AN ACT CONCERNING ELIGIBILITY UNDER THE CARE4KIDS PROGRAM.

OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ¯ (860) 240-0200

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sHB-5507

AN ACT CONCERNING ELIGIBILITY UNDER THE CARE4KIDS PROGRAM.

Agency Affected	Fund-Effect	FY 07 $
Department of Social Services	GF - Cost	See Below

Municipal Impact: None

Explanation

This bill increases the income eligibility for the child care subsidy program from 50% of the statewide median income (SMI) to 60% SMI for FY07, and eliminates the Department of Social Services' authority to raise the limit to 75% SMI. Based on past enrollment, and recent experience in reopening closed portions of this program, it is estimated that this expansion will cost approximately $600,000 to $700,000 annually. The FY07 cost is expected to be somewhat less due to time necessary to ramp enrollment up to 60% SMI. sHB 5007 (the Budget Bill, as reported by the Appropriations Committee) contains $1. 5 million to increase the limit to 75% SMI for FY07.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and changes in caseload.