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Child care subsidy uptake rising but below early projections; DCF cites caseload mix and $19M fund swap
Summary
Deputy commissioners told the committee that childcare financial assistance usage has grown substantially since eligibility expansions but not as fast as early models predicted; DCF cited case mix changes, recent marketing activity and a $19 million special‑fund swap that affects general fund accounting.
The Child Development Division (CDD) told legislators that child care financial assistance (CCFAP) participation has increased significantly since eligibility expansions and an online application launch, but that current uptake is lower than the department and fiscal modelers initially projected.
Deputy Commissioner Janet McLaughlin said DCF "has seen tremendous growth in childcare financial assistance"—an increase she described as 30 to 40% more families served over the past 18 months—but that "the case mix is also a little different than we estimated," with a larger share of families at higher income levels who receive smaller subsidies.
Why it matters: CCFAP funding and uptake affect child care providers and family budgets. The department told the committee that differences between modeled projections and current uptake influenced a classification in the FY26 proposal as a caseload adjustment (savings) because uptake has not increased as quickly as forecast.
CDF leaders said a recent marketing push and other operational changes are newly active and may raise usage later in the fiscal year. The department also explained a $19,000,000 conversion between general fund and special fund in the Child Development Division appropriation: that swap changes how the department presents general fund totals without altering the overall program budget.
Committee members asked for the modeling details behind the caseload projections. The department said its consultant uses macroeconomic inputs and an average cost‑per‑case approach projected over three years; the department then applies those projections to determine up/down caseload adjustments.
Ending: DCF offered to provide additional detail to the committee about outreach timelines, projected enrollment changes after recent marketing, and the fiscal modeling assumptions behind the CCFAP projections.
