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