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Cost of Living Calculator

Annual Methodologies

Parent Share of Cost

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.

 

Living Wage

According to the MIT Living Wage Calculator, the minimum living wage should be $14.39, updated in June 2021

The necessary annual gross income for 2 adults, 1 child is $59,879

2 adults working full time ($59,879 ÷ 2) is $29,939

Hourly wage ($29,939 ÷ 2,080) (40 hours per week x 52 weeks a year) is $14.39

WSB considers the following necessities:

Food
Childcare
Healthcare
Housing
Transportation
Other necessities
Taxes

WSB will update its Living Wage each year utilizing the MIT living wage calculator and US Census demographic data.

For a downloadable PDF  on the Living Wage, click here



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