Great Start Compensation Support Payment Program

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

By accepting Great Start Compensation funding, my program agrees to:

• Use the Great Start Compensation Support Payment funds within six months of the date your program receives them.
• Use the funds only for expenses your program incurred on or after the start date of the first Great Start Compensation funding round you were awarded funds. This is called the expenses backstop date.
• Spend Great Start Compensation funds only on allowable uses. See FAQ 4.9 for more details.
• Serve a minimum number of children on at least one day during the funding period.
• Keep accurate and legible records of the following:
  • Use of funds.
  • Early educator 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 thereof as a result of payments received under this section, as required under section 181.032, paragraphs (d) to (f); and any other records required to be maintained under section 177.30. This applies to licensed child care centers, certified child care centers, and Tribally licensed child care centers. It also applies to family and group family child care homes only if the funds are used for employee compensation or benefits.
  • Enrollment and attendance. 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 state of Minnesota about how the funds awarded were used, including for the required Use of Funds report due annually, regardless of whether my program has closed since it received funds.
• Follow all applicable labor and wage laws.

My program agrees NOT to:

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

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.

If you take Great Start Compensation Support Payment funds, you cannot use them to pay:

• Taxes, except for the extra federal payroll taxes tied to Great Start Compensation‑funded pay increases.
• Any goods or services 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 the Child Care Assistance Program, Early Learning Scholarships, the Child and Adult Care Food Programs, and others. Great Start Compensation funds are intended to cover additional allowable costs that are not covered by other public benefit programs. If you are uncertain whether the source of funding from other benefit programs is public, you should verify with the organization that provided that support.

By accepting Great Start Compensation payments, providers agree to document how they used Great Start Compensation funds and share this information with the state. DCYF created the Use of Funds Report to collect information on how recipients spent Great Start Compensation funds and the impact of those funds. Completion of this report is required once each year.

Each year providers are given access to their Use of Funds Report three months before it is due. 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.

Providers can prepare for the report by reviewing the report examples below and using the free and optional Use of Funds tools shown in FAQ 4.21.

• Sample Use of Funds Report: State or Tribally Licensed Family Child Care Providers (PDF)
• Sample Use of Funds Report: State or Tribally Licensed Centers and State Certified Centers (PDF)

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

• Have provided care during AND were paid out during the Great Start Compensation 10% increase 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 Great Start Compensation 10% increase lookback period for service provided during the lookback period through the Early Learning Scholarship Program
• 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) 

Great Start Compensation 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. Working 32 hours per week is considered full-time in this program. A staff member who works more than 32 hours per week can count for more than one FTE; two FTEs would equal 64 hours worked per week. Great Start Compensation payments are calculated by multiplying the applicable per FTE award amount by the sum total of FTEs working in a program during the applicable month.

Example 

A 1.0 full-time equivalent (FTE) is calculated by multiplying the business days in month by 6.4 hours per day

• 32 hours per week (considered full-time) equals 6.4 hours per day, as the standard work week is five business days.

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’s recorded Great Start Compensation informational webinars are posted below. Recordings are categorized by provider type.

Family child care providers licensed by a the state of Minnesota or a Tribal Nation

New content coming soon.

Child care centers licensed by the state of Minnesota or a Tribal Nation

New content coming soon.

Child care centers certified by the state of Minnesota

New content coming soon.