Great Start Compensation Support Payment FAQs

​Child care program types eligible for funds include: 

• ​Family and group family licensed under Minnesota Rules, Chapter 9502 
• ​Child care centers licensed under Minnesota Rules, Chapter 9503 
• ​Certified license-exempt child care centers under Minnesota Statutes, Chapter 245H 
• ​Tribally licensed child care programs

Providers must be in an allowable license/certification status with the department or their Tribal Nation for at least one calendar day during the 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.

• Providers must have been operating for at least one calendar day during the funding period.
• ​Providers must meet a minimum daily attendance requirement on at least one calendar day during the funding period. The minimum daily attendance number varies by provider type and other considerations. Please see the minimum daily attendance requirements in FAQ 4.3.
• Temporary closures including seasonal closures for summer-only and school year-only providers are allowable as long as the provider meets all other eligibility requirements.

Program must not have been:

• ​The subject of a current or past finding of fraud for which the program or individual is currently serving a penalty or exclusion
• ​The subject of suspended, denied, or terminated payments to a provider under section 256.98, subdivision 1; 119B.13, subdivision 6, paragraph (d), clauses (1) and (2); or 245E.02, subdivision 4, paragraph (c), clause (4), regardless of whether the action is under appeal
• ​Prohibited from receiving public funds under Minnesota Statutes, Section 245.095, regardless of whether the action is under appeal
• ​Under license revocation, suspension, temporary immediate suspension or decertification, regardless of whether the action is under appeal.  

Applications are available to all eligible providers on a monthly basis. Eligible providers access their applications by two different methods depending on the program’s provider type, see below.

State licensed family child care and all providers licensed by a Tribal Nation

This group of providers automatically receive an email with a link to a personalized Great Start Compensation application at the start of each application period. Additionally, these providers can request an application link email for themselves at this website: https://edocs.mn.gov/forms/DHS-8070K-ENG (NOTE: this link only works during application periods).

Great Start Compensation applications for state licensed family child care providers will move to the Provider Hub after family child care licensing transitions to the Provider Hub. The department will give at least 90 days notice before applications move to the Provider Hub. All Tribally licensed providers will continue to use the existing email-based application process.

State licensed or certified license-exempt child care centers

These providers access and submit their Great Start Compensation applications in the Provider Hub.

Great Start Compensation applications are available monthly, with application periods opening on the 10th and closing on the 23rd of each month. Application periods for upcoming Great Start Compensation rounds can be found in the payment amounts section of the program webpage.

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.

This only applies to state licensed family child care providers 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 Great Start Compensation 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 Great Start Compensation application periods).

​Once on the above linked webpage, follow the below steps.

• Enter your license number and click “lookup”
• ​Verify that this is your program
• ​Enter your email address twice and submit
• ​You will receive a new application link email within a few minutes 
• ​If you do not receive this email right away, check your spam or junk email folders.

​If you still do not see your new application link email contact Child Care Aware of Minnesota right away at 651-273-2644 or supportfunds@childcareawaremn.org. If you contact Child Care Aware before the application submission deadline, they will be better able to help you.

State licensed family child care and all providers licensed by a Tribal Nation
If you are having trouble submitting your email-based Great Start Compensation application, use these strategies to troubleshoot:

• ​If the submit button in your application doesn’t work, go back and make sure you answered all the necessary questions and all information is entered in the correct format (look for red text for items that need to be corrected). These issues must be fixed before you can submit your application.
• ​Once you’ve successfully submitted your application, you will be redirected to a “Thank You” webpage AND you will receive a confirmation email.
• ​If you do not receive this confirmation email, your application was NOT submitted.
• ​Try to submit your application using a different web browser (Google Chrome, Firefox, Microsoft Edge, etc.).
• ​Try to submit your application using a different device. Applications can be submitted from a computer, a smart phone or a tablet.
• ​Try to submit your application with a different internet connection (office, home, cellphone data connection, etc.). 

​If you are still having trouble submitting your Great Start Compensation application or you have not received your submission confirmation email, please reach out for assistance at 651-273-2644 or supportfunds@childcareawaremn.org as soon as possible. 

State licensed or certified license-exempt child care centers
If you are having trouble submitting your Great Start Compensation application in the Provider Hub, please reach out for assistance at 651-273-2644 or supportfunds@childcareawaremn.org as soon as possible.

​**Please reach for assistance 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.**

State licensed family child care or providers licensed by a Tribal Nation
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.

State licensed or certified license-exempt child care centers
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.

• ​In Good Standing
• ​Conditional
• Receivership
• Under Settlement-Active
• ​Under Settlement/Conditional
• Conditional: Under Appeal
• ​Conditional: Subject to Appeal
• ​Conditional: Service/Site Specific 

No, providers do not need to participate in Parent Aware and have a Parent Aware Rating to be eligible to apply for Great Start Compensation payments.

State statute requires that Great Start Compensation award amounts be based on the sum total of provider/staff full-time equivalents of those who regularly care for children in the program, including sole proprietors (i.e., family child care providers) or independent contractors.

​"Staff who regularly care 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 the “Payment 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.

• See the application timeline table on the Great Start Compensation program page (under the Compensation Support awards amount heading) for 10% increase lookback periods applicable to CCAP and Early Learning Scholarships.
• See Section 7 of this FAQ page for more information about Child Care Access Equity Areas. 

Yes, providers who receive Child Care Assistance Program payments are eligible for Great Start Compensation payments.

Yes, providers who receive Early Learning Scholarships are eligible for Great Start Compensation payments.

Yes. However, providers accepting Great Start Compensation payments must ensure the funds are not used to pay for something that has already been paid for with other federal, state, Tribal or local public funds. Examples of other funding sources may include Tribal grants, forgiven Paycheck Protection Program loans, Child Care Aware Regional Grants, and others.

If you do not wish to participate and receive funding from the Great Start Compensation Support Program, simply do not submit an application.

Eligible providers who wish to share feedback with the department about why they are choosing not to participate in the Great Start Compensation Support Payment Program and receive funds can provide that feedback to the department at supportfunds@childcareawaremn.org or 651-273-2644.

CFDA numbers are only assigned to federal funds, Great Start Compensation Payments are funded by state dollars. There is no CFDA number for Great Start Compensation funds.

​The UFARS – used by school districts to report Great Start Compensation funds received to the Minnesota Department of Education – finance code is 000 and the source code is 369.

The employer identification number (EIN) for Great Start Compensation funds is 41-6007162. This EIN will be listed on the Form 1099-G that is sent each year to providers who received this funding. The EIN helps providers identify the source of the funding.

Great Start Compensation 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. Below are details on who can be included in Great Start Compensation applications by provider type.

​State licensed and certified licensed-exempt child care centers

• ​Only list paid staff who regularly care for children.
• ​Do not include:
  • ​Volunteers
  • ​Individuals paid to provide occasional enrichment activities for the children. 

​Be prepared to supply documentation that supports the information provided in the application regarding staff and hours worked. The state may request this.

​State licensed family child care providers

• Each person reported in a Great Start Compensation Application must fall into one of the below categories.
  • A family child care provider should report their own hours when completing a Great Start Compensation application. [NF1] Providers will be asked to list the hours they worked directly caring for children during the previous calendar month in the application.  
  • ​ If the family child care program has dual license holders, list the hours spent directly caring for children for each license holder separately.
  • If an adult household member also works in the family child care program and has met licensing requirements  separately list that individual and the hours they worked directly caring for children in the application. This person can be unpaid.
  • ​A provider’s child, ages 13-17 years old, who has met the licensing requirements to be a designated helper and assists in caring for children in the program may be included separately in the application. This person can be unpaid.
  • ​List any individual who you pay to directly care for children in your program.
• Do not include in the FTE calculation:
  • Individuals paid to provide occasional enrichment activities for the children.
  • Individuals, outside the household, who are not paid; they are considered volunteers.
  • Any hours worked not directly caring for children.

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.

All providers licensed by a Tribal Nation

• Only list the license holder and/or staff who meet your Tribal Nation’s requirements to directly care for children
• Only list the license holder and/or staff who regularly and directly care for children

Full-time equivalents are automatically calculated by the application based on the number of total hours each staff person directly cared for children during the entire previous calendar month. Reporting hours from payroll periods that ended in the previous calendar month is not advised if those payroll periods do not align with the start and end of the previous calendar month. Additionally, payroll hours often include non-direct care hours (for example, time spent cleaning, planning, training, paid leave, etc.), which cannot be reported in Great Start Compensation applications. 

Yes, the hours for a substitute or temporary staff who directly cared for children may be included in the application.

No, only hours spent caring for children can be included. If a staff member is on paid time off/paid leave and not working, those hours should not be included.

Yes, for the purposes of the Great Start Compensation Program, the term “early childhood educators” includes providers who are licensed or certified to serve school-age children (K-12 education). The department uses the term early childhood educators to elevate the profession and recognize the importance of those in the child care industry.

No, family child care providers cannot report time when they are only caring for their own children, including foster children, during their business hours as direct care hours in their Great Start Compensation applications.

Yes, providers who receive Great Start Compensation funds are required to keep records of their daily child attendance. Providers are required to record the below items for each child.

• ​Child’s first name
• ​Child’s last name
• ​Date
• ​Check-in time
• First and last name of adult dropping off child
• ​Check-out time
• First and last name of adult picking up child

​Providers are required to have parents, guardians, or trusted adults dropping off and picking up each child sign-in and sign-out children. . Providers must:

• Keep accurate, clear, and up-to-date daily attendance records at the location where child care services are provided.
• Make these attendance records available to the commissioner immediately when requested.
• Complete attendance records each day
• Whenever possible, the person dropping off or picking up the child should record the drop-off and pick-up times.

Eventually, providers will be required to submit enrollment and daily attendance records digitally to the department as part of the Great Start Compensation application process. 

An Electronic Enrollment & Attendance feature can be accessed in the Provider Hub to ensure providers are easily able to collect and submit this data with the monthly application. The functionality was designed to be flexible and convenient:

• CCMS Integration – Providers who use select Child Care Management Systems (CCMSs) to manage enrollment and attendance records  can import their data via a direct integration of their CCMS to the Provider Hub.
• Direct entry – Providers can enter and manage enrollment and daily attendance information directly in the Provider Hub.
• Bulk upload – Providers can also upload a file with their enrollment and attendance records to the Provider Hub.

The Department of Children, Youth, and Families (DCYF) requires child care providers participating in the Great Start Compensation program to record child enrollment and attendance information to comply with the state law that created this program (Minnesota Statutes 2023, sec. 119B.27, subd. 4). The purpose of requiring providers to record child enrollment and attendance information is to enable the department to determine whether a provider is in compliance with the program’s minimum attendance requirement (see FAQ 4.3 for details). The department established a minimum attendance requirement for Great Start Compensation Support Payment eligibility to ensure that programs provide a minimum level of service in return for state funding, under section 119B.27.  The department places high value on using state funds responsibly to protect against fraud, waste, and abuse and to secure community trust for continued public investment in this program.

​Any information contained in attendance records that could be used to identify a child or family is private data under Minnesota Statutes, section 13.46, subdivision 2, and will not be made available to the public.

The department established a minimum attendance requirement for Great Start Compensation eligibility to ensure a minimum level of service is 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. 

• All provider types can include only children they are licensed/certified to care for towards their minimum attendance requirement. Children must be within the age range a provider is licensed or certified to care for.
   
• ​State licensed family child care providers
  • At least 3 children must be in attendance on at least 1 day during the previous month. Licensed family child care providers cannot include their own children, including foster children, to meet this requirement.
  • ​If a licensed family child care provider opened (came into good standing for the first time) within the past 180 calendar days, at least 2 children must be in attendance on at least 1 day during the previous month. Providers cannot include their own children, including foster children, to meet this requirement.
  • ​If a provider has a B1, B2, or D class family child care license, at least 2 children must be in attendance on at least 1 day during the previous month. Providers cannot include their own children, including foster children, to meet this requirement. 
     
• ​State certified license-exempt child care centers
  • At least 3 children must be in attendance on at least 1 day during the previous month.
  • If a certified child care center opened (came into good standing for the first time) within the past 180 calendar days, at least 2 children must be in attendance on at least 1 day during the previous month. 
     
• State licensed child care centers
  • ​At least the number of children equivalent to 25% of licensed capacity must be in attendance on at least 1 day during the previous month.
  • ​If a licensed center’s licensed capacity is 12 or fewer, then at least 3 children must be in attendance on at least 1 day during the previous month.
  • ​If the licensed center opened (came into good standing for the first time) within the past 180 calendar days, at least the number of children equivalent to 15% of licensed capacity must be in attendance on at least 1 day during the previous month.
  • If a licensed center’s licensed capacity is 12 or fewer and has opened within the past 180 calendar days, then at least 2 children must be in attendance on at least 1 day during the previous month.
     
• ​ Child care providers licensed by a Tribal Nation
  • Licensed family child care providers
    • At least 3 children must be in attendance on at least 1 day during the previous month. Licensed family child care providers cannot include their own children, including foster children, to meet this requirement.
    • If a licensed family child care provider opened (came into good standing for the first time) within the past 180 calendar days, at least 2 children must be in attendance on at least 1 day during the previous month. Providers cannot include their own children, including foster children, to meet this requirement.
  • Licensed child care centers
    • At least the number of children equivalent to 25% of licensed capacity must be in attendance on at least 1 day during the previous month.
    • If a licensed center’s licensed capacity is 12 or fewer, then at least 3 children must be in attendance on at least 1 day during the previous month.
    • If the licensed center opened (came into good standing for the first time) within the past 180 calendar days, at least the number of children equivalent to 15% of licensed capacity must be in attendance on at least 1 day during the previous month.
    • If a licensed center’s licensed capacity is 12 or fewer and has opened within the past 180 calendar days, then at least 2 children must be in attendance on at least 1 day during the previous month.

Yes, as long as a provider was 1) operating in an approved license/certification state (see FAQ 1.7) for at least one day during the funding period AND 2) met their minimum attendance requirement (see FAQ 4.3) during the funding period, a provider may be closed and still be eligible for that Great Start Compensation round. 

Eligible providers must attest in writing to: 

• ​Having been open and serving children during the funding period;
• ​Have met the minimum attendance requirement applicable to their context during the funding period. Please see FAQ 4.3.
• Use funds as required according to provider type. Please see FAQ 4.9.
• Spend Great Start Compensation funds received no later than six months after the date the payment was received.
• Expend funds received under this section on expenses incurred no earlier than the funding period start date of the first Great Start Compensation round for which the program was awarded funding.
• Keep accurate and legible records of the following:
  • ​Use of funds.
  • Staff employment, compensation, and benefits, which must include time sheets or other records of daily hours worked; documentation of compensation and benefits; documentation of written changes to employees' rate or rates of pay and basis there of as a result of payments received under this section. This applies to licensed child care centers, certified child care centers and family and group family child care homes only if the funds are used for employee compensation or benefits. 
  • Daily attendance records must be completed every day and must include the date, the first and last name of each child in attendance, and the time each child is dropped off at and picked up from the program. To the extent possible, the person dropping off or picking up the child must enter the times. Please see FAQ 4.1.
• Share information with the State of Minnesota about how the funds awarded were used, including for the required Use of Funds report due annually, regardless of whether  the program has closed since it received funds.
• Follow all applicable labor and wage laws.

Child care providers must agree not to: 

• Use these funds for items that have already been paid for by federal, state, Tribal or local public funds. 

This question only applies to all eligible child care centers. Programs that are unable or unwilling to use Great Start Compensation funds to increase compensation for staff regularly caring for children as required should not apply for Great Start Compensation funds as they cannot meet allowable use of funds requirements.

Hiring new permanent employees does not count towards providing increased compensation, benefits or premium pay to paid employees regularly caring for children. The state law requires that staff regularly caring for children will receive an increase above their base compensation and/or benefits from the beginning of the first funding period a program is awarded a Great Start Compensation payment.

Programs are required to increase compensation for all staff who regularly care for children above what the program would pay without Great Start Compensation funding. Compensation increases can be covered with Great Start Compensation dollars if:

• The increase was implemented during or after the funding period of the first Great Start Compensation round for which the program was paid out, OR
• The increase was implemented before the Great Start Compensation Program with Child Care Stabilization Base Grant which operated until June 2023 and/or Great Start Compensation Transition Grant dollars which operated from July – September 2023.

Programs may use Great Start Compensation funds for one or more of the options below, depending on the program’s provider type. Providers who accept 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. ​All Child Care 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:  

• ​To pay for increases in compensation, benefits, premium pay, or additional federal taxes assessed on the compensation of employees as a result of paying increased compensation or premium pay to all paid employees or independent contractors regularly caring for children. For hourly wage employees, working more hours is not considered increased compensation. Hourly wage employees should receive more compensation for working the same number of hours.
• Premium pay only includes the portion of an overtime pay rate that is more than what is legally required. For example, if a program is legally required to pay a $20 per hour overtime rate to employee A, Great Start Compensation funds could only be used to cover the portion of the overtime pay rate that is above $20 per hour.

All Family Child Care Providers: Family and group family child care providers licensed under Minnesota Rules, chapter 9502, and Tribally licensed family child care providers must use money received under this section for any of the following purposes: 

• Paying yourself and/or your helper(s)/employee(s), such as payroll, salaries, or similar compensation; benefits; premium pay; or financial incentives for recruitment and retention of an employee, a sole proprietor, or an independent contractor;
• ​Paying rent, including rent under a lease agreement, or making payments on any mortgage obligation, utilities, facility maintenance or improvements, property taxes, or insurance;
• ​Purchasing or updating equipment, supplies, goods, or services;
• ​Providing mental health supports for children; or
• ​Purchasing training or other professional development. 

The funds for each Great Start Compensation payment must be spent within six (6) months of receipt of those funds. For example: If a provider received a Great Start Compensation payment on November 1, 2023, those funds must have been spent by May 1, 2024.

Below is a list of some, but not all, examples of allowable ways to increase compensation under the Great Start Compensation Program:

• ​Increased hourly wage
• ​Premium/bonus pay  
• ​Month-end bonus
• ​Quarterly bonus (you may save up Great Start Compensation funds for up to six months from receipt of a payment)
• ​Increased benefits coverage
• ​Additional benefits coverage such as dental or vision care coverage
• ​Increased employer portion of benefit costs
• ​Retirement plan contributions above what has been provided previously 

No, Great Start Compensation funds can only be used to increase compensation for staff who regularly care for children.

Yes, providers can spend Great Start Compensation funds to cover federal payroll taxes directly associated with Great Start Compensation-funded compensation increases. Great Start Compensation funds cannot be used to cover state payroll taxes.

The department will not calculate baseline compensation for each program based on information reported in Great Start Compensation Applications as originally planned in 2023. Providers participating in the Great Start Compensation Program are required to increase compensation for all staff who regularly care for children above what the program would pay without Great Start Compensation funding.

The Use of Funds Report is a report all providers that have accepted Great Start Compensation funds are required to complete annually. The report asks providers how they spent the Great Start Compensation funds awarded to them during a specific period. Providers will have 90 calendar days to access, complete, and submit their reports. Providers who fail to submit their Use of Funds Report by their deadline will be ineligible to apply for Great Start Compensation funds until their report is submitted.

The department will notify providers of their report available date and due date well in advance of when their report will become available. A provider’s second report will be due a year after their first report.

There are two versions of the Use of Funds Report, one for centers and another for family child care providers (this includes programs licensed by a Tribal Nation). You can find examples of both versions of the report on the Great Start Compensation webpage.

You can answer the Great Start Compensation 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 sessions, as the same children could attend multiple sessions.

No, adding sick leave benefits for employees as required by state law starting in January 2024 cannot be counted as increased compensation or benefits under Great Start Compensation requirements (Laws of MN 2023, ch. 53, art. 12, sec. 1 & 5). Great Start Compensation funds cannot be used to pay employees using sick leave in accordance with this state law. However, Great Start Compensation funds can be used to pay out sick leave used above the minimum level required by state law, if that level of sick leave is new or increased.

No, providers cannot pool Great Start Compensation funds across multiple child care programs/sites . Great Start Compensation funds are awarded to a specific license or certification and those funds must be spent at the license/certification they were awarded to.

Yes, providers can use Great Start Compensation funds to increase the starting wage/salary of new hires. Providers must document (1) what wage/salary and benefits would have been offered without Great Start Compensation funds, AND (2) what portion of wage/salary and benefits is covered with Great Start Compensation funds.

Yes, providers are required by state law (Minnesota Statutes 2023, sec. 181.032) to notify employees in writing of any changes to their compensation, which includes compensation increases funded by Great Start Compensation funds.

Yes, the department has created examples of documents that could be used by providers to keep records of their spending of Great Start Compensation funds. Providers are not required to use these documents, and providers can customize these examples. Please see the three examples of record keeping documents below.

• Great Start Compensation Use of Funds Tool (licensed family child care)
  • Designed for licensed family child care providers to keep records of spending overall on a monthly level​.
• Great Start Compensation overall Use of Funds Tool (licensed and certified centers)
  • Designed for child care centers to keep records of spending overall on a monthly level. However, family child care providers with employees may find this tool useful as well.
• ​Great Start Compensation educator-level Use of Funds Tool (all provider types)
  • Designed to keep records of spending on an individual educator level on a monthly basis, for providers who employ other educators. 

Yes, providers can cover the increased costs of the same level of benefits with Great Start Compensation funds. For example, if the cost of a health insurance plan goes up for employers, employers can use Great Start Compensation funds to partially or fully defray that cost increase without needing to increase/improve the benefit. This allows employers to cover some or all the increased cost of a benefit without passing that cost onto the employee.

Great Start Compensation funds used to cover new or increased paid time off for employees are considered spent when an employee uses the new or increased paid time off. If employees do not use the new or increased paid time off, no money has been spent to provide that benefit.

Yes, external substitutes and the hours they work directly caring for children can be included in Great Start Compensation Applications. The application in the Provider Hub has a “card” in the section where hours are reported that is meant specifically for reporting hours for all external substitutes combined. External substitutes should not be included in your program’s staff roster in the licensing section of the Provider Hub.

While programs can report hours for external substitutes in Great Start Compensation Applications, programs cannot use Great Start Compensation funds to increase compensation for external substitutes.

You can only use Great Start Compensation funds for allowable expenses that happened/were incurred on or after the funding period start date of your first approved Great Start Compensation funding round. This date is called the GSC expenses backstop date.

For example, if your program was first awarded Great Start Compensation funding for the October 2023 Great Start Compensation application, your program’s Great Start Compensation expenses backstop date is September 1, 2023 (the funding period for the October 2023 Great Start Compensation round was September 1-30, 2023).

No, Great Start Compensation funds cannot be used to cover the Paid Family Medical Leave state payroll tax associated with Great Start Compensation-funded compensation increases. Great Start Compensation funds cannot be used to cover any state payroll taxes.

Yes, providers can be disqualified from participating in the Great Start Compensation Support Payment Program for non-compliance with program requirements.

Providers can receive Great Start Compensation payments through one of two methods: (1) mailed check, the default method of payment, or (2) direct deposit.

NOTE: Direct deposit is strongly encouraged, and support is 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 mailing 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 (state licensed or certified license-exempt child care centers).

​Mailed check timeline: June 2024 Great Start Compensation round example

• June 2024 application period: June 10 – 23, 2024
• June 2024 applications processed by the department June 24 – 30, 2024
• June 2024 check payments created and mailed by July 1, 2024
• June 2024 check payments received by providers by July 16, 2024

Direct deposit
Minnesota Management and Budget will transfer monthly payments to provider bank accounts. To set up direct deposit, a provider must first register with the state by:

1. registering as a supplier with the State of Minnesota, AND
2. adding bank information to your supplier account.

Then providers must connect their supplier account with their child care business license. Great Start Compensation payments for licenses connected with a supplier account will be paid out by the payment method selected in the supplier account, which is either paper check or direct deposit.

If a provider registers as a supplier but does not add bank information, Great Start Compensation payments will be paid as checks mailed to the mailing address on file in the supplier account.

Full directions for setting up direct deposit can be found below.

• Family child care licensed by the state or any provider licensed by a Tribal Nation (online forms)
  • Supplier ID FAQ webpage
• State licensed or certified child care centers (Provider Hub)
  • Register as a supplier
  • Link your supplier ID and child care license

​Direct deposit timeline: June 2024 Great Start Compensation round example

• June 2024 application period: June 10 – 23, 2024
• June 2024 applications processed by the department June 24 – 30, 2024
• June 2024 direct deposit payments initiated by July 1, 2024
• June 2024 direct deposit payments received by providers by July 5, 2024

For assistance, please contact Child Care Aware of Minnesota at 651-273-2644 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 licensing 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 Great Start Compensation funding should contact Child Care Aware of Minnesota at 651-273-2644 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.dcyf@state.mn.us.

​Providers planning to move should work closely with their state, Tribal, or county licensor to ensure the move does not impact Great Start Compensation funding eligibility. 

Programs are required to document Great Start Compensation spending and be prepared to share those records should the department request them. The department conducts compliance monitoring by utilizing a sample audit approach. Providers selected for an audit must provide the department with documentation related to eligibility and use of funding.

The Internal Revenue Service requires the department to obtain your Social Security Number or Federal Employer Identification Number in order to issue a Tax Form 1099-G. The name and number you give must match your name with the IRS. If your name and tax identification number are determined to be invalid due to a fraudulent act:

• You will no longer be eligible to receive Great Start Compensation funds,
• You will have to pay back any of the funds you have been paid,
• And you may be subject to an IRS fine.

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 in Great Start Compensation funds 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 for the previous year 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. 

No, the department will not publish who received funding or the data provided as part of the application.

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)).

Most Great Start Compensation data are considered public with some exceptions. The following Great Start Compensation data are private or nonpublic: An individual’s Social Security Number, child enrollment and attendance data, provider operating expenses, individual employment data, and legal nonlicensed child care providers data (Minn. Stat. § 142D.21, subd. 11).

To the extent that payment data identifies children or families, this data is considered private data (Minn. Stat. §13.46, subd. 4).

If there is indication that a provider has failed to meet Great Start Compensation requirements, they will receive mailed, written notice and have an opportunity to clarify and/or correct any non-compliance. Failure to make the required corrections, and/or indication that a provider provided false or misleading information to the state with regard to the funding requirements may result in discontinuation of future eligibility for funds, recovery of payments already made, and/or referral to the Office of Inspector General for additional action.

These funds do not constitute a loan and child care providers who comply with Great Start Compensation requirements will not be required to pay funds back to the department.

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 recovered, 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 Great Start Compensation recipient is not following program requirements, you can submit a tip 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:

• ​Child care provider or program name 
• Name of director if it’s a child care center
• ​Address of child care provider or program
• ​If licensed, the license number (which can be found at Licensing Lookup)
• ​The requirement you believe the child care provider may not be following
• A description of the way in which the child care provider is not following the requirement.

​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. 

No, an audit is not an indication or an accusation that the child care provider has done something wrong. An audit is an eligibility review process done by the department to verify that child care providers are compliant with Great Start Compensation requirements.

Great Start Compensation recipients identified for an audit will receive a Request for Records by email, using the email address on file with state licensing. The provider will have fourteen (14) business days to submit records via email, fax, or U.S. Mail.  If the auditor has questions about the records or needs additional information, they will contact the provider via phone or email to discuss the review.

If a provider is selected for a Great Start Compensation audit, they will be asked to provide documentation proving compliance. Requested documentation may include, but is not limited to, any or all of the following:

• ​Attendance Records or Affidavit from parent/guardian regarding a child’s attendance
• ​Billing Records and/or Payment Records
• Payroll records or Employee timecards
• ​Payroll records – prior to receiving Compensation Support Payments and after
• ​Payroll records of bonus or premium pay
• Child Care business financial records 
• ​List of expenses and corresponding receipts 

Keeping data safe is a top priority for the state. The Provider Hub complies with relevant National Institute of Standards and Technology (NIST) security standards. Learn more about how the state protects data by visiting the Minnesota Information Technology (MNIT) Services Security webpage. MNIT oversees Provider Hub technology, including data security practices.

Additional information can be found at:

1. Minnesota Cybersecurity Plan: This plan provides a strategic overview of work by the Minnesota Cybersecurity Task Force. It also encompasses the goals and cybersecurity efforts dedicated to securing Minnesota, including those of Minnesota Information Technology Services (MNIT) and related advisory councils, cybersecurity grant programs, and other agencies, programs, and initiatives.
2. Information Security | Policies & Standards / Minnesota IT Services: This library contains documents that protect the people, systems and data that help the business of government run. These policies and standards were developed with an eye toward legal and regulatory obligations, industry standards, and needs of the state.

Yes, other parts of the state government can request Great Start Compensation data. For example, the Child Care Licensing area could request Great Start Compensation data for licensing enforcement purposes.

Child Care Access Equity Areas are geographic areas prioritized for retaining and starting new child care programs. These areas are prioritized because they include higher rates of vulnerable populations. Child care providers in these areas are more likely to be serving children and families that need more supports to thrive.

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 in their monthly payment if one or more of these criteria are met:

• ​They 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, and/or 
• They provided care during the lookback period AND were paid out during the lookback period for service provided during the lookback period through the Early Learning Scholarship payment, AND/OR
• They are located in an Access Equity Area. 

Child Care Access Equity Areas are located throughout Minnesota, with roughly half located in the Twin Cities metro area and half in Greater Minnesota. Please follow this link to view a map of where the Access Equity Areas are located: Child Care Access Equity Areas FY27 Map.

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: 

• Poverty rate
• Homeownership rate
• Median household income
• Unemployment rate
• Number of families with inadequate access to child care, as measured by the Family Access Measure.

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.

Census tracts are relatively small geographic areas used by the U.S. Census to report census information. Census tracts are subdivisions of counties, meaning a county is made up of several census tracts. Census tracts vary in geographic size because they are drawn with a goal of including approximately 4,000 people. For more information, see the U.S. Census Glossary.

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.

No, programs can only use Great Start Compensation funds to increase compensation for employees who regularly care for children. This includes employees whose position description includes direct care of children.

Yes, providers are required by Minnesota law (Minnesota Statutes 2023, sec. 181.032) to notify their employee whenever the employee’s compensation is changed, which includes compensation increases funded by Compensation Support Payments. Please see FAQ 4.20 for more details.

Please see FAQ section 6 for details on how to notify the department if you believe a provider to be out of compliance with Great Start Compensation requirements.

Please contact Child Care Aware of Minnesota at 651-273-2644 or supportfunds@childcareawaremn.org with your questions.

You should add compensationsupport.dcyf@state.mn.us and MinnesotaDCYF@public.govdelivery.com to your email client safe-sender list. Adding this email address ahead of time will prevent important emails from being filtered to your spam/junk folder or blocked completely. Follow these Constant Contact instructions for adding an email address to your safe-sender list.

Additionally, ensure you have subscribed to important program updates from the Department of Children, Youth and Families by adding your email address to our subscriber list.