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Daycare Center and Family Home Forum>State Pay
Country Kids 07:52 AM 08-01-2011
Do you charge your state pay parents as much as your private pay parents, or do you charge what the state will pay you?
I do not have any state parents right now but was wanting to possible look at changing my rates so I pulled up the rates for state pay clients and WOW! If I were to go on their rates I would lose money big, big time. Most of my parents still pay now more than what the state would be will to pay and I charge an hourly rate.
For my area a full-time infant is $455 a month
Toddler=$450
Preschooler=$425
When I figured up some of these full time amounts by the hours you were making less than $2.00 an hour!!!!!!!! No wonder parents don't want to pay what you are wanting to charge if they know some people are getting it for that low even if it isn't coming out of their pocket.
I'm reallly going to have to go back to the drawing board on this!
I do not have any state parents right now but was wanting to possible look at changing my rates so I pulled up the rates for state pay clients and WOW! If I were to go on their rates I would lose money big, big time. Most of my parents still pay now more than what the state would be will to pay and I charge an hourly rate.
For my area a full-time infant is $455 a month
Toddler=$450
Preschooler=$425
When I figured up some of these full time amounts by the hours you were making less than $2.00 an hour!!!!!!!! No wonder parents don't want to pay what you are wanting to charge if they know some people are getting it for that low even if it isn't coming out of their pocket.
I'm reallly going to have to go back to the drawing board on this!
sharlan 07:58 AM 08-01-2011
I would charge state paid the same as everyone else.
Blackcat31 08:22 AM 08-01-2011
It is illegal where I live to charge state pay families more than private pay families.
I charge everyone according to the same rate scale. Some families pay more and some pay less but it isn't based on the fact they are or aren't on state pay. It is based on the hours/days they need for services NOT where the money is coming from.
My rates are higher than what my state pays so the clients on state pay must pay the difference. For example; the state pays out $28 per day for a daily rate and my rate for the day is $33 so families on state pay $5 more per day in addition to whatever their co-pay is.
I charge everyone according to the same rate scale. Some families pay more and some pay less but it isn't based on the fact they are or aren't on state pay. It is based on the hours/days they need for services NOT where the money is coming from.
My rates are higher than what my state pays so the clients on state pay must pay the difference. For example; the state pays out $28 per day for a daily rate and my rate for the day is $33 so families on state pay $5 more per day in addition to whatever their co-pay is.
littlemommy 08:22 AM 08-01-2011
I have one infant who may be on state pay soon. She's giving me an option. I can look at the state's program to see if it is something I want to do, or she will be getting loans to pay me privately.
She knows that I have tried state pay before and it hasn't worked out. I am very weary about working with the state program. They are HORRIBLE with communication, and have been telling her for 7 weeks that they will be contacting me. I'm going to opt for her to pay me thru the loans.
But to answer your question, I've heard that in the state of NE a provider cannot charge the family any extra. The state pay is $2.25 an hour, and most providers in my town charge $2.50/hr. So the difference isn't a lot, but I would not be getting paid for holidays or days she just wants to take off, so that would be an income cut.
She knows that I have tried state pay before and it hasn't worked out. I am very weary about working with the state program. They are HORRIBLE with communication, and have been telling her for 7 weeks that they will be contacting me. I'm going to opt for her to pay me thru the loans.
But to answer your question, I've heard that in the state of NE a provider cannot charge the family any extra. The state pay is $2.25 an hour, and most providers in my town charge $2.50/hr. So the difference isn't a lot, but I would not be getting paid for holidays or days she just wants to take off, so that would be an income cut.
Meeko 08:27 AM 08-01-2011
My state parents pay the same as everybody else. They are required to make up any difference between the state payment and my fee from their own pocket. I am in Utah and this is the requirements. The state makes sure that the parents know this.
I know some states are different and providers cannot charge state parents anything out of their pocket. (I wouldn't take state paid if I was in one of those states)
I know some states are different and providers cannot charge state parents anything out of their pocket. (I wouldn't take state paid if I was in one of those states)
nannyde 08:54 AM 08-01-2011
Originally Posted by Country Kids:
Do you charge your state pay parents as much as your private pay parents, or do you charge what the state will pay you?
I do not have any state parents right now but was wanting to possible look at changing my rates so I pulled up the rates for state pay clients and WOW! If I were to go on their rates I would lose money big, big time. Most of my parents still pay now more than what the state would be will to pay and I charge an hourly rate.
For my area a full-time infant is $455 a month
Toddler=$450
Preschooler=$425
When I figured up some of these full time amounts by the hours you were making less than $2.00 an hour!!!!!!!! No wonder parents don't want to pay what you are wanting to charge if they know some people are getting it for that low even if it isn't coming out of their pocket.
I'm reallly going to have to go back to the drawing board on this!
I don't take state paid. The salary in Iowa SUCKS. It's like 120 for an infant. My lowest rate is 140 for the early departure kids. Do you charge your state pay parents as much as your private pay parents, or do you charge what the state will pay you?
I do not have any state parents right now but was wanting to possible look at changing my rates so I pulled up the rates for state pay clients and WOW! If I were to go on their rates I would lose money big, big time. Most of my parents still pay now more than what the state would be will to pay and I charge an hourly rate.
For my area a full-time infant is $455 a month
Toddler=$450
Preschooler=$425
When I figured up some of these full time amounts by the hours you were making less than $2.00 an hour!!!!!!!! No wonder parents don't want to pay what you are wanting to charge if they know some people are getting it for that low even if it isn't coming out of their pocket.
I'm reallly going to have to go back to the drawing board on this!
So your infants are at about 104 a week and the preK kids are at 99 a week. If they are fifty hour weeks that's about two dollars an hour.
What is the going rate at your centers? I think I was at two dollars an hour about ten years ago or so. I couldn't stay in business with the two dollar an hour... it's too expensive to live here and make a profit at that.
Is the cost of living really low where you live?
Country Kids 09:17 AM 08-01-2011
Originally Posted by nannyde:
I don't take state paid. The salary in Iowa SUCKS. It's like 120 for an infant. My lowest rate is 140 for the early departure kids.
So your infants are at about 104 a week and the preK kids are at 99 a week. If they are fifty hour weeks that's about two dollars an hour.
What is the going rate at your centers? I think I was at two dollars an hour about ten years ago or so. I couldn't stay in business with the two dollar an hour... it's too expensive to live here and make a profit at that.
Is the cost of living really low where you live?
I don't take state paid. The salary in Iowa SUCKS. It's like 120 for an infant. My lowest rate is 140 for the early departure kids.
So your infants are at about 104 a week and the preK kids are at 99 a week. If they are fifty hour weeks that's about two dollars an hour.
What is the going rate at your centers? I think I was at two dollars an hour about ten years ago or so. I couldn't stay in business with the two dollar an hour... it's too expensive to live here and make a profit at that.
Is the cost of living really low where you live?
This is all for full-time=136-215 hours a month
State paid for the centers
Infants=$595
Toddler=$575
Preschoolers=$475
No, cost of living isn't low here at all. When people move here from the Midwest or the East Coast they can't believe how high houses are and just the plain cost of living.
Iroically too, we have the highest unemployment for this area but things just keep going up, up, up.
MarinaVanessa 09:23 AM 08-01-2011
I'm in CA and I accept subsity if they qualify. I require the family to pay out of pocket until I get my first check then I reimburse the family back and they no longer pay anything out of pocket other than late pick-up fees or for extra time (if their subsidy doesn't cover it). I charge everyone the same amount (we can't charge clients on subsity a different amount than our private pay clients whether it's more or less).
Depending on the families income and other variables they may have the whole amount covered or may have to pay a "family fee" which is just a small portion of the childcare rate. Whatever subsity doesn't cover the parents have to pay. I know that they have a maximum that they pay out but I charge $160 a week and the family that I had on subsity had it completely covered so I know they'll cover more than the amount I charge a week. The program in our area won't tell us what their maximum payout is so that providers don't all jack up their prices to the maximum and take only state paid clients.
Depending on the families income and other variables they may have the whole amount covered or may have to pay a "family fee" which is just a small portion of the childcare rate. Whatever subsity doesn't cover the parents have to pay. I know that they have a maximum that they pay out but I charge $160 a week and the family that I had on subsity had it completely covered so I know they'll cover more than the amount I charge a week. The program in our area won't tell us what their maximum payout is so that providers don't all jack up their prices to the maximum and take only state paid clients.
Sugar Magnolia 09:32 AM 08-01-2011
I take state-paid kids, BUT the state-paid kids do have to pay the difference between what I charge and what the state pays. My rate is $195-$175 per week depending on age. The child on state-pay pays me $67 per week. It is illegal for me to charge them different rates than private-paid kids.
KEG123 09:42 AM 08-01-2011
I take state paid kids. The rate is like 35 cents less than what I charge private paid families, so it's not a big deal to me.
momma2girls 10:25 AM 08-01-2011
Originally Posted by nannyde:
I don't take state paid. The salary in Iowa SUCKS. It's like 120 for an infant. My lowest rate is 140 for the early departure kids.
So your infants are at about 104 a week and the preK kids are at 99 a week. If they are fifty hour weeks that's about two dollars an hour.
What is the going rate at your centers? I think I was at two dollars an hour about ten years ago or so. I couldn't stay in business with the two dollar an hour... it's too expensive to live here and make a profit at that.
Is the cost of living really low where you live?
I used to take state children about 5 yrs. ago, I only made $14.50 a day for a 9 1/2 hr. day!!! I used to charge $25.00 a day. It is illegal, from what I am told to charge the family any extra money to make up the difference!! I quit doing it once they left for school!I don't take state paid. The salary in Iowa SUCKS. It's like 120 for an infant. My lowest rate is 140 for the early departure kids.
So your infants are at about 104 a week and the preK kids are at 99 a week. If they are fifty hour weeks that's about two dollars an hour.
What is the going rate at your centers? I think I was at two dollars an hour about ten years ago or so. I couldn't stay in business with the two dollar an hour... it's too expensive to live here and make a profit at that.
Is the cost of living really low where you live?
MarinaVanessa 10:34 AM 08-01-2011
Originally Posted by momma2girls:
It is illegal, from what I am told to charge the family any extra money to make up the difference!!
Yep, some states and/or programs don't allow it. That stinks because in some states childcare subsidy is SUPER low It is illegal, from what I am told to charge the family any extra money to make up the difference!!
.
nannyde 10:39 AM 08-01-2011
Originally Posted by Sugar Magnolia:
I take state-paid kids, BUT the state-paid kids do have to pay the difference between what I charge and what the state pays. My rate is $195-$175 per week depending on age. The child on state-pay pays me $67 per week. It is illegal for me to charge them different rates than private-paid kids.
It's the opposite here.I take state-paid kids, BUT the state-paid kids do have to pay the difference between what I charge and what the state pays. My rate is $195-$175 per week depending on age. The child on state-pay pays me $67 per week. It is illegal for me to charge them different rates than private-paid kids.
We can charge private more than state but we can't charge the state of iowa more than we charge private.
So if my rate is 200 a week the state pays 120
If my rate is 100 a week the state pays 100
They could care less what we charge privates EXCEPT that it can't be LESS than what we charge the state.
The way my state does it is rediculous. They average the rates for the whole state and offer rates from about 4-5 years ago. So the AVERAGE provider in Iowa charged 120 4-5 years ago.
When they collect rate info they DON'T tell the providers what the info is for. Providers mistakenly believe they are ADVERTISING when they answer it so the ones that offer low ball rates put it in writing. That hurts everyone.
The rural areas charge WAY less than metro Des Moines... specially in areas like WDMMom lives. That's the highest area in the state so it's tough to take state when you live in that area. The mortgages are SO high compared to even my side of town and REALLY compared to rural Iowa towns.
Also we are NOT allowed to charge the difference. If I charge 200 and the state pays 120 I can NOT accept the other 80 dollars. The only exception is if I do babysitting for them for non work hours... then I can charge for that... and late fee stuff.
The way my state sees it is if the client can pay me the 80 extra bucks then they want that 80 to be applied to the 120 they are paying so they then just pay 40.
Sucky math for us. I would love to be able to afford to take state but it would mean offering a completely different service. I couldn't afford to offer the services I offer now with 120 a week. Nowhere NEAR....
cheerfuldom 10:46 AM 08-01-2011
The few daycares (centers) I have been in in my area are scary. Very shabby buildings and you get that icky feeling when you go in. High ratios and such. Its hard to find a home daycare in my area that takes state pay. I dont know how it works because I personally would not take state pay families. It sounds like it is a big hassle
jojosmommy 10:51 AM 08-01-2011
Originally Posted by momma2girls:
I used to take state children about 5 yrs. ago, I only made $14.50 a day for a 9 1/2 hr. day!!! I used to charge $25.00 a day. It is illegal, from what I am told to charge the family any extra money to make up the difference!! I quit doing it once they left for school!
If that was the case here NOBODY would accept state funded clients. We are allowed to charge the difference between what the state pays and what we charge everyone else. Also, in our area you can easily qualify for 15% increase in rates if you are licensed teacher or have completed other credientials. 1 piece of paperwork and lots more pay.I used to take state children about 5 yrs. ago, I only made $14.50 a day for a 9 1/2 hr. day!!! I used to charge $25.00 a day. It is illegal, from what I am told to charge the family any extra money to make up the difference!! I quit doing it once they left for school!
SimpleMom 11:02 AM 08-01-2011
I charge state paid families the same as everyone else. They pay me upfront and I reimburse them with the money when I get paid.
happykidschildcare 02:59 PM 08-01-2011
Its illegal to accept money from parents on dshs other then their monthly co payment. And dshs (state pay) is significantly less then private pay. I except dshs but I limit the amount I enroll so I don't lose to much income. Right now the economy sucks and I had 4 spaces I couldnt fill so I went ahead and accepted 2 more dshs, so I have a total of 4 on dshs and 7 private pay. Im very lucky to be almost a capacity. Theres so much competition, licensed & sahm in the area, and some of the prices are unbelievably low. I have stood my ground @ $150 week but I do include preschool & all meals and snacks.
PitterPatter 09:25 PM 08-01-2011
Originally Posted by Country Kids:
Do you charge your state pay parents as much as your private pay parents, or do you charge what the state will pay you?
I do not have any state parents right now but was wanting to possible look at changing my rates so I pulled up the rates for state pay clients and WOW! If I were to go on their rates I would lose money big, big time. Most of my parents still pay now more than what the state would be will to pay and I charge an hourly rate.
For my area a full-time infant is $455 a month
Toddler=$450
Preschooler=$425
When I figured up some of these full time amounts by the hours you were making less than $2.00 an hour!!!!!!!! No wonder parents don't want to pay what you are wanting to charge if they know some people are getting it for that low even if it isn't coming out of their pocket.
I'm reallly going to have to go back to the drawing board on this!
Here we don't have a choice. We are not allowed to charge extra. We get paid a set daily rate. For preschoolers/toddlers we get $5 for 0-2 hrs, $10 for 2 -4 hrs, $20 for over 4 hrs.For school age we get $15 per day for over 4 hours. $7 for 2-4 hrs and $3.50 for under 2 hrs. Do you charge your state pay parents as much as your private pay parents, or do you charge what the state will pay you?
I do not have any state parents right now but was wanting to possible look at changing my rates so I pulled up the rates for state pay clients and WOW! If I were to go on their rates I would lose money big, big time. Most of my parents still pay now more than what the state would be will to pay and I charge an hourly rate.
For my area a full-time infant is $455 a month
Toddler=$450
Preschooler=$425
When I figured up some of these full time amounts by the hours you were making less than $2.00 an hour!!!!!!!! No wonder parents don't want to pay what you are wanting to charge if they know some people are getting it for that low even if it isn't coming out of their pocket.
I'm reallly going to have to go back to the drawing board on this!
If we have the child LONGER than 12 hrs then we get $4 more for that day. On weekends and holidays we get $4 more also but that's the max ever.
PitterPatter 09:32 PM 08-01-2011
Originally Posted by momma2girls:
I used to take state children about 5 yrs. ago, I only made $14.50 a day for a 9 1/2 hr. day!!! I used to charge $25.00 a day. It is illegal, from what I am told to charge the family any extra money to make up the difference!! I quit doing it once they left for school!
Yep same here!! I just changed my hours and dropped a boy because I got tired of working 11 hr days for $20!! (plus other drama) It's not too bad if I have other kids in daycare as well but there were some days I was open with that 1 kid that needed 11 hrs. I don't take school kids if I have limited spots because they drop to a $15 per day pay.I used to take state children about 5 yrs. ago, I only made $14.50 a day for a 9 1/2 hr. day!!! I used to charge $25.00 a day. It is illegal, from what I am told to charge the family any extra money to make up the difference!! I quit doing it once they left for school!
christinaskids 06:26 AM 08-02-2011
I love state pay kids! I like to have a regular paycheck every two weeks but I am a pretty new daycare so parents pay me as what is convenient for them which has worked out but its all at different times. My state pay kids all had great parents that I have not had problems with but I am sure that will come sometime in the future. Here in SD, you tell them your rates and they tell you what you can get paid maximum and tell you what the families co-pay is. They pay about 2.75 per hour for school age kids and 2.70 for younger ones but each county is different.
alysiav 06:59 AM 08-02-2011
I was amazed at the responses to this post. Where I live state pays much better than people privately are willing to pay. A lot of providers here wish they had state pay but don't want to deal with the rules and regulations that go along with it.
Blackcat31 07:02 AM 08-02-2011
Originally Posted by alysiav:
I was amazed at the responses to this post. Where I live state pays much better than people privately are willing to pay. A lot of providers here wish they had state pay but don't want to deal with the rules and regulations that go along with it.
State pay rules vary as much and as differently as licensing rules do. I was amazed at the responses to this post. Where I live state pays much better than people privately are willing to pay. A lot of providers here wish they had state pay but don't want to deal with the rules and regulations that go along with it.
Crazy8 07:34 AM 08-02-2011
I took state paid ONCE and will never do it again, she paid me the difference from what the state paid and what my rate was at the time - it was about $40/week for her two kids.
Just out of curiosity I just looked up the rates - all I can find are the 2009 ones but from the looks of it they are about $50-60 LESS a week than my regular rates so I would charge parents the difference.
Just out of curiosity I just looked up the rates - all I can find are the 2009 ones but from the looks of it they are about $50-60 LESS a week than my regular rates so I would charge parents the difference.
Country Kids 08:08 AM 08-02-2011
I called someone yesterday and asked them about our rates and why so low. She said they are actually from 2007 and they aren't planning on changing them anytime soon. Whats sad is alot of providers in my area base their rates on these and they are from 4 years ago. They are actually losing so much money on this and don't even realize it.
Blackcat31 08:13 AM 08-02-2011
Originally Posted by Country Kids:
I called someone yesterday and asked them about our rates and why so low. She said they are actually from 2007 and they aren't planning on changing them anytime soon. Whats sad is alot of providers in my area base their rates on these and they are from 4 years ago. They are actually losing so much money on this and don't even realize it.
Our state does a survey of all providers in the area and the rates for the state pay are then based off the averages of those rates. What sucks for that method is the casual provider who isn't really in it for a living who charges cents compared to the dollars everyone else charges throws our pay scale off a ton! I called someone yesterday and asked them about our rates and why so low. She said they are actually from 2007 and they aren't planning on changing them anytime soon. Whats sad is alot of providers in my area base their rates on these and they are from 4 years ago. They are actually losing so much money on this and don't even realize it.
We have been running on the same pay scale since 2006 and no changes seem to be happening any time soon.
I raise my rates when necessary but the additional cost for some state pay families is hard and although I haven't lost any clients yet because of the difference, I do think it will eventually happen.
I am however, leaning towards not taking state pay anymore because the whole state shutdown was a real eye opener for me about a lot of things within the system.
NiNi.R. 10:41 AM 08-02-2011
Parents transfer their state pay to me on the 1st work day of the month. They then pay the difference in payments every 2nd and 4th Friday of the month when all the other parents pay.
MG&Lsmom 10:57 AM 08-02-2011
As far as i know, we aren't allowed to charge the parents more than what the state pays us. I don't take vouchers right now. But iirc, it's about $33/day for full time and the employer submits working hours to the state. They only pay for days/hours the parent works or is in an approved school program. If they get sent home early, they are expected to pick up their children. The state will not pay for the full day if they work a 4 hour shift.
learn-n-grow 12:55 PM 08-02-2011
Originally Posted by Blackcat31:
It is illegal where I live to charge state pay families more than private pay families.
I charge everyone according to the same rate scale. Some families pay more and some pay less but it isn't based on the fact they are or aren't on state pay. It is based on the hours/days they need for services NOT where the money is coming from.
My rates are higher than what my state pays so the clients on state pay must pay the difference. For example; the state pays out $28 per day for a daily rate and my rate for the day is $33 so families on state pay $5 more per day in addition to whatever their co-pay is.
Here in Ohio, if my rate is higher than what the state will pay, I am not allowed to charge parents the difference. I wish we could because they recently lowered their rate again.It is illegal where I live to charge state pay families more than private pay families.
I charge everyone according to the same rate scale. Some families pay more and some pay less but it isn't based on the fact they are or aren't on state pay. It is based on the hours/days they need for services NOT where the money is coming from.
My rates are higher than what my state pays so the clients on state pay must pay the difference. For example; the state pays out $28 per day for a daily rate and my rate for the day is $33 so families on state pay $5 more per day in addition to whatever their co-pay is.
Blackcat31 08:22 AM 08-03-2011
Originally Posted by learn-n-grow:
Here in Ohio, if my rate is higher than what the state will pay, I am not allowed to charge parents the difference. I wish we could because they recently lowered their rate again.
If that were the case where I am, I would never take a state paid client. Not allowing providers to charge families the difference is the dumbest rule I have heard of yet.... Here in Ohio, if my rate is higher than what the state will pay, I am not allowed to charge parents the difference. I wish we could because they recently lowered their rate again.
Each state that has that rule should just open a center for state paid clients only. That way they can pay the employees whatever rate the state chooses and the parents can just bring their kids and not worry about any of the money side of being a parent.
Sheesh....everytime I hear that providers in certain states can't charge the difference, I just shake my head and wonder...