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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: October 1, 2024 <br /> Action Agenda <br /> Item No. 6-b <br /> SUBJECT: Child Care Subsidy Assistance Update <br /> DEPARTMENT: Social Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Nancy Coston, 919-245-2800 <br /> Tina Clark, 919-245-2800 <br /> PURPOSE: To receive an update on the current fund availability for childcare subsidy and to <br /> consider options for service delivery for the remainder of the fiscal year. <br /> BACKGROUND: Orange County's Department of Social Services (DSS) provides child care <br /> subsidy and social casework services for families, including information and referral services to <br /> help parents determine appropriate child care placements. The objectives of this program are to: <br /> • Provide subsidies for high quality child care for low-income working families, children <br /> involved in child welfare cases, and other at-risk children in Orange County. <br /> • Assure that eligible employed parents wait less than six months to receive child care <br /> subsidy. <br /> • Utilize all available federal and state funds to support child care needs of local children. <br /> In FY 2024-2025, Social Services will receive $6,700,396 in Federal and State funds, including <br /> $600,000 in Smart Start funds and $1,275,559 in County funds, for a total of$7,975,955 budgeted <br /> for child care subsidies. Through these funding sources, Orange County is currently serving <br /> approximately 637 children each month, including paying the parent portion of the fee for <br /> attendance. <br /> The average monthly cost per child for subsidy has increased significantly over time. In 2019, the <br /> DSS share averaged around $700 per month, and the current average is $1 ,100 per month. <br /> Several factors have impacted these costs, including a market rate increase in 2022 and changes <br /> in eligibility and parent fees for afterschool care. The previous averages had more afterschool <br /> children (who have lower costs) and now a larger portion of the children are 0-5 year olds with full <br /> time care. The rates vary based on age of the child and the star rating of the child care program. <br /> For example, the current market rate for 3-5 year old children in a four star program is $1 ,308 per <br /> month. <br /> During the pandemic, there was a decrease in demand for child care while there was an increase <br /> in funds available. Some of these funds were allowed to cover parent fees, helping low-income <br /> families return to employment. Orange County has continued paying parent fees to support low- <br />