This guide will walk you through some of the benefits of becoming a CCS provider and help you to understand what to expect during the application process. Each Board differs in their policies and requirements, so be sure to reach out to your Local Workforce Solutions Office (list is at the end of this resource) to determine the next steps in becoming a CCS provider.

What are the benefits of becoming a CCS provider?

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

• Participating child care providers receive tuition reimbursements directly from their local Workforce Boards, which is a reliable and steady source of income for your business.
• Reimbursement rates have significantly risen over the last few years. You can find the current reimbursement rates here.
• By participating as a CCS provider, your program will be listed for families, and referrals will be made by Workforce Solutions, which helps boost your marketing reach.
• Increased revenue can help stabilize your business, allowing for future planning, desired improvements, and potential expansion.
• You can use the additional revenue you take in to improve the quality of the child care you offer.
• Providers can participate in the program knowing that they are supporting families in need.
• Contracted providers can receive technical assistance, support for quality improvements, and other resources to strengthen their business.
• You can participate in Texas Rising Star, the state’s Quality Rating and Improvement System (QRIS), which provides benefits to providers (including enhanced reimbursement rates, learning materials, and more), who exceed the state’s minimum licensing and quality requirements.
• Great way to support low-income families in your community, who need child care to work and whose children benefit from the care you offer.
• Diversify revenue streams – by accepting different sources of income (private-pay parents’ tuition and tuition reimbursements from your Board), you diversify your income and strengthen your income for the long run.

To determine if becoming a CCS provider is right for you, imagine these benefits in action. For example, imagine Gina, a home-based provider, who feels seriously concerned about her program. Rising inflation rates were squeezing not only her own budget, but her families' budgets, too. More and more families were submitting delayed or partial tuition. Gina not only collected less money, but she was spending more money on the increased costs of goods and services. Gina heard about the Child Care Services Program and wanted to ensure that her current enrolled families would have an option for help if they experienced financial hardship. Gina also wanted to provide more opportunities for other families in her community in a similar situation.

Gina heard about the Child Care Services Program. She signed up with her Board and was able to enroll three new families receiving CCS scholarships. This offers Gina the convenient advantage of receiving reimbursements for their tuition directly 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. Remember, you can always reach out to a business coach for more help at childcare.texas.gov or connect with your Board for more information.

How do I sign up and what can I expect from the application process?

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. Because the application processes vary by Workforce Development Board, you should contact your local Workforce Development Board for more information if you are interested in applying. Generally, providers can expect to complete an interest form and speak with a representative from the Board to review required documents, discuss participation requirements, and sign provider paperwork. In addition to the Provider Agreement, providers must attend a Program Orientation. Keep reading to learn more about what is in the Provider Agreement.

To learn how to reach your local Workforce Board, see the table at the end of this guide.

What is in the Provider Agreement?

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.

Questions?

Making the decision to apply for your local CCS Program is a big one that can have significant long-term benefits for your business. While you determine what choice is best for you, know that you can reach out to a child care business expert to help you along the way. Sign up at childcare.texas.gov.

For more information on the CCS Program, please reach out to your local Workforce Solutions office. A list of their websites and other helpful information is below.

 Disclaimer

The information contained here has been prepared by Civitas Strategies Early Start and is not intended to constitute legal, tax, or financial advice. The Civitas Strategies Early Start team has used reasonable efforts in collecting, preparing, and providing this information, but does not guarantee its accuracy, completeness, adequacy, or currency. The publication and distribution of this information is not intended to create, and receipt does not constitute, an attorney-client or any other advisory relationship. Reproduction of this information is expressly prohibited.

Texas Workforce Board CCS Program Contact Information