April 21 Child Care Provider Updates – Special Edition

Child Care Counts – Important Information for Round 3

There are some important changes coming for Child Care Counts: Stabilization Payment Program Round 3.

Here are some of the biggest changes for Round 3:

  1. There will be a significant decrease in funding for Round 3
  2. There is a new participation deadline – providers must be approved for funding during one of the first four months (May, June, July, or August) to be eligible for future payments (September-January)
  3. The Update Week has been extended for each month – this change is a result of provider feedback

In addition, there are several changes to the Allowable Use of Funds due to federal requirements for the Round 3 funding source. See the Child Care Counts webpage for highlights, and read the Round 3 Terms and Conditions for full details.

As we learn more, we are updating the website. Be sure to bookmark the website and check for updates. Here are a couple of important updates. Visit the Round 3 section on the Child Care Counts webpage for complete information.

Will the Child Care Counts payments be the same amount?

Payments will decrease beginning with the May 2023 payment round (June 16 payment date) due to the limited federal funding available. For Round 3, there is approximately 50% of the federal funding that was available in earlier rounds. Currently, there is no federal funding for future rounds.

However, ongoing funding has been proposed as part of Wisconsin’s biennial budget. This would restore funding over the next two years and establish Child Care Counts as a permanent, ongoing payment program.

If there is funding allocated to Child Care Counts in the biennial budget, it is possible that payment amounts could increase for the remainder of Round 3. All potential future rounds for Child Care Counts will depend on the final investment to Child Care Counts in the biennial budget. Final biennial budget decisions are expected to be made during the summer 2023.

What is the expected amount of the decrease? 

Current federal funding will support a total monthly payment amount of about $10M, about half of what was available in prior rounds. The amount individual providers receive will depend on the structure of their program. Things that could impact your calculation include number and ages of children, number of staff, YoungStar level, and any add-ons. Check the Child Care Counts website each month as specific payment amounts are determined. 

Can I join the CCC Program anytime during the 9-month round? 

No. Unlike prior rounds, providers must be approved for funding during one of the first four months to be eligible for future payments. The program’s funding will not allow for providers to join the program after the August 2023 payment round.  

If you wish to participate in Child Care Counts Stabilization Round 3, you must submit an application and be approved for at least one of the May, June, July, or August 2023 payment rounds. 

Expanded Update Week

Based on feedback from providers, the monthly Update Week has been expanded from 5 days to 9 days to allow providers more time to update their applications.

Note: The initial Round 3 Application period in May 2023 is two weeks long (5/20 – 6/4) to allow additional time for the initial application and document uploads.

See the April Tuesday Talks for some highlights of what is the same, and what is different for Round 3, as well as the Child Care Counts FAQs.