Social services director warns of state and federal funding shifts affecting childcare, TANF and child welfare

San Juan County Human Services Director Martha briefed the county commission on program budgets and statewide funding trends that could affect county services for children, families and seniors.

Why it matters: Martha told the commissioners the county is monitoring three tightly linked program areas — the Child Care Assistance Program (CCAP), Colorado Works (the state’s TANF program) and child welfare — and that legislative and federal changes are projecting higher costs statewide that could strain county allocations.

Key points from the briefing: - Childcare: San Juan’s allocation for the current fiscal year was roughly $8,300. At the current rate of spending the county is projecting an underspend of about $6,700 by yearend, but recent state actions will raise provider pay rates annually (the presentation cited October 1 increases) and federal rules require, beginning Aug. 1, 2026, that childcare payments be made on an enrollment basis rather than attendance. Martha said those two changes are estimated to increase statewide childcare costs materially (the briefing cited a statewide estimate of roughly $60 million over three years). She warned that paying on an enrollment basis improves provider stability but could reduce the number of children who can be served under fixed allocations. - Colorado Works/TANF: The county’s projected expenditures are close to its allocation for the year, with modest overage risk. State-level changes included automatic annual cost‑of‑living increases for the basic cash assistance grants and broader allowances for income disregards, which increase program costs. Counties may use TANF reserves or inter‑county transfers to address overages; San Juan’s reserves are at the county’s cap ($100,000) after earlier inter‑county purchases. - Child welfare: San Juan’s child welfare projection for the fiscal year is roughly $53,000, driven largely by staff costs and contracts for school‑based services. Martha said the state’s new allocation formulas put San Juan in a more stable position this year and staff are planning to continue paying the Family Learning Center contract from the child-welfare allocation to preserve TANF reserves.

Fiscal actions taken: commissioners approved “Transmittal Number 2” for $16,923.09, which reflects routine program payments and an executed grant flow that momentarily increased the transmittal total but is offset by matching revenue.

Next steps: Martha said she will track closeout calculations at the state level in July–August (when closeouts are normally finalized) and report back on whether any county reserves or inter‑county transfers must be used. She also flagged federal discussions about potential reductions to nationally funded programs as an uncertainty that could affect future county budgets.

Ending: commissioners thanked Martha for the detailed briefing and asked staff to bring any budget changes or requests for reserve use back to the board for approval before the county commits funds.