State of Wisconsin
Department of Children and Families
Child Care Subsidy Provider Fees
EMERGENCY RULE
The statement of scope for this rule, SS 002-23, was approved by the governor on December 22, 2022, published in Register 805A1, on January 3, 2023, and approved by Secretary Emilie Amundson on January 23, 2023. This emergency rule was approved by the Governor on September 14 , 2023. Finding of Emergency
This emergency rule is necessary to protect the health, safety, and welfare of Wisconsin residents because the payment practices of the state child care subsidy program must come into compliance with federal regulations by September 30, 2023, as a condition of approval of Wisconsin’s 2022-2024 Child Care Development Fund plan and federal child care funding.
Analysis Prepared by the Department of Children and Families
Explanation of Agency Authority
(a) The department shall establish maximum payment rates for licensed child care services provided under this section. The department shall set the rates so that at least 75 percent of the number of places for children within the licensed capacity of all child care providers can be purchased by eligible individuals under this section.
(b) The department shall set maximum payment rates for Level I certified family child care providers certified under s. 48.651 (1) (a), Stats., for services provided to eligible individuals under this section. The maximum rates set under this paragraph may not exceed 90 percent of the rates established under par. (a). (c) The department shall set maximum payment rates for Level II certified family child care providers for services provided to eligible individuals under this section. The maximum rates set under this paragraph may not exceed 90 percent of the rates established under par. (a).
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. Summary of the Rule
Registration Fees
As a condition of approval of Wisconsin’s 2022-2024 Child Care Development Fund plan, the state child care subsidy program must come into compliance with the federal requirement that the payment practices of the subsidy program reflect generally-accepted payment practices of child care providers that serve children who do not receive subsidies, including paying for reasonable mandatory registration fees that the provider charges to private-paying parents.
The emergency rule authorizes payment of the lower of a provider’s registration fee for a child or the department’s maximum fee amount. The department shall set a schedule for maximum registration fee amounts in Table DCF 201.04. Maximum fee amounts shall fully cover mandatory registration fees charged by at least 75 percent of providers who respond to the survey of provider fees in s. DCF 201.06 (2). The department’s initial maximum registration amount is $125. The department may adjust Table DCF 201.04 to reflect any of the following: the fee amounts in the most recent department survey of provider fees; increased alignment with provider fee practices, including variation in fee amounts based on region of the state, children’s ages, or provider regulation type; a change in the funding available for the child care subsidy program; a change in costs due to a change in the consumer price index; a change in economic factors affecting the cost of child care to the state, such as an increase in demand for the child care subsidy program; insufficient funding to meet the needs of all eligible families applying for or receiving a child care subsidy; and the purposes of the child care subsidy program.
The department shall publish adjustments to the maximum registration fee schedule in the Wisconsin administrative register. The department will pay no more than 2 registration fees per child in any 12-month period. Also, the written payment agreement between a provider and a parent must include any fees charged.
Each provider that charges a registration fee will be required to submit the amount of the fee to the department. The rule also includes the current requirement that a licensed child care provider submit the provider’s full-time and part-time prices to the child care administrative agency upon request.
In-Home Providers
The rule repeals the rule that specifies that an in-home provider who is providing child care services for 15 or more hours per week is the applicable minimum wage, regardless of the number of children receiving care. Subsidy payments will no longer be determined on an hourly basis, and rates for in-home providers will be determined on a part-time/full-time basis.
Permanent Rule
A corresponding proposed permanent rule, CR 23-016, includes the provider fee changes in this emergency rule and other changes affecting parent copayments. Summary of Related Federal Law
The child care subsidy program is funded in part by the Child Care Development Fund and must comply with the requirements of 45 CFR Part 98, including the equal access provisions related to payment rates, copayments, and payment practices in 45 CFR 98.45. 45 CFR 98.45 (L) (3) provides that the Lead Agency shall demonstrate in its CCDF plan that it has established payment practices applicable to all CCDF child care providers that reflect generally-accepted payment practices of child care providers that serve children who do not receive CCDF subsidies, which must include all of the following (unless the Lead Agency provides evidence in the Plan that such practices are not generally-accepted in the State or service area): (i) Paying on a part-time or full-time basis (rather than paying for hours of service or smaller increments of time).
(ii) Paying for reasonable mandatory registration fees that the provider charges to private-paying parents.
Summary of Data and Analytical Methodologies
The rules make changes required for approval of Wisconsin’s 2022-2024 Child Care Development Fund Plan.
Comparison to Adjacent States
Illinois: The child care assistance program does not pay for registration fees.
Iowa: The child care assistance program does not pay for registration fees because they have determined that registration fees are not a generally-accepted provider practice.
Michigan: Registration fees, annual fees, and field trip fees are paid.
Minnesota: A maximum of 2 registration fees per child are paid to one or more providers in a 12-month period.
Effect on Small Businesses
Minimal or no economic impact on small business.
