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State projects CCFAP caseload savings and shifts payroll‑tax revenue into childcare fund
Summary
DCF told lawmakers it is projecting conservative caseload savings for the Child Care Financial Assistance Program and intends to use higher payroll‑tax receipts to replace general‑fund support for the program, freeing general funds for other caseloads.
Department for Children and Families officials told the committee that forecasts show lower utilization of the Child Care Financial Assistance Program (CCFAP) than originally budgeted and that the department plans a revenue swap that uses higher payroll‑tax receipts for CCFAP.
DCF staff said they performed an exhaustive analysis of eligible populations, utilization rates and per‑case costs and then shared the analysis with the Joint Fiscal Office. "This is a very conservative reduction in our caseload," a department presenter said, adding that the reduction would not deny eligible families access: "If you are eligible, you will be served."
Committee members asked whether the higher payroll‑tax receipts that fund the childcare special fund will continue to come in above initial expectations; DCF staff deferred to economists and e‑board projections but said payroll receipts tend to rise with wages and inflation. The department said that swapping special‑fund money for general fund will allow general funds to be used for other caseload needs across the agency.
Separately, Deputy Commissioner Janet McLaughlin of the Child Development Division told the committee that Act 76 rate setting does not currently include an automatic inflationary factor and that the division has conducted analysis on options such as cost‑of‑care methodologies for future consideration.
The discussion was procedural and budgetary; no formal appropriation votes were taken at the hearing.
