Most child care providers will see an increase in their rate when it goes up to the 58^th percentile. However, some programs will remain the same rate (e.g., hold harmless) due to their current rate already being at or above the 58^th percentile based on the most recent market rate survey response. Those in a hold harmless status for full day include 12 rate calculations for infant full day, 11 rate calculations for preschoolers full day, and 5 rate calculations for school age full day. Hold harmless also means no subsidy rate will decrease as part of this adjustment.

The rate differential percentage did not change. Providers approved for a rate differential (e.g., enhanced rate) will continue to receive these as follows: 20 percent for accredited programs, 30 percent for accredited programs with at least half of the children subsidy-eligible, and 25 percent for programs serving children with special needs.

With this rate change, provider payments will be calculated as follows: the state base rate plus any differential pay minus the sliding fee amount. As a reminder, the parent will be responsible for paying the sliding fee to the child care provider, as well as any co-payments that a provider may charge, which cannot exceed the non-subsidy rate charged by the child care program.

The sliding fee amount for families in Transitional Levels of Child Care Subsidy will change for initial eligibility determinations and re-certifications, beginning in July 2023. The families’ responsibility or sliding fee will be calculated based on their income and the federal poverty level, as required by state and federal regulations. You can learn more about the sliding fees and families’ responsibility to pay in the updated Child Care Subsidy Brochure.

Although the sliding fee scale is changing, this will not be an immediate change for families; they will continue to pay according to their eligibility and income amounts, until the family’s next re-certification for eligibility. At that time, the family’s eligibility letter will show the new sliding fee amount. Until then, the current payments and sliding fees will continue.

The sliding fees going into effect for initial eligibility determinations and re-certifications in July 2023 are as follows:

Families can review the chart below that includes income guidelines and sliding fee amounts, effective July 2023.

If families have any questions regarding their sliding fee amount, they can review their most recent eligibility letter to find their current sliding fee amount, or contact their eligibility specialist at the Family Support Division.