Agenda - 04-21-2015 - 7c - Laserfiche WebLink

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Given that the children who have been served from the waitlist will continue to be served next year, the cost for next year is estimated at $4,342,500 assuming average attrition and taking no new children from the waitlist. Since the state estimate has again been reduced to $3.4 million, the budget approved by the Social Services Board and submitted to the County Manager includes an increase of $639,000 in County dollars to cover the cost of currently enrolled children. This estimate does not allow for clearing the current waitlist or serving children as attrition occurs. These funds, if appropriated, would serve an average of 724 children per month. There are currently 115 children on the waiting list and the agency estimates that 100 children would receive services if the waiting list was cleared through June 30, 2015. The Department has been studying ways to eliminate the current waitlist. Based on conversations with state officials, the Department anticipates receiving an additional $300,000 above the estimated $3.4 million in the DSS proposed 2015 -2016 budget. The Department believes that approximately 800 children per month could be served with the funds in the budget recommended by the Social Services Board. If there is some shortage of funds to meet this need, the Department could cover these costs by moving any unexpended funds from other line items during the year. Therefore the Department recommends clearing the current waitlist and continuing without a waitlist through June 30, 2015. Another stated goal of the Board of County Commissioners is to eliminate the waitlist on an ongoing basis. Trend data has been analyzed by the Department and the highest number of children served when there was no waitlist was 928. The trends also show that on average approximately thirty children are added to the waitlist each month and twelve terminate from subsidy each month. Based on this net increase of 18 children being added to the subsidy program each month (and therefore requiring varying amounts of support for the year), the Department estimates eliminating the waitlist would add $702,000 in county costs to the Fiscal Year 2015 -2016 budget. This amount would be in addition to the $928,615 in the proposed budget approved by the DSS Board. If more than $300,000 in reallocated funds are received from the state or if attrition proves higher than projected, these costs might be lower. If funds are not made available to eliminate the waitlist, children would be added to the waitlist beginning July 1, 2015. Only if the average number of children drops below 800 would children from the waitlist be served. Another strategy for addressing this need would be to increase the number of children served incrementally. The estimated annual cost to add 50 children to the monthly average of children served is $300,000 and this is based on each child receiving subsidy for all twelve months. By increasing the average number of children served, the Board could develop an alternative strategy to address the need and thereby reduce the length of time children are on the waitlist. FINANCIAL IMPACT: There is no impact to receiving and discussing this issue. The cost to provide care for children on the waitlist since January 2015 can be covered by funds already appropriated for Fiscal Year 2014 -2015, but could impact funds needed for next year. Any proposal to reduce or eliminate the ongoing child care waitlist will require additional county funds. RECOMMENDATION(S): The Manager recommends that the Board discuss child care funding options, approve clearing the waitlist through June 30, 2015, and identify any other information needed to develop a long range budget proposal for child care subsidy and provide guidance to the Department regarding the current waitlist.