San Juan County keeps contracts flat as social services warns TANF funding may fall

San Juan County social services officials urged commissioners on March 12 to hold two contracts flat for the coming fiscal year as statewide changes to TANF and other programs create funding uncertainty.

Martha Johnson, San Juan County social services director, told the commissioners the department’s January transmittal showed expenses close to revenue for that month after pass-through Family Voice Grant payments, and that the county is in a “really good place” with roughly $78,000 in fund balance and $100,000 in tenant reserves. She cautioned, however, that statewide policy changes enacted in 2022 — including increases in basic cash assistance and broader eligibility — have pushed TANF toward a projected $5 million statewide shortfall and could reduce the county’s TANF allocation by about 10 percent.

That uncertainty prompted Johnson to recommend a conservative approach to county-funded contracts. Johnson proposed reducing the county’s yearly payments for two TANF-funded programs — the county’s contract with Silverton Family Learning Center (SFLC) and the PEAK program run by the school — by 25 percent and 20 percent respectively. County staff recommended instead keeping the contracts at current levels while the county seeks final state allocation figures and prepares any necessary contingency plans.

Sarah Mordecai, representing the Silverton Family Learning Center, described an immediate funding shortfall at her nonprofit: a roughly $60,000 reduction after state preschool funding was restructured and a 50 percent cut to her personal contract to keep operations going. Mordecai said a proposed cut from $16,000 to $12,000 a year would be “huge” and could jeopardize program hours or services. Hannah (last name not specified), who said she serves on SFLC’s board, said the center had cut tuition and other costs and was still working to diversify revenue; both speakers urged commissioners not to reduce the SFLC contract.

Commissioners discussed using lodging tax dollars or the county’s fund balance to backfill small shortfalls, and noted the county must submit contract proposals to the Colorado Department of Early Childhood for approval before July 1. After discussion, commissioners directed staff to renew the Family Learning Center contract at $16,000 and maintain the school PEAK contract at $25,000 for now and to return with an update next month and further information from the Department of Early Childhood. Johnson and staff said they will monitor the state budget process and notify the board if a larger shortfall materializes.

The board did not take a formal roll-call vote on a contract reduction; the decision to keep funding at current levels was the stated direction of the meeting.

Ending: County staff will submit the contracts to state reviewers and return next month with updates on state TANF allocations and any recommended budget adjustments.