SF 4530
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/18/2026 09:38 a.m.
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A bill for an act
relating to child care; modifying the basic sliding fee allocation formula; amending
Minnesota Statutes 2024, sections 142E.04, subdivisions 6, 7; 142E.17, by adding
a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 142E.04, subdivision 6, is amended to read:
Subd. 6.
Allocation formula.
new text begin (a) new text end The allocation component of basic sliding fee state
and federal funds deleted text begin shalldeleted text end new text begin mustnew text end be allocated on a calendar year basis. Funds deleted text begin shalldeleted text end new text begin mustnew text end be
allocated first in amounts equal to each county's guaranteed floor according to subdivision
9, with any remaining available funds allocated according to the following formuladeleted text begin :deleted text end new text begin .
new text end
deleted text begin (a)deleted text end new text begin (b)new text end One-fourth of the funds deleted text begin shalldeleted text end new text begin mustnew text end be allocated in proportion to each county's
total expenditures for the basic sliding fee child care program reported during the most
recent deleted text begin fiscaldeleted text end new text begin calendarnew text end year completed at the time of the notice of allocation.
deleted text begin (b)deleted text end new text begin (c)new text end Up to one-fourth of the funds deleted text begin shalldeleted text end new text begin mustnew text end be allocated in proportion to the number
of families participating in the transition year child care program as reported during and
averaged over the most recent deleted text begin sixdeleted text end new text begin 12new text end months completed at the time of the notice of allocation.
Funds in excess of the amount necessary to serve all families in this category deleted text begin shalldeleted text end new text begin mustnew text end be
allocated according to paragraph deleted text begin (e)deleted text end new text begin (g)new text end .
deleted text begin (c)deleted text end new text begin (d)new text end Up to deleted text begin one-halfdeleted text end new text begin one-fourthnew text end of the funds deleted text begin shalldeleted text end new text begin mustnew text end be allocated in proportion to
the average of each county's most recent 12 months of reported waiting list as defined in
subdivision 2 and the reinstatement list of those families whose assistance was terminated
with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart 1.new text begin
For a county that spent less than 90 percent of the funds allocated under this subdivision in
the most recent calendar year, the allocation amount under this paragraph must be reduced
by an amount equal to the average monthly number of families that could have been served
if the county had spent 90 percent of its allocation under this subdivision in the most recent
calendar year multiplied by the monthly cost per family according to paragraph (f). The
allocation amount under this paragraph for a county cannot be reduced to zero.new text end Funds in
excess of the amount necessary to serve all families in this category deleted text begin shalldeleted text end new text begin mustnew text end be allocated
according to paragraph deleted text begin (e)deleted text end new text begin (g)new text end .
new text begin
(e) Up to one-fourth of the funds must be allocated to offset child care rate increases
under section 142E.17, subdivision 1, paragraph (b). The allocation must be based on the
commissioner's best estimate of the rate increases by age for each category of provider. The
commissioner must make this estimation by county and weigh the distribution of recent
payments. Funds in excess of the amount necessary to cover child care rate increases must
be allocated according to paragraph (g).
new text end
deleted text begin (d)deleted text end new text begin (f)new text end The amount necessary to serve all families in paragraphs deleted text begin (b) anddeleted text end (c) deleted text begin shalldeleted text end new text begin and (d)
mustnew text end be calculated based on the basic sliding fee average cost of care per family in deleted text begin thedeleted text end new text begin eachnew text end
county deleted text begin with the highest costdeleted text end in the most recently completed calendar year.
deleted text begin (e)deleted text end new text begin (g)new text end Funds in excess of the amount necessary to serve all families in paragraphs deleted text begin (b)
anddeleted text end (c) deleted text begin shalldeleted text end new text begin and (d) mustnew text end be allocated in proportion to each county's total expenditures for
the basic sliding fee child care program reported during the most recent deleted text begin fiscaldeleted text end new text begin calendarnew text end year
completed at the time of the notice of allocation.
Sec. 2.
Minnesota Statutes 2024, section 142E.04, subdivision 7, is amended to read:
Subd. 7.
Allocation due to increased funding.
When funding increases are implemented
within a calendar year, every county must receive an allocation at least equal to its original
allocation for the same time period. The remainder of the allocation must be recalculated
to reflect the funding increase, according to formulas identified in subdivision deleted text begin 7deleted text end new text begin 6new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2024, section 142E.17, is amended by adding a subdivision to
read:
new text begin Subd. 11. new text end
new text begin Allocation of funds. new text end
new text begin
All funds appropriated to cover child care rate increases
under subdivision 1, paragraph (b), must be allocated based on the commissioner's best
estimate of the rate increases by age for each category of provider. The commissioner must
make this estimation by county and weigh the distribution of recent payments. Funds in
excess of the amount necessary to cover child care rate increases must be allocated according
to section 142E.04, subdivision 6, paragraph (g).
new text end