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Committee considers changes to protect childcare general fund amount and create special‑fund reserve
Summary
Lawmakers debated language that would preserve the Legislature's general‑fund appropriation for childcare, shift a planned $19 million draw to the childcare contribution special fund, and create a $5 million reserve within that special fund to avoid tapping other sources next year.
A committee member described a set of structural changes proposed to protect the childcare program’s funding and create a reserve within the childcare contribution special fund.
The proposal would reverse an administration move to take $19 million from the general fund and instead take the $19 million from the childcare contribution special fund, thereby preserving the Legislature’s general‑fund appropriation for childcare, the presenter said. The proposal would also use an apparent overage in the special fund to create a $5,000,000 reserve in the childcare contribution special fund so the program would have a built‑in cash cushion for higher than expected uptake.
"So instead of the governor taking 19,000,000 from the general fund portion, this has, the the governor taking the 19,000,000 from the childcare contribution special fund," the presenter said. "So it preserves the general fund amount and elsewhere in the budget that's reflected. Then on page 1, the overage...is used to create a reserve of 5,000,000." Committee members described the moves as structural and said they would not change the overall amounts being spent this year but would secure the program against next‑year variability.
Why it matters: The change is intended to prevent the program from being made more dependent on payroll tax revenues and to give the program an internal reserve that can be tapped if demand exceeds expectations.
