NC

Child Care Coalition

Highlights of Senate Budget for Early Education Summary

June 15, 2015

Funding:

Smart Start: Funding continues at same level as last year.

NC PreK: Total funding is $141.5 million. Provides $2.3 M in additional funding for NC
PreK of the $5M in additional funding needed to make permanent the $5M in non-
recurring funding appropriated for FY 14-15. This would translate to a lost of
approximately 520 slots.

Child Care Subsidies: Total funding for Child Care Subsidies continues at same level as
previous year.

Child Care Subsidy Market Rate Increase: Provides $4.2M in FY 15-16, and $5.0M in
FY 16-17 to increase the Child Care Subsidy market rate effective September 1, 2015 to
the recommended rates bases on the 2013 market rate study for infants and toddlers
(ages 0, 1, and 2) in 3-, 4-, and 5-star centers and homes in Tier 1 and Tier 2 Counties.

NC Early Childhood Integrated Data Systems (ECIDS): Provides $699,690 in funding

for ECIDS in FY 16-17.

Early Childhood Plan: Budgets $300,000 in non-recurring funding for plan to

consolidate NC PreK, Smart Start, and Child Care Subsidy programs.

Funding Trend: To maintain consistent funding levels, the trend to use Federal TANF
funding continues for all three programs including Smart Start, NCPreK, and Child Care
Subsidies.

Special Budget Provisions

Merger of Early Education and Family Support Program: Directs the Joint Legislative
Program Evaluation Oversight Committee and Program Evaluation Division to develop a
merger plan of Child Care Subsidy, NC PreK, and Smart Start programs by March 1, 2016.

Smart Start Special Provisions: Changes both administration and match requirements.
o Administration: Caps NCPC administration at 3.25%; caps local partnership
administrative costs on average statewide basis to 7.75% of total statewide allocation
for FY 15-16, and 7.5% for FY 16-17.
o Match: Raises total match requirements to 17% for FY 15-16, and to 19% for FY 16-
17.

Child Care Subsidies: Includes only one of the budget provisions changes proposed by
the NC Child Care Coalition and our partners (see #1 below)
1) revises definition of family income unit to exclude income of non parent relative.
2) maintains current provision to not allow prorated parent fees for part-time care.
3) maintains current provision on income eligibility for children ages 0 -5 200% of
federal poverty, and at 133% FPL for children from 6- 12.

Child Care Subsidy Market Rate Increases: see money and details above. Improves
market rates for infants and toddlers in 3-5 star licensed programs in Tier 1 and 2
Counties.

Child Care Subsidy Allocation Formula: Beginning FY 2015-16, a countys initial

allocation shall be the countys expenditure in the previous year if less than 95% spending
coefficient. If the countys spending coefficient is at least 95% it will receive the amount it
expended in the previous year and may receive additional funding if available.

US Department of Defense Certified Child Care Facilities Participation in State

Subsidized Child Care Program: Includes language from S368 to allow DOD child care
programs to be exempt from licensing, and eligible to be reimburses at 5 star level if
NAEYC accredited, and 4 Star for all other facilities.

Senate Budget Reports

Click below to read the Senate HHS Special Provisions.

http://www.ncleg.net/documentsites/committees/SenateAppropriationsHHS/2015%20Long
%20Session/June%2015,%202015/HHS%20Section%20H97-CSMDxfr-12.pdf
For the Early Education related sections, See pages 132-141

Click here to read the Senate Budget Money Report.

http://www.ncleg.net/documentsites/committees/SenateAppropriationsHHS/2015%20
Long%20Session/June%2015,%202015/Senate%20HHS%20Subcommittee%20Report_
%20June%2014%202015.pdf
For the Early Education related section see pages, G6-G7

For more information contact:

Michele Rivest, Executive Director
NC Child Care Coalition
Cell: 919-218-0224
Email: NCChildCareCoalition@gmail.com