The Joint Finance Committee meeting actions on May 6 indicate that the Department of Children and Families (DCF) intends to increase child care provider reimbursement rates with a portion of funds available due to underspending. The current estimate is that there will be underspending of $10.7 million in 2013-14 and $12.0 million in 2014-15. The low spending increases the possibility of significant increases in child care subsidy rates in the fiscal year July 2014- June 2015 that are higher than the additional $5 million that is already anticipated from the biennial budget.
The motion that passed unanimously directs DCF “to submit a report that sets out its plan to increase child care provider reimbursement rates under the Wisconsin Shares program to the Joint Committee on Finance, including how the increase would be implemented, which providers would be affected, and the total cost of the increase, prior to implementation of the plan.” The motion was authored by Rep. Jon Richards (D-Milwaukee), Rep. Cory Mason (D-Racine) Senator Jennifer Shilling (D-LaCrosse), and Senator Bob Wirch (D-Somers).
In the same meeting, Joint Finance unanimously approved DCF’s child care request to allocate $1 million in 2013-14 and $2.8 million in 2014-15 to pay for child care administration and automation costs, and to cover YoungStar related contracts. See the Legislative Fiscal Bureau paper on DCF request. The alternatives that passed were A1 and B1, plus approval of the motion.
