Daycare Subsidy and Payments

[Unregistered]

I'm just trying to figure this out. I have a lady wanting care 5 days a week but it's only 5 hours a day but I charge $28 a day weather they are here 5 hours or 10 and I'm not sure I can find another kid to fill the remaining time and I consider 5 days a week full-time.

Unfortunately the state pays hourly and will only pay for the hours her child is being cared for. Am I still allowed to charge for the remaining even if the child was not here? I do for the other kids but not sure since this would be my first state pay parent.

[Country Kids]

No, for state children you can only charge for the amount of time they are there.

Private pay, you can charge your daily rate but if a state child is only there 5 hours, that is all you can charge. You have to fill out the paperwork showing the hours they were there for the month also.

[Unregistered]

Yuck, not sure it is worth taking up the spot then. I will let her know she should look into a center. Don't want to waste her time. Thanks

[hwichlaz]

No one can answer this without knowing what state you're in and which agency you are working with.

It's different in every state.

I California I MUST charge everyone the same way and same amount. Otherwise I'm discriminating. So this means that anything not covered by subsidy is the parent's responsibility.

[Mike]

I'm thinking that if your price is by the day, how many hours a day shouldn't really matter. Like hwichlaz said, it depends on the state.

[TooManyKitties]

Hwichlaz, I’ve been wondering about that. I haven’t opened yet, am looking to end of this year/early 2019, and am wondering about state pay. I’ll be charging near the top of the market, and so parents would need to cover the difference. Does this ever happen? I’d like my daycare to be inclusive, and accept state pay families, but I also will be charging premium prices, and I’m wondering if those two goals are mutually exclusive. I’m also in a VERY expensive part of the state where I can command higher prices. Do you have any thought?

I haven’t taken the licensing orientation class yet, so maybe all of this is covered there and I just don’t know.

My apologies for the thread hijack everyone. This is something I’ve been wondering about for awhile.

[hwichlaz]

Hwichlaz, I’ve been wondering about that. I haven’t opened yet, am looking to end of this year/early 2019, and am wondering about state pay. I’ll be charging near the top of the market, and so parents would need to cover the difference. Does this ever happen? I’d like my daycare to be inclusive, and accept state pay families, but I also will be charging premium prices, and I’m wondering if those two goals are mutually exclusive. I’m also in a VERY expensive part of the state where I can command higher prices. Do you have any thought?


I haven’t taken the licensing orientation class yet, so maybe all of this is covered there and I just don’t know.

My apologies for the thread hijack everyone. This is something I’ve been wondering about for awhile.

Here, look up what the state pays in your area and see what you think.

http://www3.cde.ca.gov/rcscc/index.aspx

[TooManyKitties]

I did when you provided that link previously, and it was very helpful. Thanks. Also, there would be a pretty significant gap.

[hwichlaz]

I did when you provided that link previously, and it was very helpful. Thanks. Also, there would be a pretty significant gap.

That would mean that you are setting your rates high above average correct? I wouldn’t expect any subsidy clients to sign with you then, they won’t be able to afford it.

[Mom2Two]

In my state parents have to make up the difference. The state just pays monthly to the provider here, but I know that the amount the parents receive is based on how many hours care they need for their job.

[Blackcat31]

I’m in MN and can charge the parent whatever the state doesn’t cover.

For example care costs $165/week
State pays $100
Parent owes me $65 out of their own pocket.

[Unregistered]

OP here. I am in MI and everyone is charged the same daily rate.

[TooManyKitties]

Thanks everyone. This has been a helpful conversation.

[Blackcat31]

OP here. I am in MI and everyone is charged the same daily rate.

http://www.michigan.gov/mde/0,4615,7-140-63533_63534_72649---,00.html

Here are the links to handbooks/rule books for child care assistance in Michigan. It has a link for both licensed and unlicensed care so you should be able to find your answers within those links.

In MN 5 hours is considered a whole day so the state will pay the full day rate even if the child is only in care for those 5 hours. So in your case, if you bill families by the day or the week, the state will usually have a minimum in which they will require before paying for the full day and/or week.

My state automatically pays the daily rate after 5 hours and will automatically pay the weekly rate once the "hour total" reaches 36 hours.

Hope that helps!

[MarinaVanessa]

I'm just trying to figure this out. I have a lady wanting care 5 days a week but it's only 5 hours a day but I charge $28 a day weather they are here 5 hours or 10 and I'm not sure I can find another kid to fill the remaining time and I consider 5 days a week full-time.

Unfortunately the state pays hourly and will only pay for the hours her child is being cared for. Am I still allowed to charge for the remaining even if the child was not here? I do for the other kids but not sure since this would be my first state pay parent.

You should call your subsidy program and ask them. My subsidy program only covers up to certain hours per week and sometimes the parents use more than they are allotted. I also charge weekly like you do and they don't reimburse weekly just daily/hourly etc. We're allowed to charge the client for the difference though, not a lot of other agencies do from what I hear. Our agency also allows us to charge late payment fees, overtime fees etc because they don't cover those.