The Child Care and Development Block Grant (CCDBG) from the federal government has enabled Michigan to unify and consolidate child day care services. This grant provides over $22 million to the state for:

• Direct child-care services to support low-income families and families with special needs (e.g., substance abuse).
• Initiatives to improve the quality of child care and early childhood development programs.

The CCDBG, along with several existing grants related to child care, will be coordinated to deliver comprehensive services to meet the child-care needs of Michigan's families. This includes expanding Head Start programs, training child-care workers, developing before- and after-school programs, and expanding eligibility and payment levels for low- and middle-income families. These efforts will enhance parents' ability to work outside the home and will increase independence and self-sufficiency.

Previously, DSS had four distinct programs to meet child-care requirements.

• For employed recipients, child-care costs were subtracted from gross income in calculating the AFDC grant amount.
• For former recipients whose cases had been closed due to employment income, child-care assistance was available for 12 months through the Transitional Child Care program.
• For recipients involved in the department's employment and training program, a Child Care Allowance program met the needs.
• And for low-income and special needs families, help was available through the Low-Income Day Care program.

I have directed the department to implement in FY 93' a plan to unify those four methods of payments into a single child-care delivery system that will guarantee child care to low-income families whose parents are working or in education or a job-training program. The plan will include:

• A simplified service-delivery system.
• A unified payment system.
• A sliding income scale to serve families with incomes under 75 percent of the state's median income.
• Child-care rates at the 75th percentile of the market rate. (Rates will be sufficient to meet the needs of most families.)
• Training for providers which encourages early childhood development and quality child care.
• Resources to meet state and federal licensing standards.
• Before/after school and full day-care programs.
• Parental choice of care while ensuring the use of regulated care.