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Workforce Commission scales back two statewide child-care initiatives to prioritize subsidies
Summary
At a commission meeting, staff recommended discontinuing two statewide child-care initiatives so the commission can reallocate funds toward direct child-care subsidies and reduce long waiting lists; commissioners approved the proposal and asked for quarterly grant updates.
At a meeting of the Workforce Commission (TWC), commissioners approved staff recommendations to reduce certain statewide child-care initiatives and reallocate funding to expand child-care subsidies.
Reagan Miller, Childcare and Early Learning Division, told commissioners the review was prompted by a large waiting list and direction to prioritize funds that place more children in care. Miller said staff do not have clear evidence that long-funded staff-retention grants (Track 76013) have reduced turnover and recommended discontinuing that initiative beginning in fiscal year 2027. She also recommended modifying and discontinuing a stimulus‑funded child-care expansion initiative (Track 76065) that carried a $25 million FY26 allocation and terminating the current procurement for that initiative so those dollars can instead increase board allocations to serve more children.
"Pulling back on investments that we've been making in statewide initiatives is never easy," Miller said, "but given the significant amount of feedback that we've had from families, providers and other child-care stakeholders, we believe that rebalancing our quality versus direct care is appropriate. Reducing our statewide initiatives will allow us to increase our allocation and provide financial assistance to serve more children in fiscal year 2027." (Reagan Miller, Childcare and Early Learning Division.)
Commissioners asked staff to provide quarterly grant updates on expenditures, performance measures and outcomes so the commission can monitor impacts rather than reassessing only at budget time. One commissioner thanked staff for responsiveness during briefing and for focusing on outcomes and direct service.
A commissioner moved to approve the child-care statewide initiatives package as presented and discussed; the motion was seconded and passed.
Next steps, as described by staff, include terminating the in-progress procurement for the FY26 expansion initiative if the commission stands by the discontinuation and returning in mid‑July with updated performance targets and proposed increases to FY27 board allocations based on recovered funds from the discontinued initiatives.
