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State projects $35 million childcare shortfall; DHHS proposes rate cuts, wait list and TANF use
Summary
DHHS reported a projected $35 million shortfall for CCAP after enrollment rose to ~7,600 children/month. To close the gap the department will reduce part‑time reimbursement rates, change quality bonus payments, implement a wait list for new applicants and use available TANF carryover funds as a temporary bridge.
Donna Ochland, chief financial officer for the Department of Health and Human Services, told the Budget Section the state’s childcare assistance program (CCAP) faces a budget gap after higher‑than‑expected enrollment. Ochland said appropriations for CCAP and related bonuses totaled roughly $124,700,000, while projected program costs without changes were about $160,200,000, yielding a projected shortfall of approximately $35,000,000.
Michelle Gee, director of economic assistance, explained the principal driver: utilization exceeded budget assumptions. "At the beginning of the…
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