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Daycare Center and Family Home Forum>Discount or No?
midaycare 08:41 AM 07-27-2017
I had an interview with a client who is state pay. She has 2 kids. Good fit.

State pay has worked well for me if I find the right clients. It really helps with the Food Plan, too, because I'm Tier 2 and state pay automatically gives me a Tier 1 child. It's over $2/day difference per child.

But...I'm pretty sure she can't afford my 2 weeks fee, per child, to sign the contract.

What have you guys done in similar situations? Have dcm pay a little each week extra?
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hwichlaz 08:44 AM 07-27-2017
My contract with the state includes two weeks' notice regardless of attendance so I don't charge the fee to state pay people. The state only pays for 10 days per year of vacation and holiday pay though...for me or for the families...so if they are state pay and still able to take vacation time, I make them cover the vacation fee. I'm willing to let them spread that out though. If they could afford daycare they wouldn't qualify for subsidy. So, if the state doesn't cover a notice period if the family bails on you, then I'd let them spread it out over a few weeks.
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Cat Herder 08:55 AM 07-27-2017
I have never charged an enrollment fee, so would have no problem disregarding it in general.

The problem I see is that with State pay, you won't be paid in advance for services. That would make me strongly reconsider charging the fee.

My very last State pay cost me dearly. If I ever accepted subsidy clients again, I am pretty sure I would charge the fee. IMHO, They are already being given a HUGE amount of financial assistance, I should not also have to subsidize them.
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midaycare 08:58 AM 07-27-2017
Originally Posted by Cat Herder:
I have never charged an enrollment fee, so would have no problem disregarding it in general.

The problem I see is that with State pay, you won't be paid in advance for services. That would make me strongly reconsider charging the fee.

My very last State pay cost me dearly. If I ever accepted subsidy clients again, I am pretty sure I would charge the fee. IMHO, They are already being given a HUGE amount of financial assistance, I should not also have to subsidize them.
What happened?
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Blackcat31 09:09 AM 07-27-2017
Yes, Cat Herder is correct in that state pay families don't have their tuition paid in advance like others so what I've done is limit the number of state paid kids I have in care at any one time (I currently have 3 spots out of 14 filled with state pay kids) so that all my eggs aren't in one basket.

I also charge them their two weeks fee per child but I give them extra time to have it paid. Normally it needs to be paid in advance of starting care but I give them 30-60 days depending on family size and enrollent status to pay it in full.

I require equal weekly payments with the understanding that should ANY payment be late the entire amount already paid is forfeited and services immediately terminated. IF that should happen (immediate termination) my state will still pay providers the fee for the two week notice so in a way I still get everything other families are obligated to but in a different manner.

Oh, my state also has the reassurance that should a client on state pay not fulfill their payment requirements with the provider the family is "suspended" from use of state funds until they've paid their provider in full.
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midaycare 09:13 AM 07-27-2017
Originally Posted by Blackcat31:
Yes, Cat Herder is correct in that state pay families don't have their tuition paid in advance like others so what I've done is limit the number of state paid kids I have in care at any one time (I currently have 3 spots out of 14 filled with state pay kids) so that all my eggs aren't in one basket.

I also charge them their two weeks fee per child but I give them extra time to have it paid. Normally it needs to be paid in advance of starting care but I give them 30-60 days depending on family size and enrollent status to pay it in full.

I require equal weekly payments with the understanding that should ANY payment be late the entire amount already paid is forfeited and services immediately terminated. IF that should happen (immediate termination) my state will still pay providers the fee for the two week notice so in a way I still get everything other families are obligated to but in a different manner.

Oh, my state also has the reassurance that should a client on state pay not fulfill their payment requirements with the provider the family is "suspended" from use of state funds until they've paid their provider in full.
Wow. I need to fond out thr State of Michigan's laws on this. Very helpful, thank you!
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Cat Herder 09:22 AM 07-27-2017
Originally Posted by midaycare:
What happened?
The family claimed they were having paperwork issues and would be approved by end of week one, local rep confirmed on the phone. I enrolled and billed month one as instructed. No payment.

I contacted rep who assured me it was coming. I continued enrollment, re-billed month one and added month two as instructed. No payment for either.

Then a notice came in the mail (rep would no longer answer or return calls by this time) that all subsidy payments were halted while the budget was under review and my client was placed on a wait list.

I informed the family they would have to begin private pay going forward (I did not even add the previous two months) until issues were worked out. Instead of being remotely grateful for my effort and losses (services, phone calls and endless paperwork), they left angry and entitled.

I never got any form of payment AND they slandered my daycare for being "unchristian". Sounds silly but that accusation can be a death knell in a small town, in the bible belt.

It was just a general administrative cluster. The food program was just as mismanaged. I adapted my program to depend on no local gov (or parents, really) after that.
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284878 10:26 AM 07-27-2017
Originally Posted by midaycare:
Wow. I need to fond out thr State of Michigan's laws on this. Very helpful, thank you!
Did you get the notice that state pay just increased? The email has a link to the updated CDC mannual.
If you need the link I'll post it later.

And I would charge a deposit. You could break it down into payments
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laundrymom 10:32 AM 07-27-2017
I have three options for paying the two week deposit.
Lump sum.
Half.
Or one quarter
Per week until it's paid.
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midaycare 10:48 AM 07-27-2017
Originally Posted by 284878:
Did you get the notice that state pay just increased? The email has a link to the updated CDC mannual.
If you need the link I'll post it later.

And I would charge a deposit. You could break it down into payments
I did! I won't get rich by any means, but I'll take it. I'm hoping CAFCP raises their rates, too.
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midaycare 10:49 AM 07-27-2017
Originally Posted by laundrymom:
I have three options for paying the two week deposit.
Lump sum.
Half.
Or one quarter
Per week until it's paid.
Not a bad way to do it! I just always never held a spot until I had money in hand.
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284878 11:39 AM 07-27-2017
Originally Posted by midaycare:
I did! I won't get rich by any means, but I'll take it. I'm hoping CAFCP raises their rates, too.
nope Just got Toms email, Tier one is the same Tier 2 went down by a penny for lunch.
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midaycare 11:51 AM 07-27-2017
Originally Posted by 284878:
nope Just got Toms email, Tier one is the same Tier 2 went down by a penny for lunch.
Can I opt for Alaska's rates? Lol
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AmyKidsCo 01:09 PM 07-27-2017
BC, I'm so jealous that you can have 14 kids. WI only allows 8, even with additional providers, which really limits our income.

To answer the OP question, I'd let her pay it off over the first month of care.
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midaycare 01:17 PM 07-27-2017
Originally Posted by AmyKidsCo:
BC, I'm so jealous that you can have 14 kids. WI only allows 8, even with additional providers, which really limits our income.

To answer the OP question, I'd let her pay it off over the first month of care.
At least you get 8! MI only allows 6. You can get 12 with an assistant, but you're making as much with 8 as I am with 12 and an assistant.

I can't complain though, I'm making good money.
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Blackcat31 01:22 PM 07-27-2017
Originally Posted by midaycare:
At least you get 8! MI only allows 6. You can get 12 with an assistant, but you're making as much with 8 as I am with 12 and an assistant.
I have 14 when hubby or a helper (age 13+) is here.

I have 12 when I am solo.

The ages of the youngest child dictates the ratios for the number we can have alone, assisted by a helper or assisted by a second adult.

Regardless a provider can never have more than 10 children under age 5. ever. No matter how many adults are present.

So with that said when I have 12 or 14 the extra 2 or 4 are 5 yr olds. NOT necessarily in school yet but my state considers all 5 yr olds "school agers" even if they didn't make the age cut off for public school and even if they haven't physically started school.

This last year I had 2 full time and 3 part time kids that turned 5 days after the age cut off to start school so they instead will start this fall and immediately turn 6 but that situation seems to happen a lot as every year for the past 5 yrs I have had at least 2 kids in that 5 yr old age category thus giving me max. capacity for enrollment.
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midaycare 02:16 PM 07-27-2017
Originally Posted by Blackcat31:
I have 14 when hubby or a helper (age 13+) is here.

I have 12 when I am solo.

The ages of the youngest child dictates the ratios for the number we can have alone, assisted by a helper or assisted by a second adult.

Regardless a provider can never have more than 10 children under age 5. ever. No matter how many adults are present.

So with that said when I have 12 or 14 the extra 2 or 4 are 5 yr olds. NOT necessarily in school yet but my state considers all 5 yr olds "school agers" even if they didn't make the age cut off for public school and even if they haven't physically started school.

This last year I had 2 full time and 3 part time kids that turned 5 days after the age cut off to start school so they instead will start this fall and immediately turn 6 but that situation seems to happen a lot as every year for the past 5 yrs I have had at least 2 kids in that 5 yr old age category thus giving me max. capacity for enrollment.
You are awesome. I can do 8, maybe. Then I lose my mind.
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Blackcat31 03:03 PM 07-27-2017
Originally Posted by midaycare:
You are awesome. I can do 8, maybe. Then I lose my mind.
I'm pretty sure mine was lost years ago.
Thus why I can do what I do.





....and the fact that none of 'this' (daycare in general) happens in my home.
When your home is left sacred...the perspective is so much different.

I deeply admire and respect those of you that do this IN your homes (where you live and sleep ) and have double respect and admiration for those of you crazy, uh......um, I mean brave enough to do this in your home WHILE raising your own.
Two thumbs up!
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midaycare 06:11 PM 07-27-2017
Originally Posted by Blackcat31:
I'm pretty sure mine was lost years ago.
Thus why I can do what I do.





....and the fact that none of 'this' (daycare in general) happens in my home.
When your home is left sacred...the perspective is so much different.

I deeply admire and respect those of you that do this IN your homes (where you live and sleep ) and have double respect and admiration for those of you crazy, uh......um, I mean brave enough to do this in your home WHILE raising your own.
Two thumbs up!

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