EEC Financial Assistance Regulation and Policy Reform

November 2010

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EEC Financial Assistance Regulation and Policy Reform

EEC Subsidy Regulations last updated in November 2006

Policy Guide developed and released in July 2007

“Question and Answer” document added to the Guide in 2008.

Several updates issued through EEC Management Bulletins (EMBs) and email messages from the Commissioner reflecting new or edited policies.

Beginning in December 2009, updated policies issued through EMBs were directly incorporated into the Guide, including an Amendment Log that identifies effective date, a summary and the prior policy that it amended or replaced.

EEC Financial Assistance Policy Guide – Table of Contents

Chapter 1: Eligibility

Chapter 2: The EEC Centralized Waiting List for Financial Assistance

Chapter 3: Documentation of Eligiblility

Chapter 4: Service Need

Chapter 5: Parent Co-Payments

Chapter 6: Reassessment

Chapter 7: Terminations and Reductions

Chapter 8: EEC Financial Assistance Complaint and Investigation Process

Note: EEC Subsidy Regulations at located at 606 CMR 10.00 et seq.

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EEC Financial Assistance: Challenges and Issues

As EEC providers, CCR&Rs and internal staff have used the Guide, issues were identified, including:

Documentation of eligibility requirements Outdated and confusing policies Existing policies outside of the Guide (recently

added as “appendices”) Misalignment with subsidy regulatory requirements Capability to verify programs’ determination of

financial assistance eligibility (fraud/waste/abuse)

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Proposal: Update and Amend EEC Regulations and Policies

Many factors contribute to the necessity of updating the Guide including: Improper Authorizations for Payment (IAP) exercise

results Response from ACF regarding our State Plan Unique challenges/ weaknesses identified due to recent

fiscal constraints/ system restructuring• (e.g., ongoing closure of, or limited access to, EEC

financial assistance)

CCR&R Feedback Confirms need to improve Financial Assistance Polices,

including the Request for Review process, Recoupment procedure, and Documentation requirements

Raises other concerns regarding improving Communication (w/ EEC, DTA and DCF staff)

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Changes Required as a Result of the Improper Authorization for Payment (IAP) Project

Citizenship: EEC must verify the US citizenship or immigration status of children who receive CCDF-funded services* All entities performing CCDF-funded child care subsidy

assessments must obtain and maintain documentation of U.S. Citizenship of the child, before authorizing payment

Fees: EEC cannot categorically waive the fees. (e.g., per CCDF regulation if a teen parent earns enough must be assessed a co-payment).

Recoupments: IAP project highlighted some existing challenges in our regulations and policies in recouping funding improperly authorized

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Changes Required as a Result of ACF Commentary on the Massachusetts 2010-2011 CCDF State Plan

In order to be eligible for CCDF-funded child care services, children must:

Reside with a family whose income does not exceed 85% of SMI; and

Reside with a parent or parents who are working, or participating in job training or an education program , or are receiving or need to receive protective services .

In reviewing the MA CCDF State Plan, ACF identified two instances where EEC regulations and policy may not align with these mandatory requirements:

Children with Special Needs – 1) allowing children to remain in care up to 100% SMI and 2) allowing a categorical waiver of the work, education and training requirement for families w/ children with special needs.

Parents with Special Needs – 1) allowing children to remain in care up to 100% of SMI, and 2) not clearly defining such families “in need of protective services.”

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Changes Required as a Result of ACF Commentary on the Massachusetts 2010-2011 CCDF State Plan

CCDF regulations do allow states some flexibility:

Children residing in a family that is receiving or needs to receive protective intervention services may be eligible for CCDF-funded child care, if they remain in the home, even if the parent(s) is not working or in an education or training program.

See 45 CFR 98.20(a)(3)(ii).

Additionally, states have the discretion to waive the 85% SMI limitation if a child is residing in a family that is receiving or needs to receive protective intervention services if determined necessary on a case by case basis.

See 45 CFR 98.20(a)(3)(ii)(A)

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Other Financial Assistance Policies Needing Clarification or Presenting Unique Challenges

In addition to the issues identified through the IAP process and the ACF comments received on EEC’s state plan, EEC has been:

tracking questions/ issues as they arise, spotting recurring issues through the

Review/ Appeal process,conducting a wholesale review of the

manual and updating it by creating a red line version; and

reaching out to stakeholders (e.g., providers, R&Rs) to identify other problem areas that need to be addressed.

Overall approach: Prioritize what we can do now, and what can wait

Identified issues have been categorized into three groups:

“quick fixes”– pressing issues that need immediate attention and can be fixed through EEC policy clarifications

“long term fixes”- issues that will be addressed either through regulations changes and/or the development of data exchanges

Interagency work– enhance communication between/ among EEC, DTA, DCF and R&Rs.

The following slides detail the policies that have been updated, as well as those that require regulation changes, data exchanges or interagency work

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Examples of other policy updates requested & status

Quick Fixes – Policies Updated Long Term Fixes – Regulation Changes or Data Exchanges Needed

Break in service need of parent

Eligibility self reporting “significant changes” in income (20% rule)

Travel time for calculation of service need

Waitlist management enhancements

Redraft Provider voucher manual and agreement (Jan roll out)

Identity/ legal immigration status documentation

Codified Variance Process

Special Need Forms (Child/Parent)

Self Employment Verification

Special Need Access Regulations

Streamline Review Process

Child Support Requirement

Second parent in Household

Clarify Recoupment Process

Redraft Financial Assistance agreement/ termination notices

Excessive Absences of Children

Schedule of Care

Interfaces with other agencies: RMV, DOR (wage matches) or other agency systems

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Key

= Policy issue reviewed and updated = Policy issue reviewed and requires regulation change to update

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Examples of Interagency Work to Enhance Communication/ Business Practices (DTA)

A review of DTA and EEC business processes is underway to review and adjust practices including:

Ensuring DTA authorizations comply with EEC requirements Example: DTA staff authorize part time or full time

child care for families that don’t meet the EEC minimum work/ education requirements

Ensuring better communication between DTA staff and R&Rs Example: “1D” clients need to start paying fees

when their cases close• if DTA staff would “cc” R&Rs on parent 1D

letters should not only help reduce the number of requests for EEC reviews, but will also help minimize parent debt accrual/ EEC recoupments for parent fees

Examples of Interagency Work to Enhance Communication/ Business Practices (DCF)

EEC/ DCF MOU developed to address a range of issues including:

To ensure smooth transitions from Supportive Child Care to Income Eligible

• Parents don’t understand EEC service need requirements, which creates stress for parents and increased R&R time to help parents produce supporting documentation

To ensure DCF Foster Parents have appropriate expectations regarding access to EEC financial assistance including service need

• Enhanced communication for variance process• May need to create a DCF foster care voucher at IE

rate vs. supportive rate• 6 month case continuity for DCF supportive families

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Financial Assistance Policies RequiringRegulation Changes

Many identified changes can be made by revising the Policy Manual, however, some changes are necessary to EEC’s Subsidy regulations:

“Special Needs” of parent and/or child definitions to ensure compliance with federal child care laws

Updates to EEC Review Process regulations• Dismissals for failure to prosecute and failure to

exhaust administrative remedies• Clarify appropriate grounds for appeal• Clarify documentation requirements

Clarify recoupment appeal process

Excessive absences

Require data checks to verify eligibility (e.g., DOR, RMV or other agency systems)

Proposed Regulation Promulgation Timeline

Tasks Date

Vet Regulation Changes with Providers/ CCR&Rs; continue to make policy changes/ clarifications that do not require regulation changes

Ongoing

Board reviews first draft of proposed regulation changes; Committee discussions

December 2010

Board vote to put regulations out for public comment

January 2011

Public comment period; meetings with providers/ advocates

January- February 2011

Board vote to promulgate regulations;Roll out implementation/ trainings

March 2011

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