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Committee briefed on CCFAP caseload, payroll‑tax shift and infant/toddler rate change
Summary
Joint Fiscal Office explained CCFAP (child care financial assistance) caseload savings and a proposal to use excess payroll‑tax receipts to replace general fund in parts of the program; the House added modest increases to infant/toddler rates and changed caseload reserve language rather than creating a new special fund.
On April 10 the Joint Fiscal Office told the Senate Health and Welfare Committee that estimates for the Child Care Financial Assistance Program (CCFAP) show caseload savings compared with earlier forecasts and that the governor proposed using excess payroll‑tax receipts to pay program costs instead of general fund.
JFO staff explained that timing differences between payroll‑tax receipts and program expenses have produced temporary balances in the dedicated fund; the administration proposed shifting about $19,000,000 in payroll‑tax dollars to replace an equal amount of general fund in certain CCFAP lines. The House accepted most of that proposal but added targeted investments in infant and toddler rates — reported by staff as approximately a 4.5% increase — which reduced the net shift requested.
Committee staff said the payroll‑tax funds can only be used for child care purposes while they sit in the special fund and that the House reached a compromise by permitting use of the caseload reserve for some child‑care needs instead of creating a new special fund.
The JFO noted that utilization estimates will take several years to stabilize and that caseload projections have been revised downward compared with initial rollout expectations; they reported a caseload savings figure in the hundreds of millions offset across multi‑year projections, and noted the House figures will slightly adjust the numbers if the Senate concurs with the House language.
Members of the committee mentioned receiving public comment and form letters on the proposal. Committee staff recommended advocates and providers raise technical questions during appropriations to clarify whether funds should remain in a dedicated child‑care reserve.
