Offering Child Care Services

The CCS program, also called the subsidy or scholarship program, provides financial aid for child care to families who meet the income requirements. The program helps make child care more affordable for families who might not be able to pay for it on their own. This helps create a stronger workforce and allows more children to benefit from high-quality child care. Helping families who receive scholarships has many advantages for you as a provider. 

What are the benefits of becoming a CCS provider?

There are many benefits to becoming a CCS provider that can help your business, both in the short and long term. Consider the following list of potential benefits:

• CCS providers receive tuition payments directly from their local Workforce Boards, which is a reliable and steady source of income for your business. You can find the most current provider payment rates on TWC's website.
• You'll participate in Texas Rising Star, the state’s Quality Rating and Improvement System (QRIS), which provides benefits to providers (including enhanced payment rates, learning materials, and more) who exceed the state’s minimum licensing and quality requirements.
• It's a great way to support low-income families in your community, who need child care to work and whose children can benefit from the care you offer.
• Diversify revenue streams – by accepting different sources of income (private-pay parents’ tuition and tuition payments from your Board), you diversify your income and strengthen your income for the long run.
• Consistent revenue can help stabilize your business, which lets you plan for the future, make improvements, and maybe even grow. You can use the additional revenue to improve the quality of the child care you offer.
• You can receive technical assistance, support for quality improvements, and other resources to strengthen their business.

To decide if becoming a CCS provider is right for you, think about these benefits in action. For example:

Imagine Gina, who runs a home-based child care program. She's worried about her program because rising costs are hurting both her budget and her families' budgets. More families are paying tuition late or only paying part of it. Gina is not only collecting less money, but she is also spending more money because things cost more. Gina heard about the Child Care Services Program and wanted to make sure that her current families had a way to get help if they had financial problems. Gina also wanted to offer more chances for other families in her community who are in a similar situation.

Gina signed up for the CCS program, and she was able to enroll three new families receiving CCS scholarships. This gives Gina the advantage of receiving tuition payments from her local Workforce Board, rather than having to collect the full payment from families While she does still collect the parent’s share of the cost, the bulk of the tuition comes directly from the Board. Now that she is at capacity, her budget is balanced. She was able to pay monthly expenses and increase her cash flow. 

Gina found that her business was more sustainable, improvements she needed to make to her facility were now possible, and, most importantly, she now had the ability to make purchases that could improve the quality of child care she offers. As she began making improvements, families were noticing the changes and were remarking how impressed they were with the enhancements to her program. Gina is embracing the positive impact that she is making in the lives of the children and families she serves, which would not have been possible without the scholarships.

As Gina found, becoming a CCS contracted provider not only helped her business thrive but also allowed her to serve families of diverse income levels. We recommend that you take a look at these benefits and apply them to your own business situation. Make a list of pros and cons to guide your next steps.  

The 28 Local Workforce Development Boards across Texas administer child care services through local Workforce Solutions offices. While each Board differs in their approach, there are three basic requirements for becoming a contracted provider. Interested child care providers must:

1. Have a current license or registration as a child day care center (not a residential program), licensed day care home, registered family home, or a youth camp with the Texas Department of Health and Human Services (HHSC; must not be on “Applicant” Status), the United States Military Services, or the Texas Department of State Health Services;
2. Not be on corrective or adverse action or corrective denial with any of the above agencies; and
3. Have established a satisfactory compliance history with the above agencies.

Boards may also consult with other programs, such as the Child Care Food Program within HHSC, to ensure that satisfactory compliance is established.

Next, providers must sign a Provider Agreement to become a CCS provider. The application process is different for each Workforce Development Board, so you should contact your local Board for more information if you want to apply. Usually, providers will need to fill out an interest form and talk to a representative from the Board. They will review the required documents, discuss what is expected of you, and sign provider paperwork. Besides the Provider Agreement, providers must also attend a Program Orientation. Keep reading to learn more about what is in the Provider Agreement.

To reach your local Workforce Board, complete the Contact Us form.

Participating providers must adhere to a Provider Agreement. In the Provider Agreement, you must provide the published rates you charge to private-pay parents. Documentation of published rates may be from a page in the provider’s Parent Handbook, posted on a flyer, or provided on provider letterhead and must be signed and dated. The rates must include the amount charged for each age group you serve (i.e., infant, toddler, preschool, school age) and include both full-time and part-time rates for each group.

In addition to your rates, you may be required to document the following fees and when they are charged (i.e., annually, quarterly, one time only, if applicable):

• Enrollment/Registration fees
• Supply fees
• Activity fees
• Transportation fees, if Provider offers transportation.

Other required documents include:

• A copy of your Child Day Care License Permit, Registration, or Listing, or documentation that you are operated and monitored by another applicable agency (the United States Military Services, or the Texas Department of State Health Services).
• A list of scheduled days Provider will be closed for the 12-month period beginning the month of the Provider Agreement.
• Direct Deposit Authorization Form with an attached voided check or a letter from your bank with your account information.
• A completed W-9.

Many Boards will have a handbook, or their policies will be outlined in the provider agreement. The following list of requirements reflects the typical requirements that providers may have to meet and maintain to continue their agreement:

1. Always maintain DFPS Minimum Standards.
2. Report any changes in the location, licensing status, or general operation of the facility to CCS.
3. Keep records on enrolled CCS children.
4. Report attendance not recorded by parents.
5. Collect and document parent fees; report any non-payment of fees.
6. Supply requested documentation during Texas Rising Star monitoring visits.
7. Cannot currently be on corrective or adverse action with Child Care Licensing.

For more information on the CCS Program, please reach out to your local Workforce Solutions office.  

Disclaimer

The information contained here is for educational purposes only and is not intended to constitute legal, tax, or financial advice.