The 2019 Legal Guide to Child Care Subsidies in California ...childcarelaw.org/wp-content/uploads/2019/05/...The 2019 Legal Guide to Child Care Subsidies in California Chapter 3: California

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The 2019 Legal Guide to Child Care Subsidies in California Chapter 3: California Department of Education Child Care Subsidies

This chapter includes:

3.1 MAIN CDE CHILD CARE PROGRAMS 3.2 GOVERNING AUTHORITY FOR CDE CHILD CARE PROGRAMS 3.3 HOW CDE CHILD CARE IS ADMINISTERED 3.3.1 Vouchers 3.3.2 Contracted Programs 3.4 CONTRACTOR DISCRETION IN ESTABLISHING POLICIES 3.5 CDE-ADMINISTERED CHILD CARE REQUIREMENTS 3.5.1 “12-Month Eligibility Requirements” 3.5.2 Residency Requirements 3.5.3 Age Limits for Children 3.5.3.1 California State Preschool Program 3.5.4 Bases for Eligibility 3.5.4.1 Receipt of Cash Assistance as a Basis for Eligibility 3.5.4.2 Income as a Basis for Eligibility 3.5.4.2.1 Initial Income Eligibility for Most CDE Child Care Programs: Adjusted Income at or

Below 70% of the State Median Income (SMI), Adjusted for Family Size 3.5.4.2.2 Ongoing Income Eligibility for Most CDE Child Care Programs: Adjusted Income at or

Below 85% of the State Median Income (SMI), Adjusted for Family Size 3.5.4.2.3 California Department of Finance’s State Median Income Figure Must Be Updated

Each Fiscal Year 3.5.4.2.4 Documentation of Income Eligibility 3.5.4.2.5 Income Eligibility for the California State Preschool Program (CSPP) 3.5.4.3 Categorical Eligibility: Exceptions to Income Eligibility Limits for Some Families 3.5.4.3.1 Homelessness as a Basis for Eligibility 3.5.4.3.1.1 Documentation of Homelessness 3.5.4.3.2 Child Protective Services and Risk as a Basis for Eligibility 3.5.4.3.2.1 Documentation of Families with CPS or At-Risk Status

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3.5.5 Parents’ Need for Child Care 3.5.5.1 Employed or Seeking Employment as the Basis of Need for Care 3.5.5.1.1 Documentation of Employment 3.5.5.1.2 Documentation of Self-Employment 3.5.5.1.3 Documentation of Seeking Employment 3.5.5.2 Vocational Training as the Basis of Need for Care 3.5.5.2.1 Documentation of Vocational Training 3.5.5.3 Engaged in an Educational Program for English Language Learners, or to Attain a

High School Diploma or General Education Development Certificate as the Basis for Need of Care

3.5.5.3.1 Documentation of ELL, High School Diploma or GED Classes 3.5.5.4 Seeking Permanent Housing for Family Stability As Basis of Need for Care 3.5.5.4.1 Documentation of Seeking Permanent Housing for Family Stability 3.5.5.5 Parental Incapacity as the Basis of Need for Care 3.5.5.5.1 Documentation of Parental Incapacity 3.5.5.6 Limited Term Service Leaves 3.6 CALWORKS STAGES 2 AND 3 3.6.1 “Seamless” Transition Between Stages 1, 2, and 3 3.6.2 Stage 2 3.6.2.1 Children’s Eligibility 3.6.2.2 Families Who Have Never Received Stage 1 Are Eligible for Stage 2 3.6.2.3 Stage 2 Eligibility After Diversion Payments 3.6.2.4 24-Month Stage 2 Time Limit Post Cash Assistance or Diversion Services 3.6.3 Stage 3 3.6.3.1 What Happens if Stage 3 Funding is Insufficient 3.7 ELIGIBILITY FOR CHILD CARE SUBSIDIES FOR IMMIGRANT FAMILIES 3.7.1 Immigrants and Non-CalWORKs CDE Child Care 3.7.2 Immigrants and CalWORKs Child Care Stages 2 and 3 3.8 CHILD CARE ELIGIBILITY FOR NATIVE AMERICAN FAMILIES 3.9 PRIORITY RANKING FOR HOW FAMILIES ARE ENROLLED INTO CDE CHILD CARE

PROGRAMS 3.10 DEFINITIONS 3.10.1 “Parent” as Defined 3.10.2 “Family” and “Family Size” as Defined 3.10.3 “Child” and “Adult” as Defined

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The California Department of Education (CDE) administers the majority of child care

subsidy programs in California, including CalWORKs Stage 2 and CalWORKs Stage 3 child care (CDE child care). CDE child care is both voucher-based and Title 5 contracted. This chapter will cover:

General background on eligibility requirements for CDE child care

Stage 2 and Stage 3 specific eligibility requirements

3.1 MAIN CDE CHILD CARE PROGRAMS The CDE Early Learning and Care Division (ELCD) administers CDE child care programs.

The largest programs are:

General Child Care: CDE contracted child care centers and family child care home education network CDE child care is governed by the California Education Code, Title 5 of the California Code of Regulations, and subject to sub-regulatory rules of CDD’s Management Bulletins and Funding Terms and Conditions. 1

California State Preschool Program: CDE contracted child care centers and licensed family child care homes for 3 and 4 year olds,

California Alternative Payment Program: Voucher programs for families, and sometimes referred to as “AP,” “APP” or “CAPP.” These programs administer CDE child care vouchers and also sometimes contract with county welfare agencies to administer Stage 1 child care.

CalWORKs Stages 2 and 3: Voucher program for current and former participants receiving CalWORKs cash assistance.

Migrant Child Care and Development Programs: Child care for families working in fishing, agriculture or agriculturally related work. The Migrant Program (CMIG) are CDE contracted child care centers and family child care home education networks. The Migrant Alternative Payment Program (CMAP) are vouchers.

3.2 GOVERNING AUTHORITY FOR CDE CHILD CARE PROGRAMS

CDE child care programs are governed by the California Education Code, Title 5 of the

California Code of Regulations, and sub-regulatory rules of CDD’s Management Bulletins and Funding Terms and Conditions. 2

1 CAL. EDUC. CODE §§ 8350-8359.1; CAL. CODE REGS. tit. 5, §§ 18400–18434; CAL. DEP’T OF EDUC., MANAGEMENT BULLETINS,

http://www.cde.ca.gov/sp/cd/ci/allmbs.asp; CAL. DEP’T OF EDUC., CHILD CARE & DEVELOPMENT PROGRAMS FOR FISCAL YEAR

2018-19, http://www.cde.ca.gov/fg/aa/cd/ftc2018.asp. 2 CAL. EDUC. CODE §§ 8200-9 et seq.; 5 Cal. Code Regs. §§ 18ooo et seq.; CAL. DEP’T OF EDUC., MANAGEMENT BULLETINS,

http://www.cde.ca.gov/sp/cd/ci/allmbs.asp; CAL. DEP’T OF EDUC., CHILD CARE & DEVELOPMENT PROGRAMS FOR FISCAL YEAR

2018-19, https://www.cde.ca.gov/fg/aa/cd/ftc2018.asp.

http://www.cde.ca.gov/sp/cd/ci/allmbs.asp

http://www.cde.ca.gov/fg/aa/cd/ftc2018.asp

http://www.cde.ca.gov/sp/cd/ci/allmbs.asp

https://www.cde.ca.gov/fg/aa/cd/ftc2018.asp



ADVOCACY TIP: Many Title 5 regulations are outdated and some of the Management Bulletins and Funding Terms and Conditions contradict each other and are outdated as well. This manual will cite to the most current statute and accurate regulations and subregulatory guidance available. Lack of clear guidance can be very confusing for clients and attorneys. Please contact the Child Care Law Center if you have any questions.

3.3 HOW CDE CHILD CARE IS ADMINISTERED

CDE administers child care two main ways: (1) through vouchers, and (2) by directly

contracting with local child care providers, such as centers. Local contractors are performing a government function of determining subsidy eligibility, issuing notices, and holding hearings.

3.3.1 Vouchers

Vouchers allow eligible families to choose among eligible child care providers in the

private market. Alternative Payment Programs contract with the CDE to locally administer voucher-based child care subsidies and usually makes the payment directly to the child care provider. Certification of the child care subsidy requires approval by the Alternative Payment Programs for the number of hours of care, the child care provider selected, and a rate for payment. Alternative Payment Programs are local public and private community based agencies. Sometimes the local county department of education, school district or county welfare department serves at the Alternative Payment Program. Counties may have one or several Alternative Payment Programs.

Eligible child care providers who can accept CDE vouchers include:

Licensed child care centers,

Licensed family child care homes,

Child care providers who are exempt from licensing requirements (“legally license-exempt care”) which most commonly means Family, Friend and Neighbor care, but also includes some other types of legally license-exempt care, like afterschool and public recreation programs.

All CalWORKs child care is exclusively a voucher-based program.

3.3.2 Contracted Programs

CDE also contracts directly with child care providers to provide child care spaces or

“slots” in child care centers.3 These child care centers are sometimes called “Title 5 programs.”

3 The term “slot” objectifies children. Therefore, we will use the word “spaces” or “openings” throughout this

manual.



4 Title 5 centers can be private nonprofits, private for-profits, or part the local school district. Below are some general points about Title 5 programs:

They are usually a form of center-based child care, although CDE also contracts with groups of home-based licensed family child care providers associated with contracted centers called Family Child Care Home Education Networks (FCCHENs).

Families with subsidy vouchers may use their vouchers to obtain care in a contracted center if there is space available in addition to the center’s contracted child care spaces.

There are no contracted Family, Friend and Neighbor care providers—only parents with vouchers may use Family, Friend and Neighbor care or other types of legally licensed-exempt care.

Switching between contracted child care providers can be difficult, while the nature of vouchers is that they are transferable from one child care provider to another.

3.4 CONTRACTOR DISCRETION IN ESTABLISHING POLICIES

CDE has detailed regulations regarding family eligibility and many other aspects of

parent access to and provider participation in subsidized child care. Still, there are other elements of subsidy program operation that are left to the discretion of CDE contractors, such as the type of required documentation to determine eligibility, the timing of the transition from CalWORKs Stage 1 to Stage 2, and other elements.5 CDE requires Alternative Payment Programs and other CDE contractors to develop parent handbooks and provider handbooks describing these policies.6 Each CDE contractor must develop and implement a written policy statement that includes information about the program’s purpose and range of services, enrollment priorities, eligibility requirements, conditions for participation, payment

4 The name “Title 5 programs” comes from their governing regulations, Cal. Code of Regs., title 5.

5 CAL. CODE REGS. tit. 5, §§ 18081 et seq. offer the types of documentation contractors must accept. Note that many

provisions of these regulations are obsolete because of amendments to CAL. EDUC. CODE § 8263(h) in 2017. See updated guidance on these regulations in CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 17-14 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (12-Month eligibility guidance) (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). See also CAL. EDUC. CODE §§ 8350, 8351

(transition requirements from CalWORKs Stage 1 to Stage 2); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-04 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1804.asp (required documentation for homeless children); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 17-03 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1703.asp (clarifying that a digital signature may be used to satisfy the requirements of an electronic signature). 6 CAL. CODE REGS. tit. 5, §§ 18221-3. See CAL. CODE REGS. tit. 5, §§ 18410 (Stage 2) & 18430 (Stage 3) for contractors

responsibility for informing parents about how to maintain eligibility in Stages 2 and 3. Note that the substantive requirements, including a family’s duty to report changes within 5 days, are obsolete pursuant to CAL. EDUC. CODE § 8263(h), which established 12-month child care eligibility. See updated guidance on regulations in CAL. DEP’T OF

EDUC., MANAGEMENT BULLETIN 17-14 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (12-Month eligibility guidance) (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). See also CAL. DEP’T OF EDUC., MANAGEMENT

BULLETIN 14-04 (2014), https://www.cde.ca.gov/sp/cd/ci/mb1404.asp (monthly attendance record or invoice requirements).

https://www.cde.ca.gov/sp/cd/ci/mb1714.asp

https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc










information, and requirements for provider participation.7 The provider participation procedures must include information about termination of provider affiliation with the contractor and grievance procedures for parents and providers.8

These policies cover very important aspects of subsidy program operation, and there is

dramatic variation in contractor policies and procedures. While many contractors develop clear and fair policies, others use questionable or unreasonable policies that can result in denial or termination of families from receiving a child care subsidy, and underpayment and termination of child care providers from participation in subsidy programs. Advocates have been concerned about the extent to which CDE allows contractors to establish policies that significantly affect participation in CDE-administered programs, and have had some success in challenging these policies through administrative hearings.

3.5 CDE- ADMINISTERED CHILD CARE REQUIREMENTS

This chapter discusses the regulatory structure of CDE-administered child care programs

and only touches on policy implications. Unless otherwise specified, “CDE child care” requirements include CalWORKs Stages 2 and 3 requirements. The following requirements apply to virtually all CDE-administered child care subsidy programs, voucher- and center-based:

1. “12-month eligibility requirements;” 2. Residency requirements; 3. Children’s age limits; 4. Bases for eligibility; and 5. Parents’ need for child care

Each of these elements is discussed further below.

3.5.1 “12-Month Eligibility Requirements”

As of July 1, 2017, the income eligibility and parents’ reporting requirements for all CDE child care, including CalWORKs Stages 2 and 3, has drastically changed. The new provisions in law provide that:

● After a family qualifies or is recertified for CDE child care, they receive no less than 12 months of continuous child care.

● During the continuous eligibility period, which can be no less than 12 months, parents need not report any changes to their status.

o EXCEPTION: If a family’s eligibility is based on income, they must report if their family’s adjusted monthly income exceeds 85% of SMI. If their income exceeds 85% of SMI, the contractor must evaluate their income to determine whether they continue to qualify in their current child care program, or if they can be transferred to another child care program.

7 CAL. CODE REGS. tit. 5, § 18221.

8 CAL. CODE REGS. tit. 5, § 18223.



● Family fees cannot be increased, and child care services cannot be reduced before the family’s next recertification. However, parents may voluntarily report changes regarding their situation. In response to reporting, contractors may only

o Decrease family fees; o Increase child care services; or o Extend the period of the family’s eligibility before recertification;

● To initially income qualify for CDE child care, the family’s monthly adjusted income must be 70% of SMI. Starting July 1, 2019, the initial income eligibility will be 85% of SMI;

● Families remain income eligible until their family’s adjusted income exceeds 85% of SMI;

● All income requirements must be based on most recent census data.9

The California Code of Regulations, Title 5 regulations have not yet been updated to reflect these substantial changes in law. In the meantime, please refer to the CDE Management Bulletins 17-14 and attached guidance (12-Month Eligibility), MB 17-08 (State Median Income, Initial Certification), MB 17-09 (Graduated Phase-Out, Recertification), MB 17-10 (Updated Income Rankings); MB 17-11 (Revised Family Fee Schedule), and MB 18-05 (Transfer of Families into a CalWORKs Stage 2 Program) for how contractors must implement this new law.10 You can also reference the CDE Frequently Asked Questions (FAQ) webpage on how to implement the 12-month eligibility changes from the Budget Act of 2017.11

3.5.2 Residency Requirements

To be eligible for any form of CDE-administered subsidized child care, the child must live

in California while services are being received. Any evidence of a street address or post office address in California is sufficient to establish residency under the regulations.12 A person identified as homeless is exempted from this requirement, but must submit a declaration of intent to reside in California.13 CDE contractors will serve families living in or using care in the

9 See CAL. EDUC. CODE §§ 8263(c) (continuity of services provision), 8263(h), 8263.1, 8273 (family fees must be based

on most recent census data), 8273.1 (family fees may be exempt for up to 12 months for families whose children receive child protective services, or are at risk of being neglected or abused); CAL. DEP’T OF EDUC., MANAGEMENT

BULLETIN 18-05 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1805.asp. 10

CAL. DEP’T OF EDUC., ELCD MANAGEMENT BULLETINS, https://www.cde.ca.gov/sp/cd/ci/allmbs.asp. 11

CAL. DEP’T OF EDUC., BUDGET ACT OF 2017 IMPLEMENTATION FAQ (Apr. 23, 2018), https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp#TwelveMonthElig (last visited Jan. 27, 2019) (section on 12-Month eligibility). 12

CAL. CODE REGS. tit. 5, § 18107(a)-(b). Sometimes CWDs/Alternative Payment Programs ask for additional documentation for residency. There is no clear authority for doing so. If additional documentation is requested by local CWDs/Alternative Payment Programs, contact the Child Care Law Center. 13

CAL. CODE REGS. tit. 5, § 18107(b). This is sufficient to meet the residency requirement. Additional documentation is needed to establish eligibility. See also CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-04 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1804.asp (homeless children and youth); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in


https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp#TwelveMonthElig




county/service area served by the contractor; some CWDs/Alternative Payment Programs will also serve families where the parent works but does not live in the contractor’s county/service area.

3.5.3 Age Limits for Children

Families with children from infancy up to age 1314 (up to age 21 for children with

exceptional needs)15 are eligible for CDE child care programs, including CalWORKs Stages 2 and 3.

ADVOCACY TIP: If a child turns 13 during the 12 months after the family established eligibility, that child remains eligible for child care services until the next recertification. Pursuant to Cal. Educ. Code section 8263(h), once a family has established initial eligibility for CDE child care, they must be considered to meet all eligibility and need requirements for those services for not less than 12 months. This includes a child who was determined eligible before turning 13 years at the time of initial certification or recertification. Therefore, a contract cannot disenroll a child who turns 13 until the next recertification period.16 Similarly, a child with exceptional needs who turns 21 years old during the 12-month eligibility period, remains eligible for child care until the family’s next recertification.

3.5.3.1 California State Preschool Program

The California State Preschool Program (CSPP) is the only subsidized program with

additional age limits, providing early care and education specifically for three- and four-year-old children.17 Priority for enrollment is as follows:

● First priority: Three and four-year-old children who are neglected or abused and receive child protective services or are at risk of being neglected or abused. If a program cannot enroll a child in this first priority category, it must refer the child’s parent or guardian to the local child care resource and referral agency so that services can be located.

MANAGEMENT BULLETIN 17-14, § 18090, at 21 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 14

45 C.F.R. § 98.20(a)(1)(i); CAL. EDUC. CODE § 8208(i); CAL. CODE REGS. tit. 5, § 18407(b)(1)(Stage 2); CAL. CODE REGS. tit. 5, § 18422(b)(1) (Stage 3). 15

CAL. EDUC. CODE §§ 8250(b), 8208(l); CAL. CODE REGS. tit. 5, § 18407(b)(2) (Stage 2); CAL. CODE REGS. tit. 5, § 18422(b)(2) (Stage 3). 16

CAL. DEP’T OF EDUC., BUDGET ACT OF 2017 IMPLEMENTATION FAQ n. 30, (Apr. 23, 2018), https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp (last visited Jan. 27, 2019). 17

CAL. EDUC. CODE § 8235.



http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc)



https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp



● Second priority: Four year-olds who are not enrolled in state-funded transitional kindergarten, income ranking order.

● Third priority: Three year-olds in income ranking order.18 3.5.4 Bases for Eligibility

The following requirements are commonly referred to as the eligibility requirements for

CDE child care.19 CalWORKs Stages 2 and 3 have additional requirements to the ones listed below. Families must be at least one of the following to meet the eligibility requirement:

A. An individual participating in the CalWORKs program, B. Income eligible, C. Homeless, or D. One whose children are recipients of protective services, or whose children have

been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited.

The contractor must collect and maintain the required family’s eligibility documentation

in the family data file.20 3.5.4.1 Receipt of Cash Assistance as a Basis for Eligibility

Families receiving CalWORKs cash assistance are categorically eligible for Stage 2 child

care if the parent(s) are participating in a county welfare department CalWORKs approved welfare-to-work activity or are employed. 21 These families need not meet a separate income 18

CAL. EDUC. CODE § 8236. Section 8236(b) also says that “[f]or California state preschool programs operating with funding that was initially allocated in a prior fiscal year, at least one-half of the children enrolled at a preschool site shall be four-year-old children. Any exception to this requirement shall be approved by the Superintendent. The Superintendent shall inform the Department of Finance of any exceptions that have been granted and the reasons for granting the exceptions.” See CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 17-12 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1712.asp (listing priority order for enrollment); CAL. DEP’T OF EDUC., CHILD CARE

& DEVELOPMENT PROGRAMS FOR FISCAL YEAR 2018-19, CSPP - California State Preschool Program 36-37 (2018), https://www.cde.ca.gov/fg/aa/cd/ftc2018.asp(link to document is available on webpage and also available at https://www.cde.ca.gov/fg/aa/cd/documents/cspp1819.doc); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 15-08 (2015), https://www.cde.ca.gov/sp/cd/ci/mb1508.asp (“CSPP eligible three year old children are children who will have their third birthday on or before September 1, of the fiscal year they are being served… CSPP eligible four-year-olds are children whose fourth birthday is on or before September 1, of the fiscal year they are being served.”) (MB 15-08 also provides some exceptions to age requirements and other programs available for children who do not meeting age requirements, including Transitional Kindergarten and General Child Care.). 19

CAL. EDUC. CODE § 8263(a)(1)(A). 20

CAL. CODE REGS. tit. 5, § 18083; CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18078, 18084 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 21

CAL. CODE REGS. tit. 5, § 18408(a); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18406(b) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the



https://www.cde.ca.gov/fg/aa/cd/documents/cspp1819.doc











eligibility requirement.22 If the basis of a family’s eligibility is that they currently receive cash assistance, the parent is required to provide documentation of receipt of CalWORKs cash assistance unless the contractor elects to use other means of obtaining verification.23 Some CDE contractors have established relationships with CWDs that allow for shared access to databases and electronic confirmation of families’ status as current participants receiving CalWORKs cash assistance or grants.

ADVOCACY TIP: Contractors sometimes mistakenly calculate the income of a family that is receiving cash assistance, when the contractor should determine that the family is categorically eligible based on receiving cash assistance. Occasionally, family’s income may be above the 70% the State Median Income (SMI) and the contractor determines the family is ineligible.24 There have also been issues regarding contractors counting the income of families who receive CalWORKs cash assistance for the purpose of imposing family fees, which is also unlawful.25 Please contact the Child Care Law Center for assistance with eligibility issues.

3.5.4.2 Income As a Basis for Eligibility

Most families that are not currently participating in the CalWORKs cash assistance or

grant program must meet income eligibility requirements in order to receive CDE-administered child care subsidies, including Stages 2 and 3 of CalWORKs child care (see exceptions below). These income eligibility requirements also apply to families that have transitioned off CalWORKs cash assistance but, for a variety of possible reasons, continue to receive Stage 1 child care.

3.5.4.2.1 Initial Income Eligibility for Most CDE Child Care Programs: Adjusted Income at or Below 70% of the State Median Income (SMI), Adjusted for Family Size

Families that qualify based on their income, they must have an adjusted income at or

below 70% of the state Median Income (SMI) to initially become eligible for most CDE child care programs. 26 Starting July 1, 2019, the initial income eligibility requirement will be at or below 85% of the SMI, adjusted for family size.27

“Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 22

CAL. CODE REGS. tit. 5, § 18408(a); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18406(b) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc. 23

CAL. CODE REGS. tit. 5, § 18085. 24

Income eligibility will be increased to 85% of SMI, starting July 1, 2019. 25

CAL. EDUC. CODE § 8273.1(b). 26

CAL. EDUC. CODE §§ 8263.1(a), (c)(“The Department of Finance shall calculate the state median income for family sizes of one to four, inclusive, by using the most recent census data available on state median family income in the











Some income is not considered in determining whether a family’s income falls at or

below 70% of the SMI. The following types of income are among those not counted. The most recent guidance from CDE says:

(a) “Adjusted monthly income” means the total countable income as defined in subdivision (qu) below, minus verified child support payments paid by the parent whose child is receiving child development services, excluding the non-countable income listed below:

(1) Earnings of a child under age 18 years; (2) Loans; (3) Grants or scholarships to students for educational purposes other than any

balance available for living costs; (4) Food stamps or other food assistance; (5) Earned Income Tax Credit or tax refund; (6) GI Bill entitlements, hardship duty pay, hazardous duty pay, hostile fire pay, or

imminent danger pay; (7) Adoption assistance payments received pursuant to Welfare and Institutions

Code section 16115 et seq.; (8) Non-cash assistance or gifts; (9) All income of any individual counted in the family size who is collecting federal

Supplemental Security Income (SSI) or State Supplemental Program (SSP) benefits;

(10) Insurance or court settlements including pain and suffering and excluding lost wages and punitive damages;

(11) Reimbursements for work-required expenses such as uniforms, mileage, or per diem expenses for food and lodging;

(12) Business expenses for self-employed family members; (13) When there is no cash value to the employee, the portion of medical and/or

dental insurance documented as paid by the employer and included in gross pay; and

(14) Disaster relief grants or payments, except any portion for rental assistance or unemployment.28

past 12 months by family size. The Department of Finance shall calculate the state median income for family sizes of five and above by using the most recent census data for a family of four and multiplying this number by the ratios for the appropriate family size used in the federal Low-Income Home Energy Assistance Program (42 U.S.C. Sec. 8621 et seq.) and specified in federal regulations at paragraphs (5), (6), and (7) of subdivision (b) of Section 96.85 of Title 45 of the Code of Federal Regulations. The Department of Finance shall update its calculations of the state median income for families according to the methodology provided in this subdivision and provide the updated data to the department no later than March 1 of each fiscal year.”), 8350, 8350.5, 8351(c), 8353(a), 8354(a); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-03 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1803.asp (revised state median income for 2018-19). 27

Assemb. B. 2626 (Cal. 2018), available at http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB2626. 28

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in


http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB2626



3.5.4.2.2 Ongoing Income Eligibility for Most CDE Child Care Programs: Adjusted Income at or Below 85% of the State Median Income (SMI), Adjusted for Family Size

Starting July 1, 2017, families who are eligible for CDE child care, including CalWORKs

Stages 2 and 3, based on their income, remain eligible until their income exceeds 85% of the state SMI.29 In other words, while the initial income eligibility for families is 70% of the SMI, adjusted for family size, families can now earn up to 85% of the SMI before they exit the child care program. As noted above, starting July 1, 2019, the initial and ongoing income eligibility requirement will be 85% of the SMI, adjusted for family size.30

3.5.4.2.3 California Department of Finance’s State Median Income Figure Must Be Updated Each Fiscal Year

The California Department of Finance (DOF) is responsible for annually providing CDE

with information establishing the state median income (SMI) for determining eligibility for subsidized child care.31 Prior to 2017, the income ceilings had not been updated since 2007. Starting July 1, 2017, the DOF must now use the most recent census data to update the SMI ceilings by March 1 of each fiscal year. 32 Please be sure to check the CDE’s Management Bulletins webpage for most recent income ceiling guidance and other updates at https://www.cde.ca.gov/sp/cd/ci/allmbs.asp.

3.5.4.2.4 Documentation of Income Eligibility

Parents applying for a child care subsidy are responsible for providing documentation of

the family’s total countable income, and the contractor is required to verify the information. 33 As of July 1, 2017, families must only report changes in their income or other changes, at

MANAGEMENT BULLETIN 17-14, § 18078(a) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 29

CAL. EDUC. CODE § 8263.1(b); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-03 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1803.asp (revised state median income for 2018-19); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 17-09 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1709.asp (graduated phase-out and recertification). 30

Assemb. B. 2626, 2017-2018 Leg. Sess. (Cal. 2018), available at http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB2626. 31

CAL. EDUC. CODE §§ 8263.1(c), 8447(e). 32

CAL. EDUC. CODE § 8263.1(c); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-03 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1803.asp (revised state median income for 2018-19). See CDE’s Management Bulletins webpage for most recent income ceiling guidance and other updates at https://www.cde.ca.gov/sp/cd/ci/allmbs.asp.

33 CAL. CODE REGS. tit. 5, § 18083; CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE

(2017), in MANAGEMENT BULLETIN 17-14, §§ 18078, 18084 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).

https://www.cde.ca.gov/sp/cd/ci/allmbs.asp








http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB2626


https://www.cde.ca.gov/sp/cd/ci/allmbs.asp








minimum, twelve months after certification or recertification. The only exception to this rule is if the family’s adjusted income exceeds 85% of the SMI, in which case, the family must report that increase within 30 days of going over the 85% of SMI.34 Contractors must notify parents at the time of initial certification, and at recertification, of what amount of money equates to 85% of SMI for their family size, and their duty to report when increases in their income exceeds that amount.35 When a family reports an increase to their adjusted monthly income that goes over 85% of the SMI, the contractor must then evaluate whether the family is still eligible for child care services.

Employed parents must provide a release authorizing the contractor to contact their

employer(s) and, to the extent known, must provide the employer’s name, address, telephone number, and usual business hours. In addition, parents must provide payroll check stubs, a letter from the employer, or other record of wages issued by the employer for the month preceding the initial certification or recertification of the family’s eligibility.36 If the employer refuses or fails to provide requested documentation, or if a request for documentation would adversely affect the parent’s employment, parents must provide other means of verification. These may include a list of clients and amounts paid, the most recent tax returns, quarterly estimated tax statements, or other records, together with a self-certification of income.37 If the information provided is inconsistent with the contractor’s knowledge or community practice, the contractor must request clarification and the parent must submit additional income information to verify total countable income, and/or information that provides the contractor with a reasonable basis for concluding that the employer genuinely exists and the parent is actually an employee.38

34

CAL. EDUC. CODE §§ 8263(h)(2), 8263.1(b); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 17-09 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1709.asp (graduated phase-out and recertification); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 17-14 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (“Families must report within 30 days if income exceeds 85 percent of SMI.”). 35

CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 17-09 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1709.asp (“[c]ontractors must notify parents at the time of initial certification, and at recertification, of the applicable 85 percent exit threshold based on their family size and the duty to report when increases in income exceed that threshold.”); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18084.3(b), 18410, 18425 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc. 36

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18084(a)(1) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 37

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18084(a)(2) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 38

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18084(b)(2), (4) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).

























Parents must also provide documentation of all non-wage income, any verified child support payments, and self-certification of any income for which no documentation is possible.39

Parents who are self-employed often have great difficulty in satisfactorily documenting

their employment status and their income. CDE contractors are under enormous pressure to ensure they have correctly determined the income eligibility of subsidy applicants. The regulations encourage contractors to place very high documentation demands on those who are self-employed, and also give contractors a great deal of discretion to determine whether the documentation provided is sufficient.40

Parents whose income comes from self-employment must provide a combination of

documentation to establish current income eligibility for at least a month preceding initial certification. The CDE contractor may demand as many types of documentation as necessary to determine and certify income, including a letter from the source of the income, a copy of the most recent tax return, or other business records such as ledgers, receipts, or business logs.41 The contractor must independently verify the cost for services provided by self-employed parents by contacting clients, reviewing bank statements, or confirming the information in advertisements or on websites. If the income cannot be independently verified, the contractor is required to assess whether the reported income is reasonable or consistent with the community practice for this employment.42

Prior to initial enrollment and at the time of recertification, the contractor is required to

certify the family’s eligibility and each child’s eligibility for services after reviewing the completed application and supporting documentation.43

39

CAL. CODE REGS. tit. 5, § 18084(a)(4); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION

GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18084(a)(2)(C)(4) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 40

See CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18084(b)(4) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc) (“The contractor. . . [m]ay request additional documentation to verify total countable income to the extent that the information provided by the parent or the employer is insufficient to make a reasonable assessment of income eligibility.”). 41


CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18084(b)(3) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 43

CAL. CODE REGS. tit. 5, § 18082.










http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc
















3.5.4.2.5 Income Eligibility for the California State Preschool Program (CSPP) The CSPP serves three- and four-year-old children in part-day and full-day programs.

Full-day preschool is considered part-day preschool along with a “wraparound general child care” component.44 According to the CDE website, the CSPP is the largest state-funded preschool program in the nation. The program provides both part-day and full-day services that provides a core class curriculum that is developmentally, culturally, and linguistically appropriate for the children served. The program also provides meals and snacks to children, parent education, referrals to health and social services for families, and staff development opportunities to employees. The program is administered through local educational agencies, colleges, community-action agencies, and private nonprofit agencies.45

Three- and four-year-old children are eligible for part-time preschool if their family

meets one of the eligibility requirements outlined in Cal. Educ. Code section 8263(a)(1)(A).46 They must be (1) a current participant receiving CalWORKs, (2) income eligible, (3) homeless, or (4) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited. If the family qualifies based on income, the requirements are exactly the same as explained above for the other CDE child care programs.

For families who qualify for part-time preschool based on their income, a CSPP may

provide services to the children in that family if their income is no more than 15% above 85% of the SMI, after all eligible three- and four-year-old children have been enrolled. Up to 10% of enrolled children may be over the income eligibility requirement. Part-day CSPPs may also enroll three- and four-year-old children with exceptional needs, regardless of family income, after all otherwise eligible children have been enrolled.47

Three- and four-year-old children are eligible for full-day preschool if their family meets

one of each of the eligibility requirements outlined in Cal. Educ. Code section 8263(a)(1)(A) and 8263(a)(1)(B). If the family qualifies based on income, the requirements are exactly the same as explained above for the other CDE child care programs.

44

CAL. EDUC. CODE § 8239(a), (b)(““[W]raparound child care services” and “wraparound general child care and development programs” mean services provided for the remaining portion of the day or remainder of the year following the completion of part-day preschool services that are necessary to meet the child care needs of parents eligible pursuant to subdivision (a) of Section 8263. These services shall be provided consistent with the general child care and development programs provided pursuant to Article 8 (commencing with Section 8240).”). 45

CAL. DEP’T OF EDUC., CHILD CARE AND DEVELOPMENT PROGRAMS https://www.cde.ca.gov/sp/cd/op/cdprograms.asp (last visited Jan. 15, 2019). 46

CAL. EDUC. CODE § 8235(b). 47

See CAL. EDUC. CODE § 8235(c)-(d) (children with exceptional needs who do not meet the income requirements do not count toward the 10% limit of children from families above the income eligibility limit); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 17-12 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1712.asp (enrolling children with exceptional needs into part-day California state preschool programs).

https://www.cde.ca.gov/sp/cd/op/cdprograms.asp




See the above CSPP section under “Age Limits for Children” for order by which children are enrolled into the program based on their age and income.

3.5.4.3 Categorical Eligibility: Exceptions to Income Eligibility Limits for Some Families

Under some circumstances, families with incomes above 70% of the SMI may nonetheless be eligible to receive CDE child care: 48

Families receiving Stage 2 child care while they receive CalWORKs cash assistance are categorically eligible if they are participating in an approved Welfare-to-Work Plan or employed, and need not meet a separate income eligibility requirement, as discussed above.

Families that meet the homeless criteria are categorically eligible and need not meet a separate income eligibility requirement. See section on “Homelessness as a Basis for Eligibility” below.49

Families with children receiving Child Protective Services, or who are, or are at risk of, being abused or neglected are not required to meet the income eligibility limit.50 (See section on “Child Protective Services and Risk as a Basis for Eligibility”, below.)

The few families receiving child care through the Severely Disabled Program need not meet any income requirements. The sole requirement to receive services is that the child, birth to age 21, qualifies as severely disabled. 51

3.5.4.3.1 Homelessness as a Basis for Eligibility

Families can also be eligible for CDE child care if they are experiencing homelessness.52

As of January 1, 2016, CDE child care programs defines “homeless children and youth” by using the same meaning offered in the federal McKinney-Vento Homeless Assistance Act, 42 U.S.C., section 11301 et seq.:

(A)…individuals who lack a fixed, regular, and adequate nighttime residence (within the meaning of section 103(a)(1)); and (B) includes--

(i) children and youths who are sharing the housing of other persons due to loss of housing, economic hardship, or a similar reason; are living in motels, hotels, trailer parks, or camping grounds due to the lack of alternative adequate accommodations; are living in emergency or transitional shelters; or are abandoned in hospitals;* (ii) children and youths who have a primary nighttime residence that is a

48

See CAL. EDUC. CODE § 8263. 49

See CAL. EDUC. CODE § 8263(a)(1); CAL. CODE REGS. tit. 5, § 18090. 50

See CAL. EDUC. CODE § 8263(a)(1); CAL. CODE REGS. tit. 5, § 18083(g)(1). 51

CAL. CODE REGS. tit. 5, §§ 18210-1; CAL. DEP’T OF EDUC., CHILD CARE & DEVELOPMENT PROGRAMS FOR FISCAL YEAR 2018-19, CHAN – Severely Disabled Program (2018), https://www.cde.ca.gov/fg/aa/cd/ftc2018.asp (link to document is available on webpage and is also available at https://www.cde.ca.gov/fg/aa/cd/documents/chan1819.doc) (see the CDE Contract Terms for more information about the program and most updated requirements). 52

CAL. EDUC. CODE § 8263(a)(1)(A)(iii), (a)(1)(B)(i)(III).




public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings (within the meaning of section 103(a)(2)(C)); (iii) children and youths who are living in cars, parks, public spaces, abandoned buildings, substandard housing, bus or train stations, or similar settings; and (iv) migratory children (as such term is defined in section 1309 of the Elementary and Secondary Education Act of 1965) who qualify as homeless for the purposes of this subtitle because the children are living in circumstances described in clauses (i) through (iii).53

The McKinney-Vento definition of homelessness is broader than the definition currently

in Title 5 of the California Code of Regulations. The outdated, narrower definition in Title 5 requires children to be in shelters or temporary housing.54

If the family experiencing homelessness resides in a shelter, child care services may be

provided while the parent attends appointments or activities necessary to comply with the shelter participation requirements. 55 Parents experiencing homelessness and seeking employment or permanent housing must have CDE child care, “…no more than 5 days per week and for less than 30 hours per week.”56

53

CAL. EDUC. CODE § 8208(ak). As the guidance for federal Head Start programs, which require use of the McKinney-Vento definition, explain, the following are some reasons that the definition is “intentionally broad”: Shelters are often full; shelters turn families away, or put families on waiting lists; Shelters do not exist in many suburban and rural areas; definition conditions of shelters often exclude families with boys over the age of 12; Shelters often have 30-, 60-, or 90- day time limits; Motels may not be available, or may be too expensive; Families may turn to friends or family after initial eviction, living in over-crowded, temporary, and sometimes unsafe environments; Families may be unaware of alternatives, fleeing in crisis; Families fear child welfare involvement if they are on the street or otherwise unsheltered. 54

CAL. CODE REGS. tit. 5, § 18078(h); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18078(g) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 55

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18091(a)-(b) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 56

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18091(a) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).









3.5.4.3.1.1 Documentation of Homelessness If the basis for eligibility for CDE child care is homelessness, the family must provide

documentation of that condition, including a written referral from:

An emergency shelter or other legal, medical or social service agency, a written referral from a local educational agency liaison for homeless children and youth, a Head Start Program, or an emergency or a transitional shelter, or

A written parental declaration that the family is homeless and a statement describing the family’s current living situation.57

Given the disjunctive “or” in the regulation, homeless families should only be asked to

file a parental declaration if they do not have a written referral. Families who are homeless do not need to document residency. Generally, families seeking child care services need to document California residency, such as through evidence of a street address or post office address in California. A person identified as homeless is exempted from this requirement.58 Instead the family submits a declaration of intent to reside in California.59 As noted above in section “Documentation of Homelessness”, the change of law in 2016 also resulted in “homelessness” meeting the “need” requirement for child care. This means that families experiencing homelessness as defined by the California Education Code qualify for CDE child care solely based on their homeless status.60 When a family meets “eligibility” and “need” requirements based on their status, it is often referred to as “categorical eligibility.”

3.5.4.3.2 Child Protective Services and Risk as a Basis for Eligibility

Like families experiencing homelessness, families whose children receive protective

services; have been identified as abused, neglected, or exploited; or are at risk of being abused, neglected, or exploited are categorically eligible for CDE child care (“CPS or at-risk status”).61

That is, families with CPS or at-risk status meet the “eligibility” and “need” requirement,

and are not required to meet another eligibility or need requirement for non-CalWORKs CDE child care. (See the discussion of need requirements, below). The fact that the children in these families are receiving protective services through the local county welfare department, or are identified by a legal, medical, social service agency, or emergency shelter as being, or at risk of being, abused, neglected, or exploited is sufficient to make them eligible for subsidized child care services.62 As also discussed below in the section “order of enrollment”, families who qualify based on CPS or At-Risk status also must be prioritized for child care enrollment.

57

CAL. EDUC. CODE § 8263(a)(1)(B)(i)(III); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-04 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1804.asp (homeless children and youth). 58

CAL. CODE REGS. tit. 5, § 18107(b). 59

CAL. CODE REGS. tit. 5, § 18107(b). 60

CAL. EDUC. CODE § 8263(a)(1)(A)(iii), (a)(1)(B)(i)(III). 61

CAL. EDUC. CODE § 8263(a)(1)(A)(iv),(a)(1)(B)(i)(I)-(II). 62





ADVOCACY TIP: Eligibility and priority status for child care services have been interpreted with a great deal of variance throughout the state, and over time. However, the law is clear. In summary, children who are involved in the child welfare system, and children who may not be formally involved in the child welfare system, but have been identified as abused, neglected, or exploited or at risk of maltreatment, meet both the eligibility and the service need criteria for non-CalWORKS CDE child care services and must be prioritized for enrollment.

3.5.4.3.2.1 Documentation of Families with CPS or At-Risk Status

In order to be eligible based on CPS or at-risk status, the family must have a written

referral, dated within the six months immediately before the date of application for services, from a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths, a Head Start program, or an emergency or transitional shelter. 63 The referral must include:

A statement from the local county welfare department, child protective services unit certifying that the child is receiving child protective services and that child care and development services are a necessary component of the child protective services plan; or

A statement by a legally qualified professional that the child is at risk of abuse or neglect and the child care and development services are needed to reduce or eliminate that risk; and

The probable duration of the child protective service plan or the at risk situation; and

The name, address, telephone number and signature of the legally qualified professional who is making the referral.

ADVOCACY TIP: California Education Code section 8263(c), “continuity of services” provision, requires continuing, without disruption, state or federally funded child care for a family who no longer meets the program income, eligibility, or need criteria, so long as the family qualifies for child care based on other eligibility criteria.64 This affirmative duty to transfer a family who is eligible

MANAGEMENT BULLETIN 17-14, §§ 18078(b), 18084(c) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 63

CAL. EDUC. CODE § 8263(a)(1)(B)(i)(I)-(II). 64

CAL. EDUC. CODE § 8263(c) (“Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded child care and development program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive child development services in another state or federally funded child care and development program if the





for another child care program before terminating the child care applies to all CDE administered child care, including CalWORKs stages 2 and 3, and CalWORKs stage 1 child care.65 Under this provision, even where a child is no longer in the child welfare system or at-risk, the continuity of services provision applies. If you are working with family who categorically qualifies for child care based on CPS, at-risk, or homeless status, be sure to find out whether the contractor evaluated whether family is still eligible for child care based on other eligibility and need criteria before terminating services. Evaluating eligibility status before the family is terminated from care, not after being terminated, is also important so they are not placed on a child care waiting list. Also, be sure the total countable income is calculated correctly.66

Families with CPS or at-risk status for non-CalWORKs CDE child care need not meet

income eligibility requirements and may be exempt from paying a family fee (family’s share of cost) for up to 12 months.67 Once these families are required to pay a family fee, they must provide documentation of total countable income to calculate it. However, if the written referral for child care services specifies that it is necessary to exempt the family from paying a fee, then the parent cannot be required to provide documentation of total countable income. 68 For purposes of income eligibility and family fee determination, when a child and the child’s siblings are living in a family that does not include their biological or adoptive parent, “family” must be considered the child and related siblings. 69 This means a non-biologically or non-

contractor is able to transfer the family's enrollment to another program for which the family is eligible before the date of termination of services or to exchange the family's existing enrollment with the enrollment of a family in another program, provided that both families satisfy the eligibility requirements for the program in which they are being enrolled. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded child care and development programs.”). 65

CAL. EDUC. CODE § 8263(c) (applying to all state and federal funded child care programs). Combined with the Legislature’s intent “that families experience no break in their child care services due to a transition between the three stages of child care services” in section 8350(b) of the California Education Code, these two code provisions demonstrate the Legislature’s commitment to streamline and maintain child care eligibility for families and to ensure that government agencies work internally and collaboratively to achieve this goal. 66

“Family” for non-CalWORKs CDE child care, “means the parents and the children for whom the parents are responsible, who comprise the household in which the child receiving services is living. For purposes of income eligibility and family fee determination, when a child and his or her siblings are living in a family that does not include their biological or adoptive parent, ‘family’ shall be considered the child and related siblings.” CAL. CODE

REGS. tit. 5, § 18078(f). Note that income should not be counted if the family categorically qualifies for non-CalWORKs CDE child care. 67

CAL. EDUC. CODE § 8273.1(a). 68

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18084(c) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). The written referral referenced here is the one that must be submitted by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths, a Head Start program, or an emergency or transitional shelter in order to receive non-CalWORKS child care services based on CPS or at-risk status. 69

See CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in





adoptive parent’s income should not be counted for family fee purposes after the family fee exemption period.

3.5.5 Parents’ Need for Child Care

With the exception of the part-time California State Preschool Program, all CDE child

care programs impose a requirement that parents have a “need” for care.70 For CDE, including CalWORKs Stage 2 and Stage 3 child care, parents must be unavailable to care for and supervise their child, and supervision of the child is not being provided by school or another person or entity while child care is being provided.71 The CDE and CalWORKs child care need requirements are very similar. See the section below on Stages 2 and 3 for the eligibility requirements for CalWORKs CDE programs. These are the need requirements for non-CalWORKS CDE child care:

A. Employed or seeking employment; B. Engaged in vocational training leading directly to a recognized trade, para-profession, or profession; C. Engaged in an educational program for English language learners, or to attain a high school diploma or general education development certificate, D. Seeking permanent housing for family stability; or E. Temporarily or permanently incapacitated. 72 Other “need” bases for CDE child care programs are if children of the family are:

Homeless, or

MANAGEMENT BULLETIN 17-14, § 18078(e) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc) (The provision for “purposes of income eligibility and family fee determination” applies when the family no longer qualifies based on CPS or at-risk status, or when the family fee exemption time limits expire. In these instances, the contractors must take the family’s income into account for eligibility and family fee determination. Other situations where a family may be asked for income documentation are when family must income qualify for child care for other children in their household who do not receive CPS, or are at-risk of maltreatment, and where a minor or non-dependent minor receives child care for their own child who is not receiving CPS or at-risk.). 70

See CAL. EDUC. CODE §§ 8235, 8263(a)(1)(B). 71

CAL. CODE REGS. tit. 5, § 18085.5. 72

CAL. EDUC. CODE § 8263(a)(1)(B) (non-CalWORKs CDE child care); CAL. CODE REGS. tit. 5, §§ 18406(c)–(d) (Stage 2), 18421(b)–(c) (Stage 3); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18406(c)-(d) (Stage 2), 18421(b)-(c) (Stage 3) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). Note that CalWORKs Stage 2 and Stage 3 have an extra need requirement option, “Be participating in job retention services as approved by the county welfare department.” Stage 2 participants who receive CalWORKS cash assistance “must be participating in a county welfare department CalWORKs approved welfare-to-work activity or be employed.” Also, the option of taking English learning, GED, or high school classes applies to all CDE child care programs, including Stages 2 and 3. Cal. Dep’t of Educ., MB 18-02, Service Need-Engaged in an Education Program for English Language Learners or to attain a High School Diploma or High School Equivalency Certificate (2018), https://www.cde.ca.gov/sp/cd/ci/mb1802.asp. The “need” requirement does not apply to selected programs, such as part-day preschool. See Cal. Educ. Code §§ 8235, 8239.







Abused, neglected, or exploited; or are at risk of being abused, neglected, or exploited (“CPS or at-risk status”),73

As stated above in “4. Eligibility Bases,” families experiencing homelessness and families

with CPS or at-risk statuses are categorically eligible for CalWORKs CDE child care. Families that are categorically eligible for CDE child care need not meet any other “need” criteria.74 The “need” elements of eligibility are discussed in detail below.

ADVOCACY TIP: Sometimes contractors apply other “eligibility” or “need” requirements in California Education Code § 8263(a) to families who are categorically eligible for child care based on homeless, CPS or at-risk status. The code clearly states that families must only “meet at least one requirement in each of the [eligibility and need sections,” and each list of requirements includes the disjunctive “or.” Please contact the Child Care Law Center should the contractor insist that other eligibility criteria apply to these families.

3.5.5.1 Employed or Seeking Employment as the Basis of Need for Care

Parents can meet the need requirement in CDE child care programs by working at paid

employment or searching for paid employment.75 In addition, parents with CalWORKs Stage 2 and 3 child care may participate in job retention services approved by the county welfare department.76 Parents still receiving cash assistance must be employed or participating in CWD-approved welfare-to-work activities to receive Stage 2 assistance for child care.77

73

CAL. EDUC. CODE § 8263(a)(1)(B)(i) (explaining that to receive child care based on homeless, CPS or at-risk status, the child must be identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths, a Head Start program, or an emergency or transitional shelter as needing services). 74

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18078(b), (g), 18090 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 75

See CAL. EDUC. CODE § 8263(a)(1)(B)(ii)(III); CAL. CODE REGS. tit. 5, §§ 18406(c)(1)-(2), (d)(1)(A)-(b), 18407(a), 18421(b)(1)-(2), (c)(1)(A)-(B), 18422(a); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION

GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18406(c)(1)-(2), (d)(1)(A)-(B) (Stage 2), 18421 (b)(1)-(2), (c)(1)(A)-(B) (Stage 3) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc); see also CAL. CODE REGS. tit. 5, § 18086 (documentation requirements for employment, demonstrating that work needs to be paid employment). 76

CAL. CODE REGS. tit. 5, §§ 18406(c)(4), (d)(1)(D), 18421(b)(4), (c)(1)(D); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH

ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18406(c)(4), (d)(1)(D) (Stage 2), 18421(b)(4), (c)(1)(D) (Stage 3) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 77










Parents seeking employment can receive child care for up to five days per week, and

less than thirty hours per week.78

3.5.5.1.1 Documentation of Employment

For families in which the parent’s employment provides the basis for needing child care, the amount of subsidized child care the parent will be authorized to receive is determined by the hours of employment. For this reason, the CDE regulations place enormous emphasis on documentation by parents and verification by CDE contractors of the days and hours of parents’ employment before assistance for child care can be approved. For some parents, this documentation is readily available through their pay stubs. But for those who work variable schedules, as is true for many parents, or for the self-employed, obtaining acceptable documentation of days and hours of employment can be a Herculean task. In addition to using pay stubs to document employment, CDE contractors may accept verification based on an independent written statement from or a telephone conversation with the parent’s employer.79

If the employer refuses to or is non-responsive in providing the requested information,

or if the parent asserts that a request for employer documentation would adversely affect the parent’s employment, the CDE contractor must attest to the reasonableness of the days and hours of employment based on the parent’s description and the contractor’s knowledge of community practice.80 Where a parent says that contacting the employer would adversely affect the parent’s employment, the parent must also sign a declaration under penalty of perjury attesting to this assertion.81 CDE contractors are limited to authorizing child care services only for the days and hours of employment determined to be “reasonable.”82 MANAGEMENT BULLETIN 17-14, § 18406(b) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 78

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18086.5(a) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc) (note that this guideline is to be used in lieu of the conflicting instructions in CAL. CODE REGS. tit. 5, § 18406(c)(2), which limit such eligibility to 60 working days in a fiscal year). 79

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18086(a)-(b) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 80

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN

17-14, § 18086(b)(2)(E)-(F) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 81

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18086(b)(2)(F) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 82














However, CDE contractors must approve additional hours for travel time or sleep time to support employment.83

If the parent’s employment schedule is unpredictable, the parent may be authorized for

a variable schedule for child care based on the actual hours worked, with a minimum and a maximum number of allowable hours certified by the contractor. The contractor must identify the maximum number of child care hours the parent needs based on the week with the greatest number of hours within the preceding four weeks.84 3.5.5.1.2 Documentation of Self-Employment

Self-employed parents must provide a declaration under penalty of perjury with a

description of the employment and an estimate of the days and hours worked per week, together with appointment logs, client receipts, job logs, mileage logs, client lists with contact information, or similar records, and a copy of a business license, a workspace lease, or a workspace rental agreement.85 If the CDE contractor is unable to verify need based on the documentation provided by the parent, the contractor is required to take a variety of actions to determine the parent’s hours of self-employment, such as contacting the landlord of the building where the parent may be renting business space or contacting the parent’s clients.86 If the contractor is unable to make a reasonable assessment of the hours needed for self-employment, the contractor may divide the parent’s self-employment income by the applicable minimum wage to determine the maximum hours of approved child care. 87

If the parent’s employment is in the family’s home, the parent must provide justification

for requesting subsidized child care services based on the type of work, the age of the child, and the specific child care needs. The contractor is required to determine and document whether

MANAGEMENT BULLETIN 17-14, § 18086(b)(2)(E)-(F) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 83

CAL. CODE REGS. tit. 5, § 18086(e). 84

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18086(b)(2)(D) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 85

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18086(c)(1) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 86

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18086(c)(1)(C)(2) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 87

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18086(c)(3) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).













the parent’s employment precludes supervision of the child.88 If the parent operates a licensed family day care home or is an individual Family, Friend and Neighbor care provider, the parent is automatically ineligible for subsidized services (during the parent’s business hours) because the employment does not preclude supervision of the child.89 However, if the parent can document that they are employed as an assistant in a large licensed family child care home, the contractor may authorize subsidized services. 90

3.5.5.1.3 Documentation of Seeking Employment

Parents who are unemployed, as well as parents who are underemployed, may be

eligible for subsidized child care services. Child care services are limited to five days per week and a maximum of 30 hours per week.91 The parent must sign a declaration under penalty of perjury that the family is seeking employment, including the parent’s search plan to secure, change, or increase employment. The declaration must identify a general description of when services will be necessary.92

3.5.5.2 Vocational Training as the Basis of Need for Care

Parents can meet the need requirement for CDE child care by taking vocational training

leading directly to a recognized trade, para-profession, or profession. Parents can also meet this requirement by taking classes related to the General Education Development (GED) test or English language acquisition if such courses support the parent in meeting their vocational goal.93 Note, however, that a parent taking GED, English language or high school diploma

88

CAL. CODE REGS. tit. 5, § 18085.5; CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18406(c)(1), (d)(1)(A) (Stage 2), 18421(b)(1), (c)(1)(A) (Stage 3) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 89

CAL. CODE REGS. tit. 5, § 18086.1(c). 90

CAL. CODE REGS. tit. 5, § 18086.1(d). The stringent documentation requirements include: a copy of the license indicating that the home is licensed as a large family child care home, a signed statement from the licensee confirming that the parent is employed as an assistant pursuant to licensing staffing ratios, proof that the parent’s fingerprints are associated with the family child care home as an assistant, and a pay stub or other proof of payroll deductions withheld for the assistant by the licensee. 91

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18086.5(a) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 92

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18086.5(a)-(b) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 93

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18087(e) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).











classes can meet the need requirement for CDE child care without these classes being related to a vocational goal. 94

CDE child care services are limited to either six years from the initiation of services or

twenty-four semester units after the attainment of a Bachelor’s degree, whichever expires first. These time and unit limits do not apply to a parent who demonstrates they are:

Receiving child care for vocational training and has attained a Bachelor's Degree;

Receiving services from a program operating pursuant to Education Code section 66060;

Attending vocational training when the parent has been deemed eligible for rehabilitation services by the California Department of Rehabilitation; or

Attending retraining services available through the Employment Development Department of the State or its contractors due to a business closure or mass layoff.95

Parents must also maintain a 2.0 grade point average during each grading period. In a non-graded program, the parents must pass the program's requirements in at least 50% of the classes or meet the training institution's standard for making adequate progress.96 The CDE states:

In accordance with Section 18087(g) of the Implementation Guidance, it is only at recertification that the parent must provide documentation of adequate progress from the most recently completed quarter, semester, or training period. When the grade reports indicate less than a 2.0 GPA or does not meet the requirements for non-graded programs, the parent must be placed on probation meaning that they may be recertified to receive services but must make adequate progress by the end of this 12-month eligibility period in order to be recertified based on vocational training again.97 CDE contractors may approve child care services for study or travel time in additional to

class time. Travel time to and from the vocational training location can be up to half of the weekly hours authorized for training, up to a maximum of four hours per day. Or, the parent may be approved for child care during study time, including study time for online or televised classes, for:

Two hours per week per academic unit in which the parent is enrolled,

94 CAL. EDUC. CODE § 8263(a)(1)(B)(ii)(II). 95

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18087(l) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 96

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18087(g) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 97

CAL. DEP’T OF EDUC., BUDGET ACT OF 2017 IMPLEMENTATION FAQ n. 21 (Apr. 23, 2018), https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp (last visited Jan. 27, 2019).








On a case-by-case basis and as may be confirmed with the class instructor, with additional time not to exceed one hour per week per academic unit in which the parent is enrolled; and

On a case-by-case basis, no more than the number of class hours per week for non-academic or non-unit bearing training.98

3.5.5.2.1 Documentation of Vocational Training

Required documentation for vocational training includes the days and hours of

vocational training, which must include the: ● Parent’s vocational goal, ● Name of the training institution where the parent is taking the vocational training, ● Dates that the current quarter, semester, or training period will begin and end, ● Current class schedule print-out from the training institution, or if unavailable, a

document that includes the: o Classes in which the parent is enrolled, o Days and times of day of the classes, and o Signature or stamp of the training institution’s registrar.

● Anticipated completion date of all required training activities to meet the vocational goal.99

The parent must also document they are making adequate progress toward the

attainment of the vocational goal by maintaining a 2.0 grade point average each grading period, or passing a non-graded program's requirements in at least 50% of the classes or meeting the training institution's standard for making adequate progress.100

3.5.5.3 Engaged in an Educational Program for English Language Learners, or to Attain a High School Diploma or General Education Development Certificate as the Basis for Need of Care

The statute is now explicit that parents can meet the need requirement by being

“engaged in an educational program for English language learners [“ELL”] or attain[ing] a high

98

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18087(k) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 99

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18087(b)-(c) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at https://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc) (see this section for more details about what the documentation requires). 100

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18087(g) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).











school diploma or general educational development [“GED”] certificate.”101 Prior to January 1, 2018, contractors has discretion to determine whether parents could take these classes and parents could only meet this need requirement if the ELL, high school diploma or GED classes were related to a vocational goal. The “related to vocational goal” previously resulted in contractors rejecting the parent’s application, or applying burdensome conditions. The CDE says:

On October 2, 2017, the Governor approved Assembly Bill 273, which amended EC 8263(a)(1)(B) to specifically provide as a qualifying need for child care services that a family needs the services because “the parents are engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate.” AB 273 became effective as of January 1, 2018. There is no requirement in this statutory language that these educational programs be related to supporting the attainment of a vocational goal. At this time, there are no regulations in effect related to this statutory change.102

ADVOCACY TIP: If your client is denied CDE child care services because they are taking ELL, high school diploma, or GED classes that the contractor considers to be unrelated to a vocational goal, tell the contractor there has been a change in law, parents can take these classes irrespective of whether they are related to attaining a vocational goal, and show them the CDE Management Bulletin 18-02.

As with all the other need requirements, once certified, the family meets the

need requirement for CDE child care for not less than 12 months. The number of approved CDE child care hours should be based on the number of hours reflected in the written documentation and contractors should include a reasonable number of hours for additional travel and study time. Contractors should reference section 18087 of the attached guidance to the CDE 12-month eligibility Management Bulletin (Management Bulletin) 17-14 to help determine the number of hours for travel and study time (see above section, “Vocational Training as the Basis for Care.”103

101

CAL. EDUC. CODE § 8263(a)(1)(B)(ii)(II). 102

CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-02 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1802.asp. 103

CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-02 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1802.asp (note the MB says reference 5 CCR 18087, but this code is outdated. Refer to section 18087 in MB 17-14 instead); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18087 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).







3.5.5.3.1 Documentation of ELL, High School Diploma or GED Classes Currently, the CDE MB 18-02 is the only guidance on how to implement this need

requirement, and says, “In order to be certified based on this need, contractors must be provided with written documentation evidencing the parent’s enrollment in a recognized ELL educational program or a program to attain a high school diploma or GED/HSE certificate.”104

3.5.5.4 Seeking Permanent Housing for Family Stability As Basis of Need for Care

Parents can meet the need requirement by demonstrating they are searching for

permanent housing.105 Child care may be provided for no more than five days per week and for less than thirty hours per week.106 If the family is in a shelter, child care may also be provided while the parent attends appointments or activities necessary to comply with the shelter participation requirements.107

3.5.5.4.1 Documentation of Seeking Permanent Housing for Family Stability

The parent must sign a declaration under penalty of perjury that the parent is seeking

permanent housing, including: ● The parent’s search plan to secure a fixed, regular, and adequate residence, and ● A general description of when child care is necessary.

3.5.5.5 Parental Incapacity as the Basis of Need for Care

The final way a parent may meet the need basis for CDE child care is by meeting the

definition of “parental incapacitation,” which is defined as the temporary or permanent inability of the child’s parent(s) to provide care and supervision of the child for part of the day due to a physical or mental health condition.108 If the basis of need for CDE child care is parental incapacity, authorized child care services cannot exceed 50 hours per week.

104


CAL. EDUC. CODE § 8263(a)(1)(B)(ii)(IV). 106

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18091(a) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 107

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18091(b) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 108

CAL. EDUC. CODE § 8263(a)(1)(B)(ii)(V); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION

GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18078(o), 18406(c)(5), (d)(2) (Stage 2), 18421(b)(5), (c)(2) (Stage 3) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).










3.5.5.5.1 Documentation of Parental Incapacity The parent must provide a release authorizing a legally qualified health professional to

disclose information necessary to establish that the parent meets the definition of incapacity and needs services. “Legally qualified health professional means a person licensed under applicable laws and regulations of the State of California to perform legal, medical, health or social services for the general public.”109 The health professional must provide documentation to confirm the parent’s incapacity that includes:

1) A statement that the parent is incapacitated, that the parent is incapable of providing care and supervision for the child for part of the day, and, if the parent is physically incapacitated, that identifies the extent to which the parent is incapable of providing care and supervision;

2) The days and hours per week that services are recommended to accommodate the incapacitation, taking into account the age of the child and the care needs. This may include time for the parent's regularly scheduled medical or mental health appointments; and

3) The name, business address, telephone number, professional license number, and signature of the legally qualified health professional who is rendering the opinion of incapacitation and, if applicable, the name of the health organization with which the professional is associated.110

Prior to July 1, 2017, the documentation also needed to include the probable duration of the incapacitation. Now, parents are certified for incapacitation for no less than 12 consecutive months once certified, as long as their income does not exceed 85% of the SMI.

ADVOCACY TIP: In the past, contractors have placed a heavy emphasis on documentation and on frequent review of incapacity cases. Advocates can assist parents in obtaining the necessary documentation to confirm the extent of their incapacity. Also, if contractors attempt to limit the term of care based on incapacity for less than 12 months, they can inform the contractor that parents must receive at least 12 months of continuous CDE child care, and that no reporting requirements apply during this period unless the

109

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18078(l) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 110

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18088 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).







adjusted family income exceeds 85% of the SMI. The advocate can show the contractor section 18088 of the attached guidance to the CDE MB 17-14 and the CDE FAQ on implementation of 12-month eligibility.111

A parent applying for CDE child care must also provide documentation regarding the

child’s absent parent. The regulations require that when only one parent has signed the application and the information indicates the child has another parent whose name does not appear on the application, the presence or absence of that parent must be documented.112 The regulations allow for a variety of documents as proof of the absence of the other parent, but specifically prohibit a self-declaration except under very limited circumstances.113 Although the regulations permit documentation that includes rental agreements or utility bills for the residence indicating that the parent is the responsible party, there is also a provision allowing contractors to request additional documentation to verify family composition and family size if the information provided by the parent is “insufficient,” and leaves it to contractor discretion to determine sufficiency.114 3.5.5.6 Limited Term Service Leaves

Prior to July 1, 2017, if a family receiving CDE child care did not meet the need

requirement for services for a temporary amount of time, the contractor could grant the family a “limited term service leave.” For example, parents might request limited term service leaves when a parent had a break in employment, the child had summer break, or when a parent was staying home with a new baby. When the 12-month eligibility law went into effect on July 1, 2017, the limited term service regulation was repealed because families are now considered to meet all eligibility requirements for at least 12 months after certification, unless their family adjusted income exceeds 85% of the SMI.

Parents may still request a temporary suspension of child care services if their child is

expected to not attend a program for a period of time. The CDE Budget Act of 2017 Implementation FAQ says:

111

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18088(f) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc); CAL. DEP’T OF EDUC., BUDGET ACT OF 2017

IMPLEMENTATION FAQ n. 8-9 (Apr. 23, 2018), https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp (last visited Jan. 29, 2019) (section on 12-Month eligibility).

112 CAL. CODE REGS. tit. 5, § 18100(a)(2).

113 CAL. CODE REGS. tit. 5, § 18100(a)(2), (3) (“[if], due to the recent departure of a parent from the family, the

remaining applicant parent cannot provide any documentation pursuant to subdivision (a)(2), the applicant parent may submit a self-declaration signed under penalty of perjury explaining the absence of that parent from the family. Within six months of applying or reporting this change in family size, the parent must provide documentation pursuant to subdivision (a)(2).”). 114

CAL. CODE REGS. tit. 5, §§ 18100(a)(2)(D), (b).






Limited Term Service Leave has been repealed; however, if a family has a gap in service do they get disenrolled? The intent of the 12-month eligibility provision is to provide continuity of care for children and families. Contractors may have a policy allowing parents to request a temporary suspension of services, but the policy can not preclude the child from attending while the parent is using the temporary suspension of services. Contractors need to remind parents of the importance and benefits of a child consistently attending their program even in the event that a parent needs a temporary suspension of those services.

If a contractor grants a family a temporary suspension of services, attendance will not be reported during the child’s absence. Upon return after the temporary suspension, the family will receive services based on the certified hours they were receiving before they left.

If there is a gap in service that is not due to an excused absence or an approved temporary suspension of services, the parent is still required to abide by the contractor’s absence policies.115

3.6 CALWORKS STAGES 2 AND 3 Understanding CalWORKs child care is complicated by a rather arbitrary division into

three stages administered by two different state administrative agencies: DSS administers Stage 1, which is covered in Chapter 2 of this manual, and CDE administers Stages 2 and 3. Nearly all of the regulations that govern CDE-administered non-CalWORKs child care programs described earlier in this chapter also apply to CalWORKs Stages 2 and 3. Unfortunately, the yearly CDE contract funding terms, the CE 12-month Eligibility Implementation Guidance, and the California Code of Regulations, Title 5, are outdated and/or conflict with one another. The lack of clear eligibility rules for CalWORKs Stages 2 and 3 child care results in inconsistent policies being applied to families. The Child Care Law Center takes the position that the CDE eligibility rules listed above also apply to CalWORKs Stages 2 and 3 for three main reasons:

1. The California Education Code section that governs eligibility requirements for CDE

child care programs states: a. The Superintendent shall adopt rules and regulations on eligibility, enrollment,

and priority of services needed to implement this chapter. In order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas.116

115

CAL. DEP’T OF EDUC., BUDGET ACT OF 2017 IMPLEMENTATION FAQ n. 32 (Apr. 23, 2018), https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp (last visited Feb. 3, 2019) (section on 12-Month eligibility). 116

CAL. EDUC. CODE § 8263(a)(1).

https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp#limited-term-service-leave-has-been-repealed-however-if-a-family-has-a-gap-in-service-do-they-get-disenrolled

https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp#limited-term-service-leave-has-been-repealed-however-if-a-family-has-a-gap-in-service-do-they-get-disenrolled




b. “Federal and state subsidized child development services” includes CDE, CalWORKs Stage 2, and CalWORKs Stage 3 child care programs. These programs are administered by the California Department of Education, and are federally and state funded.

2. The 12-month eligibility law applies to all CDE child care programs, including CalWORKs Stages 2 and 3. To have certain eligibility rules apply to CDE programs, but not to CalWORKs Stages 2 and 3, it would be sometimes impossible to comply with the 12-month eligibility law.117

3. Contractors are required to seamlessly transfer families through the stages of CalWORKs child care. If eligibility requirements are different for Stages 2 and 3, then transferring families without any break in service would sometimes be impossible.118

ADVOCACY TIP: IF YOU HAVE PROBLEMS OR CONFUSION ABOUT ELIGIBILITY REQUIREMENTS

FOR CALWORKS STAGES 2 AND 3 CHILD CARE, PLEASE CALL THE CHILD CARE LAW CENTER.

The main differences between CalWORKs Stages 2 and 3 and non-CalWORKs CDE child

care rules are: ● Stage 2 is an entitlement program, likes Stage 1 child care. This means if families

qualify for CalWORKs Stage 2 child care, they must receive it and cannot be placed on child care waiting list. 119 If child care is unavailable in Stage 2, then the family must receive Stage 1 child care.120

● Stage 3 is not an entitlement child care program.121 ● The 24-month time limit of child care services that applies to Stage 2 child care does

not apply to Stage 3 or other CDE child care programs.

117

CAL. EDUC. CODE §§ 8263(h), 8263.1; see CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 17-14 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (illustrating how 12-Month eligibility law applies to CalWORKs Stages 2 and 3 child care) (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc); CAL. DEP’T OF EDUC., BUDGET

ACT OF 2017 IMPLEMENTATION FAQ (Apr. 23, 2018), https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp (last visited Feb. 3, 2019). 118

See CAL. EDUC. CODE § 8350(b); MPP § 47-301.4-.41. 119

CAL. EDUC. CODE § 8353(a) (“A family leaving cash aid under the CalWORKs program shall receive up to two years of child care, if otherwise eligible, as needed to continue the family’s employment.”); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18408(a) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp(find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc); MPP § 47-301.5. See also Chapter 2 of this manual, “Stage 1 Child Care,” for information about the entitlement status of families receiving Stage 2 while receiving CalWORKs cash assistance. Although the entitlement is contingent on the availability of funds, the Legislature has made clear its intention to ensure that funds are sufficient. See CAL. EDUC. CODE § 8359.1; CAL. WELFARE & INST. CODE § 11322.4. 120

MPP § 47-230.1.11. 121

CAL. DEP’T OF SOC. SERVS., CHILD CARE PROGRAM ELIGIBILITY, http://www.cdss.ca.gov/inforesources/CalWORKs-Child-Care/Program-Eligibility (last visited Feb. 3, 2019) (“Stages One and Two services are considered to be an entitlement; however, Stage Three services are dependent on fund availability.”). Compare CAL. EDUC. CODE § 8353(a) (“A family leaving cash aid under the CalWORKS program shall receive up to two years of child care. . .”), with CAL. EDUC. CODE § 8354 (pertaining to Stage 3 and does not say eligible families “shall” receive child care.).











http://www.cdss.ca.gov/inforesources/CalWORKs-Child-Care/Program-Eligibility

http://www.cdss.ca.gov/inforesources/CalWORKs-Child-Care/Program-Eligibility



● To be eligible for any CalWORKs Stage of child care, the parent must receive or have received CalWORKs cash assistance (not just for their children). 122 Families in which only the children receive or received CalWORKs cash assistance – because the parents lack the immigration status necessary to receive cash assistance or the children are living with non-needy caretaker relatives – are ineligible for any stage of CalWORKs assistance for child care.123

● All CalWORKs Stages of child care are voucher programs. Like other CDE child care, families in all stages of CalWORKs child care may select any available legal child care provider in their community, including Family, Friend and Neighbor care (also called “license-exempt” care).124

3.6.1 “Seamless” Transition Between Stages 1, 2, and 3

Despite the legislative intent that eligible participants should have seamless child care as

they transition from welfare to work,125 families often have problems in accessing, maintaining, and transitioning through each stage of CalWORKs child care. CalWORKs participants who are successful in accessing child care often do not know which stage of child care they are in, which rules apply, and which agency to contact to ensure continuity of child care.

CWDs are supposed to transition families from Stage 1 to Stage 2 child care when they

are in a “stable” welfare-to-work activity, generally after they have received Stage 1 for up to six months.126 However, counties have a wide range of definitions of “stability” in welfare-to-work activities, and so throughout California, CWDs and CDE contractors have developed widely varying policies regarding the timing of the transition from Stage 1 to Stage 2.

The number of families who lose child care between Stage 2 and Stage 3 tends to be

very high. The most significant barrier is CDE’s interpretation of the regulation that says a parent is eligible for Stage 3 child care if they are, “[a] former CalWORKs cash aid recipient and is in his/her 24th month of eligibility for CalWORKs Stage 1 and/or 2 after leaving CalWORKs

122

Note that the above section on eligibility requirements for CDE programs, explains that Stage 2 and Stage 3 have a another need eligibility option of “participating in job retention services as approved by the county welfare department” and that participants still receiving cash assistance must be participating in an approved welfare-to-work activity or be employed. 123

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18406(a)(4), (to be eligible for Stage 2, participant must receive CalWORKs cash assistance, have received cash assistance within the last 24 months, or received diversion services), 18421(a)(4) (to be eligible for Stage 3, a parent or guardian must be a former CalWORKs cash assistance or grant participant and in their 24

th month of eligibility for CalWORKs Stage 1 and/or Stage 2 after leaving CalWORKs cash assistance or

grants, or received diversion services) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc) MPP §§ 47-220.1, 47-220.332 (Stage 1). 124

CAL. CODE REGS. tit. 5, §§ 18411(a), 18426(a). 125

CAL. EDUC. CODE § 8350 (“[I]t is the intent of the Legislature that families experience no break in their child care services due to a transition between the three stages.”); MPP §§ 47-101.3, -101.5; CAL. DEP’T OF EDUC., MANAGEMENT

BULLETIN 18-05 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1805.asp (transfer of families into CalWORKs Stage 2). 126

CAL. EDUC. CODE § 8351(b); MPP § 47-301.5.







cash aid,” to mean that the family must actually be receiving Stage 1 or 2 assistance for child care in the 24th month of the post-cash assistance period in order to transition to Stage 3 child care.127 Other bureaucratic barriers, such as contractors’ failure to transfer necessary paperwork, makes it difficult for eligible families to receive or maintain any type of subsidy. Some CDE contractors have policies that require in-person meetings at times that conflict with parents’ work schedules, and many families struggle with agencies’ excessive documentation requirements. Advocates have an important role to play in ensuring that eligible families receive affordable child care and are appropriately transitioned between the various stages of CalWORKs child care.

Transitions can be more complicated for families moving from Stage 1 administered by a

CWD to Stage 2 administered by a CDE contractor, but in many counties CWDs and Alternative Payment Programs work well together to provide smooth transitions. To help ensure that Stage 1 to Stage 2 transitions are handled properly, CDE issued Management Bulletin 18-05 reiterating transfer requirements and procedures, and detailing each agency’s responsibilities.128 MB 18-05 highlights:

The Stage 2 contractors, in coordination with the Stage 1 Program Administrator, must develop efficient coordinated systems for transferring families from Stage 1 to Stage 2 that ensure that the families do not experience a break in their child care services. Stage 2 contractors must not institute or maintain policies or administrative procedures that hinder or impede that smooth transition. Contractors are also reminded that families are categorically eligible to receive child care services if the parent is currently receiving CalWORKs cash aid… The receiving Stage 2 contractor must not require the family to furnish any documentation in order to transfer into Stage 2….Beginning on the transfer date, when the nine data elements have been received by the Stage 2 Program, the Stage 2 contractor must do the following: 1. Assume the full responsibility for reimbursing the provider. 2. Provide the parent a written notice informing the parent of the transfer to Stage 2. To fulfill this requirement, contractors may use the revised Welcome Letter (or agency form) provided in Attachment A(DOCX) to notify the parent. Contractors using their own written notice must not use one that requires parents to self certify the enrollment information or otherwise requires family documentation.129

127

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18421(a)(4)(A) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 128

CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-05 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1805.asp (transfer of families into CalWORKs Stage 2). 129

CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-05 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1805.asp (transfer of families into CalWORKs Stage 2).

https://www.cde.ca.gov/sp/cd/ci/documents/mb1805att.docx

https://www.cde.ca.gov/sp/cd/ci/documents/mb1805att.docx









ADVOCACY TIP: Legal services advocates can be of particular assistance to families who have received CalWORKs child care and are having difficulty in transitioning between stages or in again accessing assistance for child care. When a client has not been transferred to CalWORKs Stage 2 or Stage 3 child care, or has lost their CalWORKs child care due to sanction, ensure the agency is complying with MB 18-05 (pertaining to the required transfer process) and ACL 15-53 (pertaining to sanctioned CalWORKs participants).130

3.6.2 Stage 2

CalWORKs Stage 2 child care is available to families who currently receive cash

assistance and to families who received CalWORKs ongoing cash assistance within the past 24 months or a lump-sum diversion payment within the past 24 months. Families who currently receive CalWORKs cash assistance must be in an approved CalWORKs approved Welfare-to-Work Activity or be employed. Parents who previously received cash assistance for themselves and no longer receive cash assistance due to sanctions are also eligible to receive CalWORKs Stage 2 child care as “former” CalWORKs participants.131

As noted above, while the current regulations and subregulatory guidance are outdated

and/or conflict with each other, the Child Care Law Center takes the stand that the same requirements that apply to the other CDE child care programs also apply to CalWORKs Stages 2 and 3. However, note that the way income is calculated for CalWORKs Stages 2 and 3 child care is different than for other CDE child care programs.132 In order to receive CalWORKs Stage 2 and 3 child care, like other CDE child care, parents must be unavailable to care for and supervise their children and supervision of the child cannot be provided by school or another person or entity while using child care services.133

130

CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN 18-05 (2018), https://www.cde.ca.gov/sp/cd/ci/mb1805.asp (transfer of families into CalWORKs Stage 2); CAL. DEP’T OF SOC. SERVS., ACL 15-53 (2015), http://www.cdss.ca.gov/lettersnotices/EntRes/getinfo/acl/2015/15-53.pdf (CalWORKs Stage 1 child care for sanctioned adults). 131

CAL. DEP’T OF SOC. SERVS., ACL 15-53 (2015), http://www.cdss.ca.gov/lettersnotices/EntRes/getinfo/acl/2015/15-53.pdf (CalWORKs Stage 1 child care for sanctioned adults); MPP 47-110(f)(3) (defining "Former CalWORKs client" to be “an individual who received cash aid under CalWORKs in the prior 24 months and needs child care to continue his or her employment or fulfill his or her county-approved program activity”). Note that a sanctioned CalWORKs client is also eligible for Stage One child care as long as they are participating in county-approved program activities or working. MPP § 47-220.32. 132

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18406(a)(2)(A), 18421(a)(2)(A) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 133

CAL. CODE REGS. tit. 5, § 1085.5.



http://www.cdss.ca.gov/lettersnotices/EntRes/getinfo/acl/2015/15-53.pdf










CalWORKs Stage 2 child care can be a particularly confusing because it is available in

wide variety of circumstances and shares similarities with both Stage 1 and Stage 3. CalWORKs Stage 2 is administered on the state level by CDE, and on the local level by CDE’s Stage 2 contractors (usually Alternative Payment Program but some CWDs have contracts with CDE to administer Stage 2).134 Even though CDE administers Stage 2 child care vouchers, families may receive Stage 2 assistance for child care while they are still receiving DSS-administered CalWORKs cash assistance. Parents may continue to be eligible for Stage 2 services for up to two years after they transition from CalWORKs cash assistance.135

If Stage 2 child care is unavailable in a county due to a funding shortfall or for other

reasons, eligible current and former CalWORKs participants are entitled to Stage 1 child care.136 See Chapter 2 for more information on Stage 1. Families subject to a CalWORKs sanction are defined as “former recipients” for purposes of CalWORKs child care and thus are eligible for Stage 2 child care.137 Former CalWORKs participants must meet CDE Stage 2 or Stage 3 eligibility requirements, rather than DSS Stage 1 requirements.138

3.6.2.1 Children’s Eligibility

The requirements for children’s eligibility are the same for Stages 2 and 3. An eligible child must:

● Live in the household of the eligible family and be o A son or daughter of the eligible parent (see definition of “parent” in

definitions section);

134


CAL. EDUC. CODE § 8353(a); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18408(d) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc); MPP § 47-230.142. The 24 months of post-cash assistance subsidies are available to CalWORKs participants even if the family received Stage 2 assistance for child care while on cash assistance. 136

CAL. EDUC. CODE §§ 8351(c), 8353(a); CAL. CODE REGS. tit. 5, § 18400(f); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH

ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18408(d) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 137

CAL. CODE REGS. tit. 5, § 18400(f); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18408(a)(4)(B) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 138

CAL. EDUC. CODE § 8353(a) (describing the eligibility requirements for Stage 2, and noting, “Family size and income for purposes of determining eligibility and calculating the family fee shall be determined pursuant to Sections 8263 and 8263.1”); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18406 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).











o Receiving foster care, Supplemental Security Income (SSI), or State Supplemental Program (SSP) benefits [and therefore not receiving CalWORKs cash assistance]; or

o The responsibility of the adult to support. A lack of child care also would have to result in the adult not being able to work or participate in work activities.139

And be ● Under 13 years old, or under 22 years old if the child has exceptional need and is

incapable of caring for themself as determined by a legally qualified professional).140

Eligibility for children whose residence alternates between the homes of separated or divorced parents is determined separately for each household at the time each of the parents applies for child care services.141

ADVOCACY TIP: Because of the 12-month eligibility law, a child who turns 13 years old after recertification remains eligible for all CDE child care, including CDE CalWORKs child care, until their next recertification date.142

3.6.2.2 Families Who Have Never Received Stage 1 Are Eligible for Stage 2

Most families receive CalWORKs Stage 2 child care after they transition from Stage 1

child care. However, families need not have received Stage 1 child care in order to receive Stage 2. Rather, the parents must be current or former participants in the CalWORKs cash assistance program.143 Occasionally, in some counties, current CalWORKs cash assistance or grant participants are placed directly into CalWORKs Stage 2. If a family’s work or welfare-to-work activity is stable when they do apply for child care, Stage 2 assistance for child care is appropriate. Some families, however, do not access child care at all while they are receiving cash assistance, but have a need for child care once they leave CalWORKs cash assistance or grants. This means that the family members’ first receipt of affordable child care is as “former” CalWORKs participants and therefore their eligibility is for Stage 2 child care. 3.6.2.3 Stage 2 Eligibility After Diversion Payments

Some families who have never received ongoing CalWORKs cash assistance are still eligible for Stage 2 child care because they received a CalWORKs lump-sum diversion payment.144 Diversion is a one-time payment that is supposed to help people get or keep a job

139

CAL. CODE REGS. tit. 5, §§ 18407(a) (Stage 2), 18422(a) (Stage 3). 140

CAL. CODE REGS. tit. 5, §§ 18407(b) (Stage 2), 18422(b) (Stage 3). 141

CAL. CODE REGS. tit. 5, §§ 18407(c) (Stage 2), 18422(c) (Stage 3). 142

CAL. DEP’T OF EDUC., BUDGET ACT OF 2017 IMPLEMENTATION FAQ n. 30 (Apr. 23, 2018), https://www.cde.ca.gov/sp/cd/ci/budgetactfaq2017.asp (last visited Feb. 3, 2019). 143

CAL. EDUC. CODE §§ 8350.5, 8353(a); CAL. CODE REGS. tit. 5, § 18405(c). 144





and to keep them off cash assistance. Diversion is designed to provide families with assistance in addressing an emergency, rather than providing ongoing assistance.145

CalWORKs diversion can help with child care expenses in several ways. First, if getting

help with overdue child care payments or enrollment fees will enable a family to get or keep a job, then CalWORKs diversion may be available.146 Second, the diversion payment may also include funds to cover child care services during the period of diversion.147 Lastly, after receiving a diversion payment, parents may be eligible for Stage 2 child care.148 Diversion policies vary by county, so check your county’s CalWORKs plan to determine availability.

In 2010, after Stage 3 was defunded, a number of counties used diversion to provide

child care subsidies without an accompanying lump sum payment (or with a nominal lump sum payment). These counties recognized that many of the Stage 3 parents who had lost their child care assistance were likely to return to CalWORKs cash assistance or grants without their child care assistance. Therefore, the counties used the diversion program as a way to allow the parent to keep working, retain their child care assistance, and avoid returning to CalWORKs cash assistance or grants. This was especially cost effective for the counties because a parent who returns to CalWORKs cash assistance or grants is eligible for child care assistance as a supportive service.

When determining eligibility for this particular use of diversion, the counties

disregarded the prospective participant’s income, based on the idea that without a child care assistance the applicant would be forced to quit their job. If the applicant met all the diversion requirements, the county could use its discretion to approve Stage 2 child care as the diversion service provided, accompanied by either a nominal lump sum payment or no lump sum payment. Because not all counties decided to use CalWORKs diversion in this way, you should contact your local county welfare department to determine how a diversion payment may help your client pay for child care.

MANAGEMENT BULLETIN 17-14, §§ 18406(a)(4)(C), 18408(e) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). Note that families who received a diversion payment can go on to receive Stage 3 child care. Id. at § 18421(a)(4)(B) (This section explains which families are eligible for Stage 3 child care, saying “[a] diversion services recipient and is in his/her 24th month of eligibility for CalWORKs Stage 1 and/or 2 child care.” See the below section on Stage 3 for more information); MPP § 81-215.7. 145

CAL. WELFARE & INST. CODE § 11266.5; MPP §§ 81-215. 146

See CAL. WELFARE & INST. CODE § 11266.5(e). 147

MPP § 47-220.34-.341. 148

CAL. EDUC. CODE § 8353(a); CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18406(a)(4)(C), 18408(e) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).







3.6.2.4 24-Month Stage 2 Time Limit Post Cash Assistance or Diversion Services Families are eligible for Stage 2 while they receive CalWORKs cash assistance. When

parents transition off cash assistance, they can receive Stage 2 assistance for child care for up to 24 months post-cash assistance if they remain otherwise eligible. The period during which a parent received Stage 2 while receiving cash assistance does not count toward the 24 month limit of post-cash assistance Stage 2. The 24-month time limit for receipt of Stage 2 after a parent transitions off CalWORKs cash assistance begins the month immediately following the end of CalWORKs cash assistance or grants for the parent, and runs for 24 continuous months or until the family becomes ineligible within that 24-month period.149 For parents who receive a diversion payment, “the 24-month time limit begins the first day of the month that the family is determined eligible for diversion services.”150 This time limit goes into effect even if the children continue to receive cash assistance but the adult is no longer receiving CalWORKs cash assistance. Receipt of Stage 2 child care does not have to be continuous – the family may receive, leave, and return to Stage 2 assistance for child care any time within the 24-month period, so long as the family is eligible for child care services.151 The 24-month limit continues to run, however, even if the family is not receiving Stage 2 assistance for child care. After the 24 month post-cash assistance period is up, the family may be eligible to transition into Stage 3, which has no time limit.152

It is important to note that a family that transitions off cash assistance, receives Stage 2

child care, and then returns to cash assistance is eligible for Stage 1 child care. After the family again leaves cash assistance, they are eligible for another 24-month period of Stage 2 assistance for child care.153

149

CAL. EDUC. CODE § 8353; CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18408(d) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 150

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18408(e) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 151

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18408(d) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc); CAL. DEP’T OF EDUC., MANAGEMENT BULLETIN

12-09 (2012), https://www.cde.ca.gov/sp/cd/ci/mb1209.asp (CalWORKs Stage 2 Enrollment). 152

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18423 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 153

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18408(f) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).














3.6.3 Stage 3

Stage 3 is available only to former CalWORKs participants who received cash assistance

who have “timed out” of Stages 1 or 2 (i.e., families who have received up to 24 months of Stage 1 or 2 assistance for child care post-cash assistance) and to families that received diversion payments.154 Stage 3 is administered by CDE through its contractors.155 Although the regulations are not clear on this point, CDE has interpreted its regulations as requiring the family to be receiving Stage 1 or 2 child care, and be in the 24th month following receipt of CalWORKs cash assistance or grants in order to be eligible to transition into Stage 3.156

In other words, if there is any break between Stage 1 or 2 and Stage 3, CDE takes the

position that the family loses Stage 3 eligibility. Families are eligible for Stage 3 when a funded child care space is available.157 So long as funding is adequate, families that are income eligible and have a qualifying need for care are admitted to Stage 3 as they time out of their 24th month of eligibility for Stages 1 and 2, without regard to prioritization.158 If child care is unavailable in Stage 3, then former CalWORKs cash assistance participants who are employed must receive Stage 2 or Stage 1 child care.159

All of the major elements of eligibility described earlier in this chapter – income/CPS

requirements, age limits, and work activity or other need requirements – apply to Stage 3. Unlike Stage 2 child care, however, there is no time limit on Stage 3 child care. Like the other CDE child care programs, as long as parents who qualify for Stage 3 remain eligible, they will continue to receive CalWORKs Stage 3 child care. 160

154

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18410(e), 18421 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc) (although section 8353(a) of the California Education Code states that current CalWORKs participants are eligible for Stage 3, in practice, only former participants who are receiving Stage 1 or Stage 2 child care and families that have received a CalWORKs diversion payment receive Stage 3. Current participants get Stage 1 or 2 child care). 155

CAL. EDUC. CODE § 8354. 156


CAL. EDUC. CODE § 8354(a). 158

CAL. CODE REGS. tit. 5, § 18424(d). 159

MPP § 47.220.33-.332. 160

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18421, 18423 (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc).









3.6.3.1 What Happens if Stage 3 Funding is Insufficient If funding is insufficient to provide Stage 3 child care to all eligible families, the

regulations provide detailed procedures for determining which families will receive Stage 3 child care:161

New families (those who are receiving Stage 1 or 2 child care in their 24th month post-cash assistance) will be enrolled in order of lowest to highest incomes until the funding is exhausted.

No new families will receive Stage 3 child care once funding is exhausted.162

No separate Stage 3 waiting list will be kept.163

Families that would have been eligible to receive Stage 3 assistance for child care if funding were available may be considered for non-CalWORKs child care subsidy programs.

If Stage 3 funding later becomes available, families timing out of Stage 2 in that particular month will be enrolled in order of lowest to highest income.164

3.7 ELIGIBILITY FOR CHILD CARE SUBSIDIES FOR IMMIGRANT FAMILIES

3.7.1 Immigrants and Non-CalWORKs CDE Child Care

There are very few immigrant eligibility requirements for California’s non-CalWORKs

child care programs, either for parents or for children. CDE regulations confirm that the determination of eligibility for child care and development services must be without regard to the immigration status of the child or the child’s parent(s) unless they are under a final order of deportation from the United States Department of Justice.165

Under federal Child Care and Development Fund (CCDF) regulations, the immigration

status of parents and children is not an element of eligibility.166 But under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), verification of the child’s immigration status is required for receipt of federally-subsidized child care because the child is identified as the primary beneficiary of the subsidized care. The Final CCDF Rule of 2016 comments state that this mandate is now codified:

The final rule adds paragraph (c), clarifying that only the citizenship and immigration status of the child, the primary beneficiary of CCDF, is relevant for

161

Threats to cut funding for Stage 3 child care has caused a crisis for several years, with funding being found only at the last minute. See Cal. Dep’t of Fin., California Historical Budget Publications (2009), http://www.dof.ca.gov (follow “Historical Budget Publications” hyperlink.). In 2010, the entire CalWORKs Stage 3 program was eliminated from the budget in a line item veto. The Child Care Law Center successfully challenged the implementation of the cut but adequate funding for Stage 3 has remained a challenge. 162

CAL. CODE REGS. tit. 5, § 18424(f)(3). 163

CAL. CODE REGS. tit. 5, § 18424(f)(4). 164

CAL. CODE REGS. tit. 5, § 18424(g). 165

CAL. CODE REGS. tit. 5, § 18107(d). 166

See 45 C.F.R. §§ 98.20, 98.50.



the purposes of determining eligibility under PRWORA and that a Lead Agency, or other administering agency, may not condition eligibility based upon the citizenship or immigration status of the child’s parent. Under title IV of PRWORA, CCDF is considered a program providing Federal public benefits and thus is subject to requirements to verify citizenship and immigration status of beneficiaries.167 State agencies are not required to verify a child’s immigration status for federally-

funded child care services under a variety of circumstances, including (1) when the services are subject to the federal Head Start Program Performance Standards and supported by combined Head Start and CCDF funding and (2) when the services are subject to public educational standards, including public and private pre-Kindergarten settings that are subject to public educational standards.168 Moreover, non-profit charitable organizations (which many APs are) are not required to determine, verify, or otherwise ask for proof of immigration status.169

In addition, federal regulations prohibit states from requiring parents to provide Social

Security Numbers (SSNs) as a condition of receipt of child care assistance and from denying

167

A Child’s Eligibility for Child Care Services: Section-by-Section Discussion of Comments and Regulatory Provisions, 81 Fed. Reg. 67447, 67461 (Sept. 30, 2016) (comments section for §98.20 under “Additional eligibility criteria"), https://www.gpo.gov/fdsys/pkg/FR-2016-09-30/pdf/2016-22986.pdf; A Child’s Eligibility for Child Care Services, 81 Fed. Reg. 67579, §98.20(c) (Sept. 30, 2016) (codified at 45 CFR § 98.20(c)), https://www.gpo.gov/fdsys/pkg/FR-2016-09-30/pdf/2016-22986.pdf. 168

A Child’s Eligibility for Child Care Services: Section-by-Section Discussion of Comments and Regulatory Provisions, 81 Fed. Reg. 67447, 67461 (Sept. 30, 2016), https://www.govinfo.gov/content/pkg/FR-2016-09-30/pdf/2016-22986.pdf (This part of the comments section for § 98.20, under “Additional eligibility criteria”, discusses ACF program instruction ACYF-PI-CC-98-08, which clarified when citizenship verification was not required and can be found at https://www.acf.hhs.gov/occ/resource/pi-cc-98-08.); DEP’T OF HEALTH & HUMAN SERVS., CCDFACF-PI-2008-01, OFFICE OF CHILD CARE ADMIN. FOR CHILDREN & FAMILIES PROGRAM INSTRUCTION (2008), https://www.acf.hhs.gov/sites/default/files/occ/pi2008_01.pdf (clarification of policy regarding verification of the citizenship and immigration status of Child Care and Development Fund (CCDF) applicants when non-profit organizations determine eligibility for the CCDF program and when a child receives combined CCDF and Head Start services); DEP’T OF HEALTH & HUMAN SERVS., ACF-IM-HS-15-03, OFFICE OF CHILD CARE ADMIN. FOR CHILDREN & FAMILIES

INFORMATIONAL MEMORANDUM (2015), https://www.acf.hhs.gov/sites/default/files/occ/acf_im_ohs_15_03.pdf (policy and program guidance for the Early Head Start-Child Care Partnerships (EHS-CCP)). 169

8 U.S.C. § 1642(d); DEP’T OF HEALTH & HUMAN SERVS., ACFY-PI-CC-98-08, OFFICE OF CHILD CARE ADMIN. FOR CHILDREN &

FAMILIES CLARIFICATION OF INTERPRETATION OF “FEDERAL PUBLIC BENEFIT” REGARDING CCDF SERVICES (1998), https://www.acf.hhs.gov/occ/resource/pi-cc-98-08 (“The Department of Justices Proposed Rule on Verification for Public Benefits defines a non-profit charitable organization as: "an organization that is organized and operated (1) for purposes other than making gains or profits for the organization, its members or shareholders, and is precluded from distributing any gains or profits to its members or shareholders; and (2) for charitable purposes, including relief of the poor and distressed or the underprivileged, advancement of religion, or advancement of education.””); DEP’T OF HEALTH & HUMAN SERVS., CCDFACF-PI-2008-01, OFFICE OF CHILD CARE ADMIN. FOR CHILDREN &

FAMILIES PROGRAM INSTRUCTION (2008), https://www.acf.hhs.gov/sites/default/files/occ/pi2008_01.pdf (clarification of policy regarding verification of the citizenship and immigration status of Child Care and Development Fund (CCDF) applicants when non-profit organizations determine eligibility for the CCDF program and when a child receives combined CCDF and Head Start services).

https://www.gpo.gov/fdsys/pkg/FR-2016-09-30/pdf/2016-22986.pdf

https://www.gpo.gov/fdsys/pkg/FR-2016-09-30/pdf/2016-22986.pdf

https://www.govinfo.gov/content/pkg/FR-2016-09-30/pdf/2016-22986.pdf


https://www.acf.hhs.gov/occ/resource/pi-cc-98-08

https://www.acf.hhs.gov/sites/default/files/occ/pi2008_01.pdf



https://www.acf.hhs.gov/sites/default/files/occ/acf_im_ohs_15_03.pdf








assistance to applicants on the basis of refusal to provide a SSN.170 The Final CCDF Rule of 2016 states:

Section 658K(a)(1)(E) of the Act prohibits the monthly case-level report from containing personally identifiable information. As a result, this final rule amends language at § 98.71(a)(14) by deleting Social Security Numbers (SSNs) and instead requiring a unique identifying number from the head of the family unit receiving assistance and from the child care provider. It is imperative that the unique identifier assigned to each head of household be used consistently over time—regardless of whether the family transitions on and off subsidy, or moves within the State or Territory. This will allow Lead Agencies and ACF to identify unique families over time in the absence of the Social Security Number (SSN). A Lead Agency may still use personally identifiable information, such as SSNs, for its own purposes, but this information cannot be reported on the ACF–801. Furthermore, pursuant to the Privacy Act (5 U.S.C. 552a note), Lead Agencies cannot require families to disclose SSNs as a condition of receiving CCDF services.171

The CDE requires its contractors to request the SSN of the head of each family applying

for child care services. The CDE application form explains that reports will not individually identify any person or family by SSN and also confirms that if the parent does not wish to provide a SSN the family may still receive child care assistance.172 The signed form indicating the parent’s decision must be maintained in the files of the local CDE contractor administering the subsidy.173

Despite these protections, many immigrant parents with eligible children do not apply

for subsidized child care due to lack of knowledge about their eligibility for services or out of concern that their own immigration status may become an issue. Immigrant parents also often have difficulty proving their income eligibility for child care subsidies. For additional information

170

DEP’T OF HEALTH & HUMAN SERVS., ACYF-PI-CC-00-04, OFFICE OF CHILD CARE ADMIN. FOR CHILDREN & FAMILIES PROGRAM

INSTRUCTION (2000), https://www.acf.hhs.gov/occ/resource/pi-cc-00-04 (clarifying policy regarding limits on the use of Social Security Numbers under the CCDF and the Privacy Act of 1974); see also A Child’s Eligibility for Child Care Services: Section-by-Section Discussion of Comments and Regulatory Provisions, 81 Fed. Reg. 67451, 67452 (Sept. 30, 2016), https://www.govinfo.gov/content/pkg/FR-2016-09-30/pdf/2016-22986.pdf (comments section for § 98.15); A Child’s Eligibility for Child Care Services: Section-by-Section Discussion of Comments and Regulatory Provisions, 81 Fed. Reg. 67531, 67532 (Sept. 30, 2016), https://www.govinfo.gov/content/pkg/FR-2016-09-30/pdf/2016-22986.pdf (comments section for § 98.71). 171

A Child’s Eligibility for Child Care Services: Section-by-Section Discussion of Comments and Regulatory Provisions, 81 Fed. Reg. 67531, 67532 (Sept. 30, 2016), https://www.govinfo.gov/content/pkg/FR-2016-09-30/pdf/2016-22986.pdf (comments section for § 98.71). 172

CAL. DEP’T OF EDUC., FORM CD 9600a, CHILD CARE DATA COLLECTION PRIVACY NOTICE AND CONSENT FORM (Rev. 01/04), http://www.cde.ca.gov/sp/cd/ci/documents/cd9600a.doc (“To ensure that children and families receiving child care services are counted only once, HHS and CDE are requesting the Social Security Number of the head of the family unit receiving child care assistance. If you do not wish to give your Social Security Number for this purpose, you may still receive child care assistance.”). 173

See CAL. CODE REGS. tit. 5, § 18070(e).







http://www.cde.ca.gov/sp/cd/ci/documents/cd9600a.doc



on the intersection of child care subsidies and immigration status, contact the Child Care Law Center. 3.7.2 Immigrants and CalWORKs Child Care Stages 2 and 3

The immigration status requirements for CalWORKs child care are more onerous than for non-CalWORKs child care because the immigrant eligibility requirements that apply to CalWORKs cash assistance also apply to CalWORKs child care. In order to be qualify for CalWORKs, the participant must be a:

● U.S. citizen, ● U.S. Nationals born in U.S. territories such as American Samoa or the American

Virgin Islands, or ● Non-citizen who is a “qualified alien/qualified non-citizen”

o Lawfully admitted for permanent residence, o Permanently residing in the U.S. under color of law (PRUCOL), including

persons granted status as a: refugee, asylees, and parolees; conditional entrants; persons granted an indefinite stay of deportation; persons granted indefinite voluntary departure in lieu of deportation, or

o Victim of trafficking, domestic violence or other serious crime victim.174 In order to be eligible for CalWORKs child care, parents must either currently receive CalWORKs cash assistance for themselves or have received it in the past.175 Parents who lack the immigration status necessary to receive CalWORKs cash assistance for themselves cannot qualify for CalWORKs child care subsidies, even if their child receives cash assistance, because eligible is based on that of the parent.

3.8 CHILD CARE ELIGIBILITY FOR NATIVE AMERICAN FAMILIES

In California, Native American families may be eligible to receive child care services

through Tribal TANF,176 Tribal CCDF,177 CalWORKs, or through CDE non-CalWORKs child care

174

CAL. DEP’T OF SOC. SERVS., MANUAL OF POLICIES & PROCEDURES [hereafter “MPP”] § 42-433.3. 175

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, §§ 18406(a)(4) (to be eligible for Stage 2, participant must receive CalWORKs cash assistance, have received cash assistance within the last 24 months, or received diversion services), 18421(a)(4) (to be eligible for Stage 3, a parent or guardian must be a former CalWORKs cash assistance or grant participant and in their 24

th month of eligibility for CalWORKs Stage 1 and/or Stage 2 after leaving CalWORKs cash assistance or

grants, or received diversion services) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc); MPP § 47-201 (Stage 1 child eligibility requirements). 176

See CAL. DEP’T OF SOC. SERVS., CDSS PROGRAMS: TRIBAL TANF, http://www.cdss.ca.gov/inforesources/Tribal-TANF (last visited Feb. 3, 2019).



http://www.cdss.ca.gov/inforesources/Tribal-TANF



programs. Native American families must meet the specific child care program’s eligibility criteria. For example, parents must receive or have received CalWORKs cash assistance or CalWORKs diversion services to be eligible for CalWORKs child care, irrespective of whether they are Native American.178 When a Tribal TANF or CCDF Tribal program is established and the program offers child care services, Native American families receiving CalWORKs child care may choose to continue to do so or they can transfer to the Tribe’s child care program.179 Native American parents who do not qualify for CalWORKs child care may receive child care services either through a Tribal TANF or CCDF Tribal program as well. To do so, they should contact an Alternative Payment Program in their county to see what child care programs are offered and for which ones they qualify.180

Under the CCDF Final Rule of 2016, which pertains to non-CalWORKs CDE child care

(funded by CCDF), Tribal Lead Agencies are subject to CCDF rules based on the size of their federal grant allocation which is either, “small,” “medium,” or “large.” Lead Tribal Agencies that receive large or medium allocations may consider any Native American child in the Tribe’s service area to be eligible to receive non-CalWORKs CDE child care, regardless of the family’s income, work, or other eligibility requirements, as long as their Tribal Median Income is below 85% of the SMI. Tribes that exercise this option of categorical eligibility must ensure services still goes to those with the highest need. Tribal Lead Agencies must describe in their CCDF Plans how they are ensuring families with the greatest need are receiving CCDF services.181

3.9 PRIORITY RANKING FOR HOW FAMILIES ARE ENROLLED INTO CDE CHILD CARE PROGRAMS

California uses a complex priority schedule to rank eligibility for nearly all non-

CalWORKs child care subsidies,182 and for CalWORKs Stage 3 families when there is insufficient Stage 3 funding.183 See the preschool section above for special enrollment rules. The following are some of the priorities that apply to non-CalWORKs child care:

● Families with CPS or At-Risk status receive first priority for CDE child care enrollment.184

● Families with the lowest gross monthly adjusted income have second priority.185

177

See 45 C.F.R. §§ 98.62, 98.80 et seq.; DEP’T OF HEALTH & HUMAN SERVS., CCDF FINAL RULE TRIBAL FACT SHEET, OFFICE OF

CHILD CARE ADMIN. FOR CHILDREN & FAMILIES PROGRAM INSTRUCTION (Nov. 10, 2016), https://www.acf.hhs.gov/occ/resource/ccdf-final-rule-tribal-fact-sheet. 178




45 C.F.R. § 98.80-84; DEP’T OF HEALTH & HUMAN SERVS., CCDF FINAL RULE TRIBAL FACT SHEET, OFFICE OF CHILD CARE ADMIN. FOR CHILDREN & FAMILIES PROGRAM INSTRUCTION (Nov. 10, 2016), https://www.acf.hhs.gov/occ/resource/ccdf-final-rule-tribal-fact-sheet. 182


See CAL. CODE REGS. tit. 5, § 18424(d)–(e). 184

CAL. EDUC. CODE § 8263(b)(1); CAL. CODE REGS. tit. 5, § 18106(a). 185

CAL. EDUC. CODE § 8263(b)(2).

https://www.acf.hhs.gov/occ/resource/ccdf-final-rule-tribal-fact-sheet








● When two families have the same income, the family that has a child with exceptional needs shall be admitted first.186

● If neither family at the same income level has a child with exceptional needs, then the family that has been on the waiting list longest is admitted first.187

The California Department of Education (CDE) has the option of granting waivers of the

priorities for local agencies that wish to serve specific populations, such as children with exceptional needs, children of prisoners, and subsidized residents of Housing and Community Development properties. These waivers allow CDE contractors to provide subsidized services to members of these special populations in other than strict income order.188 3.10 DEFINITIONS

3.10.1 “Parent” as Defined

Parent: “…A biological parent, adoptive parent, stepparent, foster parent, caretaker

relative, legal guardian, domestic partner of the parent as defined in Family Code section 297, or any other adult living with a child who has responsibility for the care and welfare of the child.”189

3.10.2 “Family” and “Family Size” as Defined

Family: “…The parents and the children for whom the parents are responsible, who comprise the household in which the child receiving services is living. For purposes of income eligibility and family fee determination, when a child and his or her siblings are living in a family that does not include their biological or adoptive parent, “family” shall be considered the child and related siblings.”190 The determination of “family size,” which affects income eligibility as well as family fee levels, is based on CDE’s definition of “family.”

To establish eligibility for subsidized care for a child, every “parent” in the “family” must

have their income taken into account and must meet one of the need bases or be incapacitated.191 Given CDE’s expansive definitions of “parent” and “family,” in practical terms this means every adult in the household, whether or not that adult is, in fact, the parent of the

186

CAL. EDUC. CODE § 8263(b)(2). 187

CAL. EDUC. CODE § 8263(b)(2). 188

CAL. EDUC. CODE § 8263(b)(3). 189

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18078(n) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 190

CAL. DEP’T OF EDUC., ATTACHMENT A: 12-MONTH ELIGIBILITY IMPLEMENTATION GUIDANCE (2017), in MANAGEMENT BULLETIN 17-14, § 18078(e) (2017), https://www.cde.ca.gov/sp/cd/ci/mb1714.asp (find the “Attachment A” hyperlink in “Purpose” section of Management Bulletin 17-14 and also at http://www.cde.ca.gov/sp/cd/ci/documents/twelvemonthguidance.doc). 191

CAL. CODE REGS. tit. 5, §§ 18085.5(b)(2), 18406(d)(2) (Stage 2), 18421(c)(2) (Stage 3).







child for whom subsidized care is being sought, will have to provide documentation of their income and unavailability to provide care.

3.10.3 “Child” and “Adult” as Defined

The term “child” is not defined in the CDE regulations but “adult” is defined as “a person who is at least 18 years of age.”192

© Child Care Law Center 2019

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This publication is intended to provide general information about the topic covered. It is made available with the understanding that the Child Care Law Center is not engaged in rendering legal or other professional advice. We believe it is current as of April 2019 but the law changes often. If you need legal advice, you should consult an attorney who can specifically advise or represent you.

This chapter is part of the following series: The 2019 Legal Guide to Child Care Subsidies in California

Chapter 1 - Overview of Child Care Subsidy Administration and Categories

Chapter 2 - CalWORKs Child Care Subsidies, Stage 1

Chapter 3 – California Department of Education Child Care Subsidies Chapters covering payment procedures and other topics are underway. Please email us at [email protected] if you do not find the answer you need here.

192

CAL. CODE REGS. tit. 5, § 18013(d).

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The 2019 Legal Guide to Child Care Subsidies in California ...childcarelaw.org/wp-content/uploads/2019/05/...The 2019 Legal Guide to Child Care Subsidies in California Chapter 3: California