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 Associate Employment Counselor (AEC)/Employment Counselor (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 the 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 California Department of Social Services (CDSS).

Determination of Countable Income

To determine countable income, the family's gross countable income must be totaled. Countable income includes the following, but is not limited to, 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/Cal-Fresh benefits,
• Vouchers for housing, or
• Supplemental Security Income (SSI),
• Foster payment on behalf of the child, or
• Court-ordered child support deductions.

Fluctuating Income

Income fluctuation is income that varies due to:

• Migrant, agricultural, or seasonal work 
• Inconsistent and/or unstable employment or self-employment resulting in an inconsistent pattern of income, or
• Intermittent, occasional, sporadic, or infrequent earnings or income, including but not limited to bonuses, overtime, commissions, back child support payment, inheritance, net proceeds from the sale of real property or stock or lottery winnings.

When assessing family fees for families with income fluctuation, AECs/ECs shall allow a family to provide up to the 12 preceding months of income information for purposes of determining income eligibility or calculating a family fee. The adjusted monthly income shall be determined by averaging the total countable income from at least two months, based on the income provided, to determine the average adjusted monthly income.

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 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.

Families with a certified need of less than 130 hours per month are assessed a part-time family fee, while families with a certified need of 130 hours or more per month are assessed a full-time family fee.

Note: The definition of part-time care (fewer than 25 hours per week) and full-time care (25 hours or more per week) is separate from the part-time monthly family fee and full-time monthly family fee.  AECs/ECs must continue to follow the 130-hour threshold for part-time monthly and full-time monthly family fee assessments.

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

Exception: CalWORKs Employment Services (CWES) clients on cash aid with child care expenses will not have a family fee since their income will be less than 75 percent of the State Median Income (SMI) Limit.