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CCDF Expenditures Overview for FY 2017 (all appropriation years)

Published: May 3, 2019
Categories:
Data
Topics:
Expenditure Data

CHILD CARE AND DEVELOPMENT FUND

FISCAL YEAR 2017 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, quality activities, activities to improve the quality of care for infants and toddlers, and 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) 2017, which includes funding from the FY 2015, FY 2016, and FY 2017 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 $6.4 billion, comprised of $5 billion from FY 2017 and $1.4 billion from FY 2016 and FY 2015. 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 2017, about $27 million in “excess” State Match and MOE expenditures were reported.

Table 1 - Expenditures in FY 2017 by Appropriation Year1

 

FY 2015

FY 2016

FY 2017

Total by Fund

Mandatory

$1,993,465

$53,122,436

$1,100,254,929

$1,155,370,830

Matching Federal

-$149,077

$231,619,859

$1,392,289,318

$1,623,760,100

Discretionary

$176,235,073

$974,014,653

$2,500,377,814

$3,650,627,540

Subtotal Federal

$178,079,461

$1,258,756,948

$4,992,922,061

$6,429,758,470

Matching State

$225,856

$114,750,983

$1,152,038,838

$1,267,015,677

CCDF MOE

$1

-$1,842,018

$901,259,744

$899,417,727

Subtotal State

$225,857

$112,908,965

$2,053,298,582

$2,166,433,404

Total

$178,305,318

$1,371,665,913

$7,046,220,643

$8,596,191,874

Direct Services. CCDF expenditures on direct child care services were $6.4 billion or 74 percent of total federal and state expenditures (including MOE) in FY 2017.

Quality Activities. States spent $1.06 billion (including targeted funds) or 12 percent of total federal and state expenditures in FY 2017 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 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 and FY 2017 appropriations on quality activities. Compliance with this requirement is assessed at the end of the liquidation period. For 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 funds. The FY 2017 appropriations did not include targeted funds. Compliance with these spending requirements is assessed at the end of the liquidation period for the award.

Infant/Toddler Quality Activities. States spent $132 million or 2 percent of total federal and state expenditures in FY 2017 on activities to improve the supply and quality of care for infants and toddlers. The CCDBG Act of 2014 included a new requirement for states and territories to spend a minimum of 3 percent of CCDF expenditures from individual appropriation years on activities to improve the supply and quality of child care for infants and toddlers. These expenditures are in addition to the minimum expenditures that states and territories must make on quality activities. This requirement was effective starting with the FY 2017 CCDF appropriations. Compliance with these spending requirements is assessed at the end of the liquidation period for the award.

Administration. During FY 2017, states expended $269 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 $740 million on non-direct services, or 9 percent of total state and federal expenditures in FY 2017. The breakdown of non-direct services expenditures is $89 million on child care computer information systems, $289 million on certificate programs and eligibility determinations, and $362 million for other costs.

Direct Services $6,399 (74%), Quality Activities $1,055 (12%), Admin $269 (3%), Non-Direct Services $740 (9%), and Infant/Toddle
Chart 1 - Total FY 2017 Expenditures by Category (in millions)

Quality Activities include the expenditures of targeted funds.

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 $332 million.

Table 2 - Unobligated2 Funds as of 09/30/17

 

FY 2015

FY 2016

FY 2017

Total by Fund

Mandatory

$222,028

$0

$0

$222,028

Matching Federal

$23,443,787

$3,983,690

$47,727,984

$75,155,461

Discretionary

$35,800,233

$127,583,588

$93,326,856

$256,710,677

Total

$59,466,048

$131,567,278

$141,054,840

$332,088,166

 

Unliquidated Obligations. Of funds that have been obligated, states reported unliquidated balances of $621 million.

Table 3 - Unliquidated3 Funds as of 09/30/17

 

FY 2015

FY 2016

FY 2017

Total by Fund

Mandatory

$0

$8,651,719

$77,269,852

$85,921,571

Matching Federal

$0

$13,013,407

$247,999,254

$261,012,661

Discretionary

$1,472,882

$134,739,990

$137,493,134

$273,706,006

Total

$1,472,882

$156,405,116

$462,762,240

$620,640,238

 

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

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

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: May 16, 2019