MEMORANDUM

This memo provides implementation instructions for restoring the Child Care Program income eligibility ceiling to 185% of the federal poverty level. Effective February 1, 2003, SRS reduced eligibility to 150% of the federal poverty level. This was a result of former Governor Graves’ allotment to SRS due to the state fiscal year 2003 budget concerns.

This restoration to 185% of the FPL was a recommendation in Governor Sebelius’ 2004 budget and was approved by the 2003 Legislature.

Effective July 1, 2003, the income eligibility threshold for child care will change back to
185% of the federal poverty level.

Child Care Program Reduction

Beginning February 1, 2003, the income eligibility threshold was reduced from 185% of the federal poverty level to 150% of the federal poverty level. This resulted in 2,029 children of working families losing child care between January 2003 and March 2003. Approximately 774 child care providers lost at least one SRS subsidized family due to the reduction.

Choosing to reduce child care program spending by lowering the income eligibility threshold allowed the state to see the immediate fiscal savings needed and also protected core program integrity. Reducing the income eligibility threshold reduced the number of families qualifying for child care, but it insured that those who did qualify received a good benefit. It also allowed the basic program structure to remain, provided services to the most in need, and provided an opportunity to quickly and easily restore the program when funding was again allocated to the program.

Implementation

Beginning July 1, 2003, to be eligible for child care, the total countable gross income must not exceed 185% of the current federal poverty guidelines based on the household size. All families with countable income at or below the new standard can qualify for benefits.

Closed Cases - The case listing attached to the December 9, 2002 Reduction memo will be used to assist in identifying cases with previous income below 185% FPL. Families whose cases remain closed will be sent a "SRS Child Care Income Limit Restored" letter by Central Office staff. This letter will inform the family that child care assistance will again be available at the previous 185% FPL income threshold effective July 1, 2003. An example is attached to this memo. Families will need to reapply with the nearest SRS office to have eligibility determined.

Providers will be notified of the new income guidelines through R&R newsletters.

Denied Cases - Families denied due to excess income since the February 2003 eligibility reduction will also be sent the letter.

Case Listings - The listing of cases sent the letter will be made available to EES Chiefs on 6/13/03.

KsCares Table Change - The monthly gross income ceiling will be updated on the Family Income and Share Schedule to reflect changes in the new income guidelines. KsCares will be updated on 6/13/03. All cases processed after the table changes have been made will use the new income guidelines. This may result in some cases being approved using the new guidelines prior to July 1. This is acceptable given it is a positive case action.

KEESM - The following KEESM sections will be revised effective July 1, 2003 - 2840, 2835, 7440, Appendix #78 Definition of Common Terms, and Appendix #48 Family Income and Share Schedule for Child Care Services.

Attachments: Family Income and Share Schedule eff. July 1, 2003
SRS Child Care Income Limit Restored letter example

cc: Alice Womack Dennis Priest Phil Anderson
Kathy Valentine Helpdesk Barbara Silliman
Deb Wiley Bobbi Mariani EES PTU