Moreover, as part of the budget solutions adopted during the Great Recession, CalWORKs grant levels were reduced by first 4percent and then 8percent in 2011 and remained below their pre-recession peak until 2019. CalWORKs child care is funded with a combination of state and federal funding. <> Prior to this change, the state was using an SMI based on 2007 data. %%EOF 0000021785 00000 n This distinction is not important for those with regular hours throughout the year. certification or at recertification, contractors will determine a familys initial income eligibility, as directed Most of this caseload increase likely is attributed to the policy changes noted above, with the change in the family reporting requirement likely having the greatest effect. Foradditional information on your eligibility to CalWORKs, contact the office nearest you. Stage 1 is administered by the California Department of Social Services through the county welfare department (CWDs). In 201920, the average monthly grant for CalWORKs families was $585. No other agencies may apply. The program helps a family access immediate child care as the parent works or performs their welfare-to-work activity. Previously, families were required to report any change in income or work hours within five days. (This assignment roughly is based on U.S. Department of Homeland Security estimates of the proportion of noncitizen Californians who have a legal versus nonlegal residency status, the crucial distinction for CalWORKs eligibility.) Correcting this assumption would have unknown effects on our estimate of the take-up rate. Child only cases, i.e., cases where no adults are receiving aid, also receive the higher MAP level. State Budgets for Stage 1 Differently Than Stages 2 and 3. The California Alternative Payment Program (CAPP) funded by the California Department of Social Services (CDSS), Child Care and Development Division (CCDD) provides childcare subsidy assistance to income-eligible families who have a qualifying need as defined by the funding source. These payments generate over $1 million in revenue to communities throughout the San Fernando, Santa Clarita and Antelope Valleys. Establishes Two Rate Working Groups. Those who qualify, however, are not automatically enrolled. Child Care. eSome CalWORKs and nonCalWORKs child care providers use their funding to offer preschool. We assume income eligibility thresholds are equal to those in effect on July 1 of each calendar year. Consistent with overall CalWORKs enrollment, CalWORKs child care caseload declined from 201011 through 201617, as the states economic recovery reduced the number of families seeking welfare-to-work support. The application for CalWORKs includes completion of eligibility forms and an interview with a case-manager. and the value of child care vouchers is capped. Need childcare because they are employed, seeking employment, in vocational training, seeking permanent housing, and/or incapacitated. The ACS does not separately track UI benefits (which, as with wages, count as income when determining CalWORKs eligibility). These factors may impact the overall costs of CalWORKs child care, but we are uncertain of the magnitude at this time. QRIS = Quality Rating and Improvement System. We make these assumptions to compensate for information not included in the American Community Survey (ACS). Measuring the CalWORKs take-up rate is an important step towards potentially improving participation in the program. Applying for potentially available income such as Unemployment Insurance Benefits. Child Care Family Fee Rate Calculator Initial Enrollments or Recertification Effective July 1, 2022, at initial certification or at recertification, a family will be considered income eligible if that family's adjusted monthly income is at or below 85 percent of the SMI, adjusted for family size. These overestimates were built on observations from previous recessions (for example, the relationship between the unemployment rate and CalWORKs cases added), but such relationships do not always hold in new economic climates. The cost estimates reflected above do not include the effect of this legislation. State and Federal Funding Support the Program. On January 1, 2022, all child care and preschool providers will move to the 75th percentile of the 2018 regional market rate survey (or stay at their current rate if it is higher). Increases Rates for Child Care and Preschool Programs. <> Reimbursement rates for CalWORKs child care providers vary by county. Our outlook assumes higher program costs would be covered from the state General Fund, with the program assumed to receive the same level of annual federal funding in 201920 through 202223. COVID-19, California Work Opportunity and Responsibility to Kids (CalWORKs). To Date, No Formal Effort to Estimate CalWORKs Take-Up Rate. Unemployment Insurance (UI) Benefits. CalWORKs Child Care Costs Increase Over Outlook Period. The ACS reports only annual income, whereas California Work Opportunity and Responsibility to Kids (CalWORKs) eligibility is determined based on monthly income. endobj CalFresh Expansion for SSI/SSP Recipients, Contra Costa County Advisory Council on Aging, Health Insurance Counseling & Advocacy Program, Head Start | Early Head Start & State Preschool, Childcare Alternative Payment Program/Welfare to Work Stage II, How families are selected for the program, Promote and encourage work to enable families to become self-sufficient, Provide financial aid for children who lack financial support and care, Provide the opportunity for rehabilitation of the family whenever possible, Make available to children who cannot live in their own homes the kind of care and treatment best suited to their needs, either physically or mentally incapacitated; or, the applicant parent is not working or working less than 100 hours per month; or. All exceptions must be verified by a third party agency. Grant Amounts Do Not Automatically Increase. We assume no Pregnant Women-Only (PWO) CalWORKs cases. Unlike MBSAC levels, grant amounts do not automatically increase in proportion to the cost of living but rather generally must be adjusted by new legislation. The Child Care Resource and Referral also have a toll free telephone number. The state does not track how many families are eligible for CalWORKs but not enrolled. Understanding CalWORKs Take-Up Rate May Inform Future Policy Choices. The state will only pay up to the regional market rate (RMR) a different amount in each county and based on regional California's Fiscal Outlook. Eligibility Threshold. They can continue receiving Stage 3 subsidized care until their income exceeds 85percent of the state median income (SMI) or their child ages out of the program (turns 13 years old). To apply for services,contact your local Social Services office. Figure1 shows Stages 2 and 3 caseload from 201011 to 201819. Families may earn non-CalWORKs income of up to $500 a month without affecting their grant, but for each additional dollar they earn above $500 their grant is reduced by 50 cents. The budget includes $20million for DSS to hire a contractor that would assist the Joint Labor Management Committee. As discussed in our recent Outlook post, both the administration and our office overestimated the extent to which caseload would grow following the pandemic and subsequent economic recession. Below we describe a few key factors not captured in our cost estimates. The maximum immediate need payment is $200. % We will continue to monitor the effect of these policies and incorporate them into our future cost estimates as better data becomes available. In this post, we provide background on the California Work Opportunity and Responsibility to Kids (CalWORKs) child care program, discuss our projections of future CalWORKs child care costs, and identify various risks and uncertainties that could affect these future costs. The bullets below summarize other benefit and program participation rules. Indicate the total enrollment (unduplicated) of CalWORKs students served in the 2019-20 school year for each adult school and ROCP who will be receiving CalWORKs funds for the 2020-21 school year. As a CalWORKs applicant or customer, you will have a property limit of $10,888 (cash on hand, savings, stocks, etc.) As a result, the purchasing power of the grantsthat is, how much families can buydecreases over time absent legislative action. Providers may negotiate on a number of work-related issues, including their reimbursement rates. 4BshBeO~BA(cFP*Bv=>C(|/^ g M* zy{e^583T>GZ86 If a recession were to occur during the next year or two, the effect on caseload and cost is even more uncertain given the state does not yet know the precise impact of its new Stage 1 policies. (Families may access higher-cost providers if they are willing to pay more out of pocket.) Of total CalWORKs child care funding, 56percent is from the state General Fund and 44percent is from federal fund sources (Temporary Assistance for Needy Families and the Child Care and Development Fund). Correcting this assumption would likely cause our estimate of the take-up rate to increase. 0000003330 00000 n The programbegins when a family start receiving CalWORKs cash aid. %%EOF *Amount is provided by CDSS (55% of the FPL for a family of three, regardless of actual AU size) Tier 2: 130% of the Federal Poverty Level (FPL) AU IRT 0 $1,473 1 $1,473 2 $1,984 3 $2,495 4 $3,007 5 $3,518 To project caseload, we use the most recent caseload data and estimate how many children will enter and exit each stage of CalWORKs child care during each year of the outlook period. The nearby box lists these assumptions, as well as their likely impact on our estimates. %PDF-1.7 % We do not know, but can estimate, the number of families who are eligible but do not enroll. Consequently, we must make several simplifying assumptions to estimate the number of CalWORKs-eligible families. Child care is provided for children through the age of 12, and for exceptional needs and severely disabled children up to age 21. Subsequently, these PWO cases are entirely absent from our estimates. aReflects Department of Social Services revised Stage 1 estimates, Department of Finances revised estimates for Stage 2 and Stage 3, and budget appropriations for all other programs. Aid cannot begin until all conditions of eligibility have been verified. = '(v>'ww?.z`|0b9~u(iF@d2"WWI0}DdUI1s@949g)?98oG(h./ V8 +`Udg1! There are five regional CalWORKs offices located throughout Contra Costa County. The budget package includes various increases in state operations for CDE and DSS to administer child care and preschool programs. At the same time, CalWORKs benefits have increased by less than 5percent (note that neither the benefit nor eligibility threshold figures have been inflation-adjusted). In fact, most CalWORKs recipients (a little over 80percent) are children, and most CalWORKs families (about 55percent) include no adult recipients (meaning parents are excluded from aid due to their immigration status, lifetime benefit limits, or for other reasons). The 201920 Budget Act included a total of $1.4billion for the three stages of CalWORKs child care. In upcoming posts, we plan to examine whether and how the CalWORKs take-up rate varies among different regions in the state and explore reasons for those differences. As noted above, most CalWORKs recipients are children, but many children living below the FPL are not currently enrolled in the program. The 2021-22 budget included legislation to establish two workgroups to make recommendations for implementing a single child care reimbursement rate structure. Stage 1 begins when a participant enters the CalWORKs grant welfare-to-work plan developed by the CWD for each family. If you are not receiving CalWORKs cash assistance and need help paying for child care, contact the local Child Care Resource and Referral agency (R&R) and/or the Alternative Payment Program(APP) in your county to obtain more information. contact your local county welfare department, Contact Your County Social Services Agency, visit the CalWORKs Child Care Program website. %PDF-1.4 % Families with elderly members (those who are 60 years of age or older) may have $16,333 combined personal and real property per family. We disregarded these factors because the ACS does not have sufficient data on the value of family assets. L9 The program is administered at the county level by the county welfare departments. It measures numerous household and individual characteristics and includes most of the information necessary to estimate CalWORKs eligibility statewide. Both parents can meet this requirement if one is in a work activity at least 20 hours per week. Note: The 48-month limit is a lifetime limit. For more information and resourcesvisit the CalWORKs Child Care Program website.