Committee backs reserve for child-care fund, approves contract realignments in child development budget

The House Committee on Human Services on Oct. 12 discussed recommended Budget Adjustment Act changes in the Child Development Division (B318), focusing on caseload savings and stabilizing the childcare contribution special fund.

Committee staff presented two main items: a caseload savings estimate of “a little over $13,000,000” from underutilization of the Child Care Financial Assistance Program (CCFAP) and a separate $13,000,000 estimate tied to receipts in the childcare contribution special fund. Staff recommended creating a state reserve to protect services from future contribution fluctuations and protect the investment in childcare supports.

Committee members said the recommendation aligns with a prior suggestion from the treasurer’s December fiscal facts and asked staff to flag that connection in the memo to appropriations. Members left the exact percentage or size of the reserve to be worked out by Appropriations, House Ways and Means, and the Joint Fiscal Office.

The committee also discussed several line items related to transportation under the EARN program. Staff described a $378,000 addition to cover a shortfall caused by a misalignment between the state and federal fiscal years (state July–June; federal October–September) and supported that adjustment.

Committee members reviewed the transfer of multiple Children’s Integrated Services (CIS) contracts from the Department of Mental Health (DMH) to the Child Development Division. Two contracts — for the Addison County Parent Child Center and Northwestern Counseling and Support Services — were described as administrative moves (net neutral, moved from DMH to CDD). Two other CIS line items were described as additions to cover services for children who are not Medicaid eligible after management moved to CDD. Staff said DMH had billed primarily for Medicaid recipients and the CDD can bill for some non‑Medicaid children; the committee was told the change does not add capacity to serve more children but pays costs for serving non‑Medicaid youth.

Dr. Deborah Stine (identified in the meeting transcript as Deborah Stine, M.D.) summarized CIS funding sources, noting Part C federal funds, Medicaid and state funds together support early intervention, and asked staff to check whether a waiting list exists and whether Medicaid‑eligible children are on any wait list.

Committee members requested that staff include updated eBoard projections before finalizing the memo to appropriations and identified items for further follow up (reserve percentage, CIS wait‑list status, and final transportation cost updates). The committee agreed to incorporate the staff recommendations into a memo for Appropriations and to review that memo before it is sent.