Wisconsin is altering its child care subsidy program. Here’s what families need to know.
Beginning in October, families using Wisconsin’s child care subsidy program will see changes to their subsidies, and possibly more financial help.
Wisconsin Shares assists qualifying families by paying a monthly portion of their child care costs. The amount of relief a family receives depends on a variety of factors, including the ages of its children, family size, income and how often their children attend care.
Under policy changes beginning Oct. 1, families will receive subsidy amounts based on whether their children are in care part-time or full-time, rather than based on the average weekly number of hours they spend in care.
Also as part of the changes, the program will allow participating families to request funds to pay registration fees.
Here's what you need to know.
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What exactly is Wisconsin Shares, and how does it work?
Families participating in Wisconsin Shares receive a MyWIChildCare electronic benefits transfer (EBT) card that mirrors a debit card. Every month, funds are loaded onto the card for the family to use solely to pay for child care at their authorized provider.
Department of Children and Families Communications Director Gina Paige said the state program gets funding from two federal sources: Child Care and Development Fund and Temporary Assistance for Needy Families. According to its most recent statistical report, the program helped an average of 17,552 families statewide each month from August 2022 to August of this year. The program issued an average of $25,477,830 to child care providers statewide each month during this period.
Who qualifies for Wisconsin Shares? Will qualifications change?
The eligibility requirements for families to receive Wisconsin Shares are not changing in October.
Families who reside in Wisconsin and have a child under the age of 13, or have a child with a disability under the age of 19, may qualify for Wisconsin Shares if:
The child is a U.S. citizen or a qualified immigrant.
The family’s monthly gross income is less than 185% of federal poverty level. For a family of two, that's a monthly income of $3,040, with the amount increasing by $792 for each additional person. Families can stay eligible until their income reaches 85% of the state’s median income.
The parent(s) or caregiver(s) are participating in approved activities. Examples are working, attending school or college and/or participating in activities approved by a Wisconsin Works or Foodshare Employment and Training agency.
The qualifications will change after July 1, per the recently approved 2023-2025 state biennial budget. The initial eligibility threshold to qualify for Wisconsin Shares will move from 185% to 200% of the federal poverty level.
How will my child care now being classified as 'part-time' or 'full-time' impact my subsidy?
Currently, children using Wisconsin Shares are authorized for a certain number of hours of child care. This is one of the many factors that determines how much subsidy a family receives. Starting with October’s subsidy payments, children will either be authorized on a part-time or a full-time basis.
Any child authorized for 20 hours a week or less will be considered part-time, and their subsidy rate will be calculated based on 30 hours of care — no longer the average number of weekly hours in care.
Any child authorized for more than 20 hours a week will be considered full-time. Their subsidy rate will now be calculated based on 35 hours of care.
With the new subsidy formula, any family that had been authorized for under 35 hours of weekly care for their child could start receiving a higher subsidy than they have been — and potentially less out-of-pocket costs.
No families will see their subsidy decrease as a result of this change, Paige said.
For more on how subsidies are calculated, visit bit.ly/WisSharescalculation.
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How much of registration fees will now be covered?
Child care programs in Wisconsin may charge registration fees to initially enroll or put a child on their waiting list. Some also charge registration fees annually to continue children’s enrollment.
Starting in October, families who have a Wisconsin Shares Authorization or have one that begins in the next 30 days will be able to request help covering registration fees that were charged on or after Oct. 1. DCF will issue funds to pay registration fees up to $125. These payments can be issued twice in a 12-month period per child, for a maximum of $250 of registration fees covered by Wisconsin Shares per child in two separate instances. If a registration fee surpasses $125, the family will need to pay the difference out-of-pocket, just as they do when their subsidy does not cover the full price the provider charges.
Wisconsin Shares families can request registration fee funds by calling their local Income Maintenance Agency, and, if approved, will have these funds loaded onto their MyWIChildCare EBT card just as their subsidy funds are.
Why are these changes being made?
Federal regulations now require states’ child care subsidy programs to mirror the payment structure of the private-paying child care market, or those payment agreements not between providers and a family using state subsidy. Many families pay for child care on a full-time or part-time basis, not based on an hourly rate. General practices also include charging registration fees.
There is a higher cost of these Wisconsin Shares changes, which will be covered by a variety of funding sources including state general purpose revenue, federal funding and more. The changes were considered when re-calculating how much funding Wisconsin Shares needs during the 2023-2025 biennial budget process.
How do I know if a child care accepts Wisconsin Shares?
Regulated child care providers must participate in YoungStar, the state’s quality child care rating system, and have at least a 2 star rating to participate in Wisconsin Shares, according to a brochure from DCF. However, just because a program meets these qualifications does not mean they accept Wisconsin Shares payments.
The state’s Child Care Finder website shows which providers participate in YoungStar and their ratings.
How do I apply for Wisconsin Shares?
Those who are interested in receiving Wisconsin Shares and meet eligibility requirements may apply online at access.wisconsin.gov, or in-person or by telephone with their local Income Maintenance Agency.
For next steps, visit bit.ly/applyWisShares.
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Madison Lammert covers child care and early education across Wisconsin as a Report for America corps member based at The Appleton Post-Crescent. To contact her, email mlammert@gannett.com or call 920-993-7108. Please consider supporting journalism that informs our democracy with a tax-deductible gift to Report for America.
This article originally appeared on Appleton Post-Crescent: October Wisconsin Shares changes include higher child care subsidies
