Child Care Service Regional Market Rates (RMR)

RMR Rate Ceiling

It is important to remember that the RMR ceilings represent the maximum CalWORKs will pay for child care. If a provider charges less than the maximum ceiling rate—then CalWORKs will pay the rate charged.

The RMR ceiling is a ceiling for each rate category. While payments are usually paid per month, it is not capped at the monthly RMR ceiling if the rate category is determined to be other than monthly (i.e., weekly, daily or hourly).

However, should the actual cost of child care exceed the maximum rate, the client is responsible for the difference if they choose to use the provider.

Summer Programs

During the summer months—special programs (such as day camp and recreational activities) may be provided by cities (YMCAs, etc.). Clients may have their children attend a summer program instead of going to day care.

If a child is going to a summer program instead of day care, set up child care just as you would regular child care. The program must have a beginning and end date, number of hours of attendance, etc.

Non-Traditional Care

The regional market rates may be adjusted for children with exceptional needs and for evening and/or weekend care.

Special Needs - Care for Children with Disabilities

Adjustment factors increase the standard RMR ceilings for services provided to children with disabilities who are identified with an IEP or an IFSP. These categories are defined in Education Code Section 8201 and also in the contract Funding Terms and Conditions for California DSS Child Development Programs. Child care may be authorized at rates that exceed the standard RMR ceilings, up to the adjusted ceilings for the cost of “special and appropriate services for each child”. Typically, such special services are those that go beyond reasonable accommodations.

An adjustment factor of 1.2 for “children with exceptional needs” or an adjustment factor of 1.5 for “severely handicapped children” are allowed for services provided to children with disabilities ONLY when the licensed or license-exempt child care provider provides documentation that additional services and/or accommodations for that particular child are being provided, AND such services and/or accommodations result in an on-going financial impact on the provider. 

Example Example Examples of acceptable documentation may include a receipt for a special diet, pay stubs for a special aide hired, loss of income due to a reduced capacity (this may include documentation that the provider has to turn down children referred from a resource and referral agency (SCCOE). 

If the provider is NOT providing additional/special accommodations beyond the services they are already set-up to provide, and will not have an additional and ongoing fiscal impact by providing care for this child, the provider is not eligible for the special needs adjustment.

CHILDREN WITH EXCEPTIONAL NEEDS are children with either an active IEP or IFSP who are receiving appropriate special education/early intervention services. These children may be developmentally disabled, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, or orthopedically impaired, other health impaired, deaf-blind, multi-handicapped or children with specific learning disabilities, who require the special attention of adults in a child care setting.

SEVERELY HANDICAPPED CHILDREN are children with either an active IEP or IFSP who in addition require instruction and training in programs serving pupils with the following profound disabilities: autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbance or severe developmental disability.

According to the ADA, child care facilities cannot charge special rates for children for whom reasonable accommodations would permit full integration of the child into their program.

The adjusted rate ceiling is determined by multiplying the standard rate ceiling by either the “children with exceptional needs” or “severely handicapped children” adjustment factors:

(Standard Rate Ceiling x 1.2 = Exceptional Needs Care Rate Ceiling)

(Standard Rate Ceiling x 1.5 = Severely handicapped Care Rate Ceiling).

Reminder: Children with disabilities are eligible for child care beyond age 13.

Rate Adjustment for Evenings and/or Weekends

The rate adjustment for evening and/or weekends applies ONLY to licensed providers, and ONLY when the provider is reimbursed using the weekly part-time, weekly full-time, monthly part-time or monthly full-time rate categories. Refer to Rate Categories. The rate adjustment can only be applied when the certified need occurs between 6 pm and 6 am on weekdays or anytime on weekends. The provider’s established rate is multiplied as follows:

  • By 1.25 when MORE than 50 percent of the need for child care occurs between 6 pm and 6 am on weekdays or anytime on weekends.
  • By 1.125 when at least 10 percent but no more than 50 percent of the need for child care services occurs between 6 pm and 6 am on weekdays or anytime on weekends.

Rate Ceiling Changes

The rate ceiling must be reviewed when there are changes in child care. Refer to "Change in Rate Ceiling" for details.

Example - Rate adjustment for evening/weekend careExample - Rate adjustment for evening/weekend care

Situation:

  • Child’s hours of care are 3 pm to 11 pm five days a week, four weeks a month.
  • Hours of evening care are more than 50% of the total care.
  • The Provider’s monthly full-time rate is $1,200.
  • $1,200 times 1.25 = $1,500.
  • Provider's adjusted rate is $1,500.

Example - Rate Adjustment for Children with Exceptional NeedsExample - Rate Adjustment for Children with Exceptional Needs

Situation:

  • Provider has an exceptional needs child with an IEP.
  • Provider has documentation of ongoing expenses for this child.
  • Provider’s monthly full-time rate is $1,200.
  • $1,200 times 1.2 = $1,440.
  • Provider's adjusted rate is $1,440.

Child Care Rates Procedures

ECs use the following steps to determine the child care rates:

  • Determine the child care services needed by the child. This is the “certified need”
  • Determine the rate category, using the certified need.
    • If the provider does not have a corresponding rate, the EC must call the provider and see if they wish to establish a rate to fit the family’s certified need. If the provider does not establish a rate that fits the family need at the time the EC call them, or if the EC is not able to make contact, then do the math and establish a rate that will fit the family need.
  • Locate the appropriate category for the type of care using the appropriate Regional Market Rates Percentile Table:
    • Child Care Center
    • Family Day Care Home
    • License-Exempt Provider
  • Determine the rate to authorize. If a provider’s rate is higher than the RMR, approve a rate not to exceed the RMR.

Note: The RMR can be adjusted if the special needs, or the evening/weekend care rate adjustment are applicable; or it the certified need exceeds 52.5 hours per week AND the rate is not included in the provider’s full-time weekly or monthly rate.

Related Topics

Child Care Service Background

Child Care Service - Child Care Structure

Child Care Service Resources and Referral

Child Care Service Program Eligibility

Child Care Service - Child Care Rates

Child Care Service Licensed Provider

Child Care Service License-Exempt Provider

Child Care Service - Exempt Volunteers

Child Care Service - Payments for Closed Cases

Child Care Service Approval and Authorization

Child Care Service Recertification

Child Care Service Discontinuances

Child Care Service - Client Notifying the Provider

Child Care Service Extensions/Changes

Child Care Service - Other Allowable Activities

Child Care Service Stage II

Child Care Service Screening for Stage II

Child Care Service Referral Process for Stage II

Child Care Service Billing

Child Care Service Payment Principles

Child Care Service Family Fee

Child Care Service Authorizations Online

Child Care Service Cal-OAR Measure

Child Care Service Regional Market Rates (RMR) Based on the 2021 Survey

Child Care Service Family Fee Schedule