Child Care Service Family Fee

Child Care Programs are not always cost free. The family fee is the family’s share of their child care costs they must pay each month directly to their child care provider. The EC will deduct the family fee from the child care billing (SCD 1755B) submitted each month.

When there is more than one child in day care, fees are applied to the child with the most child care hours. When there is another child in the family who is not receiving CalWORKs child care services, the cost of child care for that child may be applied towards the family fee. If the parent is making co-payments, the co-payment cannot be used to offset or reduce their family fee amount. Families pay fees with the following exception:

Exception: Families receiving CalWORKs cash aid must not be charged a family fee, including families that include a safety net/timed-out and sanctioned second parent. Families who no longer receive cash aid may pay a family fee unless they are participating in subsidized employment.

Determination of Family Size

Family size is determined by the number of adults and children related by blood, marriage, or court decree who comprise the household in which the child is living. When an adult in the household is neither the parent of the child nor the spouse of the parent, the adult and his/her children may be excluded from calculation of family size when it is to the advantage of the family. Thus, when children are living with relatives and guardians (foster parents) just the children and their personal income may be considered when determining the family size and total countable income.

After determining the family size and total countable income. Refer to Child Care Service Family Fee Schedule to determine the monthly fee. The “Family Fee Schedule” is updated by the CDSS.

Determination of Countable Income

Total the family’s gross countable income. Countable income includes the following sources of earned and unearned income:

• Gross income from employment,
• Self-employment minus business expenses,
• Child support,
• Unemployment
• Disability benefits,
• Veterans benefits,
• Alimony,
• Cash grant,
• Living expenses from loans, grants, and scholarships

The following income is not counted:

• Earnings of a child under age eighteen (18) years,
• Business expenses for self-employment,
• Food stamps,
• Vouchers for housing, or
• SSI
• Foster payment on behalf of the child
• Court ordered child support deductions.

If income is irregular, total countable income can be determined by one of two methods:

• Average the income received during the 12 months immediately preceding the application/recertification, or
• The income may be estimated for the first month and then adjusted the following month.

Calculating Family Fee

The family fee is determined by the Department of Finance (DOF) and is based on the most recent census data available on the state median family income (SMI) in the past 12 months.

The family fee is based on:

1. The number of persons in the family, 
2. The family’s adjusted monthly income, and
3. Hours of certified need for child care as documented on the application for services.

Refer to the Child Care Service Family Fee Schedule located at the end of this chapter.

Note: CWES clients on cash aid with child care expenses will not have a family fee since their income will be less than the 75 percent SMI Limit.