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CCDF Expenditures Overview for FY 2012 (all appropriation years)

Published: January 16, 2014
Categories:
Data
Topics:
Expenditure Data
Types:
Data

CHILD CARE AND DEVELOPMENT FUND

FISCAL YEAR 2012 STATE SPENDING FROM ALL

APPROPRIATION YEARS

Background:

The Child Care and Development Fund (CCDF) financial expenditure report (ACF-696) details expenditures from each of the CCDF funding streams (Mandatory, Matching, and Discretionary), as well as funds transferred from the Temporary Assistance for Needy Families (TANF) program to CCDF.  Reported expenditures are for administration, direct and non-direct services, and quality activities including congressionally mandated targeted funds for:

  1. Child Care and Quality Improvement Activities;
  2. Infant and Toddler Quality Improvement; and
  3. Child Care Resource and Referral and School Age Care 

States continue to report on their expenditures of CCDF funds for each grant award year until expended.

Highlights:

The summary provides information on the expenditure of CCDF funds during the Fiscal Year (FY) 2012, which includes funding from the FY 2010, FY 2011, and FY 2012 CCDF appropriations.  The CCDF expenditure data are reported by states and territories on the ACF-696. States expended a total of $8.6 billion of combined federal and state funds, which includes both CCDF and TANF transfers into CCDF.  Expenditures of federal CCDF funds were $6.3 billion, comprised of $5.2 billion from FY 2012 and $1 billion from FY 2011 and FY 2010.  Expenditures of State Matching and Maintenance of Effort (MOE) funds were $2.3 billion.  Some states report state expenditures in excess of the state share amounts required to draw down their full allotment of Federal Matching funds; however, they are not required to do so.  In FY 2012, about $144 million in “excess” State Match and MOE expenditures were reported.

Table 1 - Expenditures in FY 2012 by Appropriation Year1
 

FY 2010

FY 2011

FY 2012

Total by Fund

Mandatory

$1,916,892

$41,174,752

$1,095,135,247

$1,138,226,891

Matching Federal

($294,151)

$164,498,953

$1,456,881,884

$1,621,086,686

Discretionary

$59,940,795

$755,756,800

$2,690,558,676

$3,506,256,271

Subtotal Federal

$61,563,536

$961,430,505

$5,242,575,807

$6,265,569,848

Matching State

($289,174)

$79,439,000

$1,270,451,841

$1,349,601,667

CCDF MOE

($3)

$1,494,699

$976,157,277

$977,651,973

Subtotal State

($289,177)

$80,933,699

$2,246,609,118

$2,327,253,640

Total

$61,274,359

$1,042,364,204

$7,489,184,925

$8,592,823,488

1 Expenditures may be negative because of changes in reported excess State Match and MOE in prior fiscal years.


Direct Services

CCDF expenditures on direct child care services were $6.8 billion or 79 percent of total federal and state expenditures (including MOE) in FY 2012.

Quality Activities

States spent $1 billion (including targeted funds) or 12 percent of total federal and state expenditures in FY 2012 on quality activities.  This exceeds states’ required spending of approximately 7 percent, taking into account both the statutory minimum requirement and additional targeted quality funds in the annual appropriations process.  The statute requires that a minimum of 4 percent of CCDF expenditures be spent on quality activities (excluding targeted funds) and applies to individual appropriation years.  Compliance with this requirement is assessed at the end of the liquidation period.  In 2012, congressional appropriations targeted additional funds toward quality in the following categories:

  1. Child Care and Quality Improvement Activities;
  2. Infant and Toddler Quality Improvement; and
  3. Child Care Resource and Referral and School Age Care
Administration

During FY 2012, states expended $244 million or 3 percent of total federal and state expenditures (including MOE) on administrative activities.  The statute limits CCDF administrative expenditures from each grant award year to no more than 5 percent.  Compliance with this requirement is assessed at the end of the liquidation period. Non-Direct Services.  States spent $551 million on non-direct services or 6 percent of total state and federal expenditures in FY 2012.  The breakdown of non-direct services expenditures is   $83 million on child care computer information systems, $246 million on certificate programs and eligibility determinations, and $222 million for other costs.

Non-Direct Services

States spent $551 million on non-direct services or 6 percent of total state and federal expenditures in FY 2012.  The breakdown of non-direct services expenditures is   $83 million on child care computer information systems, $246 million on certificate programs and eligibility determinations, and $222 million for other costs.


Chart 1 – Total FY 2012 Expenditures by Category (in millions)

Chart 1 – Total FY 2012 Expenditures by Category (in millions)2 - Quality Activities include the expenditures of targeted funds.
3 - Non-Direct services include expenditures related to the operation of voucher programs, eligibility determination and re-determination, and developing and maintaining computer systems.


Unobligated Funds

States reported unobligated balances of about $443 million.

Unobligated4 Funds as of 09/30/12
 

FY 2010

FY 2011

FY 2012

Total by Fund

Mandatory

$27,404

$0

$0

$27,404

Matching Federal

$69,944

$1

$16,953,537

$17,023,482

Discretionary

$996,896

$3,448,870

$421,696,057

$426,141,823

Total

$1,094,244

$3,448,871

$438,649,594

$443,192,709

4 Funds not meeting obligation deadlines are subject to de-obligation by ACF.  States have 1 year to obligate Mandatory funds if Matching funds are requested, 1 year to obligate Matching funds, and 2 years to obligate Discretionary funds.


Unliquidated Obligations

Of funds that have been obligated, states reported unliquidated balances of $877 million.

 

FY 2010

FY 2011

FY 2012

Total by Fund

Unliquidated5 Funds as of 09/30/12

Mandatory

$0

$693,415

$70,062,893

$70,756,308

Matching Federal

$0

$23,608

$200,283,524

$200,307,132

Discretionary

$3,241,418

$76,635,362

$526,285,664

$606,162,444

Total

$3,241,418

$77,352,385

$796,632,081

$877,225,884

5 Funds not meeting liquidation deadlines are subject to de-obligation by ACF.  Mandatory funds do not have a liquidation deadline.  States have 2 years to liquidate Matching funds and 3 years to liquidate Discretionary funds.