Starting the first of the year, 1,600 low- to moderate-income families may have to dig into their own pockets for more of their child care tab.

In a move designed to cover more families with subsidized child care, the state Department of Human Services has revamped its payment plan for the 7,792 families receiving child care subsidies for 14,577 children.

The new plan is a sliding scale and still must be approved by Gov. Linda Lingle, said Lillian Koller, state Department of Human Services director.

Koller said she wants to put the new scale into effect on Jan. 1. Families will get a 10-day notice of any change to their subsidy.

Today Koller will discuss her plan with lawmakers at a briefing at the state Capitol.

The new sliding scale mostly will hurt those families who are now receiving 80 percent subsidies. They could see their subsidies reduced to 20 percent.

Some families could have to pay on average $100 more a month, others less, depending on the agreement they have with their child care providers, Koller said.

Without the changes, the state's child care subsidy program, which pays either 100 percent, 90 percent or 80 percent of child care costs for working families, would be bankrupt from February through July, when the state begins its new fiscal year, Koller said.

"We're acting now to avert this crisis," Koller said. "The problem is we're experiencing a sharp increase in family assistance, child care providers have raised their rates and we're burning through our budget much faster than anticipated."

But one lawmaker, the chairman of the House Human Services Committee, feels that the state should have foreseen the economic woes and planned for it without cutting vital subsidies to low- and moderate-income families.

"We knew going into last session that we're facing the worst recession in the state's history," said state Rep. John Mizuno, D-30th (Kamehameha Heights, Kalihi Valley, Fort Shafter). "We have to keep in mind that the Human Services department is there to provide a safety net for people.

"You're going to have more people seeking public assistance, less preschool students and businesses being adversely affected."

The proposed subsidies scale would give the most money to families at the lowest rung of the economic ladder and in a series of 10 steps gradually decrease the amount of subsidy, Koller said. The majority of the parents who get 100 percent subsidies will not be affected, she said, but if they are working they may see their subsidies reduced.

The state pays a maximum of $1,395 a month per child for child care. Children from birth to 13 years old are eligible for the subsidies.

The issue is likely to draw a lot of comments today at the legislative briefing. Last month, more than 70 people testified at a public hearing on the cuts, and some said they may not be able to afford the increases.

While many families say they may be forced to take their children out of day care, Koller said, most of the subsidized day care is used to pay family members or small in-home day care providers, both licensed and unlicensed.

The cuts to the subsidies are necessary, Koller said, because demand is up 21 percent, while the cost of day care is up 10 percent.

"We are taking decisive action at DHS," Koller said. "We will continue helping families to gain financial independence and to help keiki gain the best success in school and later in life."