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Daycare Center and Family Home Forum>Subsidy Issue
melissa ann 04:24 PM 05-19-2010
Now, as many of you know, I have had this family since March 2008. This past Dec. grandpa (who has custody of 1 of the kids I watch) started getting subsidy for childcare. Made no sense, since now the boy is here everyday compared to the usual 3 days (my min) anyway, I have decided that as of June 30, I will no longer be accepting subsidy. As many of you have warned, it's a big pain in the you know what. I have to pay for postage/envelope to mail back the monthly paperwork, now I have to take 12 hr classes, which some of them are $25/4 hr of class,which are held during the week so I would have to close. I gave grandpa a paper explaining that any changes to the schedule has to be notified to agency, he's responsible for any amount not covered and any/remaining balance for month after I receive check from subsidy is due within 5 days. Last month, when I gave him the amount on a Monday (which he would have until Friday to pay) he said that that Friday is his off week so he'd have to pay it the following week. I was like, so you just got paid 3 days ago. But he said he didn't have it. Well, I just got the check for this month and he owes me a little over a $100 and he said he will have to pay me next week because this is his off week. I gave him the amount yesterday. I'm really fed up with having to wait to get paid. I don't think he would like to have to wait a month to get paid. That's what I would like to tell him. Can anyone help me write up a letter explaining why I will no longer be accepting subsidy. In my state, it's my choice whether or not I want to accept subsidy.
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Michael 04:36 PM 05-19-2010
Yes, whenever I see "GrandPa" I know what's coming. Here is the last thread on the GP: https://www.daycare.com/forum/showthread.php?t=12564
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Crystal 04:37 PM 05-19-2010
Dear Parents:

Effective ____________, I will no longer be accepting subsidized payments for child care services. I understand that this may effect your ability to maintain enrollment in my program. Should you need assistance in locating alternate care for your child, I will gladly provide you with information on resources in our community that may be of assistance to you.

As per our contract, should you no longer need my services, a ________(however long you require) notice of termination of care will be required.

Thank you,

Me.

Keep it short, simple, to the point. You owe no explanation as to why you will no longer be providing subsidized care.
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MarinaVanessa 04:48 PM 05-19-2010
Love it Crystal. Brief and to the point.

Ahh, late payments. This is why I have a "You don't pay, kid don't stay policy". I changed from being payed after services to being paid in advance for the next week of care because I was tired of being paid late. "What? You say you don't have money? Oh I'm sorry, I'm unable to provide care". Someone's quote earlier today about how daycare families should treat us as they were shopping at Wal-mart comes to mind. Let's see if Gramps can walk out of the store with unpaid merchandise and come back later to pay. I will foerver remember that example.

I think it's great that you'll no longer accept subsidy. I'm in CA and it's DEFFINETELY not as hard as it is in your state. I still accept it but don't have clients at the moment that need it. Maybe gramps will find somewhere else to go once you don't accept subsidy and you won't have to term him. I feel bad for whoever the next provider is
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misol 05:33 PM 05-19-2010
Originally Posted by Crystal:
Dear Parents:

Effective ____________, I will no longer be accepting subsidized payments for child care services. I understand that this may effect your ability to maintain enrollment in my program. Should you need assistance in locating alternate care for your child, I will gladly provide you with information on resources in our community that may be of assistance to you.

As per our contract, should you no longer need my services, a ________(however long you require) notice of termination of care will be required.

Thank you,

Me.

Keep it short, simple, to the point. You owe no explanation as to why you will no longer be providing subsidized care.
Fabulous. As discussed in an earlier point this is short and sweet.
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grandmom 05:43 PM 05-19-2010
WA: we are not allowed to collect the difference between what state pays and what we charge, so if we agree to take the child, we likely loose money on every one of them. The parents do pay a co-pay, determined by the state.

I liked the letter. S and S.
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Former Teacher 06:16 PM 05-19-2010
Originally Posted by michael:
Yes, whenever I see "GrandPa" I know what's coming. Here is the last thread on the GP: https://www.daycare.com/forum/showthread.php?t=12564
Oh Michael..I love the fact that you linked this thread...it keeps everyone new to the forum up to date!
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Former Teacher 06:18 PM 05-19-2010
Originally Posted by Crystal:
Dear Parents:

Effective ____________, I will no longer be accepting subsidized payments for child care services. I understand that this may effect your ability to maintain enrollment in my program. Should you need assistance in locating alternate care for your child, I will gladly provide you with information on resources in our community that may be of assistance to you.

As per our contract, should you no longer need my services, a ________(however long you require) notice of termination of care will be required.

Thank you,

Me.

Keep it short, simple, to the point. You owe no explanation as to why you will no longer be providing subsidized care.

Love it! Perfect! I agree...no explaination needed. If he asks..you should ask HIM...why is our tax dollars paying for daycare now when they weren't before? Why do you have to always wait to get paid? Why is it...?

Never mind I can go on and on and on!
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professionalmom 06:18 PM 05-19-2010
Originally Posted by MarinaVanessa:
Someone's quote earlier today about how daycare families should treat us as they were shopping at Wal-mart comes to mind. Let's see if Gramps can walk out of the store with unpaid merchandise and come back later to pay. I will foerver remember that example.
Why, thank you very much! That was me. I'm thinking about using it as a Litmus test. Other phrases that I have seen others post:
"no pay, no play"
"no pay, no stay"

Subsidy is always difficult. I have considered refusing subsidy clients. It's almost impossible here in MI, where it seems like everyone is on some kind of assistance.
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momma2girls 05:14 AM 05-20-2010
I used to do state funded children about 4 yrs. ago. THe problem with the state - they don't pay you near enough for each child. Here in Iowa I was getting $7.19 per child for 5 hrs. so that is $14.40 per day per child. I was charging $25.00 per child, per day. I had 2 families of 2 children each. I was missing out about $10.60 per day per child. So $21.00 per day for the 2- Take that times your 5 days per week, it's over $100.00 per week, per family!! Plus you waited 2 months for your check to come!!! I hated it!! I stopped doing it, and will not do it again!!!!!! Is this the problem with state funded everywhere? It is also illegal here in Iowa to charge the parents the difference!! I once had a parent tell me that!! I was originally going to do that to one of the parents, til the parent told the state that I was charging her the difference, and she couldn't pay the $11.00 per day!!!!!!! UGHH!!!!! WHat a pain!!!!!! I certainly didn't know you couldn't charge the difference, she never did pay me the difference not even one week, because she couldn't afford $50.00 per week!!!
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nannyde 05:59 AM 05-20-2010
Originally Posted by Iowa daycare:
I used to do state funded children about 4 yrs. ago. THe problem with the state - they don't pay you near enough for each child. Here in Iowa I was getting $7.19 per child for 5 hrs. so that is $14.40 per day per child. I was charging $25.00 per child, per day. I had 2 families of 2 children each. I was missing out about $10.60 per day per child. So $21.00 per day for the 2- Take that times your 5 days per week, it's over $100.00 per week, per family!! Plus you waited 2 months for your check to come!!! I hated it!! I stopped doing it, and will not do it again!!!!!! Is this the problem with state funded everywhere? It is also illegal here in Iowa to charge the parents the difference!! I once had a parent tell me that!! I was originally going to do that to one of the parents, til the parent told the state that I was charging her the difference, and she couldn't pay the $11.00 per day!!!!!!! UGHH!!!!! WHat a pain!!!!!!
Are you not registered? That was the rate four years ago for unregistered. Registered was about 110 a week four years ago for Catagory A and B.

I'm in Iowa and I don't take it either. It's now like 115-120 a week depending on age for a Cat C. Rediculous. What Iowa does is poll the entire State of day care providers that apply for an agreement with them to do state paid. Then they AVERAGE the rates for the whole state and that's what they pay. It works GREAT for the rural areas because the rate is higher than their private pay but for those of us in the bigger cities it's WAY below market rate. They also pay 3-4 years behind so they are paying the 2006 rates now.

They also don't let us charge the difference. If they allowed THAT I would do it.

The only way to make money on State paid is to have kids who have just slightly over 5 hours. They pay per unit with 5 hour blocks. One unit is 0-5 hours.. that pays like 11.50 a unit. The second unit would be 5-10 hours. That's another 11.50 a unit. So total you would get 23 dollars a day. I just take the kids who are over 5 hours but less than 6 hours so that I get the 4 dollars per hour they are here. Haven't had any State paid that had the over 5 hours but less than 6 hours for a very long time. If you take the kid the allowable 10 hour day you are making 2.30 an hour. That's just rediculous. You can't even break even with that kind of fee.

The other thing that irritates me about it is that there isn't any transparency over HOW they are doing the calculations. There isn't anyone sitting side by side with them when they are calculating the "average" providers fees from the applications for the contract to do state paid. We just are told what the amount is. Our union needs to require that they are PRESENT when this is being done yearly. They also need to be CLEAR with providers that the rates they claim they charge are not for advertising purposes but for purposes of AVERAGING the amounts to decide the state paid rate. I think a lot of providers put their low ball amount on the forms when they are low on kids thinking that they will attract customers somehow. They need to be clear that this amount is the amount they want and understand how what they put down affects everyone else who does state paid.
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momma2girls 06:33 AM 05-20-2010
Originally Posted by nannyde:
Are you not registered? That was the rate four years ago for unregistered. Registered was about 110 a week four years ago for Catagory A and B.

I'm in Iowa and I don't take it either. It's now like 115-120 a week depending on age for a Cat C. Rediculous. What Iowa does is poll the entire State of day care providers that apply for an agreement with them to do state paid. Then they AVERAGE the rates for the whole state and that's what they pay. It works GREAT for the rural areas because the rate is higher than their private pay but for those of us in the bigger cities it's WAY below market rate. They also pay 3-4 years behind so they are paying the 2006 rates now.

They also don't let us charge the difference. If they allowed THAT I would do it.

The only way to make money on State paid is to have kids who have just slightly over 5 hours. They pay per unit with 5 hour blocks. One unit is 0-5 hours.. that pays like 11.50 a unit. The second unit would be 5-10 hours. That's another 11.50 a unit. So total you would get 23 dollars a day. I just take the kids who are over 5 hours but less than 6 hours so that I get the 4 dollars per hour they are here. Haven't had any State paid that had the over 5 hours but less than 6 hours for a very long time. If you take the kid the allowable 10 hour day you are making 2.30 an hour. That's just rediculous. You can't even break even with that kind of fee.

The other thing that irritates me about it is that there isn't any transparency over HOW they are doing the calculations. There isn't anyone sitting side by side with them when they are calculating the "average" providers fees from the applications for the contract to do state paid. We just are told what the amount is. Our union needs to require that they are PRESENT when this is being done yearly. They also need to be CLEAR with providers that the rates they claim they charge are not for advertising purposes but for purposes of AVERAGING the amounts to decide the state paid rate. I think a lot of providers put their low ball amount on the forms when they are low on kids thinking that they will attract customers somehow. They need to be clear that this amount is the amount they want and understand how what they put down affects everyone else who does state paid.
No, I have never been registered. Nice to see another Iowan on here!! Where are you from???
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melissa ann 05:04 PM 05-20-2010
Originally Posted by michael:
Yes, whenever I see "GrandPa" I know what's coming. Here is the last thread on the GP: https://www.daycare.com/forum/showthread.php?t=12564
Thanks, Michael. Your post made me smile.
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