Child Day Care Committee

 

Allocation of Child Care Subsidy Funds

When allocating state and federal child care funding (excluding Smart Start) the Division of Child Development uses a three step process. The funds are broken into two categories – categorical and non-categorical and are distributed accordingly. Individual allocation amounts are based on the following:

  1. Each county receives its hold harmless funding amount, that is, the amount of their 1995-96 expenditures for both Family Support Act (FSA) and non- FSA.
  2. Each county receives a share of the non-categorical funding based on the allocation formula adopted by the General Assembly in 1990. Non-categorical funding includes Child Care and Development Funds, Social Services Block Grant and state funds. The county demographics used are those provided by the Office of State Planning which are updated annually, if new data are available. The factors that make up the allocation formula are:
    • Total county population
    • Number of children in a county under the age of 6 and living below the state poverty level
    • Number of working mothers in the county with children under the age of six.
  3. The categorical funds include Temporary Assistance for Needy Families (TANF) and TANF Maintenance of Effort (MOE). These funds are distributed based on a county’s previous State Fiscal Year’s expenditures on low-income children whose parents are working.
  4. The total of steps 1-3 determines each county’s total allocation for the State Fiscal Year.
  5. Throughout the year, the Division monitors county expenditures on a monthly basis in order to revert and reallocate funding. Current policy guidelines allow for a reversion if a county’s spending coefficient is below 95%; however, the factors considered vary according to the current funding situation. For example, a combined spending coefficient of Smart Start and Non-Smart Start funds may be considered when reverting and reallocating funds.
  6. Voluntary or automatic reversion of subsidy funding does not impact a county’s allocation of subsidy funding for the following State Fiscal Year.