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