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Child Care Subsidy Payment Policy Changes 2006

Effective 2/26/06, DWD implemented several policy changes to the Child Care Subsidy Program. A check stuffer explaining the changes was sent to the providers with the following issuances: January 9, 17, 23 and 30. Providers were asked to share this check stuffer with families they serve who receive the child care subsidy. Second check stuffer was sent to the providers to clarify the policy changes.

County/Tribal Maximum Rates

The method for calculating the county/tribal maximum rates was changed this year. Now all counties are divided into 4 urban rate zones based on what percent of the population in a county live in an urban area. A 75th percentile is calculated for each urban rate zone instead of each county. The weekly rate increase or decrease from 2005 is restricted to be no more than 10%, however, the change in divisor might have a greater effect on the hourly rates.

Divisor

The divisor was standardized so that all counties are using a divisor of 35. In order to calculate an hourly rate, the weekly rate was divided by 35. In the past, divisors of 30, 35,  and 40 could be used.

10-Day Notice

DWD will no longer pay for a 10-day notice when a child stops attending a provider. The parent must give a notice according to the parent/provider contract.

Registration Fees

DWD will no longer pay registration fees. Providers will have to collect this fee from parents in accordance with their contract.