This is the accessible text file for GAO report number GAO-03-588 entitled 'Child Care: Recent State Policy Changes Affecting the Availability of Assistance for Low-Income Families' which was released on May 05, 2003. This text file was formatted by the U.S. General Accounting Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Report to the Ranking Minority Member, Subcommittee on Human Resources, Committee on Ways and Means, House of Representatives: United States General Accounting Office: GAO: May 2003: Child Care: Recent State Policy Changes Affecting the Availability of Assistance for Low-Income Families: GAO-03-588: Contents: Letter: Appendix I: Briefing Slides: Related GAO Products: Abbreviations: CCDF: Child Care and Development Fund: TANF: Temporary Assistance for Needy Families: United States General Accounting Office: Washington, DC 20548: May 5, 2003: The Honorable Benjamin L. Cardin Ranking Minority Member Subcommittee on Human Resources Committee on Ways and Means House of Representatives: Dear Mr. Cardin: With the Temporary Assistance for Needy Families (TANF) program taking effect in 1997, child care assistance became a significant strategy for helping welfare recipients move into the workforce and for helping other low-income families stay off welfare. Since 1997, states have used federal funds from the Child Care and Development Fund (CCDF) and TANF along with state funds to expand child care assistance programs. However, given the current budget problems in most states and the competing demands for TANF and state funds, it is possible that states have changed their child care policies and the availability of child care assistance to low-income families. As Congress considers reauthorizing CCDF and TANF, you asked us to answer these questions: 1. What choices have states made for providing child care assistance to three groups of low-income families: (a) TANF families, (b) families transitioning off TANF, and (c) other low-income working families? 2. Since January 2001, to what extent have states made key changes that affect child care availability and have those changes increased or decreased the overall availability of child care assistance in the nation? 3. What changes to child care assistance programs are governors proposing for the next fiscal year? To answer your questions, we surveyed the child care administrators of the 50 states and the District of Columbia regarding their states' child care assistance policies and current governors' proposals affecting child care assistance.[Footnote 1] The survey asked whether, since January 2001, states had made changes to key policies affecting the availability of child care assistance.[Footnote 2] We received responses from all 50 states and the District of Columbia. In analyzing survey responses, we classified each specific policy change that a state identified as either increasing or decreasing the availability of child care assistance. Policy changes that allow more families to enter and remain in a state's child care assistance programs were classified as increasing availability, while policy changes that limit entry or length of stay in the programs were classified as decreasing availability. We conducted our review from January through April 2003 in accordance with generally accepted government auditing standards. On April 24, 2003, we briefed your staff on the results of our survey. This report formally conveys the information provided during that briefing. (See app. I.) In summary, we found: A vast majority of states have made all three groups of families--TANF families, families transitioning off TANF, and other low-income working families--eligible for child care assistance. However, half of the states do not provide child care assistance to all the families who apply and are eligible for such assistance under the states' eligibility policies. States often give TANF and transitioning families higher priority than other low-income working families when program resources are insufficient to cover all who apply. Since January 2001, two-thirds of the states made key changes that affect the availability of child care assistance while the other one- third maintained their policies. Of the 35 states that made key changes:[Footnote 3] * 23 made changes tending to decrease the availability of assistance, * 9 made changes tending to increase the availability of assistance, and: * 3 made a mix of changes. While these changes would appear to have decreased the availability of child care assistance overall compared with 2001, we could not determine the actual outcomes in numbers of children served and their welfare status because data on these outcomes are not readily available.[Footnote 4] Governors' budget proposals for fiscal year 2004 present a mixed picture for child care assistance funding. Child care officials in 29 states identified governors' budget proposals that contained measures that would either maintain (11 states), decrease (11 states) or increase (7 states) funding for child care assistance, if adopted. The child care officials in the remaining states either reported that the state did not have a governor's budget proposal currently addressing child care assistance (17 states) or did not provide information on the proposals (5 states). We provided a draft of our findings to officials at the U.S. Department of Health and Human Services' Administration for Children and Families, which oversees state CCDF programs; however, they were not able to provide comments on the draft within the short timeframe allowed. We are sending copies of this report to relevant congressional committees and other interested parties and will make copies available to others upon request. The report will also be available on GAO's Web site at http://www.gao.gov. If you or your staff have any questions about this: report, please contact me or Gale Harris at (202) 512-7215. Kathleen Peyman, Deborah A. Signer, and Luann Moy also made key contributions to this report. Sincerely yours, Marnie S. Shaul Director, Education, Workforce, and Income Security Issues: Signed by Marnie S. Shaul: [End of section] Appendix I: Briefing Slides: [See PDF for image] [End of figure] [End of section] Related GAO Products: Child Care: States Exercise Flexibility in Setting Reimbursement Rates and Providing Access for Low-Income Children. GAO-02-894. Washington, D.C.: September 18, 2002. Child Care: States Have Undertaken a Variety of Quality Improvement Initiatives, but More Evaluations of Effectiveness Are Needed. GAO-02- 897. Washington, D.C.: September 6, 2002. Early Childhood Programs: The Use of Impact Evaluations to Assess Program Effects. GAO-01-542. Washington, D.C.: April 16, 2001. Welfare Reform: States Provide TANF-Funded Work Support Services to Many Low-Income Families Who Do Not Receive Cash Assistance. GAO-02- 615T, Washington, D.C.: April 10, 2002. Child Care: States Increased Spending on Low-Income Families. GAO-01- 293. Washington, D.C.: February 2, 2001. Child Care: How Do Military and Civilian Center Costs Compare? GAO/ HEHS-00-7. Washington, D.C.: October 14, 1999. Child Care: Use of Standards to Ensure High Quality Care. GAO/HEHS-98- 223R. Washington, D.C.: July 31, 1998. Welfare Reform: States' Efforts to Expand Child Care Programs. GAO/ HEHS-98-27. Washington, D.C.: January 13, 1998. Welfare Reform: Implications of Increased Work Participation for Child Care. GAO/HEHS-97-75. Washington, D.C.: May 29, 1997. FOOTNOTES [1] In reporting our survey results, we refer to the District of Columbia as a state. [2] We chose January 2001 as our comparison point because state fiscal conditions began to deteriorate at about this time. [3] We grouped states simply on the basis of the type of changes made, that is, on whether the state made changes that likely increased, decreased, or had a mix of effects on the availability of child care assistance. We did not assess the relative impact on availability of the various policy changes that states made. [4] In assessing whether the policy changes likely increased or decreased the overall availability of child care assistance in the nation, we related each group of states to its share of the nation's population of children in poverty. According to 2001 Census Bureau data on children under 125 percent of the poverty level, the percentage for each group is: (1) states that made no policy changes affecting availability--36.5 percent; (2) states that made changes decreasing availability--41.5 percent; (3) states that made changes increasing availability--16 percent; and (4) states that made a mix of changes--6 percent. GAO's Mission: The General Accounting Office, the investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO's commitment to good government is reflected in its core values of accountability, integrity, and reliability. Obtaining Copies of GAO Reports and Testimony: The fastest and easiest way to obtain copies of GAO documents at no cost is through the Internet. GAO's Web site ( www.gao.gov ) contains abstracts and full-text files of current reports and testimony and an expanding archive of older products. The Web site features a search engine to help you locate documents using key words and phrases. You can print these documents in their entirety, including charts and other graphics. Each day, GAO issues a list of newly released reports, testimony, and correspondence. GAO posts this list, known as "Today's Reports," on its Web site daily. The list contains links to the full-text document files. To have GAO e-mail this list to you every afternoon, go to www.gao.gov and select "Subscribe to daily E-mail alert for newly released products" under the GAO Reports heading. Order by Mail or Phone: The first copy of each printed report is free. Additional copies are $2 each. A check or money order should be made out to the Superintendent of Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more copies mailed to a single address are discounted 25 percent. Orders should be sent to: U.S. General Accounting Office 441 G Street NW, Room LM Washington, D.C. 20548: To order by Phone: Voice: (202) 512-6000: TDD: (202) 512-2537: Fax: (202) 512-6061: To Report Fraud, Waste, and Abuse in Federal Programs: Contact: Web site: www.gao.gov/fraudnet/fraudnet.htm E-mail: fraudnet@gao.gov Automated answering system: (800) 424-5454 or (202) 512-7470: Public Affairs: Jeff Nelligan, managing director, NelliganJ@gao.gov (202) 512-4800 U.S. General Accounting Office, 441 G Street NW, Room 7149 Washington, D.C. 20548: