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HomeMy WebLinkAboutAgenda - 12-09-2014 - 7aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 9, 2014 Action Agenda Item No. 7 -a SUBJECT: Social Services Child Care Proposal for 2014 -2015 DEPARTMENT: Social Services PUBLIC HEARING: (Y /N) No ATTACHMENT(S): Chart of Child Care Recommendations Child Care Financial Plan INFORMATION CONTACT: Nancy Coston, 919 - 245 -2800 Tina Clark, 919 - 245 -2800 1 PURPOSE: To consider a proposal for serving children needing child care subsidy in Orange County with a plan that will only address the current fiscal year but will provide a framework for additional discussions during the next budget planning cycle. BACKGROUND: At a Board budget work session on November 11, 2014, the Department of Social Services (DSS) shared the impacts of recent budget cuts and eligibility changes on families in Orange County. The Board requested additional information and recommendations from DSS staff and the Board of Social Services on options for serving these children. The DSS staff and board have developed a proposal for the remainder of this fiscal year. The eligibility changes, recommendations and financial impacts for this year can be found in the attached chart. For several years, the state has not rebased subsidy allocations using the available census data. This year begins a six -year cycle to implement this rebasing and Orange County's base allocation has decreased by approximately $700,000. The second phase of the implementation will occur in July 2016. After the original allocation, Orange County received a reallocation of $290,000 and has been informed of the possibility of one more reallocation this year. The Orange County Partnership for Young Children has also applied for additional Smart Start subsidy funds and if received, these would be added to the DSS contract. In addition, DSS has received some funds through IV -E of the Social Security Act to serve low income children who enter foster care. All of these funds have been included in this proposal. After reviewing details about the families receiving child care, DSS projects that the State funds, Smart Start funds and $595,000 in County funds already in the agency budget should be sufficient to serve the existing caseload. After receiving the comments from the Board of County Commissioners and from the DSS Board, DSS had studied the financial impact of the items discussed at the work session for addressing the immediate needs. DSS proposes serving children over age 5 with families below to the 200% Federal Poverty Level (FPL), not imposing the new income eligibility and fee requirements on relatives who are working with DSS to assure child safety and begin serving all children currently on the wait list effective January 1, 2015. Any requests for child care after January 1St would be subject to a new waiting list until the financial impacts of these changes can be calculated. If funds become available, working families will be served from the wait list based on the date added to the list. Families being served with County funds will be informed that these services will continue through June 30, 2015, and will then be dependent on decisions during the 2015 -2016 budget deliberations. If this entire plan cannot be implemented, it is recommended that the relative care and service to current recipients up to 200% FPL be prioritized for consideration. As part of the budget process, DSS will submit a plan for ongoing child care services with annualized costs for all proposals and with recommended priorities. The DSS Board is also planning to meet with the local legislative delegation to seek changes in some of the most harmful changes. FINANCIAL IMPACT: Based on the attached financial statement and caseload projections, the costs for continuing mandated services can be covered with the County funds already budgeted for DSS. The estimated additional County costs to fund the proposal from DSS for 2014 -2015 is $566,000. With the appropriation of the $350,000 from the Social Justice Fund as noted below, the balance available in the Social Justice Fund will be $100,000. RECOMMENDATION(S): The Manager recommends that the Board approve the DSS proposal, transfer $350,000 from the Social Justice Fund to DSS for child care and allow DSS to utilize any funds available within its budget to pay these costs. If additional County funds outside of the agency's budget and the social justice fund are needed, the DSS Director will submit a request to the Manager for Board consideration. Child Care Revised Plan December 2014 Change Anticipated Impact Current Practice Staff Recommendations Fiscal Impact 2014 -2015 Income Eligibility Although there is Although the state Continue serving families under 200% Obbblifists of $1 Changes minimal impact on policy requires only a FPL, regardless of age, using the new state For any annual children under 6, many ten -day notice, DSS is few schedules. Provide three month notice This cost is based on 100 reviews after October 1, families with part-time giving families three for any families above 200% FPL children receiving costs averaging 2014, income eligibility care now have a fee month notices of this $200 per month The number of changes from 75% higher than the cost of change and utilizing payments per child varies as the median income to 200% the care. county funds to pay for state funds only become Federal Poverty Level that care. This was unavailable at the time of the for children 0 -5 and to based on the discussion review. Of the reviews each 133% for children 6 -12. with the BOCC during month approximately ten will lose This will cause many the budget subsidy due to the eligibility working parents to lose negotiations. changes. child care. Fee Increases and This mostly This change has Implement state policy but note This will have little impact on Change in Part -time impacted large families been implemented for potential impact on summer costs. current fiscal year. Care (whose fees were all cases and was not Families who meet eligibility criteria but Effective October 1, previously a smaller phased in during would be assessed a fee higher than the 2014, regardless of cost percentage of income) reviews. cost of the part-time plan are being placed of care (including part and families with part- in "eligible but suspended status." These time and afterschool), time care (fee is no families will be automatically eligible for parents now pay 10% of longer prorated for full-time care in the summer and should monthly gross income as part-time care) who not be placed on the bottom of the wait their fee. This will must all now pay list. There is a possibility that DSS will not represent a significant higher fees. In some have enough state subsidy funds to cover increase for some cases these two those costs next summer. Not assisting families, particularly changes will cause these families will create significant those with large families families to have a hardship for these working families and and part-time care. higher fee than the DSS would recommend using county actual cost of care. funds for this if state subsidy is not available. Inclusion of 25 families total Will affect Provide county funds to support any 111ILWf $66,000* Relatives' Income through May 2015. families as reviews are relative cases with needs related to child Effective January completed starting welfare when family is working with Although for some cases, 2015, income from Cost of $11,000 January 2015 assigned prevention worker. Utilize one of DSS will need to use county relatives not currently per month the positions available after the funds, there will be some relatives counted for eligibility termination of the school social work who are eligible for subsidy and and fees will have to be contract, funded partially through county funds would only be included. This will have Medicaid Administrative Claiming, to needed for the parent fee. a significant impact on provide comprehensive services to these grandparents, aunts and families. uncles who are providing homes for children and may also cause an increase in foster care Market Rate All market rates Implement state policy. This is a $175,000 ** Increase will increase effective requirement and the county cannot change These costs depend on the A rate increase was January 2015. The this locally. market rate and age of children approved for providers cost of the increase for being served. which may also impact this fiscal year is how many children can estimated at $150,000 - be served with the 200,000. subsidy funds. Wait List Working families Only target In January, start serving all families $360,000 ** There are currently will wait longer for populations (child on the current wait list and begin a new 321 children on the wait child care. The current protective services and wait list for those who apply after that Costs list and they are being wait list began in May foster care, Work First date. If the additional funds provided by assessed to see how they 2014. The majority of training, adolescent the county or by reallocations allow, serve The majority (90 %) of the are impacted by the new the families waiting for parents in high school, working families who are placed on the children on the wait list would be policies. child care work full and homeless children) new wait list after January 1, 2015. eligible for state subsidy if it was time. are currently being available. served without being placed on the wait list. All other families are being placed on the wait list if they meet the new criteria. *County Funds would have to be used for thes * *Additional costs could be covered by state and federal funds if they were available. Child Care Financial Plan Base State and Federal allocation (CCDF) (with reallocations) $3,803,000 Smart Start Contract for Subsidy 816,000 County Funds available 30,000 employee "pay forward" in subsidy line 500,000 on county child care line item 65,000 added to county child care during work session 595,000 Total available funds for 2014 -2015 Funds needed to pay maintain current spending level $3,052,672* Available CCDF $2,267,001 Market Rate Increase Effective January 175,000 Projected Gap in Funds 976,342 Projected Gap after using available county funds 381,342 Possible additional revenue for child care Smart Start reallocation $135,000 State reallocation $100,000 * This projection is based on annualizing spending based on October spending for October through June 2015.October. It includes only the cost associated with serving the current children. Historically, if no children are being added from the waiting list, the spending level decreases due to attrition during the year. Therefore, based on the probability of receiving some reallocation and the historical spending trends, sufficient funds should be available to address the currently served children Additional Costs in Proposal Income Eligibility Changes $100,000 Relative Care 66,000 Serve Current Wait List 400,000 Tota 1 $566,000** Social Justice Request 350,000 Anticipated Gap $216,000 DSS proposes filling the gaps by using any additional unbudgeted revenues and unexpended salary or other line items within the agency budget. ** In the above cost projections. DSS has tried to project high on the possible fiscal impact. This means that all of these funds would probably not be needed to implement the plan for this year.