Care4Kids Update

An update from the Oct. 22 Care 4 Kids Advisory Committee:

DSS reported at the Oct. 22 Care4Kids Advisory Committee meeting that enrollment may re-open this fall/winter. As you all know, the program closed to certain populations on May 13 and a wait list was started. DSS projects the wait list will reach 3,600 families by Nov. 1, 2009.

As reported by DSS, $103 million was spent on the program by the end of the fiscal year, June 30, 2009. Since July, $24 million has been spent (July-Sept). That averages approximately $8 million a month and if that trend continues, that would put the overall yearly spending at $96 million, $3 million over the necessary $93 million threshold needed to insure federal child care stimulus dollars are not at risk.

DSS informed the Advisory Committee that families are dropping off Care4Kids, through the redetermination process or children aging out. It's a trend that concerns DSS and is raising red flags in that the $93 million figure could be jeopardized, so the department has been meeting with the governor's fiscal staff as well as its own fiscal staff to consider re-opening the program.

When it re-opens and to whom it will be available is information not yet available from DSS, but DSS reported that it could re-open sometime in November and re-open to non-TANF low-income families. The initial thought is that anyone currently wait listed would be invited to apply, knowing that not all 3,600 on the list will reapply (DSS estimates that 60% may reapply) and of that 60%, only 40% would qualify. The initial thought is also to open it to new applicants who are under 50% of the state median income.

DSS suggests if the program re-opens, it would be re-examined in February to see if it is necessary to restrict eligibility again. Care 4 Kids is serving just over 11,000 families, down from 14,000 families in May 2009.

Unlike the abrupt closure of the spring, DSS anticipates that more notice of the program's re-opening will occur.

The re-opening of the Care4Kids program is a welcome development. However, Alliance members have expressed concerns that DSS will manage eligibility so that it spends only $93 million in FY 10 – again, the amount it is required to spend under the federal stimulus act – rather than the $104 million which the legislature appropriated for this program, and intended to be spent on this program. Since DSS spent $103 million in FY 09, if it only spends $93 million in FY 10, it will clearly serve fewer children and families, and may need to restrict eligibility again before June 2010.

This is an important issue that is impacting families, children and early childhood programs. The Alliance will spend time at the next monthly meeting (November 5) planning action.