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PROPOSED GUIDELINES FOR SUBSIDY REVERSIONS AND REALLOCATIONS
FOR THE 2003-2004 STATE FISCAL YEAR
The Division of Child Development (DCD) is proposing the following guidelines for use in determining how counties shall qualify for a reallocation of subsidy funds that result from the reversion of funds from an underspending county. The guidelines were developed based on the analysis of spending patterns during the year of counties who ended the year with a spending coefficient of 100% without receiving a reallocation of subsidy funds. The guidelines are proposed to become effective July 1, 2003 for the 2003-2004 SFY. The spending coefficients listed below would be a combination of Smart Start subsidy funds allocated to a county DSS or local purchasing agency and subsidy funds allocated by DCD.
1) The reversion and reallocation process will occur in October and February. One additional reversion and reallocation process may be considered prior to the end of the state fiscal year, if needed.
2) Counties whose combined subsidy spending coefficient is 97% or less in October and 93% or less in February could be subject to a reversion.
3) Counties whose combined subsidy spending coefficient is between 98% and 106% in October and 94% and 100% in February can qualify for a reallocation of subsidy funds, if requested. Reallocations will be awarded to these counties based upon their actual spending coefficient at the time of reallocation and the amounts they request. The reallocation of funds may also be impacted by the amount of funding that is available through the reversion process. Counties are not required to have a waiting list to qualify for a reallocation.
4) Counties whose combined spending coefficient is over 106% in October and 100% in February will be considered for a reallocation of subsidy funds only if there are reverted funds remaining after reallocations are made to the counties described in #3 above.
