How Does State Paid Tuition Work?

[CraftyMom]

I currently do not accept voucher payments. Is it different in each state?

My reason for not accepting is that the rate is much lower than what I charge and I am not allowed to charge parents the difference.

Is it the same everywhere? Or do I understand the way it works wrong?

I got a call today for 2 children with vouchers. This would be a big loss in income for me.

[Scribbles]

In my state we can charge whatever we want and if the state doesn't pay that amount the parents are required to pay the difference.

We do everything electronically and bill every two weeks. We get a direct deposit within 48 hours of submitting a billing. If I couldn't charge parents the difference I would never take state paid kids.

[Cradle2crayons]

In my state we can charge whatever we want and if the state doesn't pay that amount the parents are required to pay the difference.

We do everything electronically and bill every two weeks. We get a direct deposit within 48 hours of submitting a billing. If I couldn't charge parents the difference I would never take state paid kids.

same here. If I couldn't charge the difference I would for sure say no way... The state pays less than half here.

[TwinKristi]

We have a few different programs in my area and they vary on reimbursement rates. One is pretty close to our county average and probably just a few dollars a day lower than what I normally charge. But I believe state paid is less than the other program I've worked with. The program I worked with was was easy though, parent signs sheets, I send them in by the 5th and get a check the next month by the 15th or something like that. So there is a wait time but it's the same as the food program is here. You submit by the 5th and get paid the following month.

[butterfly]

I currently do not accept voucher payments. Is it different in each state? yes.

My reason for not accepting is that the rate is much lower than what I charge and I am not allowed to charge parents the difference.

Is it the same everywhere? Or do I understand the way it works wrong?Here, I can charge the difference. Other states can not.

I got a call today for 2 children with vouchers. This would be a big loss in income for me.

I wouldn't do state assistance clients if I couldn't charge the difference.

[MarinaVanessa]

It varies from state to state and even from organization to organization.

Where I am, the organization covers the full amount of what I charge if the family qualifies for full coverage. The organization has income brackets and if you go over then a family pays a family fee, which is paid to me. Then the organization covers the rest. They don't cover all fees though such as penalty fees (overtime, late payments, early drop off/late pick up fees etc) and they only give a certain number of paid holidays, sick days etc. But here we are allowed to bill the family for whatever isn't covered and if they don't pay we are required to report it and the family may have their child care assistance suspended until we get paid, even if the family leaves and goes to another daycare.

It's really provider-friendly here but it wasn't always that way. We weren't allowed to charge families anything before but because of that very few providers accepted subsidy so they changed their policies on that to attract more providers to accept subsidy, it worked.

[Leigh]

I wouldn't do state assistance clients if I couldn't charge the difference.

I wouldn't do it, either, if I couldn't charge the difference. I NEED to make my full rate. It would be grossly unfair to my other clients to have someone paying less than they are, too.

[CraftyMom]

Thanks for the responses!

I signed up with the agency when I first started but never received any calls looking for a spot with state aid. I never renewed my contract with them.

I called my R&R today to look into it to make sure I understood correctly. I'd hate to pass up a child due to my misunderstanding.

I am NOT allowed to charge the difference. That stinks!

It is $10/day less than I currently charge. Not a giant difference, but it adds up to $200/month!

[Lucy]

In my state we are allowed to charge parents the difference. But the state pays (or used to anyway) the same amount I was charging, so it didn't matter.

However, about 3 years ago, they started a stupid mandatory "union", and $50 was automatically deducted from any state pay we got. I only had 2 drop-in sibs who were on state pay, so I told them I'd have to charge them the $50!! They moved away shortly thereafter, so it never came up again, and I haven't gotten any calls to take state paid kids. If I do, I'll make it clear that I'm going to charge them the $50.

[Blackcat31]

In my state we are allowed to charge parents the difference. But the state pays (or used to anyway) the same amount I was charging, so it didn't matter.

However, about 3 years ago, they started a stupid mandatory "union", and $50 was automatically deducted from any state pay we got. I only had 2 drop-in sibs who were on state pay, so I told them I'd have to charge them the $50!! They moved away shortly thereafter, so it never came up again, and I haven't gotten any calls to take state paid kids. If I do, I'll make it clear that I'm going to charge them the $50.

That is what they are trying to do here in my state too.

They are saying that joining the union is voluntary but if we don't join we still have to pay "fair share fees" instead of "union dues". They are both the same amount so they are really just the same thing with different names....

Anyways, we were told it was illegal to pass the fees onto state paid clients and that we were not allowed to do that.

If you do happen to get any clients that are state paid, make sure you check on that first.

I will NEVER join the union here willingly.

If it becomes mandatory, I will rethink my career choice.

[coolconfidentme]

The only union dues I currently pay are to myself in my vacation savings account! ::

[rebekki78]

Our State of Michigan Child Development and Care handbook actually states:

PAYMENT RATES & PARENT COPAYMENTS
The CDC program is a subsidy program; therefore, the actual amount paid by the Department may not cover all child care expenses. The parent is responsible for payment of all amounts not paid by the Department.
The Department pays part of the cost of child care for approved families. This part is the Department Pay Percent (DP %). The DP% can be from 70% to 100% of the Department rate. Provider payment rates will vary based on the parent’s DP% as shown below.

I will be thankful that I can pick up the difference happyface

[CraftyMom]

Here there are two types of state paid.

For both I must enter into a contract with the state that I will accept their rate (which is lower than my rate) and I can not charge the difference.

One is a voucher where the entire contracted maount is covered and parent pays nothing

The other is a sliding scale where the parent pays according to their income, but still only up to the contracted amount. The state will pay a % of the contracted amt and the parent pays the rest.

[Lucy]

That is what they are trying to do here in my state too.

They are saying that joining the union is voluntary but if we don't join we still have to pay "fair share fees" instead of "union dues". They are both the same amount so they are really just the same thing with different names....

Anyways, we were told it was illegal to pass the fees onto state paid clients and that we were not allowed to do that.

If you do happen to get any clients that are state paid, make sure you check on that first.

I will NEVER join the union here willingly.

If it becomes mandatory, I will rethink my career choice.

Yes, exactly!

I guess I worded it wrong - it's not mandatory to join, it's just that they'll charge the fee whether you're a member or not. And you're probably right... it's not that we're paying the "dues" exactly. It probably is a fair wage type situation.

I'll take your advice and check into it IF I ever take state paid again. I never had to charge them, as they ended up moving away shortly after that came about. I actually ate the $50 charge the first time it came up.

I will also NEVER join their stupid union.

[Josiegirl]

Wow, our state pays more than I charge. For example, I charge 105 weekly, but being a level 3 Star participant I get paid about 130(depending on age.)