State Child Care Assistance Policies 2010: North Carolina

•    Income eligibility limit: In 2010, a family of three in North Carolina could qualify for child care assistance with an annual income up to $37,476 (205 percent of poverty, 69 percent of state median income).

•    Waiting list: North Carolina had 37,929 children on the waiting list for child care assistance as of February 2010.

•    Parent copayments: In 2010, a family of three with an income at 100 percent of poverty ($18,310 a year) receiving child care assistance paid $153 per month, or 10 percent of its income in copayments. A family of three with an income at 150 percent of poverty ($27,465 a year) receiving child care assistance paid $229 per month, or 10 percent of its income in copayments.

•    Reimbursement rates: In 2010, North Carolina’s reimbursement rates for child care providers serving families receiving child care assistance were below the federally recommended level—the 75th percentile of current market rates, which is the level designed to give families access to 75 percent of the providers in their community.¹ 
o    North Carolina’s monthly reimbursement rate for center care for a four-year-old in Mecklenburg County was $151, or 18 percent, below the 75th percentile of current market rates for this type of care.
o    North Carolina’s monthly reimbursement rate for center care for a one-year-old in Mecklenburg County was $251, or 25 percent, below the 75th percentile of current market rates for this type of care.

•    Tiered reimbursement rates: In 2010, North Carolina paid higher reimbursement rates for higher-quality care.²
o    The reimbursement rate for center care for a four-year-old in Mecklenburg County at the highest quality tier was 47 percent higher than the rate at the lowest quality tier.
o    The reimbursement rate for center care for a four-year-old in Mecklenburg County at the highest quality tier was still below the 75th percentile of current market rates.

•    Eligibility for parents searching for a job: In 2010, North Carolina allowed parents to qualify for or continue receiving child care assistance for up to 6 months while searching for a job.³  

¹The state’s market rate survey differentiates between quality levels and the 75th percentile of market rates if obtained for providers at each quality level. These calculations compare the reimbursement rate for the most common rate level to the 75th percentile for that same quality level.
²These calculations compare the reimbursement rate for the highest quality level to the 75th percentile for that quality level.
³For July 1, 2009 until June 30, 2010, parents applying for or receiving child care assistance could receive child care assistance while searching for a job for up to 6 months. As of July 1, 2010, this policy ended for all new applicants and the state reverted to its previous policy, which limits the amount of time parents receiving child care assistance can continue to receive it while searching for a job to 60 days and does not allow parents to qualify for child care assistance while searching for a job.

Source: Karen Schulman and Helen Blank, State Child Care Assistance Policies 2010: New Federal Funds Help States Weather the Storm (Washington, DC: National Women’s Law Center, 2010). These data reflect policies as of February 2010, unless otherwise indicated.