SR 07-08 Dated 07/07

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

DFA SIGNATURE DATE: DCYF SIGNATURE DATE:	June 28, 2007 June 28, 2007
FROM:	OFFICE OF THE DIRECTOR, DFA Terry R. Smith OFFICE OF THE DIRECTOR, DCYF Maggie Bishop
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, Rate Increase for Child Care Providers
EFFECTIVE DATE:	July 1, 2007

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. This SR also includes a 5 % rate increase for the Maximum Payment Rates for child care providers. Rate sheet is attached.

POLICY

The gross income limits for child care eligibility at steps 2 and 3, effective July 1, 2007, are updated annually in July to reflect the current year’s poverty income guidelines. The increases noted below reflect the 2007 Federal Poverty Income Guidelines published in the Federal Register of February 18, 2007.

The maximum payment rate for CCDF Scholarship reimbursement has increased 5%, which is reflected in the rate sheet attached.

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

Family Size	Monthly	Annually
2	$1,598	$19,176
3	2,004	24,048
4	2,410	28,920
5	2,816	33,792
6	3,222	38,664
7	3,628	43,536
8	4,034	48,408
9	4,440	53,280
10	4,846	58,152
11	5,252	63,024
12	5,658	67,896
13	6,064	72,768
14	6,470	77,640
15	6,876	82,512
16	7,282	87,384
17	7,688	92,256
For each additional person beyond 8 add	406	4,872

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

Family Size	Monthly	Annually
2	$2,168	$26,016
3	2,719	32,628
4	3,270	39,240
5	3,821	45,852
6	4,372	52,464
7	4,923	59,076
8	5,474	65,688
9	6,025	72,300
10	6,576	78,912
11	7,127	85,524
12	7,678	92,136
13	8,229	98,748
14	8,780	105,360
15	9,331	111,972
16	9,882	118,584
17	10,433	125,196
For each additional person beyond 8, add:	551	6,612

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

PART 937 REIMBURSEMENT RATES

IMPLEMENTATION

The changes identified in this SR will be implemented after the daily run of June 30, 2006 and before the daily run of July 1, 2007 for current cases, and will apply to any new cases processed on or after July 1, 2007. 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, 2007.

Clients will be advised of the child care rate increase at the time of application or at redeterminations on or after July 1, 2007. The Child Development Bureau will send this SR to all contract centers and all new and re-enrolling providers will receive notification. The Child Care Resource & Referral agencies will distribute electronically to all of the providers in their database.

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 30, 2007.

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:kd