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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
supplemental appropriation; child care assistance
Purpose
An emergency measure that appropriates $48,400,000 to the Department of Economic Security (DES) and $7,400,000 to the Department of Child Safety (DCS) from the federal Child Care and Development Fund (CCDF) Block Grant and any other appropriated funds in FY 2019 for childcare assistance.
Background
The federal government provides funding to improve the affordability, availability and quality of child care through the CCDF Block Grant, which provides matching funds to states to assist low-income families in obtaining child care, so they can work or attend job training or educational programs. Federal law specifies the minimum quality expenditure requirements that each state must use for activities that either improve the quality of childcare services or increase options for and access to high-quality child care. In FY 2018 and FY 2019, the required minimum was eight percent. In FY 2020 and each succeeding fiscal year, the required minimum is nine percent. Additionally, no less than three percent in each fiscal year must be used to carry out activities that relate to the quality of child care for infants and toddlers (45 C.F.R. § 98.50).
DES provides childcare assistance to eligible families (A.R.S. § 46-803). According to the Joint Legislative Budget Committee, DES received $103,773,400 from the CCDF Block Grant in FY 2018 and DCS received $27,000,000 from the CCDF Block Grant in FY 2018 (JLBC). Additionally, Arizona received $55,800,000 of federal funds through the Consolidated Appropriations Act of 2018 to implement the CCDF Block Grant.
H.B. 2125 appropriates $48,400,000 to DES and $7,400,000 to DCS from the CCDF Block Grant and any other appropriated funds in FY 2019.
Provisions
1. Appropriates $48,400,000 from the CCDF Block Grant and any other appropriated funds in FY 2019 to DES for childcare assistance in FY 2019 and FY 2020.
2. Appropriates $7,400,000 from the CCDF Block Grant and any other appropriated funds in FY 2019 to DCS for childcare assistance in FY 2019 and FY 2020.
3. Allocates the appropriated childcare assistance monies as follows:
a) $26,700,000 for provider rate increases;
b) $14,000,000 to serve children on the waiting list; and
c) $13,100,000 to increase tiered reimbursement for infants and toddlers and for children in the care of DCS.
4. Specifies that the monies be used to supplement and not supplant existing funding.
5. Becomes effective on the signature of the Governor, if the emergency clause is enacted.
Amendments Adopted by the Appropriations Committee
1. Allocates the appropriated childcare assistance monies.
2. Specifies that the monies be used to supplement and not supplant existing funding.
3. Adds an emergency clause.
House Action Senate Action
HHS 2/7/19 DP 8-1-0-0 HHS 3/13/19 DP 7-0-1
APPROP 2/13/19 DP 10-0-0-1 APPROP 3/26/19 DPA 7-0-2
3rd Read 2/26/19 46-13-1
Prepared by Senate Research
April 5, 2019
CRS/AB/kja