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DSS: Single‑Rate Child‑Care Rules Need Policy 'Blueprint' Before Automation

Senate Budget Subcommittee No. 3 · August 12, 2026

Summary

The Department of Social Services told the Senate it cannot commit to an automation timeline for a single rate structure until core policy choices—age categories, inclusion/enhanced rates, part‑time proration and admin costs—are settled and mapped for payment systems.

Department of Social Services officials told the subcommittee that while the administration supports simplifying child‑care rates, key policy decisions must be made before the state can automate a single‑rate system.

Claire Ramsey, DSS chief deputy director, said the department needs "the full blueprint for the house before we can build the house"—meaning age group definitions, inclusion/enhanced rates for children with special needs, proration rules for part‑time care, and an agreed approach to administrative‑cost funding. She warned that automating a single rate structure without that policy framework would require substantial crosswalk work between current rates and the new structure.

Ramsey said DSS can provide technical assistance and suggested the Legislature and administration could set milestone deadlines to help guide automation. LAO and stakeholders signaled support for time‑bound milestones so that automation work and vendor changes can proceed in a predictable way.

The committee did not adopt a timetable; members asked DSS for a clearer milestone schedule that could be included in budget language as the subcommittee and the Legislature finalize next‑year implementation plans.

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