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Department of Children, Youth and Families projects small forecast changes; child care and MFIP trends noted

2570278 · March 12, 2025
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Summary

The Department of Children, Youth and Families reported modest changes in its February 2025 forecast, with a projected $781 million in state spending for five forecasted programs in 2026–27 and small enrollment‑driven adjustments to MFIP, CCAP, North Star and early childhood programs.

Ashley Reisenauer, chief financial officer for the Minnesota Department of Children, Youth and Families (DCYF), told the Senate Health and Human Services Finance and Policy Committee that DCYF’s five forecasted programs show small changes from the November forecast and are based on current law and enrollment trends.

DCYF said the five forecasted programs under its umbrella are the Minnesota Family Investment Program (MFIP), Child Care Assistance Program (CCAP), North Star Care for Children (adoption and foster permanency supports), Early Childhood Family Education (ECFE), and Early Childhood Health and Developmental Screening. The department reported projected state general fund spending of about $781 million in the 2026–27 biennium for these programs, a 2.2% decrease from November driven primarily by updated enrollment trends.

Reisenauer told the committee MFIP serves roughly 62,000 people per month; CCAP is expected to serve more than 11,000 children in FY26 (about 6,300 families). DCYF's forecast shows slower than expected growth in children served by CCAP, contributing to reduced spending projections compared with November. North Star (adoption and foster supports) serves about 18,500 people monthly; small changes in foster care and kinship assistance projections produced modest adjustments.

DCYF cautioned the committee the February forecast reflects current law and does not assume pending state or federal policy changes. The department provided follow‑up materials and offered to provide corrected charts for one slide DCYF staff said was printed incorrectly in committee packets.

Ending: Committee members thanked DCYF for the overview and asked staff to provide the updated chart for the screening program.