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Division III examines childcare workforce and developmental-disability budget adjustments
Summary
Lawmakers reviewed proposals to fund the childcare workforce program (previously funded at $15 million per biennium), discussed whether TANF reserve funds could be used, and introduced developmental services budget reductions while seeking department review of impacts on direct care, wait lists and rates.
At the Division III hearing, legislators revisited childcare funding and developmental disabilities (DD) spending amid a broader effort to trim general-fund outlays.
Representative Wallner and others urged continuation of the childcare workforce grant program that the prior budget had funded at $15 million over the biennium (about $7.5 million annually); committee members discussed whether the money might be taken from the TANF reserve, which DHHS staff estimated holds roughly $57 million. Division staff said they would confirm whether the workforce program is eligible for TANF-reserve treatment and report back.
On DD, the Republican change document proposed protections for direct-care services while seeking savings from indirect contract expenses and other overhead. Committee members noted the DD general-fund budget accounts for roughly 19.9% of DHHS general-fund spending, and that the proposed adjustments were designed to preserve direct support and room-and-board while tightening authorized amounts for certain indirect categories. DHHS staff responded that the department needed time to analyze historical spending patterns (including changes introduced in fiscal 2024) before confirming whether proposed cuts would produce service disruptions, new wait lists, or rate pressures.
Members asked whether contract dollars might be reclassified or moved and requested department analysis on the effects of moving money between contracts and payroll. Several members requested more time so the department could produce specific impact estimates, especially for early intervention, room-and-board, and other programs that have variably billed across fiscal years due to system changes and direct-billing conversions.
Ending: The committee deferred final decisions and asked DHHS to prepare detailed analyses of DD contract authorizations, historic spending patterns, and the scope for savings in indirect lines; staff also will clarify whether childcare workforce grants can be treated as TANF reserve expenditures.
