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. CCS rule §809.42(b) requires Boards to ensure that eligibility for CCS is redetermined no sooner than 12 months following the date of the initial determination or most recent redetermination. Families that are recertifying their eligibility are not subject to the waiting list. Boards ensure that parents experiencing work or school/training activity interruptions continue receiving CCS at the same level for at least three months. CCS rule §809.51 states that: (a) if the child meets all the applicable eligibility requirements for CCS on the date of the most recent eligibility determination or redetermination, the child must be considered to be eligible and will receive services during the 12-month eligibility period described in CCS rule §809.42, regardless of any: (1) change in family income, if that family income does not exceed 85 percent of SMI for a family of the same size; or (2) temporary change in the ongoing status of the child's parent as working or attending a job training or education program. (b) Boards must ensure that care continues at the same level for a period of not less than three months after loss of work or cessation of attendance at a job training or educational program. (c) If a parent resumes work or attendance at a job training or education program at any level and at any time during the three-month activity interruption period, the Board must ensure that: (1) care will continue to the end of the 12-month eligibility period at the same or greater level, depending upon any increase in the activity hours of the parent; (2) the parent share of cost will not be increased during the remainder of the 12-month eligibility period, including for parents who are exempt from the parent share of cost pursuant to CCS rule §809.19 of this chapter; and (3) the Board's child care contractor verifies only: (A) that the family income does not exceed 85 percent of SMI; and (B) the resumption of work or attendance at a job training or education program. 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? [x] Yes. [ ] No. If no, describe: 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. [x] Yes. [ ] No. If no, describe: c. Are the policies different for redetermination? [x] No. [ ] Yes. If yes, provide the additional/varying policies for redetermination: 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: CCS rule §809.56, states that a parent, including a parent in a dual-parent family, is eligible for CCS during an initial three-month job search period. If total activity participation of at least 25 hours for a single-parent family or a total combined 50 hours per week for dual-parent families, which must include a minimum of 12 hours in employment for a single-parent family and a total combined 25 hours in employment for a dual-parent family, are met within the initial three months, eligibility will continue for a total of 12 months, inclusive of the care provided during the initial job search period, provided that the family income does not exceed 85 percent of the state median income. If the family does not meet minimum activity requirements under this subsection within three months, care must be terminated. ii. [x] Yes. The Lead Agency does consider seeking employment (engaging in a job search) as an eligible activity at redetermination. If yes, describe: Boards must ensure that child care continues for a minimum of three months or up until the scheduled redetermination if sooner, to allow the parent to resume participation in an activity (CCS Guide D-802). Boards must be aware that if at time of eligibility redetermination, the family is experiencing a temporary status change in work, education or job training, the Board has the option to extend the eligibility period to the date the parent is expected to return to work, school, or training. In accordance with local procedures, the redetermination would then be based on the work, education, training, and income upon the parent’s return to activity. Effective October 1, 2017, Boards must ensure that extensions of the 12-month eligibility periods are only granted on a case-by-case basis when a customer is experiencing a temporary status change in work, education, or training. Boards must document in TWIST Counselor Notes the duration of and reason for any extension granted for a customer’s eligibility redetermination. (CCS Guide D-1005). 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: During the period of time between eligibility redeterminations, a Board shall discontinue CCS due to a parent's loss of work or cessation of attendance at a job training or educational program that does not constitute a temporary change as described in Section 3.4.1. However, Boards must ensure that care continues at the same level for a period of not less than three months after such loss of work or cessation of attendance at a job training or educational program (CCS rule §809.51(b)). Boards must provide parents written notification at least 15 calendar days before any termination of CCS (CCS rule §809.71(9)). ii. If no, describe what specific actions/changes trigger the job-search period after each such loss or cessation: The job search period is triggered based on parent self-report of permanent cessations of activity or identification of those who have filed an unemployment insurance (UI) claim using the TWC UI Early Warning Report. The UI Early Warning Report seeks to identify child care parents who filed a UI claim and who may no longer be working and therefore may have experienced a nontemporary change in work status. A parent identified in the report may or may not have experienced a nontemporary change in work, so Boards must verify the customer’s employment and/or training status prior to placing them on a job search period. The parent is required to report only a permanent cessation of activity (§809.73(b)(2)). The three-month activity interruption for job search begins the day after the activity ends and is tracked in TX3C. If the parent does not report a permanent cessation that has already exceeded three months and the Board contractor discovers and verifies with the parent that one has occurred, care must be terminated after proper notice is provided to the parent. Before deciding to end care, verification that the parent has not resumed participation in any activity at any level must occur. iii. If no, how long is the job-search period where a family can continue assistance (must be at least 3 months)? Boards must ensure that care continues at the same level for a period of not less than three months after such loss of work or cessation of attendance at a job training or educational program. 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. [x] 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: If a child has exceeded 40 total unexplained absences during the most recent eligibility period, then the child shall be terminated from care because of excessive unexplained absences. Exceptions are provided for court-ordered visitation, documented chronic illness, or disability (CCS rule §809.78). When a child reaches 15 and 30 cumulative absences, notice regarding the potential termination must be provided to the parent and provider before terminating care, allowing the parent to explain the absences or determine whether a voluntary suspension may be appropriate. 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: Boards must terminate CCS when a family experiences a change in residency outside of the state (CCS Guide D-901.a). 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: As described in Section G of the CCS Guide, and in CCS rules §809.111 and §809.112, the following parental actions may be grounds for suspected fraud and cause for Boards to conduct fraud fact-finding: Not reporting or falsely reporting at initial eligibility or at eligibility redetermination: household composition or income sources or amounts that would have resulted in ineligibility or a higher parent share of cost; and/or work, training, or education hours that would have resulted in ineligibility. Not reporting during the 12-month eligibility period: changes in income or household composition that would cause the family income to exceed 85 percent SMI (taking temporary fluctuations of income into consideration); a permanent loss of job or cessation of training or education that exceeds three months; and/or improper or inaccurate attendance reporting. These violations may result in the following actions: Recouping funds from the parent; Prohibiting future child care eligibility until a recoupment is repaid in full, provided the prohibition does not result in a Choices or SNAP E&T participant becoming ineligible; Requiring parents to select a regulated child care provider; Terminating care during the 12-month eligibility period if eligibility was determined using fraudulent information provided by the parent; and Any other action consistent with the intent of the governing statutes or regulations to investigate, prevent, or stop suspected fraud. Per CCS rule §809.19(a)(3)), failure to pay the parent share of cost may constitute an intentional program violation and result in termination of care. Before terminating care, Boards must follow locally established policies regarding the evaluation of each family's financial situation and a possible temporary reduction in the parent share of cost based on extenuating circumstances. Parents must also receive written notice of possible termination resulting from failure to pay the parent share of cost prior to services being terminated. 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? [x] Yes. [ ] No. If no, describe: 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. [x] 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. [ ] 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: ii. Describe how the second eligibility threshold takes into account the typical household budget of a low-income family: 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: iv. Describe how the second eligibility threshold reasonably allows a family to continue accessing child care services without unnecessary disruption: v. [ ] 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: 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.