Daycare.com Forum Daycare Management Software

Go Back   Daycare.com Forum > Main Category > Daycare Center and Family Home Forum

Daycare Center and Family Home Forum Daycare Center and Family Home owners, Directors, Operators and Assistants should post and ask questions here.

Reply
 
Thread Tools Display Modes
  #1  
Old 08-01-2011, 08:52 AM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,044
Default State Pay

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!
Reply With Quote
  #2  
Old 08-01-2011, 08:58 AM
sharlan's Avatar
sharlan sharlan is offline
Advanced Daycare.com Member
 
Join Date: May 2011
Location: Chino, California
Posts: 6,040
Default

I would charge state paid the same as everyone else.
Reply With Quote
  #3  
Old 08-01-2011, 09:22 AM
Blackcat31's Avatar
Blackcat31 Blackcat31 is offline
 
Join Date: Oct 2010
Posts: 19,601
Default

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.

Last edited by Blackcat31; 08-01-2011 at 09:30 AM.
Reply With Quote
  #4  
Old 08-01-2011, 09:22 AM
littlemommy's Avatar
littlemommy littlemommy is offline
Daycare.com Member
 
Join Date: May 2011
Posts: 568
Default

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.
Reply With Quote
  #5  
Old 08-01-2011, 09:27 AM
Meeko's Avatar
Meeko Meeko is offline
Advanced Daycare.com Member
 
Join Date: Mar 2011
Location: Utah
Posts: 4,256
Default

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)
Reply With Quote
  #6  
Old 08-01-2011, 09:54 AM
nannyde's Avatar
nannyde nannyde is offline
All powerful, all knowing daycare whisperer
 
Join Date: Mar 2010
Location: Des Moines
Posts: 7,308
Default

Quote:
Originally Posted by Country Kids View Post
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.

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?
Reply With Quote
  #7  
Old 08-01-2011, 10:17 AM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,044
Default

Quote:
Originally Posted by nannyde View Post
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.
Reply With Quote
  #8  
Old 08-01-2011, 10:23 AM
MarinaVanessa's Avatar
MarinaVanessa MarinaVanessa is offline
Family Childcare Home
 
Join Date: Jan 2010
Location: Ventura County, CA
Posts: 7,200
Default

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.
__________________
Daycare Ninja, CA
Helping Hands Childcare
Reply With Quote
  #9  
Old 08-01-2011, 10:32 AM
Sugar Magnolia's Avatar
Sugar Magnolia Sugar Magnolia is offline
Blossoms Blooming
 
Join Date: Apr 2011
Location: Where the wind goes.....
Posts: 2,379
Default

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.
Reply With Quote
  #10  
Old 08-01-2011, 10:42 AM
KEG123's Avatar
KEG123 KEG123 is offline
Where Children Grow
 
Join Date: Nov 2010
Location: Illinois
Posts: 1,254
Default

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.
Reply With Quote
  #11  
Old 08-01-2011, 11:25 AM
momma2girls's Avatar
momma2girls momma2girls is offline
Advanced Daycare.com Member
 
Join Date: Nov 2009
Location: midwestern
Posts: 2,156
Default

Quote:
Originally Posted by nannyde View Post
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!
Reply With Quote
  #12  
Old 08-01-2011, 11:34 AM
MarinaVanessa's Avatar
MarinaVanessa MarinaVanessa is offline
Family Childcare Home
 
Join Date: Jan 2010
Location: Ventura County, CA
Posts: 7,200
Default

Quote:
Originally Posted by momma2girls View Post
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 .
__________________
Daycare Ninja, CA
Helping Hands Childcare
Reply With Quote
  #13  
Old 08-01-2011, 11:39 AM
nannyde's Avatar
nannyde nannyde is offline
All powerful, all knowing daycare whisperer
 
Join Date: Mar 2010
Location: Des Moines
Posts: 7,308
Default

Quote:
Originally Posted by Sugar Magnolia View Post
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.

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....
Reply With Quote
  #14  
Old 08-01-2011, 11:46 AM
cheerfuldom's Avatar
cheerfuldom cheerfuldom is offline
Advanced Daycare.com Member
 
Join Date: Dec 2010
Posts: 7,414
Default

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
Reply With Quote
  #15  
Old 08-01-2011, 11:51 AM
jojosmommy's Avatar
jojosmommy jojosmommy is offline
Advanced Daycare.com Member
 
Join Date: Jan 2011
Location: MN
Posts: 1,105
Default

Quote:
Originally Posted by momma2girls View Post
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.
Reply With Quote
  #16  
Old 08-01-2011, 12:02 PM
SimpleMom's Avatar
SimpleMom SimpleMom is offline
Senior Member
 
Join Date: Jun 2009
Posts: 590
Default

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.
Reply With Quote
  #17  
Old 08-01-2011, 03:59 PM
happykidschildcare's Avatar
happykidschildcare happykidschildcare is offline
Daycare.com Member
 
Join Date: Apr 2010
Location: Washington State
Posts: 149
Default statye pay vs private

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.
Reply With Quote
  #18  
Old 08-01-2011, 10:25 PM
PitterPatter's Avatar
PitterPatter PitterPatter is offline
Advanced Daycare.com Member
 
Join Date: Mar 2011
Posts: 1,500
Default

Quote:
Originally Posted by Country Kids View Post
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. 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.
Reply With Quote
  #19  
Old 08-01-2011, 10:32 PM
PitterPatter's Avatar
PitterPatter PitterPatter is offline
Advanced Daycare.com Member
 
Join Date: Mar 2011
Posts: 1,500
Default

Quote:
Originally Posted by momma2girls View Post
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.
Reply With Quote
  #20  
Old 08-02-2011, 07:26 AM
christinaskids's Avatar
christinaskids christinaskids is offline
Daycare.com Member
 
Join Date: Jun 2011
Location: South Dakota
Posts: 170
Default state pay

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.
Reply With Quote
  #21  
Old 08-02-2011, 07:59 AM
alysiav's Avatar
alysiav alysiav is offline
New Daycare.com Member
 
Join Date: Jul 2011
Location: Ohio
Posts: 8
Default how different it is here

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.
Reply With Quote
  #22  
Old 08-02-2011, 08:02 AM
Blackcat31's Avatar
Blackcat31 Blackcat31 is offline
 
Join Date: Oct 2010
Posts: 19,601
Default

Quote:
Originally Posted by alysiav View Post
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.
Reply With Quote
  #23  
Old 08-02-2011, 08:34 AM
Crazy8's Avatar
Crazy8 Crazy8 is offline
Advanced Daycare.com Member
 
Join Date: Jun 2011
Location: USA
Posts: 2,769
Default

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.
Reply With Quote
  #24  
Old 08-02-2011, 09:08 AM
Country Kids's Avatar
Country Kids Country Kids is offline
Nature Lover
 
Join Date: Mar 2011
Posts: 5,044
Default

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.
Reply With Quote
  #25  
Old 08-02-2011, 09:13 AM
Blackcat31's Avatar
Blackcat31 Blackcat31 is offline
 
Join Date: Oct 2010
Posts: 19,601
Default

Quote:
Originally Posted by Country Kids View Post
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!

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.
Reply With Quote
  #26  
Old 08-02-2011, 11:41 AM
NiNi.R. NiNi.R. is offline
Daycare.com Member
 
Join Date: May 2011
Posts: 235
Default

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.
Reply With Quote
  #27  
Old 08-02-2011, 11:57 AM
MG&Lsmom's Avatar
MG&Lsmom MG&Lsmom is offline
Daycare.com Member
 
Join Date: Oct 2010
Location: Central MA
Posts: 551
Default

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.
Reply With Quote
  #28  
Old 08-02-2011, 01:55 PM
learn-n-grow's Avatar
learn-n-grow learn-n-grow is offline
Daycare.com Member
 
Join Date: Aug 2011
Location: Ohio
Posts: 68
Default

Quote:
Originally Posted by Blackcat31 View Post
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.
Reply With Quote
  #29  
Old 08-03-2011, 09:22 AM
Blackcat31's Avatar
Blackcat31 Blackcat31 is offline
 
Join Date: Oct 2010
Posts: 19,601
Default

Quote:
Originally Posted by learn-n-grow View Post
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....

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...
Reply With Quote
Reply

Tags
rates, rates - fair and reasonable

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Licensed DayCare vs. Private DayCare marylmr Daycare Center and Family Home Forum 60 02-24-2020 01:20 PM
State Aid And Showing As 2x Income jen2651 Daycare and Taxes 8 05-08-2012 04:30 PM
State Pay/Minute Menu question My4SunshineGirlsNY Daycare and Taxes 3 10-07-2010 02:49 PM
State Inspection for New Facilities, Texas stimpson Daycare Center and Family Home Forum 0 06-07-2009 01:06 PM
Breach of Confidentiality by State Inspector NEDaycare Daycare Center and Family Home Forum 3 11-16-2008 05:32 PM


All times are GMT -7. The time now is 09:19 PM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming