A parent share of cost is a sliding scale based on the family income, the number in the household, and the number of children in care. If all the children in the family attend a Texas Rising Star Provider, the family is eligible for a reduction. A parent share of the cost cannot be waived.
Child Care Services – Parent Share of Cost Methodology FY-2022
The child care services program subsidizes child care for low-income families, promoting long-term self-sufficiency by enabling parents to work or attend workforce training or education activities. It also educates parents about the
availability of quality child care, which enhances children’s early learning.
Federal Child Care Development Fund regulations at 45 CFR §98.42 require that parents receiving child care assistance be assessed a parent share of cost. Parent share of cost must be on a sliding fee scale based on family size and income and may be based on other factors as appropriate but may not be based on the cost of care or amount of subsidy payment.
Workforce Development Boards (Boards) must ensure that the sliding fee scale is based on family size and the gross family income expressed as a percent of the U.S. Department of Health and Human Services Poverty Guidelines (aka federal poverty guidelines) or state median income for the appropriate fiscal year.
We applied the following methodology based on an analysis of the following information and data set tools.
1. Persons per Household in El Paso, County, Texas. Source: United States Census Bureau
2. Living Wage Calculator for El Paso County, Texas. Source: The Massachusetts Institute of Technology (MIT)
3. Income Ranges for Parent Share of Cost Assessment. Source: Texas Workforce Commission
Persons per Household for El Paso, County TX was 3.06 (The year 2019). The living wage annual salary for a family of 3 was $59,879 from which 9.08% were childcare expenses. The number of days in a year receiving childcare services for the year 2021-2022 is 261 and the average number of days in a month receiving childcare services is 22.
WSB determined that the living wage for fiscal year 2023 is $15.91/hr for an individual to cover necessities.
WSB considers the following necessities:
According to the U.S. Census, the average household size in the Borderplex is 3 (2 adults, 1 child)
The necessary annual gross income for 2 adults, 1 child $66,165
2 adults working full time ($66,165 ÷ 2) $33,082
Hourly wage ($33,082 ÷ 2,080) (40 hours per week x 52 weeks a year) $15.91
It could be assumed or defined that a household is made up of 1 adult with 2 children. As listed above, the income necessary for 1 adult with 2 children is $55,081. In this scenario, the one adult would be the only person to generate the income necessary to support the entire family without public assistance.
The necessary annual gross income for 1 adult, 2 children $72,696
Hourly wage required to support this size household
($72,696 ÷ 2,080) (40 hours per week x 2 weeks a year) $34.95
After consideration of both calculations, chose the $15.91 living wage to utilize for internal policy, research benchmarking and performance outcome analysis.
Workforce Solutions Borderplex works with individuals that are unemployed, underemployed, dislocated and/or have barriers to employment. Through various strategies and tactics, WSB works with regional educators and employers to place individuals into jobs that have a higher skill and/or wage. Although highly competitive, the $34.69 hourly wage is not a realistic entry level wage for most of the job seekers WSB serves. For the purposes of transitional job placement, on-the-job training, internships, and subsidized employment, the $15.91 Living Wage is more appropriate for WSB to utilize and benchmark its programs and service outcomes.
It’s no secret wages in El Paso are among the lowest of any major U.S. city. This new report shows what employers in the Borderplex region must do to retain and attract a talented workforce.