Agenda - 10-01-2024; 6-b - Child Care Subsidy Assistance Update

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2 income working families at a cost of approximately $67,000 per month after Covid relief for fees ended. This combination has resulted in insufficient funding to continue the current level of child care subsidy service in Orange County. Orange County has a long history of supporting low-income families through childcare subsidies. The Board appointed a task force to study the issues in 2005 and has continued to recognize the importance of child care for employment, child safety, school readiness and child development. At times, the wait list for child care has grown to over 300 children with working families waiting for years to receive support. In Fiscal Year 2015-16, the BOCC increased County support for subsidy, and the waiting list was eliminated. Additional funds were added in subsequent years to address the increased demand. There has not been a wait list since 2017. The Social Services Board discussed the child care issue at its September 16, 2024 meeting, and voted to ask the Board of Commissioners to consider Option 2 in the Manager's Recommendations. FINANCIAL IMPACT: The financial impact will depend on the Option adopted by the Board of Commissioners. The financial costs associated with Options 2 and 3 are estimated based on projected enrollment growth. County staff will monitor enrollment monthly to determine the true cost to the County. Once additional funding is required, staff will present the necessary budget amendments utilizing fund balance to maintain funding for the selected Option. The impact of these Options on future fiscal years will require ongoing County support. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 3. Provide social safety net programming and the resources needed for our most vulnerable community members (e.g., veterans, unhoused people, foster children, older adults, etc.). • GOAL 5: PUBLIC EDUCATION/LEARNING COMMUNITY OBJECTIVE 2. Improve school readiness and educational outcomes by providing access, training, tools, technology, and other resources needed to thrive. RECOMMENDATION(S): The Manager recommends that the Board consider the following Options and associated costs: Option 1 — End parent fees effective November 30, 2024, and begin a waiting list for any families working or seeking employment or training. There would be no additional costs. Option 2— End parent fees effective November 30, 2024, and add up to twelve (12) children per month to try to avoid a waiting list. The cost of this would be an additional $726,000. Option 3 — Continue parent fees and add up to twelve (12) children per month to try to avoid a waiting list. The cost of this would be an additional $1,188,841.