AG 2002 04 15 (Regular) - Laserfiche WebLink

Home Browse Search

Memorandum Page 2 April 3, 2002 maintain current services to children who are receiving assistance. Each county should not exceed 100% in combined DCD Subsidy and Smart Start spending for the rest of the state fiscal year. Please remember to spend Smart Start funds before spending DCD Subsidy funds, since federal subsidy funds can be carded into the next state fiscal year, .but Smart Start funds cannot. Allocation Projection Process for the 2002-2003 State Fiscal Year Many of you have requested information about the decrease in your projected allocation for next year. Analysis of the allocation projections for next year indicated that 65 counties received an increase in their allocation as compared to the current state Fiscal Year, 32 received a decrease in the al!oeation amount and'3 'remained the same. The following explanation is provided regarding the decreases in projected allocation amounts. Child care allocations are prepared using the three step process that includes a hold harmless factor, allocating the non-c~itegorical funds (CCDF, SSBG and state approPriations) according to the poverty and demographic factors described in legislation and allocating the categorical funds (TANF and TANF MOE) based on a county's expenditures on employment in the previous State Fiscal Year. Note that the allocation of the categorical funds is not determined by legislative language which has allowed the Division flexibility in allocating these funds in past years based on the 'availability of new federal funds, and county spending patterns." For the last two years, the categorical funds were allocated according to the county's total expenditure level, not just employment expenditures. This was done t(~ help counties maintain the levels of spending they were able to achieve through the reallocation process. This was possible because new federal funds were available to the state. For the 2002 - 2003 year, the Division was unable to continue to use this option, as there was very little new funding available. While Congress did increase the funding level of the CCDF in December, North Carolina's share of the increase is $2.7 million for subsidy services.. At the time the new projections were due, the Division did not have the final grant award and was unable to include the increase'in CCDF funds in the projections for next year. Impact of Change in Allocation Process and Efforts to Address The decreases in allocation amounts for counties range from 32% to 1%. Many of you have contacted the Division to ask whether additional funds will be available. This issue was discussed at the March meeting 0fthe North Carolina Association of County Directors of Social Services Day Care Committee meeting and at the Executive