Custer County discusses local support as state halves early-childhood LCO funding

Custer County commissioners and staff on Oct. 31 reviewed budget reporting issues and contingency options for the Custer County Kids Council after state-level shifts in early-childhood funding raised the prospect of steep reductions.

Stacy, a representative of the Custer County Kids Council and the county’s local coordinating organization (LCO) for universal preschool, told commissioners the council’s grant spreadsheets show a $49,822 allocation for the July 1–June 30 fiscal year but that county printouts listed a lower “current actual” figure for 2025. “Custer County Kids Council is the early childhood council for Custer County as well as the local coordinating organization,” Stacy said, describing how state and county fiscal calendars produce different year-to-date displays.

County finance staff urged the council to treat the county report and the council’s state-based spreadsheet as complementary: auditors reconcile projected revenues to actual collections at calendar-year close. As Vernon, county finance staff, put it, auditors “care about what we project. And in fact, when they do the audit, we’re still projecting that to the end of the year.” That distinction explains why some state-level budget amendments do not immediately appear on county books.

The conversation moved from accounting mechanics to program risk after Stacy said the Department of Early Childhood’s allocations — roughly $4.5 million for about 32 LCOs this year — are being projected at about $2.3 million next year. “They’re cutting it in half,” Stacy said. Commissioners and staff discussed steps the council and county could take if that projection becomes final: monitor receipts closely, refrain from spending obviously contingent revenue, or process a county budget amendment to remove revenue and associated expenses.

Stacy described practical budget items that could be helped by the county: an annual rent line she currently funds through grant flexing; a $900 monthly accounting (CIC) fee budgeted inside general operating costs ($3,493); and small operating expenses such as software and office supplies. She also noted incoming and one-time funds that will affect bookkeeping, including an expected $20,000 DOLA (Department of Local Affairs) childcare-planning grant and a $5,000 stipend tied to early-head-start exploration. The council’s current revenue mix is roughly 82% state funds and 18% philanthropic or donations, Stacy said.

Commissioners suggested several low-cost county responses: provide an office to reduce rent, process council invoices through county accounts staff to avoid duplicate accounting fees, and add clearer budget line items for data processing and donations. Vernon and other staff agreed a formal budget amendment is an appropriate mechanism for any midyear changes that need to be recorded on county books.

Stacy also described efforts to diversify supports locally: pursuing a DOLA-funded needs assessment and strategic plan, outreach to churches and community partners about family childcare homes, and using the local foundation to accept donations when checks are not payable to county accounts. She said volunteers and in-kind community space have been part of sustaining council operations and that reduced state funding would make those local conversations more urgent.

Next steps identified in the meeting included an upcoming meeting with the Department of Early Childhood’s finance lead (Ginny Steneff) once the governor’s budget releases final numbers, the DOLA meeting Stacy has scheduled, and county staff working with the council to add clearer budget line items and explore office-space options. No formal county action or vote was taken during the discussion.

Stacy provided several direct, practical requests for follow-up: confirmation of which year-to-date receipts were recorded by county finance; creation of a DOLA revenue line for the expected $20,000 grant; and consideration of in-kind county supports for rent or accounting that would reduce the council’s operating costs.