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HomeMy WebLinkAboutAgenda - 02-15-2011 - 4lORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 15, 2011 Action Agenda Item No. ~~ SUBJECT: Proposal to Operate Smart Start Subsidy at Social Services DEPARTMENT: Social Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Nancy Coston, 245-2802 PURPOSE: To consider a request by Social Services to submit a proposal to the Orange County Partnership for Young Children for operation of the Smart Start subsidy program. BACKGROUND In most counties, the subsidy provided by state and federal funds through the Child Development Block Grant and the subsidy provided through Smart Start are administered by one entity, usually the Department of Social Services (DSS). The General Assembly mandated integrated systems unless the county partners requested approval to operate a dual system. In 2001, Orange County was granted approval for a dual system and Child Care Services Association was given the Smart Start subsidy program by the local partnership board. Three years ago, the Social Services Board and Board of County Commissioners approved a request by DSS to submit a bid to combine the operations of the subsidy programs. The numbers then indicated administrative savings would occur from this change which would then allow more funds to serve the many children waiting for child care in Orange County. At that time, the Orange County Partnership Board decided to continue the dual system and provided funding through a three year grant to Child Care Services Association. Proposals are now due to operate Smart Start programs for Fiscal Year 2011-2012. Although DSS was previously told to submit a bid for operating subsidy, the agency has now been informed that agencies under state contracts, such as DSS, do not have to submit a bid. The agency would however need to prepare a budget and proposal for consideration by the Partnership Board. The Department of Social Services continues to believe that an integrated child care subsidy program will provide better services to families and will result in reduced administrative costs. Funds available for subsidy at DSS were reduced substantially this year and both programs anticipate additional cuts for Fiscal Year 2011-2012. As funds continue to decrease, it will be more important to save administrative costs while prioritizing available funds for the most vulnerable children. For these reasons the staff and the Board of Social Services recommend 2 that the agency submit a proposal to operate the Smart Start funds as part of an integrated subsidy program. Based on the funds anticipated for next fiscal year, the department would be able to handle both programs with existing staff positions. FINANCIAL IMPACT: Any costs directly related to the administration of the Smart Start subsidy program would be paid by Smart Start funds. No additional County funds would be needed and this change should direct more of the available funds into payments to providers for child care. RECOMMENDATION(S): The Manager recommends that the Board authorize the Social Services Director to submit a proposal for administering the Smart Start subsidy program.