Staff recommend 5.5% reimbursement increase for infant and toddler child-care slots

Committee staff told the Human Services budget workgroup that First Children’s Finance, the firm that performed a recent cost-of-care study, indicated a 5.5% increase to the reimbursement rate for infants and toddlers would align payments with current costs.

The recommendation covers only infants and toddlers and, by the committee’s calculation, would cost about $5,872,612; staff said that figure had not yet been verified by the Joint Fiscal Office. A staff presenter said the governor’s proposal reduces the base and the committee recommendation is to avoid that reduction for this line item.

Members pressed staff for statutory and caseload context. One member noted state law allows rate adjustments “up to 1.5 times” a NAICS-based measure; staff responded the 5.5% rise is within that statutory range. Committee staff provided counts for the population affected: 1,789 infants and about 1,410 toddlers enrolled in the subsidy program referenced during the meeting.

Members also asked for a funding-source breakdown because some children are Medicaid-eligible. A committee member requested staff “break that out” between General Fund and Global Commitment (Medicaid) funding so the legislature can see which portion of the cost would be borne by Medicaid. Staff said they would get that information.

No formal vote was taken on the recommendation during the session; the presenter framed the item as a proposed adjustment the committee will consider after additional verification from the Joint Fiscal Office and after staff supply the funding-source details.

Sources: remarks and figures presented by committee staff and references to First Children’s Finance in the meeting transcript.