Children & Economic Assistance Grants – MFIP Child Care Assistance Grants: This is the back end of the draw down on federal TANF money to replace general fund money. 

 

Child Care Assistance Program Reductions – the Governor proposes to reduce the maximum rates paid to licensed child care providers, license-exempt centers, and legal non-licensed providers by 3%. Governor also proposes a 3% increase in the copayments made by families who receive this subsidy. Both are to be effective 7/1/09. The last increase in maximum rates was 7/1/06. This will save the general fund $2.716 million in FY10 and $2.961 million in FY11.

 

Decrease MFIP Exit Level to 110% FPL – this is projected to save the general fund $84,000 in FY11 through fewer families qualifying for the subsidy.

 

Limit Retroactive Eligibility for Child Care Assistance Program (CCAP) – Governor proposes to limit retroactive CCAP to 6 months. This is projected to save the general fund $118,000 in FY10 and $157,000 in FY11.

 

MFIP Reductions – This is anticipated to save general fund $13,000 in FY10 and $267,000 in FY11 due to fewer families qualifying for CCAP.

 

TANF Refinancing – As noted above, Gov proposes to reduce general fund contribution to CCAP by $9.415 million in FY10 and $24.588 million in FY11 and replace with federal TANF money of same amount. The budget page shows this substitution.

 

Children & Economic Assistance Grants – Basic Sliding Fee Child Care Assistance Grants: 

 

Child Care Assistance Program Reductions – the Governor proposes to reduce the maximum rates paid to licensed child care providers, license-exempt centers, and legal non-licensed providers by 3%. Governor also proposes a 3% increase in the copayments made by families who receive this subsidy. Both are to be effective 7/1/09. The last increase in maximum rates was 7/1/06. This will save the general fund $2.232 million in FY10 and $2.506 million in FY11.

 

Limit Retroactive Eligibility for Child Care Assistance Program (CCAP) – Governor proposes to limit retroactive CCAP to 6 months. This is projected to save the general fund $11,000 in FY10 and $16,000 in FY11.

 

In addition, a comparison of the budget pages from December 1 and January 27 shows a decrease in federal funding for this activity of $763,000 in FY10 and $1.75 million in FY11. This is not noted in any narrative. We need to check out if this was a mistake or not.

 

Children & Economic Assistance Grants – Child Care Development Grants: Those “lost” federal dollars show up under this activity. In addition, the Governor proposes a general fund reduction of $98,000 in FY10 and $147,000 in FY11 as net savings to this program from state takeover of fraud prevention investigation from the counties. The fraud takeover will be detailed later. The increased federal money is not noted in any narrative. We need to check out if this is a mistake or not.