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HomeMy WebLinkAboutAgenda - 05-08-2014 - 7e1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 8, 2014 Action Agenda Item No. 7 -e SUBJECT: Child Care Subsidy DEPARTMENT: Social Services PUBLIC HEARING: (Y /N) No ATTACHMENT(S): INFORMATION CONTACT: Nancy Coston, 919 - 245 -2800 PURPOSE: To consider allocating funds from the Social Justice Fund to be used to support child care for low- income families in June 2014. BACKGROUND: The Orange County Department of Social Services (DSS) currently operates a consolidated child care subsidy program utilizing state and federal allocations, Smart Start state dollars and County funds. Historically, DSS has had to maintain a waiting list for child care, and this list has reached over 400 children with few children being removed from the waiting list for over a year at a time. Often when funds do become available to serve a child, the agency cannot provide the service since the family's circumstances have changed (may have lost job or moved) or the family cannot be reached. This problem becomes more prevalent when the waiting list lasts for longer periods of time. Earlier this year, members of the BOCC indicated a desire to help families with child care and an ability to provide some funds from the Social Justice Fund if needed. At the beginning of this fiscal year, there were over 400 children on the wait list. The state estimates received for budgeting at DSS showed a significant decrease in funding for Orange County and therefore the agency was reluctant to serve many children from the wait list at the beginning of the year. When DSS received its state approved allocation in September 2013, the amount was greater than anticipated and the agency developed a plan for serving children on the list. Before many of these children could be served, however, the possibility of a federal shutdown resulted in state staff advising counties not to add children until the future of federal funding could be assured. Once this crisis passed, DSS resumed contacting parents, determining eligibility, arranging child care and authorizing payments. This delay resulted in a reversion of some federal funds even though there were children needing services. Given the support from the BOCC, DSS decided to focus on clearing the wait list. All families on the wait list have now been offered services and those that responded and were eligible are now being served. The number of children receiving services is now 845. Although it is very positive that the old wait list has been cleared, the increased number of children being served could impact next year's budget and a wait list will again be needed. The funds available to Orange County from the state will not be known until after July 1, 2014. DSS will again be implementing a wait list effective May 1, 2014, until the actual funding is determined. The state funding for child care is based on service months June through May because the state makes payments one month after the service month. The June payment is made in July and is counted as part of the state allocation beginning in July. By using these County funds in June, DSS will be able to continue service to all the current children through Fiscal Year 2014 -15. Hopefully the state allocation will be higher thus allowing additional children from the wait list to be served. FINANCIAL IMPACT: This request utilizes already- budgeted funds in the Social Justice Fund and DSS budget and does not require additional County appropriations. RECOMMENDATION(S): The Manager recommends that the Board authorize the DSS Director to utilize existing budgeted funds and $150,000 from the Social Justice Fund for child care expenses in June 2014.