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Day Care Subsidy Committee Meeting Minutes
Attendees
Nicki Griffin Co-Chair
- Della Sweet - Bobby Cagle - Jack Dalton - Wanda Smith - Amy Johnson - Algernon McKenzie - Tracy Bryant - Christine Degeberg
- Pinkie Moore - Stephanie Leach - Natasha Atwaters - DCD Terry Keene - Karenne Berry - DACCA -Durham County Connie McAdams - CCN- Chatham County Wanda Neidig -
New Denise Hill - Rob Kindsvatter - DCD Vicki Jackson - Carla Bass - RC Fay Lewis -DCD Vi Simmons - DCD Angela
Keith - Amie Barham - Kay Galloway - CCRI Meck. County
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Bill Scarlett Co-Chair - Susan Parrish - |
Nicki Griffin called the meeting to order and welcomed all in attendance.
Ms. Griffin asked attendees to review the minutes of the January meeting. Denise Hill submitted a revision for page 5, paragraph 4. This revision will be placed in the January minutes and revised January minutes will be sent out. A motion was made to approve the minutes with amendment.
Ms. Griffin informed the group that the Directors Association has asked that minutes from committee meetings be on the list server by the 7th day after the meeting. Therefore minutes should go to Nancy Guy and Nicki Griffin by the Monday following the meeting.
Ron Penney reported that counties have an overall spending co-efficient for state subsidy of 94%, Smart Start spending co-efficient is at 97% and the combined spending co-efficient is 95% and that spending has been holding constant. With the current pattern of spending, there would be a little over 19 million dollars balance at the end of the year and currently we have a waiting list of 11,700 children statewide.
Nancy Guy presented a new reversion and reallocation process. This plan is a little different than those used in the past. Typically only overspending counties received reallocations, however this year it is critical to spend funds because of the 15 million that the General Assembly added to the child care budget to reduce the waiting list. Because the Directors Association intends to ask the General Assembly to continue this funding, counties need to spend funds allocated this year. Mrs. Guy presented a plan to spend funds that will revert monies from counties that DCD felt would not spend (those spending under 91%). The result of those reversions would be around 7.7 million dollars. 6.1 million is needed to bring counties spending over 102% to 102% spending. Counties that are spending between 98% and 102% and have a waiting list would receive 1.6 million to bring them to 98%. DCD looked at the highest spending in either November 02 or December 02 and the year-to-date figures from each county to achieve these spending percentages. Rob Kindsvatter stated that over spenders would get funds from the 23 million dollars left, and the net effect will be 19 million dollars. He stated that the reason why over spenders were not given all of the dollars they need is that we would have to take monies from other counties that were spending their current allocation to do this.
It was requested that counties let DCD know if they need additional funding above what is being reallocated. If there is something that can’t be seen or if Smart Start is earmarked for something special and not in the general subsidy allocation counties should let DCD know as soon as possible. Mrs. Guy stated that if the committee had no objections DCD would issue reallocations within the next couple of weeks. Counties were instructed to contact Kathy Gurganious if they need to make corrections. There were no objections and DCD was commended for working out a fair way to redistribute the funds.
Bill Scarlett asked whether these funds would be available to serve these children next year. Nancy Guy responded that we might only be able to serve these children for 3 to 4 months, but that this would be better than no funding for these families and that families are happy to receive any help.
Bill Scarlett stated that receiving funds in a timely manner is very helpful. He stated that earmarking it for the waiting list makes it difficult to spend. DCD responded that the waiting list has been reduced by 50% yet there are still a lot of children not served. The 15 million given by the General Assembly was specifically for reduction of the waiting list and in order for these funds to be continued DCD believes we have to show a reduction in the waiting list.
Mrs. Guy stated that a separate allocation letter would go out issuing funds to cover the market rate increases later this fiscal year. 1.2 million dollars have been ear marked for the market rate increase and these funds will come in a separate allocation on a needs basis sometime in April or May.
DCD stated that funding authorizations for the 03/04 fiscal year will be sent out by February 15. Nancy Guy stated that the February allocations are determined based on the current allocation formula that is in statute, not the allocation formula that was recently developed by the Allocation Work Group, which has not been passed by the General Assembly. She stated that counties should not be shocked because next year there is 22 million dollars less to allocate and there will be reversions. She stated that they do not yet know if there will be federal dollars to carry forward. Last year they had no additional dollars. Also, if Directors do not succeed in getting the 15 million dollars from the General Assembly again there will be a reduction next year.
Amy Johnson asked if DCD used the most current census data information and Rob Kindsvatter assured us that they had.
Nicki Griffin stated that last month there was a discussion regarding the work that the Allocation Work Group did regarding the new funding formula. Highlights of the finalized recommendations are in the January minutes. Copies of the new formula were passed out and Rob Kindsvitter stated that highlights were on page two. Mr. Kindsvatter stated that the formula took growth into account. Bill Scarlett had some questions about the use of Hold Harmless and the use of the 01-02 allocation. Jerry Rhodes stated that the formula establishes a statewide need of 1.1 billion dollars and there is not enough funding to meet the need. He stated that the state can’t meet the needs without an infusion of funding and that there will always be unmet needs however we can’t get to where we need to be without more dollars. We need to communicate to the state legislature that only 1/3 of our need is being met within the current funding level. Lois Slade stated that we must be able to explain why counties are reverting dollars. Bobby Cagle stated that there is no perfect formula and the committee made an honest effort to be fair to all counties. Mr. Rhodes stated that the Work Group process used everyone’s best efforts at allocating resources. If the formula is appropriately structured however, over time counties with greatest needs will get the largest portion of the funding. The formula does take into consideration growth. Mr. Scarlett questioned the issue of hold harmless. He thinks that the purpose of hold harmless is to omit adverse effects on counties but stated that this doesn’t happen with the proposed formula. Some counties could see a 50% reduction and then a large increase the next year. He stated that hold harmless doesn’t really happen. Bobby Cagle stated that it would take 2 to 3 fiscal years for the system to adjust. Nancy Guy stated that there is no perfect system. Other comments were as follows: If the new formula is implemented the Division would still retain the option to reallocate funds. However, it was noted that Administrative monies will move with subsidy dollars only during the initial Allocation and this could leave some counties with few dollars to administer additional reallocated dollars. A comment was made that there may not be staff in place to move children off of the waiting list when new dollars are allocated.
Nancy Guy reported that if approved by the General Assembly before July 03 the new formula could possibly be used in reallocations during FY 2003-04.
This issue will continually be addressed as we move forward.
Nancy Guy announced that in January, Betsy Bennett moved to another position within DCD and Faye Lewis has become the supervisor of the Subsidy Policy Unit at DCD.
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New
market rate information has been sent to counties. These rates will go into
effect
A new market rate survey has been sent to providers. If providers have questions regarding the survey, they should be instructed to contact Urban Affairs at NC State, the contractor for specific questions. Mrs. Guy stated that counties could have providers call the 800# for DCD with general questions and that counties should encourage providers to respond to the survey. DCD is hoping to receive better results now that more children are enrolled at higher star rated programs. The 2000 survey was done just after the Star Rated License system has been implemented and many programs had not transitioned into the star rated system, which made it difficult to collect market rates. DCD envisions that more data will be available to work with this time. DCD agreed to email a copy of the survey to all counties.
On the federal level, Nancy Guy stated that congress has proposed a 3% cut in child care funding. The President's budget has recommended funding remain level.
Mrs. Guy asked counties to please consider the child care needs of military families as a priority even if counties must change their local priorities. DCD will be available to help if needed. Bill Scarlett stated that the military already has funding for child care. It was stated that reserve components might not have the same access.
Mrs. Guy also stated she would like the committee to began looking at the process of reallocations and reversions for 03/04. She would like guidelines to be set at the beginning of the fiscal year in regards to spending coefficients for reallocation, waiting list numbers, and use of waiting list so that counties have a clearer idea of how to forecast spending.
If counties have calls from providers about Summer Camp they should direct those providers to contact Debra Ayala at DCD for the packet on Summer Camp.
Ms. Guy stated she would present the results of the waiting list survey at the next meeting. Preliminary results indicate that about ½ are using unregulated care, 95% of the families on the waiting list continue to need subsidy, and most of the statistics aren’t very different from the last survey.
Nicki asked for items to be placed on the agenda for the next meeting. Bill Scarlett asked that the reallocation formula and a fraud update be placed on the agenda.
With no further business, the meeting was adjourned.
Respectfully submitted,
Patti Stowe
CCRI,
