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LB 359: Change eligibility redeterminations relating to a child care subsidy

As introduced: LB 359 creates a graduated income disregard for the purpose of determining continuing eligibility for the Child Care Subsidy program. In determining ongoing eligibility for this program at redetermination, seven percent of a household’s gross earned income shall be disregarded after twelve months on the program and fifteen percent of a household’s gross earned income shall be disregarded after twenty-four months on the program. After thirty-six months on the program, a household’s gross income shall be treated the same as at initial eligibility for the program.

Introducing Senator(s): Cook

Committee: Health and Human Services

Committee Hearing Date: February 13, 2013

Current Status: General File on February 22, 2013

Estimated Fiscal Impact: The cost projections are based on the assumption 20% of the children who lose child care eligibility due to income would continue because of the income disregards required under this bill. An additional assumption is made that 20% who lose eligibility due to income have received the subsidy for 12 months. The costs are projected at the average monthly rate of child care payments. First year costs are phased-in as the eligibility redeterminations are made. Estimated costs are $418,626 General Fund in FY 2013-14 and $772,848 General Fund in FY 2014-15.  One-time programming costs are $9,000 General Fund.

Voices for Children’s Position: Support (see our testimony)

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