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CCDF Expenditures Overview for FY 2016 (all appropriation years)

Published: March 2, 2018
Categories:
Data
Topics:
Expenditure Data

CHILD CARE AND DEVELOPMENT FUND

FISCAL YEAR 2016 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) 2016, which includes funding from the FY 2014, FY 2015, and FY 2016 CCDF appropriations. The CCDF expenditure data are reported by states and territories on the ACF-696. States expended a total of $8.7 billion of combined federal and state funds, which includes both CCDF and TANF transfers into CCDF. Expenditures of federal CCDF funds were $6.5 billion, comprised of $5 billion from FY 2016 and $1.5 billion from FY 2015 and FY 2014. Expenditures of State Matching and Maintenance of Effort (MOE) funds were $2.2 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 2016, about $12 million in “excess” State Match and MOE expenditures were reported.

Expenditures in FY 2016 by Appropriation Year1
 

FY 2014

FY 2015

FY 2016

Total by Fund

Mandatory

$357,745

$91,561,222

$1,115,750,626

$1,207,669,593

Matching Federal

-$6,358

$267,587,092

$1,424,866,139

$1,692,446,873

Discretionary

$166,218,626

$935,893,599

$2,488,098,581

$3,590,210,806

Subtotal Federal

$166,570,013

$1,295,041,913

$5,028,715,346

$6,490,327,272

Matching State

-$5,678

$111,070,120

$1,169,048,890

$1,280,113,332

CCDF MOE

-$7

-$16,077,147

$899,875,880

$883,798,726

Subtotal State

-$5,685

$94,992,973

$2,068,924,770

$2,163,912,058

Total

$166,564,328

$1,390,034,886

$7,097,640,116

$8,654,239,330

Direct Services. CCDF expenditures on direct child care services were $6.7 billion or 77 percent of total federal and state expenditures (including MOE) in FY 2016.

Quality Activities. States spent $1.1 billion (including targeted funds) or 13 percent of total federal and state expenditures in FY 2016 on quality activities. The Child Care and Development Block Grant (CCDBG) Act previously required that a minimum of 4 percent of CCDF expenditures from individual appropriation years be spent on quality activities (excluding targeted funds). The 4 percent minimum applied to the FY 2014 and FY 2015 appropriations. The reauthorized CCDBG Act of 2014 increased the amount of CCDF expenditures that states must spend on quality activities. States and territories must spend 7 percent of their FY 2016 appropriations on quality activities. Compliance with this requirement is assessed at the end of the liquidation period. For FY 2014 and FY 2015, 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. For FY 2016, congressional appropriations only included the Infant and Toddler Quality Improvement targeted fund. Compliance with these spending requirements is assessed at the end of the liquidation period for the award.

Administration. During FY 2016, states expended $257 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 $648 million on non-direct services, or 7 percent of total state and federal expenditures in FY 2016. The breakdown of non-direct services expenditures is $85 million on child care computer information systems, $295 million on certificate (voucher) programs and eligibility determinations, and $268 million for other costs.

Total FY 2016 Expenditures by Category (in millions)
Total FY 2016 Expenditures by Category (in millions)

Quality Activities include the expenditures of targeted funds included in annual appropriations and are used on specific categories to improve quality of child care services.

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 $795 million.

Unobligated2 Funds as of 09/30/16
 

FY 2014

FY 2015

FY 2016

Total by Fund

Mandatory

$7,854

$0

$0

$7,854

Matching Federal

$14,006,358

$7,979,735

$26,967,325

$48,953,418

Discretionary

$8,050,309

$90,999,714

$647,435,571

$746,485,594

Total

$22,064,521

$98,979,449

$674,402,896

$795,446,866

Unliquidated Obligations. Of funds that have been obligated, states reported unliquidated balances of $1.4 billion.

Unliquidated3 Funds as of 09/30/16
 

FY 2014

FY 2015

FY 2016

Total by Fund

Mandatory

$0

$3,672,634

$61,774,155

$65,446,789

Matching Federal

$5,304,344

$0

$233,326,616

$238,630,960

Discretionary

$3,421,042

$134,751,071

$944,365,375

$1,082,537,488

Total

$8,725,386

$138,423,705

$1,239,466,146

$1,386,615,237

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

2  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.

3 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.

Last Reviewed: March 6, 2018