This bill modifies the basic sliding fee allocation formula for child care in Minnesota by amending sections of the Minnesota Statutes. Key changes include the requirement that state and federal funds must be allocated first to each county's guaranteed floor, with any remaining funds distributed according to a revised formula. Notably, the bill specifies that up to one-fourth of the funds must be allocated to offset child care rate increases, with the allocation based on the commissioner's estimates of rate increases by age for each provider category. Additionally, the bill mandates that counties that experience funding increases must receive at least their original allocation.

Furthermore, the bill introduces a new subdivision to section 142E.17, which outlines the allocation of funds specifically for child care rate increases. This subdivision emphasizes that all appropriated funds for rate increases must be allocated based on the commissioner's best estimates, ensuring that the distribution reflects recent payment trends. Any excess funds beyond what is necessary for rate increases will be allocated according to the revised formula in section 142E.04. The changes are set to take effect the day following final enactment.

Statutes affected:
Introduction: 142E.04, 142E.17