GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 2371*

Short Title:  Day Care Programs/Funds.	(Public)
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Sponsors: Representatives Payne, Easterling; Colton, Fitch, Warner, Stamey, and Hackney.
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Referred to:  Human Resources.
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June 6, 1990

A BILL TO BE ENTITLED
AN ACT TO APPROPRIATE FUNDS TO INCREASE STATE INVOLVEMENT IN CHILD CARE AND TO REEXAMINE CHILD CARE FUNDING FORMULAE.
The General Assembly of North Carolina enacts:
Section 1.  The Department of Human Resources shall ensure that the funds to match the federal Family Support Act funds to subsidize newly eligible children come from funds within the Division of Social Services and that no funds from within the Division of Facility Services to maintain families in the State purchase of care system are redirected to the Division of Social Services to meet the federal matching requirements.
Sec. 2.  There is appropriated from the General Fund to the Division of Facility Services, Department of Human Resources, the sum of $24,864,000 for the 1990-91 fiscal year to provide day care subsidies for the approximately 14,000 children currently eligible for purchase of care subsidies who are on waiting lists for subsidized child care.
Sec. 3.(a)	Effective January 1, 1991, in order to create a reimbursement floor for all children and to establish a minimum level of quality of child care in all areas of the State, the Division of Facility Services, Department of Human Resources, shall develop a statewide market rate for the purchase of care system for each age category based on the average fees paid by families.  The Social Services Commission shall establish these rates in determining the minimum allowable cost for child care purchased in centers serving fifty percent (50%) or more subsidized children in every county.
(b) There is appropriated from the General Fund to the Division of Facility Services, Department of Human Resources, the sum of $1,440,440 for the 1990-91 fiscal year to implement this section.
Sec. 4.(a)	Effective January 1, 1991, in order to create a more uniform reimbursement rate system modeled on the federal Family Support Act, the Division of Facility Services, Department of Human Resources, shall:
(1)	Develop the market rates for the purchase of care at centers serving fifty percent (50%) or more subsidized children at the 75th percentile of fees paid by families for child care in licensed child day care enters in each county; and
(2)	Develop the market rates for the purchase of care at family day care homes and individual child care arrangements at the 75th percentile of fees paid by families for child care in registered family care homes in each county. 
The Social Services Commission shall establish these rates in determining the subsidies to be paid.
(c) There is appropriated from the General Fund to the Division of Facility Services, Department of Human Resources, the sum of $2,640,000 for the 1990-91 fiscal year to implement this section.
Sec. 5. (a) Effective January 1, 1991, in order to consider current family income and to allow more working poor families to participate in the purchase of care system, the Social Services Commission shall increase income eligibility limits for the purchase of care system to include families earning up to eighty percent (80%) of median income, as determined annually and as adjusted for family size.
(b) There is appropriated from the General Fund to the Division of Facility Services, Department of Human Resources, the sum of $6,000,000 for the 1990-91 fiscal year to implement this section.
Sec. 6. Effective January 1, 1991, to ensure that all families not otherwise exempted pay some portion of their child care costs, but that no family pays more than what it can reasonably afford, the Social Services Commission shall adjust the sliding fee scale so that no fee-paying family pays less than one percent (1%) or more than eight percent (8%) of its adjusted gross income, as adjusted for family size, for full-time child care for one child.  No families currently exempt from any fees, including families receiving Aid to Families with Dependent Children, shall be charged any fees pursuant to this section.
Sec. 7.  (a) Effective January 1, 1991, in order more accurately to reflect the need for child care services at the local level, the Social Services Commission shall replace the existing purchase of care allocation formula with one that is based equally on the three following factors:
(1)	The county population relative to the State population as a whole;
(2)	The number of poor children residing in a county relative to the number of poor children residing in the State as a whole; and
(3)	The number of working women with children under the age of 6 residing in the county relative to the number of such women residing in the State as a whole.
The Social Services Commission shall maintain the current county allocations in the event allocations to any county  would otherwise decrease pursuant to the adoption of the new formula.
(b) There is appropriated from the General Fund to the Division of Facility Services, Department of Human Resources, the sum of $5,000,000 for the 1990-91 fiscal year to implement this section.
Sec. 8.  This act shall become effective July 1, 1990.