(a)  The payment rates for child care centers, family child care homes, and nonlicensed child care homes are implemented in accordance with the annual appropriations act.

(b)  Centers, as defined in G.S. 110-86(3), which are certified as developmental day centers by the Division of Child Development and Early Education and serve children who meet the definition of special needs set forth in 10A NCAC 10 .0910 are exempt from the provisions of Paragraph (a) of this Rule.  The payment rates for special needs children served in developmental day centers are calculated by deducting the total revenues per child month from the total costs per child month.  That rate is then multiplied by the current inflation percentage provided by the Office of State Budget and Management.  For typically developing children enrolled in developmental day centers, the rates shall exclude those costs associated exclusively with serving children with special needs.  The payment rates for special needs children and typically developing children served in developmental day centers are calculated every two years and are implemented as funding allows.

(c)  Any Local Purchasing Agency (LPA) approved child care provider not included in Paragraph (b) of this Rule who provides care to children who meet the definition of special needs set forth in 10A NCAC 10 .0910 may be paid a supplemental rate above the provider's LPA approved rate for a particular age group.  The supplemental rate shall be based on actual additional documented costs incurred by the provider in serving the child with special needs. The costs shall be determined by the early intervention specialist, the local education agency's exceptional children program specialist, the local purchasing agency, and the provider based on the plan developed to meet the child's individual needs.

(d)  The reimbursement of additional fees as charged by centers is limited to registration fees.  The payment rate for registration fees is determined by the annual appropriations act.  Registration fees may not be paid more than twice per year per child regardless of the type of center.

(e)  Purchasing agencies may negotiate with child care center providers for purchase of child care services at payment rates lower than those prescribed by this Rule, only with approval from the Division.  Approval shall be granted if it can be determined that a non-negotiated payment rate would have a negative impact on the purchasing agency's ability to purchase subsidized child care services, based on the following factors:

(1)           the number of children on the waiting list for subsidized child care services;

(2)           whether the non-negotiated rates exceed the rates for services paid by private paying families in the service area; and

(3)           the amount of subsidized child care funds available.

(f)  Child care services funds shall not be used to pay for services provided by the Department of Health and Human Services, Division of Public Health or the Department of Public Instruction, Division of Exceptional Children's Services for that portion of the service delivery costs which are reimbursed by the Division of Public Health or Department of Public Instruction.


History Note:        Authority G.S. 143B-153(8)a;

Eff. January 1, 1987;

Amended Eff. March 1, 2012; April 1, 2001; February 1, 1996; December 1, 1992; July 1, 1990.