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State officials pitch $200 million annual childcare voucher augmentation to reduce waitlist
Summary
FSSA officials told the State Budget Committee that a $200 million augmentation to the Financial Responsibility and Opportunity Growth Fund would raise annual childcare spending from $40 million to about $240 million and could reduce a waitlist of roughly 11,700 people; lawmakers pressed for details on duration, cost and provider incentives.
At the April 16 State Budget Committee meeting, Adam Alson, Director of the Office of Early Childhood and Out-of-School Learning at the Family and Social Services Administration, and Secretary Mitch Roob proposed a $200 million augmentation to the Financial Responsibility and Opportunity Growth Fund to expand childcare voucher coverage and reduce the pathways waiver waitlist.
Alson told the committee the $200 million figure is intended as an annual augmentation and that increasing state dollars would allow more families to access child care vouchers. He said the proposed funding would raise total annual voucher spending from about $40 million to roughly $240 million. Secretary Roob confirmed the administration intends the augmentation to be annual and said the administration is committed to working toward sustainable funding in the next State budget.
Lawmakers pushed on duration and practical effects. Representative Ed DeLaney asked why a provider would take on more children when reimbursement rates are perceived as low; Alson said the policy included efforts to increase enrollment and that officials would work with providers. Senator Chris Garten asked whether the $200 million was for the biennium or annually; Secretary Roob reiterated the ask was annual. Senator Garten and others noted Indiana’s relative national ranking on child care access and questioned whether the proposal would be sufficient to clear the waitlist. Secretary Roob said funding to cover the entire waitlist (estimated at $350 million) is unlikely.
Questions for follow-up included a request from Chairman Mishler that FSSA provide a chart showing whether enrollment is declining while cost per member increases, and Senator Qaddoura asked to convene qualified health centers with FSSA for further clarification. Director Chad Ranney of the State Budget Agency said the administration takes the request seriously and intends to pursue sustainable CCDF funding in the budget process.
What comes next: FSSA agreed to provide follow-up information on enrollment trends and reimbursement impacts. The committee did not vote to approve the augmentation at this meeting.
