SR 05-27 Dated 07/05

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

DFA SIGNATURE DATE: DCYF SIGNATURE DATE	June 6, 2005 June 1, 2005
FROM:	OFFICE OF THE DIRECTOR, DFA Terry R. Smith OFFICE OF THE DIRECTOR, DCYF Nancy L. Rollins
AT (OFFICE):	Division of Family Assistance Division for Children, Youth, and Families
TO:	DFA Supervisors NHEP Teams
SUBJECT:	Annual Cost of Living Increase for Child Care Steps 2 and 3
EFFECTIVE DATE:	July 1, 2005

SUMMARY

This SR releases increases in the Step 2 (140% of federal poverty income guidelines) and Step 3 (190% of the federal poverty income guidelines) child care gross income limits.

POLICY

The gross income limits for child care eligibility at steps 2 and 3, effective July 1, 2005, are updated annually in July to reflect the current year’s poverty income guidelines. The increases noted below reflect the 2005 Federal Poverty Income Guidelines published in the Federal Register of February 18, 2005. Child care reimbursement rates remain unchanged.

Gross Income Limits for Step 2 - 140% of Poverty Level

Family Size	Monthly	Annually
2	$1,497	$17,964
3	1,878	22,536
4	2,258	27,096
5	2,638	31,656
6	3,019	36,228
7	3,399	40,788
8	3,779	45,348
9	4,160	49,920
10	4,540	54,480
11	4,920	59,040
12	5,301	63,612
13	5,681	68,172
14	6,061	72,732
15	6,442	77,304
16	6,822	81,864
17	7,202	86,424
For each additional person beyond 17, add:	381	4,572

Gross Income Limits for Step 3 - 190% of Poverty Level

Family Size	Monthly	Annually
2	$2,032	$24,384
3	2,548	30,576
4	3,064	36,768
5	3,580	42,960
6	4,097	49,164
7	4,613	55,356
8	5,129	61,548
9	5,645	67,740
10	6,161	73,932
11	6,677	80,124
12	7,194	86,328
13	7,710	92,520
14	8,226	98,712
15	8,742	104,904
16	9,258	111,096
17	9,774	117,288
For each additional person beyond 17, add:	$517	$6,204

NEW HEIGHTS PROCEDURES

New HEIGHTS and Bridges will recompute child care eligibility for open child care cases currently at step 3 whose income is less than or equal to the new step 2 income limits, as these cases will now qualify for a higher rate of reimbursement. Cases that qualify for the higher rate of reimbursement will receive a standard message identifying the individuals in the case that are now eligible for step 2 reimbursement. No other cases will be recomputed.

POLICY MANUAL REVISIONS

Revised Family Assistance Manual Topics

PART 935 GROSS MONTHLY INCOME LIMITS

IMPLEMENTATION

The changes identified in this SR will be implemented after the daily run of June 30, 2005 and before the daily run of July 1, 2005 for current cases, and will apply to any new cases processed on or after July 1, 2005. All normal output will be produced for this run.

CLIENT NOTIFICATION

Clients will be advised of the new child care income limits at applications or redeterminations on or after July 1, 2005.

TRAINING

No training is planned.

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the On-line Manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manual, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at http://www.dhhs.nh.gov/DHHS/DFA/LIBRARY, effective July 1, 2005.

This SR, and printed page with posting instructions, will be distributed under separate cover to all hard copy holders of the Family Assistance Manual.

DFA/DM:dms