Child Care Subsidy Rates & Regulations
A Vital piece of the puzzle!
For low-income families or those on public assistance, receiving subsidies for child care is a vital piece of the puzzle. These subsidies make it possible for parents to work and become self-sufficient.
Many PACCA members accept a high percentage of subsidy children. Many are organized as 501c3 nonprofit organizations so that they can accept grants and donations to supplement the insufficient income from the child care subsidies.
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You will be able to locate the following information below:
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Child Care Subsidy Rates
Child care subsidy rates are set by the state, but do receive guidance from federal legislation. The federal government requires that the state conduct a market rate survey to determine the rates throughout the state and recommends that the state set the rate ceiling at the 75th percentile in each county. Read our frequently asked questions for more information.
Rate-Ceilings/MCCA Rates
Note: These are the most up to date rates. No changes have been made since 2007. (Feb. 3, 10)
Download rate ceilings by county effective August 1 (the rates in bold are the increased rates effective 8/1/08) (PDF)
Download rate ceilings by county effective August 1 (the rates in bold are the increased rates effective 8/1/07) (PDF)
Download rate ceilings by county effective August 1 (the rates in bold are the increased rates effective 8/1/06) (PDF)
New 2007-08 payment levels for subsidized child care
The Pennsylvania budget for 2007-2008 includes funding to adjust child care reimbursement rates to address the minimum wage increase and provide tiered reimbursement for Keystone STARS programs. As a result, the Office of Child Development and Early Learning (OCDEL) have adjusted the Maximum Child Care Assistance (MCCA) levels in nearly every county which will have positive effects on center, group and family child care homes serving subsidy children, effective August 1.
OCDEL is increasing the MCCA statewide for infants, toddlers and preschoolers enrolled at child care centers to at least the 62nd percentile for full-time care and to at least the 58th percentile for part-time care. The MCCA in counties that have a concentration of young, low-income children in poverty will be increased to at least the 72nd percentile for full-time care and to at least the 60th percentile for part-time care for infants, toddlers and preschoolers.
The MCCA will also increase for group and family child care providers. The MCCA for infants, toddlers and preschoolers enrolled in group or family child care will be increased to at least the 55th percentile for full-time care and to at least the 50th percentile for part-time care.
In addition, for the first time in several years, the MCCA for school age children will increase. OCDEL is pleased to be able to increase the school age MCCA with few exceptions to at least the 40th percentile for centers, group and family child care providers.
The additional funding for Fiscal Year 2007-08 enables OCDEL to move closer to the goal of setting the MCCA at the 75th percentile of the private market.
The state budget also provides for additional tiered “add on” amount per child for Keystone STARS facilities with two or more Stars. Implementation is targeted for September 1, 2007.
A chart outlining the revised MCCA rates, is available on the PA Key website at www.pakeys.org/mcca.aspx. Rates that have been increased are in bold for easy identification.
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Select child care rate ceilings increase August 1
The state 2006-2007 budget passed July 2 includes funding to increase the child care subsidy rate ceilings for many counties. The new ceilings went into effect August 1, 2006.
The Office of Child Development plans to set the maximum payment level (also known as the “Maximum Child Care Allowance” or “MCCA”) for infants, toddlers, and preschoolers participating in full-time services at child care centers as follows:
- At least the 60th percentile for centers (the 18 counties with a concentration of young, low-income children in poverty will be set at least the 70th percentile).
Using this approach, 57 of the 67 counties will have improved maximum payment levels in one of the three care level rates. The remaining 10 counties are currently above the target levels.
This is an increase from last year when rates were set at least the 52nd percentile for centers and at least the 60th percentile for the 13 counties with a concentration of young, low-income children in poverty.
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PACCA Rates Survey Worksheet
PACCA has developed a rate survey worksheet to help you compute all the fees you charge parents over the course of a year and compute that information to a weekly rate for full-time and part-time care. PACCA is also offering peer assistance in completing the survey. To receive assistance from a fellow member, call PACCA’s office at 888-296-1917.
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BUILD Rates Policy Task Force and 2004 PACCA Forums
PACCA and the state’s new BUILD initiative convened a series of provider forums in February and March 2004 ("Breaking through the Ceiling: a forum discussion on child care subsidy rates") that focused exclusively on rates. These forums gave providers an opportunity to hear the child care provider perspective on the county ceiling rates, dialogue about their development, establish principles for the future and make recommendations that will guide the implementation of a payment program that meets the goals of nurturing and educating Pennsylvania’s youngest citizens.
PACCA conducted eight regional forums throughout the state (two forums in each DPW licensing region) to gather feedback from providers on several key issues:
- The Market Rate Survey
- Rate setting
- Subsidy Administration
- Parent Choice
- Business Management
Attendees were emailed a discussion guide in advance to review. After a presentation on the current rates policy, attendees were divided into discussion groups of eight to ten people. Attendees counted off so as to split up coworkers. The breakout groups were conducted in a focus group style, with a facilitator and two notetakers.
PACCA Summary Report of Forum Discussions to the Task Force
Notes from each forum were compiled into “comments” and “recommendations.” The key comments and recommendations from these notes are incorporated in the final summary report. The summary report outlines the comments and recommendations of attendees of the forums and are not necessarily the recommendations or positions of PACCA.
Task Force Report to DPW
The BUILD Rates Task Force reviewed and discussed comments from the forums and developed a report of recommendations which will be submitted to DPW and the Administration.
Task Force recommendations fall under these main categories:
- Make every effort to ensure that the market rate survey conducted by DPW gathers accurate information on the price of child care.
- Establish DPW reimbursement rate ceilings that accurately reflect the price of child care in each county.
- Establish child care rate policies that encourage providers to attain higher levels of quality, and cover the cost of providing high-quality services.
- Conduct an annual review of the cost, price and resources available for early care and education programs at each level of Keystone Stars.
- Work with the other Offices of the Department of Public Welfare and the Department of Education to explore ways to improve the capacity of staff who teach children with difficult social, emotional and behavior problems.
- Establish a single administrative entity to manage all DPW child care subsidy funds.
- Establish incentives for parents to use higher-quality, regulated child care, and for relative/neighbor care to become part of the regulatory system.
- Establish a new grant program designed to encourage and support the development of shared fiscal/administrative services for the child care industry.
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2008 Child Care Regulations
The new Child Care Regulations took effect Sept. 22, 2008. To view a document containing the new regulations as published in the Pennsylvania Bulletin on May 24, 2008, click here
Child Care Regulations
Merging OCD and OIM child care policies - comments due July 31 (posted 7/7/06)
The Department of Public Welfare (Department) is revising 55 Pa. Code Chapter 168, Child Care. The purpose of the proposed rulemaking is to establish consistent child care policies within the Office of Income Maintenance (OIM) and Office of Child Development (OCD) that best meet the needs of all families receiving subsidized child care.
The proposed rulemaking will improve child care services for families receiving Temporary Assistance for Needy Families (TANF), General Assistance (GA) and Food Stamp (FS) benefits by establishing a single subsidized child care system that will be user friendly to all families and child care providers who participate in the subsidized child care system. The proposed rulemaking benefits children and families receiving TANF, GA and Food Stamp benefits by allowing easier access to affordable, quality child care. Improvements include: incorporating the eligibility requirements for families receiving GA and Food Stamp child care with the eligibility requirements for families receiving TANF child care; clarifying co-payment requirements for families receiving TANF benefits; making the regulations easier to read; simplifying regulatory language to make the eligibility and payment process easier to understand and simplifying verification requirements to make it easier for families to apply and qualify for subsidized child care.
The Department intends to merge the OCD and OIM child care programs and delegate authority to provide child care to families receiving TANF, GA and FS benefits to local Child Care Information Services (CCIS) agencies. CCIS agencies are familiar with local needs and resources. In addition, CCIS staff is trained to counsel parents regarding their child care needs and provide information about the benefits and availability of quality early learning programs.
You can read the proposed changes onine at http://www.pabulletin.com/secure/data/vol36/36-26/1206.html. When reading the changes, items in bold are new additions, [items in brackets] are being removed.
Interested persons can find the proposed regulations on the Internet at www.pabulletin.com. The Department will accept written comments on the proposed regulations between July 1, 2006 and July 31, 2006. Comments can be submitted to Robert Frein, Director, Bureau of Subsidized Child Care Services, Office of Child Development, Room 521, Health and Welfare Building, Box 521, Harrisburg, Pennsylvania 17105. Please identify the regulation on your comments using the regulation ID #14-505 (#2549).
The Independent Regulatory Review Commission (IRRC) is also interested in your comments on the regulation. Please “cc” IRRC on your comments to the Department and send a copy to IRRC Chairman Alvin C. Bush at Independent Regulatory Review Commission, 333 Market Street, 14th Floor, Harrisburg, PA 17101, Email: irrc@irrc.state.pa.us. Please identify the regulation on your comments using the regulation ID #14-505 (#2549).
DPW proposes changes to child care regulations - comments due July 3, 2006 (posted 6/23/06)
The Department of Public Welfare published its proposed changes to the child care regulations in the PA Bulletin on June 3. To view the changes, go to http://www.pabulletin.com/secure/data/vol36/36-22/979.html.
When reading the changes, items in bold are new additions, items in [brackets] are being removed.
The Department of the Public Welfare is asking members of the child care community to comment on the proposed changes by July 3. They are interested in both positive comments as well as criticism. They will use the positive comments, for example, to make the case to the legislature and the IRRC about why these changes would be beneficial for the child care field.
Please reference Regulation No. 14-506, include your name and address, and mail your comments to:
Jennifer Lau
Bureau of Certification Services
Office of Child Development
Department of Public Welfare
1401 North Seventh Street
PO Box 2675
Harrisburg, PA 17105
Many of the additions are a result of including statements of policy which have been issued since the regulations were last updated.
Here is an outline of some of the major changes proposed. It is still recommended that you read the proposed changes in full before submitting comments.
Note: the chapter references below are for the center-based regulations.
Special needs regulations integrated into child care regulations. Instead of having a separate chapter on special needs (Chapter 3300), the regulations relating to special needs have been integrated into the child care regulations. Providers must make reasonable accommodations for children with special needs in accordance with the Americans with Disabilities Act.
Program plan. (3720.119) A program plan would have to be developed for each child no later than 60 days following the child’s first day of attendance. The program plan would include
- A documented observation of the child’s development
- If applicable, identification of the child’s unique needs and recommendations, plans and referrals as appropriate.
- Facilitated the child’s continued development and participation in daily activities.
The plan would have to be updated periodically based on age and special needs.
Definition of special needs. (3270.4) The definition of a child with special needs would read:
A child who has one or more of the following:
- a disability or developmental delay identified on an Individual Education Program or an Individualized Family Service Plan.
- A formal behavioral plan that has been determined by a licensed physician, psychiatrist or licensed psychologist
- A chronic health condition diagnosed by a licensed physician, physician’s assistant or CRNP that requires health and related services of a type or amount beyond that required by children generally.
Definition of a preschool child. (3270.4) The new regulations would define a preschool child as a child from 3 years of age to the date the child enters kindergarten in a public or private school system. This means that five year olds who are attending a public or private school kindergarten would be considered school-age.
Orientation for new program owner/directors (3270.11) Child care programs would be required to complete a one-day orientation before becoming DPW-certified.
Education of family providers (3290.31) Family child care providers will have to have a minimum of a high school diploma or GED at time of renewal of their registration. The Department includes a gradnfathering provision that permits a current family child care provider who does not have a high school diploma or GED to continue to operate a facility that is currently registered as of the effective date of the final regulation (see §3290.213 in the proposed amended regulation).
Staff-child ratio in mixed age groups. (3720.52) The proposed change would make the staff-child ratio that pertains to the age of the youngest child the ratio for the entire mixed age group. The language of the current regulation is confusing; the proposed change clarifies the existing requirement and not a change in the requirement.
Maximum number of children at a facility. (3270.61) The total number of children receiving child day care services at the facility at any one time may not exceed the maximum capacity stated on the facility’s certificate of compliance. (Note to summer camp programs – even if the children are outside most of the time, they are still considered as part of the facility’s capacity count.[D1] )
Condition of outdoor play equipment (3720.102). Outdoor equipment that requires embedded mounting would have to be mounted over a loose-fill or unitary playground protective surface covering that meets the recommendations of the United States Consumer Product Safety Commission.
Removal of recalled toys and equipment (3720.102). Children’s equipment and toys described as hazardous by the US Consumer Product Safety Commission would have to be removed from the facility.
Health information (3720.131) Providers would no longer be required to collect health assessments according to the AAP recommended schedule for each child in care. A health report would be required according to a timetable based on the child’s age and would include:
- A review of the child’s health history
- A list of the child’s allergies
- A list of the child’s current medication and reason for the medication
- An assessment of an acute or chronic health problem or special need and recommendations for treatment of services
- A review of the child’s immunized status according to recommendations of the ACIP (Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention)
Indoor temperature (3270.70) Ventilation will be required when temperature reaches 82o F (rather than 85o F)
Adult health. (3270.151) The timelines for when staff would require health assessments would be lengthened – first assessment is good for 12 months prior to working in the facility (rather than 3); followup assessments every 2 years (rather than every year) thereafter. Tuberculosis screenings would only be required at time of initial employment.
Night Care (3720.200) The regulations specific to night care would be removed.
PACCA comments on proposed child care regulation changes
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IRRC approves child care subsidy eligibility regulations - in effect July 1, 2005 (posted 8/3/05)
On May 12, 2005, the Independent Regulatory Review Commission (IRRC) approved DPW’s revised eligibility regulations for receiving child care subsidies. The final form of the regulations were published in the Pennsylvania Bulletin on June 18. They will go into effect on July 1.
The new subsidy regulations include positive changes for families such as:
- Eligibility won’t change – 200% of poverty, with a streamlined semi-annual redetermination process.
- End to court mandated child support – recommending that you seek support, but not mandated
- Reduce work hours requirements from 25 to 20 hours per week. Parents may substitute up to 10 hours of work with training. The combination of work and training must total 20 hours.
- A stepparent deduction
- A live-in companion does not count as part of the household. The live-in companion also is not required to work or meet any of the other eligibility requirements. The only time the live-in counts as part of the family is when the live-in is the parent of a child requesting care. In this situation the live-in parent is counted as part of the household and must meet the eligibility requirements.
Governor Rendell and Treasurer Casey released a joint press statement applauding the changes. “It is a great day when government and advocates can come together to make a difference in the lives of Pennsylvania’s families,” said Governor Rendell. “These changes will help us ensure that we meet the needs of parents and children in the Commonwealth and that we are promoting a healthy early childhood and helping families connect with valuable early learning opportunities. Our administration worked hard to incorporate the concerns of families and advocates into these changes, and I applaud the leadership of Treasurer Casey, advocates, parents and early childhood programs on this issue.”
PACCA signed on to the Pennsylvania Child Care Campaign's (PACCC) letter supporting the recommendations which was sent to DPW on October 12, 2004.
- Download PACCC comments signed by PACCA and other organizations (PDF)
- Download chart outlining suggested changes (PDF)
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PACCA Meets with Secretary Richman
On March 13, 2003, PACCA Executive Director Terry Casey and members of the PACCA Board met with Secretary of Public Welfare Estelle Richman to discuss ways to improve the child care system for Pennsylvania. PACCA presented Secretary Richman with the following position paper:
- PACCA Recommendations: Bringing Quality Child Care to Pennsylvania’s Children (March 2003) (PDF)
SB922 (Emergency preparedness plans not required for non-profit centers or family providers) becomes law without Governor’s signature; Governor urges more inclusive bill (7/16/04)
Pennsylvania Governor Edward G. Rendell outlined why he allowed Senate Bill 922 to become law without his signature in a message sent to the Pennsylvania Legislature. Despite an adopted state policy, Governor Rendell noted that Senate Bill 922 requires only for-profit facilities to provide emergency evacuation plans for children in their care and urged passage of new legislation that will address the well- being of 183,000 children in licensed non-profit or family care entities.
"I would urge the Legislature to pass new legislation that ensures total consistency with existing state policy by expanding the statutory requirement for emergency plans to all childcare, group day care and family day care homes," Governor Rendell wrote. "I believe the parents of the Commonwealth who rely on these entities expect nothing less."
In December 2003, the Governor published a statement in the Pennsylvania Bulletin after learning childcare centers were not required to keep emergency preparedness plans on file.
"Given these troubling times, I directed the Secretary of Public Welfare to use her authority to publish a statement of policy that requires every child care center, group day care home and family day care home operator to develop an emergency preparedness plan," said Governor Rendell.
The Pennsylvania Emergency Management Agency, in conjunction with the Department of Public Welfare, created a standard emergency-planning tool that would guide childcare providers to create such a plan. Under the plan, providers are to have all possible phone numbers of parents and relatives of each child. Further, it required all providers to have transportation information available in the event of an emergency.
PACCA will continue to monitor this issue and keep you informed through the E-News and public policy page on the website.
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