Basic sliding fee allocation formula provisions modifications

A bill for an act

relating to child care; modifying the basic sliding fee allocation formula; amending

Minnesota Statutes 2024, sections 142E.04, subdivisions 6, 7; 142E.17, by adding

a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 142E.04, subdivision 6, is amended to read:

Subd. 6.

Allocation formula.

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(a)
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The allocation component of basic sliding fee state

and federal funds
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shall
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must
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be allocated on a calendar year basis. Funds
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shall
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must
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be

allocated first in amounts equal to each county's guaranteed floor according to subdivision

9, with any remaining available funds allocated according to the following formula
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:
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.
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(a)
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(b)
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One-fourth of the funds
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shall
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must
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be allocated in proportion to each county's

total expenditures for the basic sliding fee child care program reported during the most

recent
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fiscal
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calendar
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year completed at the time of the notice of allocation.

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(b)
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(c)
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Up to one-fourth of the funds
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shall
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must
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be allocated in proportion to the number

of families participating in the transition year child care program as reported during and

averaged over the most recent
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six
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12
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months completed at the time of the notice of allocation.

Funds in excess of the amount necessary to serve all families in this category
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shall
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must
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be

allocated according to paragraph
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(e)
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(g)
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.

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(c)
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(d)
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Up to
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one-half
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one-fourth
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of the funds
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shall
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must
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be allocated in proportion to

the average of each county's most recent 12 months of reported waiting list as defined in

subdivision 2 and the reinstatement list of those families whose assistance was terminated

with the approval of the commissioner under Minnesota Rules, part
3400.0183
, subpart 1.
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For a county that spent less than 90 percent of the funds allocated under this subdivision in

the most recent calendar year, the allocation amount under this paragraph must be reduced

by an amount equal to the average monthly number of families that could have been served

if the county had spent 90 percent of its allocation under this subdivision in the most recent

calendar year multiplied by the monthly cost per family according to paragraph (f). The

allocation amount under this paragraph for a county cannot be reduced to zero.
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Funds in

excess of the amount necessary to serve all families in this category
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shall
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must
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be allocated

according to paragraph
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(e)
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(g)
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.

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(e) Up to one-fourth of the funds must be allocated to offset child care rate increases

under section 142E.17, subdivision 1, paragraph (b). The allocation must be based on the

commissioner's best estimate of the rate increases by age for each category of provider. The

commissioner must make this estimation by county and weigh the distribution of recent

payments. Funds in excess of the amount necessary to cover child care rate increases must

be allocated according to paragraph (g).

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(d)
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(f)
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The amount necessary to serve all families in paragraphs
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(b) and
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(c)
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shall
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and (d)

must
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be calculated based on the basic sliding fee average cost of care per family in
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the
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each
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county
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with the highest cost
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in the most recently completed calendar year.

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(e)
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(g)
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Funds in excess of the amount necessary to serve all families in paragraphs
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(b)

and
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(c)
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shall
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and (d) must
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be allocated in proportion to each county's total expenditures for

the basic sliding fee child care program reported during the most recent
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fiscal
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calendar
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year

completed at the time of the notice of allocation.

Sec. 2.

Minnesota Statutes 2024, section 142E.04, subdivision 7, is amended to read:

Subd. 7.

Allocation due to increased funding.

When funding increases are implemented

within a calendar year, every county must receive an allocation at least equal to its original

allocation for the same time period. The remainder of the allocation must be recalculated

to reflect the funding increase, according to formulas identified in subdivision
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7
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6
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.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 3.

Minnesota Statutes 2024, section 142E.17, is amended by adding a subdivision to

read:

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Subd. 11.

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Allocation of funds.

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All funds appropriated to cover child care rate increases

under subdivision 1, paragraph (b), must be allocated based on the commissioner's best

estimate of the rate increases by age for each category of provider. The commissioner must

make this estimation by county and weigh the distribution of recent payments. Funds in

excess of the amount necessary to cover child care rate increases must be allocated according

to section 142E.04, subdivision 6, paragraph (g).

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