Larimer County human services warns of funding pressures after legislature: CCAP supplements, TANF and child‑welfare costs strain local budgets

Larimer County human services leaders on May 5 told the Board of Social Services that recent legislative decisions and federal uncertainties produced a mix of one-time funding gains and continuing financial risk for county programs.

Heather O'Hare, human services director, summarized bills and budget changes the department tracked this session and stressed both short‑term appropriations and long‑term exposure. "This was probably the best budget year for human services that I've seen in many many years," O'Hare said, while urging caution about federal changes that could reduce funding for TANF, SNAP and other programs.

County staff highlighted three near‑term budget outcomes: a supplemental infusion for the Colorado Child Care Assistance Program (CCAP), additional county administrative funding for eligibility work, and Medicaid/Medicaid‑related rule and policy negotiations that remain unsettled. O'Hare said the state approved $15 million in supplemental CCAP funding for the current year and an additional $10 million ongoing starting in July; staff noted that county match percentages will rise as well. County staff also said the legislature and Joint Budget Committee (JBC) provided roughly $25 million in new county-administration funding statewide (food assistance SNAP and Medicaid administration combined), with Larimer County’s share helping to cover eligibility‑determination staff.

At the same time, officials warned of several risks. Vanessa Fuel, division manager for benefits and community support, said food‑assistance caseloads continue to grow: "we have continued to see a steady increase in our food assistance caseload," she said, citing an increase from about 18,145 cases in the first quarter of 2024 to about 19,075 in the first quarter of 2025. O'Hare said county administration funding is still under stress: Larimer currently projects roughly $675,000 of overspending in county‑administration lines that the county would cover from fund balance.

Child welfare remains the largest budget pressure. O'Hare said Larimer's child‑welfare allocations total roughly $26.6 million but that projected spending could reach about $30.4 million, leaving an overspend near $3.8–4.0 million. The county expects some closeout coverage but said it may need to use TANF reserves, deferred revenue and fund balance to cover the gap. O'Hare showed a consolidated fiscal slide the department said would reduce general fund balance from about $12.4 million to about $8.7 million after year‑end adjustments if no additional state coverage arrives.

Staff described programmatic responses the county is using to manage funding constraints. The CCAP program remains on an enrollment freeze: the county reported about 500 families waiting for assistance and said supplemental dollars slow the pressure but will not fully offset new federal requirements that take effect in August 2026. The county is analyzing whether to move from a freeze to a formal wait list and cautioned that some populations must be prioritized under state rules.

O'Hare and staff flagged two operational and policy issues with potential statewide implications. First, the county described a contract‑vendor problem for income verification: the state’s contract with Equifax (the Work Number) compels counties to pay per‑hit fees to verify income and the current Larimer bill for Equifax services is about $600,000 annually; O'Hare said HCPF and other counties are renegotiating costs because Equifax recently sought to raise statewide charges by millions of dollars. Second, staff described late‑session changes to how residential child‑welfare placements would be handled under Medicaid; a bill delayed full implementation and required Health Care Policy & Financing (HCPF) to work with counties and providers to develop medical‑necessity policies and procedures before statewide implementation next July.

Older‑adult services also faced immediate reductions. O'Hare said the state is releasing 75% of Older Americans Act allocations while withholding 25% pending federal budget clarity; the county said it will reduce contracted provider payments by 25% for July 1, 2025–June 30, 2026 unless additional federal funds are released. Staff also reported the Larimer County‑contracted health district will end older‑adult dental services on June 30, citing the health district’s decision to move to means‑testing (income eligibility) that conflicts with Older Americans Act requirements; county staff said they will not re‑fund that service through other contractors.

Commissioners and staff agreed to continue monitoring federal reconciliation and appropriations work in coming weeks and to return with updated closeout figures in August. O'Hare asked commissioners to be prepared for advocacy to the state and federal delegations if cuts materialize: she said the county may be among the first to test a statutory provision that requires state backfill if a county’s TANF reserves fall below a 15% threshold.

Commissioners praised staff for operational performance: the county reported timeliness of eligibility determinations above 97% (the state goal is 95%), and staff said Larimer has been helping a number of other counties that face larger backlogs.

The department said it will provide commissioners with regular updates and written materials, and it identified specific next steps including a child‑welfare expenditure report requested by the Child Welfare Allocation Committee and further work on CCAP strategy, county administrative contracting (including Equifax), and outreach for senior services.