States' Efforts to Expand Child Care Programs
Mark Nadel
Funds Provided for Child Care
- $4.4 billion of federal and state CCDF available in FY 1997
- About one quarter of federal funds require state match, including MOE
- Up to 30% of TANF allocation can be used for CCDF
GAO Child Care Study
Welfare Reform: States=
Efforts to Expand Child Care Programs (HEHS-98-27)
- Objectives: Determine expenditures, supply building efforts, and changes in standards
- Reviewed in depth California, Connecticut, Louisiana, Maryland, Oregon, Texas, Wisconsin
States Expanding Child Care Subsidy Programs
- Expenditures increased to meet current needs
- The states are drawing down all available federal funds
- Almost half of states planned to spend more state funds than required for full federal
match
- Caseload declines allow Wisconsin, Oregon and others to use TANF funds for child care
- Number of children served has increased by average of 17%
- States expect to meet needs of TANF families and those transitioning off welfare.
Nonetheless, states still unable to provide subsidies for all families needing child care
who meet eligibility criteria
- Long run funding ability still unknown
States Initiating Efforts to Ensure Adequate Supply of Providers
- Demand Increases Under Welfare Reform
- In 7 states, demand for transitional child care already increased 31% under previous
reforms
- Some Types of Child Care in Shorter Supply
- Infants
- Nonstandard hours
- Rural areas
- Supply Building Initiatives
- Training and aid for child care workers
- Assistance to child care businesses
- Collaboration with early childhood development and education
- Importance of Informal Providers
Regulatory Standards
- States maintain or strengthen standards by incremental changes
- Differential standards for different types of providers
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