The Kansas Department of Social and Rehabilitation Services (SRS) today announced a rate adjustment for child care providers serving children receiving assistance through the agency. Based on a market study commissioned by the department, the adjustment will mean an increase for most child care providers across Kansas.

Rates will be adjusted upward to the 75th percentile of rates paid all child care providers in each of the 12 SRS management areas; currently SRS child care rates are at or below the 50th percentile.

The rate adjustment is a proactive move by the agency to prepare for an expected large increase in the need for child care as welfare reform is implemented. It also comes at a time when many child care providers had overhead increases because of a recently enacted minimum wage increase. With the adjustment, SRS is also attempting to increase the number of licensed child care providers available to families receiving public assistance. Licensure as a child care provider requires more training and studies have shown increased training brings increased quality.

New federal welfare reform calls for a dramatic increase in the number of people receiving public assistance becoming involved in work

activities. By far, the largest percentage of people receiving public assistance in Kansas are single parent families, most headed by women.

Because of new work requirements, there is a strong need to help create new child care sites," said SRS Secretary Rochelle Chronister. Child care allows people to obtain and maintain employment and move toward self-sufficiency; without it, welfare reform will not work."

A rate in the 75th percentile means that SRS pays rates equal to or above 75 out of 100 child care providers in each management area. SRS pays child care providers serving children who qualify for assistance from the agency. SRS pays providers either the lower of the rate they charge the general public or the rate established at the 75th percentile based on the market rate survey.

We believe rates should help our customers access affordable child care," Secretary Chronister. By adjusting rates, we hope providers will join us in giving parents greater choices in selecting child care."

The largest increase in people requesting child care assistance from SRS is expected to be the working poor, families not on any other type of assistance whose incomes are at or below 185 percent of the federal poverty level. The number of working poor families requesting child care assistance has already increased significantly over the last few months.

People who move away from cash assistance and into the work force quite often start at low-salary jobs," said Connie Hubbell, SRS Commissioner of Income Support and Employment Preparation Services. But many cannot hold down these jobs and gain entry into the work force without child care assistance."

Hubbell said she hopes the rate adjustment, the first provided by SRS since May of 1993, will convince some child care providers not serving children receiving assistance from SRS to begin to do so. She also stressed the need for communities, including businesses and other private or not-for-profit agencies, to step forward and share the responsibility to provide needed child care.

As a state, we will face a choice in the near future," she said. We cannot expect families to move from dependence to independence without the means to make the change. Child care is key to reform."

Page Last Updated: May 29, 2001