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The Great Start Compensation Support Payment Program was signed into law in May 2023 (Minnesota Statute, chapter 119B.27), providing Minnesota with a permanent program designed to support the child care industry and child care educators. This FAQ addresses the most commonly asked questions about the program. Additional questions and answers will be added over time.
Child care provider types eligible for funds include:
Providers must be in an allowable license/certification status with the department or their Tribal Nation for at least five calendar days during the the entire funding period (under Minnesota Rules, Chapters 9502, 9503, 245H or 119B). Please see FAQ 1.7 for a list of allowable license/certification statuses for state licensed/certified providers.
Provider must not have been:
Applications will be available to all eligible providers on a monthly basis. Eligible providers will receive an email at the start of each application period with a link to a personalized application link.
In the future, applications will move into the Provider Hub. Details will be provided ahead of time so providers can prepare for the relocation of the application from the current email-based process to the Provider Hub.
Applications must be submitted monthly.
Late applications will not be accepted. It is strongly recommended to submit your application early in the application period to avoid missing the submission deadline due to any unforeseen challenges that may arise.
Beginning July 2024, the application will consistently open on the 10th of each month and close on the 23rd of each month. Application periods for Great Start Compensation rounds can be found in the Awards timetable and information section of the program webpage.
This applies only to family child care providers licensed by the state and all providers licensed by a Tribal Nation. Child care centers licensed and certified license-exempt by the state apply for Great Start Compensation funding in the Provider Hub.
First, check your email account’s spam and junk folders to make sure your application link email didn’t end up there. If it did, move your application link email to your inbox so that the link will work.
If you still cannot find your application link email, you can request a new application link email by following the steps below.
Steps for requesting a new Compensation Support Payment application link email:
Click on the following link to request a new Compensation Support Payment application link email: https://edocs.mn.gov/forms/DHS-8070K (NOTE: this link is only active during Compensation Support Payment application periods).
Once on the above linked webpage, follow the below steps.
If you still do not see your new application link email contact Child Care Aware of Minnesota right away at 651-290-9704 or supportfunds@childcareawaremn.org. If you contact Child Care Aware before the application submission deadline, they will be better able to help you.
Email based application
If you are having trouble submitting your email-based Compensation Support application (state-licensed family child care providers and all providers licensed by a Tribal Nation), use these strategies to troubleshoot:
If you are still having trouble submitting your Compensation Support application or you have not received your submission confirmation email, please contact Child Care Aware of Minnesota at 651-290-9704 or supportfunds@childcareawaremn.org as soon as possible.
Provider Hub application
If you are having trouble submitting your Great Start Compensation application in the Provider Hub (state-licensed/-certified child care centers), please reach out to Child Care Aware of Minnesota for assistance (see above).
**In either case, please reach out to Child Care Aware of Minnesota BEFORE the application period closes and allow enough time to receive assistance. Do not wait until the final hour of the application period to submit your application or request help from Child Care Aware of Minnesota.**
Email based application
If the application period is still open, you can submit another application with corrected information using the same application link. The department only processes the last application submitted by a provider each application period.
Provider Hub application
If the application period is still open, you can edit and resubmit your application. To do this, log into the Provider Hub, navigate to the “Great Start Compensation” section and click “Update Application” on the application you’d like to correct and resubmit. You can then edit your application and resubmit it.
For providers licensed or certified by the state of Minnesota, below are the allowable license/certification states.
State statute requires that Compensation Support Payment award amounts be based on the number of full-time equivalent staff who regularly care for children in the program, including sole proprietors (i.e., family child care providers) or independent contractors.
"Staff who regularly cares for children" is defined as a paid staff person whose job description or responsibilities include interacting with, caring for and supervising children enrolled in the program. More information on the funding formula is available under “Compensation Support Payment award amounts” section on the Compensation Support program page.
Providers who provided care during the lookback period AND were paid out during the lookback period for service provided during the lookback period through the Child Care Assistance Program (CCAP), Early Learning Scholarships, or both, or are located in a Child Care Access Equity Area will receive a 10% increase to their Compensation Support Payment for that round. The department will determine eligibility for the 10% increase based on payment records for CCAP and Early Learning Scholarships, as well as physical location information from licensing or certification records.
If you do not wish to participate and receive funding from the Great Start Compensation Support Program, simply do not submit an application.
Providers wishing to decline the funds are encouraged to indicate this by answering the initial questions in their personalized application link. This will assist the department in budgeting and planning for Compensation Support Payments. Choosing to decline funds one month will not affect your ability to apply for funding in future months.
CFDA numbers are only assigned to federal funds, Compensation Support Payments are funded by state dollars. There is no CFDA number for Compensation Support Payment funds.
The UFARS – used by school districts to report Transition Grant and Compensation Support Payment funds received in 2023 to the Minnesota Department of Education – finance code is 000 and the source code is 369.
Compensation Support Payment award amounts are calculated based on the number of full-time equivalent (FTE) staff who regularly care for children in the program. The monthly application requires you to list the individuals, both full- and part-time, and their hours worked caring for children during the previous calendar month. Based on that information, the exact FTE amount for each individual and the sum total FTEs for your program will be automatically calculated by the application.
Licensed and Certified Child Care Centers
Be prepared to supply documentation that supports the information provided in the application regarding staff and hours worked. The state may request this.
Licensed Family Child Care Providers
Be prepared to supply documentation that supports the information provided in the application regarding individuals and hours worked. It may be requested by the state.
Yes, providers who receive Compensation Support Payment funds are required to keep records of their daily child attendance. Providers are required to record the below items for each child.
Providers are not required to have parents, guardians, or trusted adults dropping off and picking up the child sign-in and sign-out children, however it is encouraged to the extent possible. Providers must keep daily attendance records, including the above items, and make those records available to the state upon request.
Eventually, providers will be required to submit enrollment and daily attendance records online to the department as part of the Great Start Compensation Support Payments application process. Providers will not need to submit enrollment and daily attendance electronically until late 2024.
The department established a minimum attendance requirement for Great Start Compensation Support Payment eligibility to ensure a minimum level of service was provided in return for state funding. The department places high value on using funds responsibly to secure community trust for continued public investment in this program. Below is the minimum attendance requirement for each provider context.
Yes, as long as a provider is:
1) Operating in an approved license/certification status and caring for children during the whole funding period AND
2) Caring for children for at least a portion of the funding period.
A provider may be closed and still be eligible for that Compensation Support Payment round.
Child care programs that permanently close during a funding period are not eligible for that Great Start Compensation Support Payment round.
Eligible providers must attest in writing to:
Child care providers must agree NOT to:
Providers are required to increase compensation for staff who regularly care for children above the provider’s baseline compensation. Please see FAQ 4.14 for details on baseline compensation.
Programs may use the Compensation Support Payment funds for one or more of the following options. Providers accepting these funds must ensure the funds are not used to pay for any allowable use that has already been paid for with other federal, state, Tribal or local funds.
Centers: Child care centers licensed under Minnesota Rules, chapter 9503, certified license-exempt child care centers under chapter 245H, and Tribally licensed child care centers must use Compensation Support money received for the following purposes:
Family Child Care: Family and group family child care homes licensed under Minnesota Rules, chapter 9502, and Tribally licensed family child care homes must use money received under this section for one or more of the following purposes:
Below is a list of some, but not all, examples of allowable ways to increase compensation under Compensation Support:
Baseline compensation is only determined for Licensed and Certified Child Care Centers. Licensed Family Child Care providers will NOT have baseline compensation.
Baseline compensation is intended to establish personnel costs excluding Great Start Compensation funds received and distributed to early childhood educators directly caring for children. A provider’s baseline compensation is what they would pay early childhood educators without the Great Start Compensation funding. Baseline compensation is a general indicator of the level above which a provider would be expected to raise compensation to meet the Great Start Compensation Support Payment program’s requirement to increase compensation.
Providers will not be asked to calculate their baseline compensation. The department will calculate your baseline compensation, based on the information you entered in your applications.
The department understands there are many unique circumstances that could occur during a specific month that may result in the personnel costs or payment funds distributed being higher or lower than typical. This is why baseline compensation will be collected three times a year and used as an indicator but not a definitive tool to assess program compliance.
Below is an example of how a provider’s baseline compensation will be determined.
The Use of Funds Annual Report is a report all providers that have accepted Great Start Compensation funds will be required to complete. The timeline for implementing the requirement for child care providers to report their use of the Great Start Compensation payments they receive has yet to be confirmed, but it will not be required any earlier than Spring of 2025.
The report has not been completely designed but is expected to include questions about how providers have spent their Payment funds (all provider types) and the amount of funds providers have distributed to their early childhood educator employees (licensed and certified child care centers). Additional information about the Use of Funds Annual Report will be shared with providers in the future.
You can answer the application question asking for your highest attendance on a single day by using your highest attendance in a daily session. The department recognizes that it may be difficult for programs with multiple daily sessions to figure out non-duplicated attendance counts between all session, as the same children could attend multiple sessions.
Providers can receive Compensation Support Payments through one of two methods: (1) mailed check, the default method of payment, and (2) direct deposit.
NOTE: Direct deposit is strongly encouraged and supports are available to help you set up direct deposit.
Default: Mailed check
Minnesota Management and Budget (a state agency) will mail monthly payments to the authorized agent, center operator, or license holder at the address on file with state licensing. This is the default payment method.
Please note, mailed payments cannot be forwarded by the postal service and will be returned to Minnesota Management and Budget if your address on file is not current, which will delay you receiving your payment. All address changes need to be made by your county licensor (family child care providers), Tribal licensor, or state licensor (child care centers and certified child care centers).
Direct deposit
Minnesota Management and Budget will transfer monthly payments to provider bank accounts. To set up direct deposit, a provider must (1) register as a supplier with Minnesota Management and Budget AND (2) provide bank information.
Then providers must complete and submit a Supplier Verification Form to connect their supplier information with their Compensation Support Payments information. If a provider registers as a supplier but does not provide bank information, Compensation Support Payments will be paid as checks mailed to the address on file with Minnesota Management and Budget. Full directions for setting up direct deposit and FAQs can be found on the Direct deposit set up process webpage.
For assistance, please contact Child Care Aware of Minnesota at 651-290-9704 or supportfunds@childcareawaremn.org. Please include your license or certification number in all communications.
Providers should expect to receive mailed checks within 20 calendar days of their award announcement.
Programs can avoid experiencing challenges with checks by registering for direct deposit (see FAQ 5.1 for details.)
Providers should contact their state, county, or Tribal licensor as soon as the change occurs and ask their licensor to update their information. Additionally, if a provider is contemplating an operating status change (e.g., moving from school year only to full year operations) that may affect eligibility.
Those with additional questions or who are contemplating other changes that may affect their eligibility for funding should contact Child Care Aware of Minnesota at 651-290-9704 or supportfunds@childcareawaremn.org to determine impacts.
Providers who move during the funding period remain eligible for the funds as long as they continue to meet eligibility criteria. If you are opening a new licensed or certified program, please contact the department at compensationsupport.dhs@state.mn.us.
Providers planning to move should work closely with their states, Tribal, or county licensor to ensure the move does not impact funding eligibility.
Yes, the IRS and Minnesota Department of Revenue considers this funding as income. Providers who receive these funds will be mailed a 1099-G form by January 31 of following year, showing how much was paid to the provider in that year. Providers are encouraged to consult with an accountant or tax expert to fully understand the tax implications of this funding.
If you have not received your 1099-G form by mid-February, you can contact the Minnesota Management and Budget’s 1099-G help line at 651-201-8201 or email W9-1099.MMB@state.mn.us to request a copy. Minnesota Management and Budget can provide a copy of your 1099-G form through secure email, ZIXmail, by request.
If providers have questions after receiving their 1099-G form, they can contact Minnesota Management and Budget. First Children’s Finance, a Minnesota-based nonprofit, may be able to provide overall budgeting and financial planning for any tax liability, as well. To contact First Children's Finance, email infomn@firstchildrensfinance.org or call 1-866-562-6801.
Data pertaining to providers, including information submitted as part of an application, is classified as licensing data, under which certain data is public or private. Minn. Stat. § 13.46, subd. 4; Minn. Stat. § 119B.02, subd. 6(a). Examples of private data that cannot be shared with the public are an individual’s Social Security number and data that can potentially identify children, families, or staff in programs.
Payment data is public under Minnesota Statutes, section 119B.02, subdivision 6(b) only if the payment was made to a licensed child care center or a licensed-exempt child care center, and if the following circumstances are met:
To the extent that payment data identifies children or families, this data is considered private data: Minn. Stat. §§ 13.46, subd. 2(a) and 13.46, subd. 4.
If you have data-related inquiries, please email dhs.datarequest@state.mn.us.
These funds do not constitute a loan and child care providers who comply with Compensation Support Payment requirements will not be required to pay funds back to the department.
Funding recipients found to have violated the terms of the application process or attestation, or who are found to have provided false or misleading information to the department may have prior payments recouped, be deemed ineligible for future funds, and/or be referred to the Office of Inspector General for additional action.
If you are concerned that a Compensation Support Payment recipient is not following the funding requirements, you can submit a report by calling 651-431-3968 or 800-627-9977 or emailing dhs.oig.ccaptips@state.mn.us with “Great Start Compensation Support Payment Complaint” in the subject line. Include as much detail as you can, including:
Any tips reported will remain anonymous and details about who submitted the tip will never be shared with the program alleged to be non-compliant.
If a provider is selected for an audit, they will be asked to provide documentation. Requested documentation may include, but is not limited to, any or all of the following:
Child care providers located in Child Care Access Equity Areas are eligible for a 10% increase to their Compensation Support Payment amount. Providers will receive a 10% increase to their monthly payment if one or more of these criteria are met:
Child Care Access Equity Areas are identified using U.S. Census data about the people who live there. The areas are based on census tracts, which are geographic areas used by the U.S. Census. The census tracts that the department has designated as Access Equity Areas include higher rates of vulnerable populations. These areas are identified by these measures:
The department will update the list of Child Care Access Equity Areas at the start of each state fiscal year (July 1) using updated data on the measures listed above.
Follow this link to view a map of where the Access Equity Areas are located: Child Care Access Equity Areas FY24 Map. You can zoom in on the map to the location of your program to see whether it is included in a Child Care Access Equity Area (shaded blue on the map).
Alternatively, you can use the Census Geocoder to look up your program’s census tract number and find that number in the table to the right of the map to see whether that census tract is an Access Equity Area or not.
