Child Care and Development Fund, Report to Congress for Fiscal Years 2002 and 2003
Part III: FY 2002 and FY 2003 CCDF Financial Data
Information about FY 2002 and FY 2003 CCDF expenditures was obtained from State quarterly financial reports submitted to ACF. These reports detail expenditures from each of the CCDF funding streams and by major spending categories. Since States have more than 1 year to liquidate their CCDF funds, total expenditures reflect funding from current and prior fiscal years. Because States continue to report on their expenditures until the funds are expended, these numbers are subject to update and should not be considered final. TANF direct spending on child care was reported for TANF funds appropriated in FY 1997 and FY 2003 (taken from quarterly TANF reports).
TOTAL FY 2002 AND FY 2003 SPENDING ON CHILD CARE
State expenditures for child care reached peak levels in FY 2002 and FY 2003. In FY 2002, Federal and State CCDF expenditures were $8.6 billion, including TANF funds transferred to CCDF. After accounting for additional "TANF direct," excess TANF State MOE, and SSBG spending on child care, overall spending was $11.4 billion. In FY 2003, total spending reached a landmark $12.2 billion, almost 10 percent more than FY 2002, as a result of $1 billion in additional State and Federal CCDF spending and continued TANF direct and SSBG spending on child care.

Notes: In FY 2002, States reported on CCDF funds appropriated in FY 1999-FY 2002. In FY 2003, States reported on CCDF funds appropriated in FY 1997-FY 2003. SSBG includes SSBG appropriated funds spent on child care and TANF transferred to SSBG and used for child care. TANF includes funds spent directly on child care; CCDF includes TANF transfers to CCDF.
Of the $8.6 billion in total CCDF spending in FY 2002, $6.4 billion were Federal CCDF funds (including amounts transferred from TANF), and $2.2 billion were State spending (Matching and MOE). Of the $9.5 billion in total CCDF spending in FY 2003, $7.3 billion were Federal CCDF funds (including amounts transferred from TANF), and $2.2 billion were State spending (Matching and MOE).
Another way to look at expenditures is how States spend their appropriations for a particular fiscal year. In FY 2002, States spent a total $6.2 billion of FY 2002 combined Federal and State funds, which includes both CCDF and TANF transfers into CCDF. This amount is broken down to $4.2 billion in Federal funds and $2.0 billion in State funds. In FY 2003, States spent a total $6.6 billion of FY 2003 combined Federal and State funds, including CCDF and TANF transfers into CCDF. Expenditures of Federal CCDF funds were $4.6 billion, and State Matching and MOE Funds were $2.0 billion.

