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DCF projects one-time CCFAP caseload savings; payroll-tax special fund seen covering part of costs
Summary
DCF told the House Appropriations Committee it projects a one-time caseload savings in the Child Care Financial Assistance Program (CCFAP) based on uptake timing and will use projected payroll-tax special fund revenue to offset general fund costs this fiscal year.
The Department for Children and Families told the House Appropriations Committee Thursday that the Child Care Financial Assistance Program (CCFAP) is projecting a one-time caseload savings and that projected excess revenue in the childcare payroll-tax special fund can offset general fund dollars previously added to the program.
Megan Seaton, Financial Director for DCF, said the department’s analysis of caseload trends, enrollment timing and income bands shows a large surplus for CCFAP in the current year and that the department proposes to reduce a portion of the general fund appropriation accordingly.
The nut graf: DCF officials emphasized the cut is one-time and tied to enrollment timing after eligibility expansions. The department told lawmakers that outreach to families has been slower than anticipated and that the department has hired a marketing firm and will report back to the committee on outreach efforts.
Seaton said DCF’s total childcare budget is about $170 million. Of that, she said roughly $69.6 million is funded by the childcare payroll-tax special fund, about $56 million by general fund, and the remainder by federal funds. She said the existing base appropriation for the special fund was $79.6 million while the economist’s revenue projection for the payroll-tax fund is $92.8 million — a projected uplift of approximately $13.2 million that the department proposes to apply to CCFAP where allowable.
Representative members asked whether it was premature to reduce general fund support given the recent expansion of eligibility on Oct. 1 and concerns about outreach and uptake. Committee members also raised workforce and retention issues for child care providers; department staff said churn remains a challenge but that recent openings and expansions have increased slot capacity in some localities.
Ending: DCF characterized the proposed reduction as a one-time adjustment. The committee asked DCF to provide additional detail on outreach, enrollment uptake, and how special fund revenue and federal draws will interact with general fund needs going forward.
