Montcalm County approves larger childcare fund to cover rising placement costs

The Montcalm County Board of Commissioners on Monday, Aug. 11, approved a funding request from Addie Conrad, the county's juvenile court administrator, to increase the county's fiscal-year 2026 childcare fund to cover sharply higher placement and related costs.

Conrad told commissioners that placements for neglect, abuse and delinquency have "just skyrocketed" and that she was asking for a $95,000 increase specifically for placement-related costs. She said the total childcare fund request is $1,075,388 for FY2026, "an increase of $186,018 from last year." "It's absolutely needed," Conrad said.

Conrad outlined four components of the childcare fund and their reimbursement rates: Court-Appointed Special Advocate (CASA) services remain 75% reimbursed by the state; placement costs are 50% reimbursed; the basic grant ($56,250) is 100% reimbursed; and community-based services are included in the request with an increase in wages and other operating costs. She said she moved $70,900 in wages into the childcare fund because those wages are 75% reimbursable, and requested roughly $20,000 for psych evaluations, counseling, drug-testing supplies, tethers, parenting classes, travel, substance-abuse evaluations and offender assessments.

Conrad and commissioners discussed why placement costs rose. Conrad said some post-COVID facility closures and staffing shortages left fewer providers accepting out-of-county youth, and that a change raising the juvenile age to include 17-year-olds has increased the number of higher-risk youth requiring secure placements. She said those factors, plus higher per-diem rates charged by some facilities, have driven the cost increases.

Commissioners also discussed the mechanics of reimbursement and budgeting. The controller noted the June budget packet showed $1,032,007.40 for the childcare fund and that the additional appropriation will likely require a budget adjustment; the panel noted roughly 75% of certain increases should be returned to the county through state reimbursements. Commissioner questions focused on whether current spending exceeded prior allocations; Conrad said she expected to go over on placement costs but had more control over other line items.

Vice Chairman Peterson moved to accept the fiscal year 2026 childcare fund funding request and obtain the appropriate signatures; the motion was supported and carried on an affirmative voice vote.

The board's action directs staff to process the requested funding adjustment and obtain signatures for the required paperwork; Conrad said she would return for any additional budget adjustments if needed.

Montcalm County had six commissioners present at roll call: Alexander, Johnston, Peterson, Mahar, Carr and Emery.