Minnesota State Wire

Starting this fall, Minnesota might find itself paying millions of dollars in fines for neglecting regulations put in place to assure access to affordable child care meant to help needy families.

According to MSN, over 15,000 low-income families benefit from Minnesota's state subsidies that help to pay for child care. Now, the subsidies have fallen below the federal standards, which have affected many families.

Per the information found in a Department of Human Services report, the child-care assistance program only covers 23% of prices at larger child-care centers and 16.3% of the tuition charged by the family providers. Going by this report, the figures are below the federal minimum for reimbursement.

The DHS deputy assistant commissioner for children and family weighed in on this issue.

"We are at a critical point," Minnesota's DHS deputy assistant commissioner said. "Everything shows that having that consistent, stable, quality child care, day after day, is critical for kids' development and for keeping families together."

Greater Minnesota is among the areas that have been heavily hit by the low reimbursement rates that have affected the publicly funded daycare costs, according to lawmakers.

Over the last decade, the number of family child care providers has dropped from 12,200 to 8,000, representing a 35% decline.

The state is expected to lose $2.75 million and $5.5 million of the annual $69 it receives from a federal block grant to ease CCAP costs unless lawmakers raise the subsidy. According to DHS officials, starting Oct. 1, Minnesota will be subjected to penalties and fines.

Lawmakers have taken action in the wake of possible federal fines. Sen. Karin Housley has crafted and introduced a bill seeking to improve the reimbursement rates to 25% of a market rate cost. The increase would bring Minnesota within the minimum federal standards.