Great Start Compensation Support Payment Program

• Sample Compensation Support Payment application for: Family Child Care provider (PDF)
• Sample Compensation Support Payment application for: Certified Center (PDF)
• Sample Compensation Support Payment application for: Licensed Center (PDF)

• When open and providing services, implement policies in line with guidance and orders from corresponding state, Tribal, and local authorities, to the greatest extent possible.
• Spend Compensation Support Payment funds received no later than six months after the date the payment was received.
• Serve a minimum number of children during the funding period.
• Keep accurate and legible records of the following:
  • Use of money.
  • 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 and certified child care centers. Licensed family child care and group family child care programs are required to maintain this documentation only if the funds are used for employee compensation or benefits.
  • Daily child 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.
• Share information with the department about how the funds awarded were used. A process is currently being developed that will provide clear direction to providers about what information they will be asked to share with the department, how they will report the information, and when they will be required to do so. The department will communicate further details as they become available.

Programs may use the Great Start Compensation funds for one or more of the following options based on provider type.

Licensed and certified centers
Child care centers licensed under Minnesota Rules, chapter 9503, certified license-exempt child care centers under chapter 245H, and child care centers licensed by Tribal Nation must use Great Start Compensation money for the following purpose:

• 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.

Licensed family child care
Family and group family child care programs licensed under Minnesota Rules, chapter 9502, and family child care providers licensed by a Tribal Nation must use Great Start Compensation money for one or more of the following purposes:

• Paying personnel costs, such as payroll, salaries, or similar compensation; employee benefits; premium pay; or financial incentives for recruitment and retention for 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.

Programs that accept Great Start Compensation Support Payment funds must agree to NOT:

• Use these funds to pay taxes (other than payroll taxes, which are allowed). 
• Use these funds for items that have already been paid for by other public funding. 

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 public funds. Examples of other funding sources may include Peacetime Emergency Child Care Grants, COVID-19 Public Health Support Funds for Child Care Grants, Child Care Stabilization Grant Program funds, forgiven Paycheck Protection Program loans, Child Care Aware Regional Grants, and others. Compensation Support Payments funds are intended to cover additional allowable costs that are not covered by other support programs. If you are uncertain whether the source of funding from other support programs is public, you should verify with the organization that provided that support. 

Providers are eligible for a 10% increase to their Great Start Compensation payment if they have one or more of the following criteria:   

• Have provided care during AND were paid out during the 10% bonus lookback period for service provided during the lookback period through the Child Care Assistance Program,
• Have provided care during AND were paid out during the 10% bonus lookback period for service provided during the lookback period through Early Learning Scholarship payments
• Are located in a Child Care Access Equity Area (for more information, see section 7 on the Frequently Asked Questions FAQ page.)  

Full-time equivalent staff (FTE) 

Compensation Support Payments are calculated based on the number of full-time equivalent (FTE) staff, both full- and part-time, who regularly care for children in the program. One FTE is a staff member who works 32 hours per week. A staff member who works more than 32 hours per week can count as two FTEs; two FTEs would equal 64 hours worked per week. Compensation Support Payments are calculated by multiplying the per FTE amount, listed in the table above, by the total number of FTEs working in a program.

Example 

A 1.0 full-time equivalent (FTE) calculation is the business days in month x 6.4 hours per day.

If a month has 23 business days: 1.0 FTE for the month = 23 business days x 6.4 hours per day = 147 hours. The number of business days in a month varies month to month. 

Formula

A worker full-time equivalent (FTE) calculation: hours worked in the month divided by 1.0 FTE for the month.

Base award amount calculation: total FTEs x $ per FTE

• 2.2 total FTEs x $375 per FTE = $825.00

10% increase calculation: total FTEs x $ per FTE x 0.1

• 2.2 total FTEs x $375 per FTE x 0.1 = $82.50
• **To qualify for the 10% increase, providers must have received payment AND billed for hours during the lookback period through the Child Care Assistance Program or Early Learning Scholarship programs, or be located in a Child Care Access Equity Area.**

Total award amount calculation: base award amount + 10% increase

• $825 base award amount + $82.50 10% increase = $907.50

Visit the Great Start Compensation Support Payment Program FAQ webpage. 

Visit the News, Updates and Engagements webpage. 

The department hosted three Compensation Support Payment informational webinars. Please see below for links to the presentations and recordings for each provider type.

Licensed family child care providers

October 3, 2023

• Webinar Powerpoint
• Webinar Recording

Licensed child care centers

October 3, 2023

• Webinar Powerpoint 
  Webinar Recording

Certified child care centers

October 4, 2023

• Webinar Powerpoint
• Webinar Recording