stats. Section 49.155 (1m) (d), Stats., provides that an individual may receive a subsidy if the individual satisfies other eligibility criteria established by the department by rule. Section 49.155 (2m), Stats., as created by 2017 Wisconsin Act 269, provides that the department may promulgate a rule that establishes a hardship exemption to the limits on the value of a family’s home and vehicles under s. 49.155 (1m) (cr), Stats.. Section 49.155 (5), Stats., provides that an individual receiving a subsidy under this section is liable for the difference, if any, between the cost of the child care provided by the child care provider or providers selected by the individual and the subsidy amount. The department shall specify minimum or estimated copayment amounts based on family size, income level, and other factors, a schedule of which will be available in electronic form on the department’s Internet site and in paper form. States are required to comply with 45 CFR Part 98 as a condition of receiving Child Care Development Funds. Section 227.11 (2) (a), Stats., expressly confers rule-making authority on each agency to promulgate rules interpreting the provisions of any statute enforced or administered by the agency if the agency considers it necessary to effectuate the purpose of the statute. Summary of the Rules
The rules make changes related to new federal regulations for the Child Care Development Fund (CCDF) under 45 CFR Part 98. CCDF is a major funding source for the child care subsidy program. The primary focus of the applicable CCDF regulations is supporting continuity of care for children and financial stability for families. In general, 12-month eligibility and authorization
In general, a child care administrative agency determines the number of hours that a parent needs child care at or following the parent’s eligibility determination and 12 months later at or following the parent’s eligibility redetermination. Based on the assessment, the agency issues an authorization to the parent that approves payment under the subsidy program for a specific child, a specific child care provider, and a specific number of hours for the following 12 months.
Authorizations for less than 12 months for certain expected changes
A child care administrative agency may issue an authorization that ends on the date that a parent’s employability plan will expire if the parent is participating in the Wisconsin Works program, the date that a parent’s employment plan will expire if the parent is participating in the Food Stamp Employment and Training program, or the end of a parent’s school term.
When an authorization based on a new assessment is required during the 12-month eligibility period
During a parent’s 12-month eligibility period, a child care administrative agency is required to conduct a new assessment of the parent’s need for child care and issue a new authorization based on the assessment at all of the following times:
- The beginning of a school year for a school-age child.
- The end of a parent’s 24-month education time limit.
- When a second parent or a teen parent of the child moves into the household.
- When the parent requests an authorization for subsidized child care more than one calendar month after the parent’s previous authorization ended.
- When the parent changes child care providers.
Other changes and continuity of care
The rules require that a parent report various changes that may affect the parent’s eligibility or need for child care. A child care administrative agency may assess the number of hours that a parent needs child care following a parent’s report of a change that may affect the number of hours that the parent needs child care but is not on the list of times when a new assessment and authorization are required. A child care administrative agency may also assess the number of hours that a parent needs child care following the end of an authorization written for less than 12 months.
If the agency determines that the parent needs fewer hours of child care than the number of hours in the parent’s most recent authorization, the agency shall allow the parent to continue with the most recent authorization or issue a new authorization for up to the same number of hours.
If a parent is taking a temporary break of less than 3 months while remaining employed or enrolled in an approved activity or a parent is no longer participating in any approved activity and is beginning the 3-month eligibility period following the permanent loss of an approved activity under s. 49.155 (1m) (a) (intro.), Stats., the agency shall allow the parent to continue under the most recent authorization or offer the parent an authorization for up to the same number of hours as the parent’s previous authorization without an assessment of the parent’s need for child care. Copayment amounts
During a parent’s 12-month eligibility period, the copayment amount may only be increased for the following reasons:
- The increased copayment amount corresponds to an increase in the number of hours authorized for a child care subsidy to the parent.
- The income of the assistance group was at or above 190 percent of the federal poverty level but under 200 percent at the parent’s last eligibility redetermination; the increased copayment amount corresponds to an increase in the federal poverty level of the assistance group; and the copayment amount does not exceed the amount that is assessed for an assistance group at 200 percent of the federal poverty level.
- The income of the assistance group was at or above 200 percent of the federal poverty level at the parent’s last eligibility redetermination and the parent’s copayment is increasing by $1 for every $3 increase in income over 200 percent of the federal poverty level, as provided under s. 49.155 (1m) (c) 1d., Stats. Under the previous rules, a parent’s copayment amount was based on the size of the group, gross income, and the number of children in child care. If a child attended child care 20 hours or fewer per week, the copayment was 50 percent of the full-time amount.
These rules add “the number of hours authorized for a child care subsidy” as a factor to be used in determining the copayment amount, along with group size, gross income, and the number of children in child care. The rules also repeal the 50 percent reduction for 20 or fewer authorized hours per week. These changes will allow for a gradual increase in a parent’s copayment as the parent’s authorized hours increase rather than a disproportionate increase in the copayment amount when the parent’s hours increase from 20 or fewer to 21 hours per week.
If a parent no longer meets the conditions of eligibility for a copayment exception during the 12-month eligibility period, the parent may continue to qualify for the exception until the parent’s next eligibility redetermination.
Asset limits
Section 49.155 (1m) (cm), Stats., as created by 2017 Wisconsin Act 59, provides that an assistance group may not have liquid assets that exceed $25,000 and directs the department to promulgate a rule to specify financial resources to be excluded. The rules provide that financial resources that are not cash on hand or funds in checking, savings, money market, or credit union share accounts that can be withdrawn without incurring penalties are excluded from the liquid asset limit. Section 49.155 (1m) (cr), Stats., as created by 2017 Wisconsin Act 269, prohibits a family from owning vehicles with a combined equity of more than $20,000 or a home valued at more than 200 percent of the state median value for homes. Section 49.155 (2m), Stats., allows the department to promulgate rules creating hardship exemptions. The department’s rules provide exemptions for a child’s foster parent, kinship care relative providing care for a child placed with the relative under a court order, and subsidized guardian or interim caretaker. The rules also create an exemption if ownership of an applicable asset is unclear due to a recent death or change in the composition of the assistance group or if the assistance group is homeless. Other changes
- Child care statutory authority, definitions, and hearing procedures are added in ch. DCF 102, Child Support Cooperation for Wisconsin Works. - Exceptions to the address verification requirement are created for homeless families and for persons registered under the address confidentiality program under s. 165.68, Stats., - If the governor declares an emergency under s. 323.10, Stats., an authorization for child care for a provider at a location within the area covered by the declaration of emergency may be used at another provider that meets the qualifications to accept subsidy payments. - The provisions on backdating an authorization also apply at a parent’s annual eligibility redeterminations.
Summary of Factual Data and Analytical Methodologies
The rules include changes related to federal regulations implementing the Child Care Development Block Grant Act of 2014 and rules required under 2017 Wisconsin Acts 59 and 269. Summary of Related Federal Law
(a) For a family to be eligible for child care assistance, the following requirements must be met at the time of eligibility determination or redetermination:
- The child shall be under 13 years of age or, at a State’s option, under age 19 and physically or mentally incapable of caring for himself or herself.
- The family’s income may not exceed 85 percent of the State’s median income (SMI) for a family of the same size.
- The family’s assets may not exceed $1,000,000 (as certified by a family member).
- The child’s parents shall be working or attending a job training or educational program; or the child shall be receiving, or need to receive, protective services, which may include specific populations of vulnerable children as identified by the State.
- A State may waive income and asset requirements for the family of a child who is receiving, or needs to receive, protective services, on a case-by-case basis or, if defined in the State plan, for all children in foster care.
(b) A State may establish additional eligibility conditions, but these conditions may not impact eligibility at any time other than eligibility determination or redetermination.
(a) A State shall redetermine a family’s eligibility for child care assistance no sooner than 12 months following the initial determination or most recent redetermination, subject to the following:
- During the period of time between determinations or redeterminations of eligibility, the family shall be considered eligible and shall receive services at least at the same level, regardless of the following:
- A change in family income as long as the family’s income does not exceed 85% of the SMI for a family of the same size.
- A temporary change or cessation of work or attendance at a training program that does not exceed 3 months.
- A State may discontinue assistance due to a parent’s loss of work or cessation of attendance at a job training or educational program that is not a temporary change, but assistance must be continued at least at the same level after each such loss or cessation until the earlier of the following:
- 3 months after the parent’s loss of work or cessation of attendance at the job training or educational program.
- The parent’s next annual redetermination of eligibility.
- Notwithstanding the 12-month eligibility period, a State may discontinue assistance prior to a family’s next redetermination in the following limited circumstances:
- Excessive unexplained absences despite multiple attempts by the State to contact the family and provider, including prior notification of possible discontinuation of assistance. If the State chooses this option, it shall define the number of unexplained absences that shall be considered excessive.
- A change in residency outside of the State.
- Substantiated fraud or intentional program violations that invalidate prior determinations of eligibility.
- A State cannot increase family co-payment amounts within the minimum 12-month eligibility period, except during the graduated phase-out under (b).
