2.5 Promoting Continuity of Care

Lead Agencies must consider children’s development and promote continuity of care when authorizing child care services and must establish a minimum 12-month period for each child, both at the initial eligibility determination and redetermination. 2.5.1 Children’s development Describe how the Lead Agency’s eligibility, enrollment, reporting, and redetermination policies promote continuity of care in order to support children’s development. High quality child care providers receive a weekly authorization for children ages zero to five (not yet in kindergarten), if their parents are eligible for at least 30 hours of care per week. This allows for more consistent child care schedules for young children and their families, and more stable funding for high quality child care providers. Families receiving assistance through the Minnesota Family Investment Program (Minnesota’s TANF program) are eligible to continue receiving child care assistance after they exit the Minnesota Family Investment Program. Child care assistance for these families is fully funded to ensure that families and children do not lose access to child care that supports the children’s development and families financial stability. For children attending care with a Head Start or Early Head Start program that offers full-day integrated child care of at least eight hours per day, child care assistance can be paid for the full number of hours that the child Is eligible for in order to support access to full-day quality child care. Higher rates can be paid to child care providers that serve children that have higher needs due to environmental or familial factors that create barriers to a child’s optimal achievement. Higher rates can also be paid to child care providers serving a child with special needs, such as those documented in an Individualized Education Plan or an Individual Family Services Plan. 2.5.2 Minimum 12-month eligibility Lead Agencies must establish a minimum 12-month eligibility period for each child, both at the initial eligibility determination and at redetermination to support continuity in child care assistance and reduce barriers to families retaining eligibility. This requirement is: • Regardless of changes in income, Lead Agencies may not terminate CCDF assistance during the minimum 12-month period if a family has an increase in income that exceeds the Lead Agency’s income eligibility threshold but not the federal threshold of 85 percent of SMI; and • Regardless of temporary changes in participation in work, training, or educational activities. a. Does the Lead Agency certify that their policies or procedures provide a minimum 12- month eligibility period for each child at initial eligibility determination? [ ] Yes. [x] No. If no, describe: Minnesota certifies that the policies or procedures are met for all families except Schedule Reporter Families. Date of preliminary notice issued by OCC: 4/2/2024 MN affirms that Lead Agency needs additional time to meet requirement. Description of current policy and the way it is out of compliance: Schedule Reporters includes families who: use two providers, or use a legal non-licensed provider, or a parent works at a child care center licensed by Minnesota. Schedule Reporters must report changes in activity; their child care authorization may be reduced during the 12 month eligibility period and their child care authorization may end during temporary breaks from their activity. This is not in compliance with requirements that family reporting requirements be limited and children receive services at least at the same level during the period of time between eligibility determinations. b. Does the Lead Agency certify that its definition of “temporary change” includes each of the minimum required elements? 1. Any time-limited absence from work for an employed parent due to such reasons as the need to care for a family member or an illness. 2. Any interruption in work for a seasonal worker who is not working between regular industry work seasons. 3. Any student holiday or break for a parent participating in a training or educational program. 4. Any reduction in work, training, or education hours, as long as the parent is still working or attending a training or educational program. 5. Any cessation of work or attendance at a training or educational program not listed above. In these cases only, Lead Agencies may establish a period of 3 months or longer. 6. Any change in age, including a child turning 13 years old during the minimum 12-month eligibility period. 7. Any changes in residency within the State or Territory. [ ] Yes. [x] No. If no, describe: For all families, when there is a permanent end to work, training or education, child care assistance continues without a reduction in benefits for three months or until the end of their 12-month eligibility period, whichever occurs first. For 12-month reporters their child care assistance continues without a reduction in benefits for the remainder of their 12-month eligibility period when any of the other above temporary changes occur. Certain families are considered Schedule Reporters. This includes families who: use two providers, or use a legal non-licensed provider, or a parent works at a child care center licensed by Minnesota. Schedule Reporters must report changes in their activity schedule, including temporary changes. Their authorized hours are adjusted upward or downward based on their new schedule during the 12-month eligibility. Data from March 2024 reflect that approximately 12 percent of CCAP cases include Schedule Reporters. Date of preliminary notice issued by OCC: 4/2/2024 MN affirms that Lead Agency needs additional time to meet requirement. Description of current policy and the way it is out of compliance: Schedule Reporters must report changes in activity; their child care authorization may be reduced during the 12 month eligibility period and their child care authorization may end during temporary breaks from their activity. This is not in compliance with requirements that family reporting requirements be limited and children receive services at least at the same level during the period of time between eligibility determinations. c. Are the policies different for redetermination? [ ] No. [x] Yes. If yes, provide the additional/varying policies for redetermination: Redeterminations occur no less than 12 months after initial eligibility is approved. At redetermination: the parent must be engaged in an authorized activity; family income must be at or below 67% of SMI; and, the parent must be cooperating with child support enforcement if other parents of the children are not residing with the family. If the family does not meet eligibility requirements, then their child care authorization ends and their case is closed with a 15-day notice. 2.5.3 Job search and continued assistance a. Does the Lead Agency consider seeking employment (engaging in a job search) as an eligible activity at initial eligibility determination and/or at the minimum 12-month eligibility redetermination? (Note: If yes, Lead Agencies must provide a minimum of 3 months of job search.) Check all that apply: i. [x] Yes. The Lead Agency does consider seeking employment (engaging in a job search) as an eligible activity at initial eligibility determination. If yes, describe: Families are eligible for job search at application. Authorization for job search is limited to 240 hours per calendar year, and no more than 40 hours of job search can be authorized in a biweekly period. Families must receive at least 12 weeks of eligibility. When a parent has used all allowed job search hours, the parent must meet authorized activity requirements or the family becomes ineligible at the end of job search. ii. [x] Yes. The Lead Agency does consider seeking employment (engaging in a job search) as an eligible activity at redetermination. If yes, describe: Families are eligible for job search at redetermination. Authorization for job search is limited to 240 hours per calendar year, and no more than 40 hours of job search can be authorized in a biweekly period. Families must receive at least 12 weeks of eligibility. When a parent has used all allowed job search hours, the parent must meet authorized activity requirements or the family becomes ineligible at the end of job search. iii. [ ] No. The Lead Agency does not consider seeking employment (engaging in a job search) as an eligible activity at initial eligibility determination or redetermination. b. Does the Lead Agency continue assistance during the minimum 12-month eligibility period when a parent has a non-temporary loss or cessation of eligible activity? [ ] Yes. The Lead Agency continues assistance. [x] No, the Lead Agency discontinues assistance. i. If no, describe the Lead Agency’s policies for discontinuing assistance due to a parent’s non-temporary change: Families receive a 3-month period of extended eligibility (which can be used for job search) when the parent's work or education ends permanently during the first nine months of the 12-month eligibility period. If a parent's work or education ends permanently during the last three months of the 12-month eligibility period, eligibility continues for the remainder of the 12- month eligibility period. At redetermination, the parent must be engaged in a qualifying activity and meet other eligibility requirements to be determined eligible and have child care authorized. There is no limit to the number of extended eligibility periods a family can receive during their 12-month eligibility period. ii. If no, describe what specific actions/changes trigger the job-search period after each such loss or cessation: Extended eligibility begins when a family reports the parent's activity has permanently ended. Sometimes, a change that started out as a temporary break becomes a permanent end. Extended eligibility begins when the parent knows their activity has permanently ended. iii. If no, how long is the job-search period where a family can continue assistance (must be at least 3 months)? Extended eligibility begins the day the activity permanently ended. For parents whose work or education ends permanently during the first nine months of the 12-month eligibility period, extended eligibility is three months. For parents whose work or education ends permanently during the last three months of the 12-month eligibility period, eligibility continues for the remainder of the 12-month eligibility period. c. The Lead Agency may discontinue assistance prior to the next minimum 12-month redetermination in the limited circumstances listed below. Check and provide the policy for all circumstances in which the Lead Agency chooses to discontinue assistance prior to the next minimum 12-month redetermination: i. [ ] Not applicable. ii. [ ] Excessive unexplained absences despite multiple attempts by the Lead Agency or designated entity to contact the family and provider, including the prior notification of a possible discontinuation of assistance. Provide the Lead Agency’s policy defining the number of unexplained absences identified as excessive: iii. [x] A change in residency outside of the State or Territory. Provide the Lead Agency’s policy for a change in residency outside the State or Territory: If a family moves outside of the state, child care assistance benefits end after a 15-day notice. iv. [x] Substantiated fraud or intentional program violations that invalidate prior determinations of eligibility. Provide the Lead Agency’s definition of fraud/intentional program violations that lead to discontinued assistance: A family member intentionally provides false information to wrongfully obtain or attempt to obtain child care assistance or to help another person to receive or attempt to receive benefits they were not eligible for. The family member must be found guilty of wrongfully obtaining or attempting to obtain child care assistance by federal court, state court, or an administrative hearing determination or waiver, through a disqualification consent agreement, as part of an approved diversion plan under Minnesota Statutes, section 401.065, or as part of a court-ordered stay with probationary or other conditions. 2.5.4 Reporting changes during the minimum 12-month eligibility period Lead Agencies may only require families to report changes that impact a family’s eligibility, including only if the family’s income exceeds 85 percent of the SMI, taking into account irregular fluctuations in income, or there is a non-temporary change in the parent’s work, training, or education status, during the 12-month eligibility period. Lead Agencies may also require families to report that enable the lead agency to contact the family or pay providers, such as a new telephone number or address. Note: The response below should exclude reporting requirements for a graduated phase-out, which are described in question 2.5.5. Does the Lead Agency limit what families must report during the 12-month eligibility period to the changes described above? [ ] Yes. [x] No. If no, describe: Certain families are considered Schedule Reporters. This includes families who: use two providers, or use a legal non-licensed provider, or a parent works at a child care center licensed by Minnesota. Schedule Reporters must report changes in their activity schedule, including temporary changes. Their authorized hours are adjusted upward or downward based on their new schedule. Copayment fees are not allowed to increase for Schedule Reporter families. Data from March 2024 reflect that approximately 12 percent of CCAP cases include Schedule Reporters. Date of preliminary notice issued by OCC: 4/2/2024 MN affirms that Lead Agency needs additional time to meet requirement. Description of current policy and the way it is out of compliance: Schedule Reporters must report changes in activity; their child care authorization may be reduced during the 12 month eligibility period and their child care authorization may end during temporary breaks from their activity. This is not in compliance with requirements that family reporting requirements be limited and children receive services at least at the same level during the period of time between eligibility determinations. 2.5.5 Policies and procedures for graduated phase-out of assistance at redetermination Lead Agencies that establish initial family income eligibility below 85 percent of SMI must provide a graduated phase-out of assistance for families whose income has increased above the Lead Agency’s initial income threshold at the time of redetermination but remains below the federal threshold of 85 percent of SMI. Lead Agencies that provide a graduated phase-out must implement a two-tiered eligibility threshold, with the second tier of eligibility (used at the time of eligibility redetermination) to be set at: (i) 85 percent of SMI for a family of the same size; or, (ii) An amount lower than 85 percent of SMI for a family of the same size but above the Lead Agency’s initial eligibility threshold that: (A) Takes into account the typical household budget of a family with a low income (B) Provides justification that the second eligibility threshold is: (1) Sufficient to accommodate increases in family income over time that are typical for workers with low incomes and that promote and support family economic stability (2) Reasonably allows a family to continue accessing child care services without unnecessary disruption At redetermination, a child must be considered eligible if their parents are participating in an eligible activity even if their income exceeds the Lead Agency’s initial eligibility income limit as long as their income does not exceed the second tier of eligibility. Note that once determined eligible, the child must be considered eligible for a full minimum 12-month eligibility period, even if the parents’ income exceeds the second tier of eligibility during the eligibility period, as long as it does not exceed 85 percent of SMI. A child eligible for services via the graduated phase-out of assistance is considered eligible under the same conditions as other eligible children with the exception of the co-payment restrictions, which do not apply to a graduated phase-out. To help families transition from child care assistance, Lead Agencies may gradually adjust co-payment amounts in proportion to a family’s income growth for families whose children are determined eligible under a graduated phase-out. Lead Agencies may require additional reporting on changes in family income but must still ensure that any additional reporting requirements do not constitute an undue burden on families. Check and describe the option that best identifies the Lead Agency’s policies and procedures regarding the graduated phase-out of assistance. a. [ ] Not applicable. The Lead Agency sets its initial eligibility threshold at 85 percent of SMI and therefore is not required to provide a graduated phase-out period. (If checked, skip to question 3.1.1.) b. [ ] The Lead Agency sets the second tier of eligibility at 85 percent of SMI. If checked, describe the policies and procedures: i. [ ] Lead Agency adjusts the family’s co-pay during the graduated phase-out period. If checked, describe how the Lead Agency gradually adjusts co-payment for families under a graduated phase-out period in proportion to a family’s income growth. Include information on the percentage or amount of change made in the co-payment during graduated phase-out: ii. [ ] Lead Agency requires additional reporting requirements during the graduated phase-out period. If checked, describe: c. [x] The Lead Agency sets the second tier of eligibility at an amount lower than 85 percent of SMI for a family of the same size but above the Lead Agency’s initial eligibility threshold. If checked, provide the following information: i. Provide the income level ($/month) and the percent of SMI for the second tier of eligibility for a family of three: 67% of SMI which is $5,893 per month for family of 3. ii. Describe how the second eligibility threshold takes into account the typical household budget of a low-income family: The Minnesota Cost of Living Study (https://mn.gov/deed/data/data-tools/col/) provides an estimate of a basic-needs cost of living in Minnesota by county, region and statewide. The study examines living costs in seven cost categories: food, housing, health care, transportation, child care, other necessities, and net taxes. According to the annual report for 2022, a family of three needs to earn an estimated family income of $60,720 per year to maintain a simple living that meets basic needs for health and safety. For a three-person household, the Child Care Assistance Program exit level of 67 percent of SMI is $61,184. This amount is higher than the amount needed to meet basic needs according to the annual report for 2022. iii. Describe how the second eligibility threshold is sufficient to accommodate increases in family income over time that are typical for low-income workers and that promote and support family economic stability: About 80 percent of families on the Basic Sliding Fee program have incomes less than 47 percent of SMI and about 20 percent of families have incomes less than 67 percent of SMI. This shows most low-income families do not experience rapid income growth. Between application and redetermination, family income can increase about 40 percent before income would exceed 67 percent of SMI. iv. Describe how the second eligibility threshold reasonably allows a family to continue accessing child care services without unnecessary disruption: Families are only required to report income increases during the graduated phase-out period if their family income exceeds 85 percent of SMI. Child care authorizations continue without interruption throughout the 12 month eligibility period if family income remains at or below 85 percent of SMI. At redetermination, family eligibility and child care needs are assessed. Eligibility and child care authorization continue when family income is at or below 67 percent of SMI and other eligibility criteria are met. v. [x] Lead Agency adjusts the family’s co-pay during the graduated phase-out period. If checked, describe how the Lead Agency gradually adjusts co-payment for families under a graduated phase-out period in proportion to a family’s income growth. Include information on the percentage or amount of change made in the co-payment during graduated phase-out: Copays can only increase at redetermination. At redetermination, copays are adjusted to a percentage of the family’s income. Copays are 0% at the lowest income levels, 5.05% of income at 47% SMI income level, and 14% of income at 67% SMI income level. For families whose income increases above 67% SMI but remains below 85% SMI during the 12-month eligibility period, their copay remains the same as what it was at their last redetermination. vi. [ ] Lead Agency requires additional reporting requirements during the graduated phase-out period. If checked, describe: 3 Child Care Affordability CCDF subsidies make child care more affordable for eligible families, providing access to a greater range of child care options that allow parents to work, go to school, or enroll in training and they allow parents to access higher quality care options that better support children’s development. CCDF requires some families participating in CCDF to pay an affordable co-payment set by the Lead Agency to cover a part of their care. But co-payments can be a significant and destabilizing financial strain on family budgets and a barrier to parent employment, and the CCDBG Act requires that the co-payment amount not be a barrier to families participating in CCDF. Lead Agencies may not set parent co-payments above 7% of family income regardless of gradual phase- out policies and regardless of the number of children receiving assistance. Lead Agencies are encouraged to set co-payments much lower than 7% to make child care more affordable for more families and have broad flexibility to waive co-payments for to many participants. Lead Agencies must ensure that the total payment to a child care provider is not reduced because of family’s lowered or waived co-payment. In this section, Lead Agencies will identify how they determine an eligible family’s co-payment, the policies in place to waive or ensure co-payments are affordable for families, and how the Lead Agency improves access for children and families in economically and/or socially marginalized communities.