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State projects $35.5M childcare shortfall; DHHS proposes rate changes and TANF reallocation
Summary
Department of Health and Human Services projects about $35.5 million in childcare assistance over-expenditure for the 2025–27 biennium due to higher utilization and a new workforce benefit; agency plans provider-rate adjustments, a waitlist for new applicants, and using TANF federal authority to cover the gap.
The Department of Health and Human Services told the Legislative Audit Committee on Dec. 9 it expects the Child Care Assistance Program (CCAP) to exceed the 2025–27 budget by roughly $35.5 million if no changes are made.
Donna Auckland, DHHS chief financial officer, said the biennial direct-benefit budget was set at $112.2 million with supplemental one-time bonuses added, but utilization rose during the legislative session and in the months after. "If we make no changes ... we would project to spend $160,200,000," Auckland said.
Michelle Gee,…
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