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Child Care Subsidy Maximum Rates

Attention!
Due to budget concerns, the 2011 Maximum Rates will remain at 2006 level.

The method for calculating the county/tribal maximum rates changed in 2006. Now all counties are divided into 4 urban rate zones based on what percent of the population in a county live in an urban area. A 75th percentile is calculated for each urban rate zone instead of each county. The weekly rate increase or decrease from 2005 was restricted to be no more than 10%, however, the change in divisor might have a greater effect on the hourly rates.

Below is a table that shows the division of the counties/tribes into the 4 urban rate zones:

Rates by County can also be found by using the interactive map.

Divisor

The divisor was standardized so that all counties are using a divisor of 35. In order to calculate an hourly rate, the weekly rate was divided by 35. In the past, divisors of 30, 35,  and 40 could be used.

Rate Setting Task Force

In June 2006, DWD Secretary Gassman appointed a task force to assist the Department in establishing rate setting policies for the Wisconsin Shares Child Care Subsidy Program. Further details can be found in the final report.

Frequently Asked Questions

How are the counties divided into the urban rate zones?
The counties are grouped together based on the percentage of the population living in urban areas. United States Census reports are used to calculate the percentage.

How can I compare the 2005 rate with 2006 rate?
A spread sheet has been prepared to give providers information on the changes by county/tribe.

What is the divisor?
A divisor indicates the weekly number of hours for full-time care. In the past, the counties were able to choose a divisor of either 30, 35 or 40. The divisor has been standardized to be 35 for all counties/tribes.

How will the divisor being set at 35 impact the maximum rate and the amount authorized for child care?
The provider will reach the full-time county/tribal rate when s/he providers at least 35 hours of care. In counties, where the divisor was set at 30, providers must be caring for the child 5 hours more than in the past to reach the full-time rate. In counties that used 40 as the divisor, the provider reaches the full-time amount in 35 hours instead of 40. Counties/tribes, that used 35, there is no change.

The maximum rates in my county/tribe had decreased and now my private-pay rates are higher than the county reimbursement rates. Who is going to pay the difference?
The parents are responsible to pay the difference between the authorized amount and the price the provider charges from the private-pay parents.

The maximum rates in my county/tribe have increased. I am a provider. Should I raise my rates to match the reimbursement rates?
The providers must charge the same rate for private-pay and subsidized parents. Before raising her/his rates, the provider must realize that this might create a burden for private-pay parents.

Why is DWD making all of these changes?
These changes were implemented to make the Wisconsin Shares program more equitable and efficient across the state.  The number of parents needing financial assistance to pay for child care has grown along with the cost of child care, but the funding available has not been increased to meet the need.

These policy changes were seen as the most equitable way of making sure that all eligible families could continue to be served without freezing rates, increasing copays, or restricting eligibility.

What are other states doing?

• Only 14 states nationwide set rates at the 75^th percentile.  Of those 14 states, only 8 states based their maximum payment rates on the results of the most recent survey.  Wisconsin is among these states.  This data is documented in the National Women’s Law Center report.
• State spending on child care assistance declined in 2004 for the first time since the passage of welfare reform in 1996.  In 2004, a total of 30 states cut child care assistance, compared to only 19 states the previous year. Cuts in these 30 states totaled over $600 million.  Wisconsin did not reduce the level of child care funding.  This data is documented in the CLASP Report.
• Eleven states have maintained the same provider rates since 2001 according to the U.S. Government Accountability Office (GAO).  Michigan has not raised rates in 10 years.  Illinois has not raised rates for 6 years. The GAO report.
• 31 states reported that they serve all eligible applicants.  20 states reported that they do not.  14 of the 20 states indicate that they cannot serve all eligible applicants and have established waiting lists and give non W-2 low-income families the lowest priority. (GAO Report)