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JBC chair warns UPK cash fund faces a fiscal cliff; urges review of "stacking" with childcare
Summary
Rep. Taggart told caucus members the universal preschool (UPK) program is shifting to cash fund revenue from Proposition EE, but the cash fund may not be sustainable; he urged analysis of "stacking" between UPK and CCAP childcare to find savings.
Representative Rick Taggart reviewed the early childhood section of the supplemental and told the caucus that early childhood shows a $7.7 million general-fund reduction. He said the universal preschool program (UPK) relies on a cash fund generated by Proposition EE revenue and that the JBC is considering a $10 million draw from that cash fund as part of the supplemental.
Taggart warned the UPK cash fund is headed for a fiscal cliff: without program adjustments or new revenue the fund may not sustain the program at current levels. He urged the department to analyze "stacking," where a child enrolled in UPK (for example 30 hours) also receives CCAP-funded childcare for overlapping hours. Taggart said better software and more rigorous data review are needed to ensure the state is not paying for duplicative hours.
Members pressed for the cash fund balance and enforcement tools; Taggart said he did not have the exact balance off the top of his head and pledged to follow up. He also noted that the biggest counties have a freeze on childcare enrollment because those dollars are exhausted.
