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January 15, 2024 DCF: Adjustment of CCFAP Rates 2
Per Section 9b of Act 76 of 2023, the Child Development Division (CDD) of the Department for Children and Families is submitting this report regarding:
(1) the appropriate mechanism for adjusting future reimbursement rates for child care providers participating in the Child Care Financial Assistance Program
(2) the appropriate reimbursement rate in fiscal years 2025 and 2026 for child care providers participating in the Child Care Financial Assistance Program
(3) the appropriate family contribution in fiscal years 2025 and 2026 for families participating in the Child Care Financial Assistance Program
To prepare this report, the CDD consulted with the Joint Fiscal Committee to identify the factors to be considered and the information that would be needed. As a result, CDD commissioned a report to outline the options for setting reimbursement rates allowable by the federal Child Care Development Fund, the policy and fiscal implications of those options, and examples from other states; the report also addresses options for addressing family contributions.
Please find the attached report prepared by Prenatal-to-Five Fiscal Strategies.
CDD’s recommendation regarding the Child Care Financial Assistance Program (CCFAP) rates for fiscal year 2025 will be included in the Governor’s budget.
CDD does not recommend changing the family contribution rates for fiscal year 2025. Maintaining weekly family share tiers at $25 increments provides clarity and simplicity that is especially important given the changes to CCFAP rates and income eligibility already planned for fiscal year 2025 via Act 76. In future years, analysis of the weekly family share tiers updated for the most current Federal Poverty Level calculations that assess the percentage of household income spent on child care against state and federal guidance for affordability for child care would provide direction for this decision.