State fiscal analyst warns MILEAP childcare funds will require more general fund support by 2026

The Department of Lifelong Education, Advancement and Potential (MILEAP) is “almost entirely federal and general fund,” fiscal analyst Noel Benson told the House Appropriations Subcommittee on Higher Education and Community Colleges during a presentation on the department’s fiscal 2024–25 budget. Benson said MILEAP’s total appropriations for the budget are $643,900,000, with 79% federal funding and 21% state general fund.

Benson said 91% of the department’s budget—about $584.2 million—goes to the Office of Early Childhood Education, and roughly $499 million of that is for the Child Development and Care program. “Child Development and Care is currently appropriated at $499 million; 87 percent of this—or $429.5 million—is federal Child Care and Development Fund money,” Benson said.

The nut graf: Benson told the committee the department has used federal discretionary and carryforward funds to sustain expanded eligibility adopted during the COVID-19 era. Because caseloads grew faster than expected under the 200%-of-poverty eligibility threshold, the state has been spending down permitted federal carryforward balances and will need additional state general fund to maintain…