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MEMORANDUM <br />TO: John Day, County Manager <br />FROM: Sandy Russell, Interim Director <br />DATE: April 27, 2007 <br />SUBJECT: Reduction in Smart Start Funds for Child Care <br />The agency began FY07 with a waiting list for child care services and the knowledge of an <br />increase in child care rates effective October 1, 2006. Statewide there was concern that the <br />amount of funds included in the appropriation to cover the rate increase would not be adequate <br />to meet the actual increased costs. The agency was concerned that there would not be <br />sufficient funds to deliver services to the children currently enrolled in child care if any action <br />was taken regarding reduction of the waiting list prior to the implementation of the rate increase. <br />Once the impact of the rate revision was known in November 2006, the agency began working <br />with families on the waiting list to initiate the needed services. By the end of January 2007 all <br />families on the waiting list had been contacted and offered services. The agency was also <br />accepting applications for child care upon initial contact with the agency. <br />The number of children on the waiting list enrolled in child care was lower than projected <br />resulting in a spending rate that would not exhaust the allocation before the end of the fiscal <br />year. The Partnership for Children identified other opportunities to deliver services for children <br />with the unused funds and the allocation of Smart Start funds to Cabarrus DSS was reduced by <br />$182,000 from $913,384 to $731,384. Amendment IV to the Memorandum of Understanding <br />attached documents the change in funding amount. A budget amendment has been prepared <br />to reflect the reduction in funding of the Smart Start grant. <br />"~ <br />