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Grant Application - FY2026 Alliance for Children-Smart Start Subsidized Child Care Assistance Continued Grant Funding
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INFORMATION CONTACT:
Ashley Lantz, Human Services Agency Social Services Director, 704-296-4380
ACTION REQUESTED:
A) Approve the Child Care Assistance program’s request to apply for FY2026 Alliance for Children-Smart Start funding; 2) upon award of the grant, authorize the County Manager to negotiate and execute agreements substantially consistent with this agenda item; and 3) upon receipt of the grant award, recognize, receive, and appropriate the awarded amount to the Division of Social Services’ budget.
PRIOR BOARD ACTIONS:
Requests and appropriation of received funding from the Alliance for Children for this program is approved by the Board annually
BACKGROUND:
The Human Service Agency Social Services Department seeks approval to apply for FY2026 Smart Start funding from the Alliance for Children to support our Subsidized Child Care Assistance Program. North Carolina boasts one of the highest rates of working mothers with young children in the nation, making the availability of quality childcare essential for the State's economic development and stability. Many of Union County's working families are struggling financially to meet the needs of their families. Availability of affordable, quality, legal and safe childcare offers them financial support and relief as well as increases their likelihood of being successful in their jobs. By providing subsidized childcare assistance to children in Union County, pre-school aged children can get a high-quality early childhood education which increases their chances of being healthy and more socialized. Additionally, early education enhances a child's ability to learn, therefore they are better prepared for academic success when it is time for them to enter kindergarten.
In FY2024, a total of 701 unduplicated children were served through the Subsidized Child Care Program, 190 of those were funded with Smart Start funds. The target population we serve with Smart Start Funds is pre-school aged (birth through age 5) residents of Union County, who are placed in a 5-star Union County childcare facility or a 5-star child care home that has completed an agreement through NC FAST. One of our goals is to provide childcare assistance to as many eligible Union County families possible so they can become more financially stable in conjunction with strengthening each child's health, emotional development and educational foundation.
In FY2025 Union County received a total of $1,125,785 Smart Start funds, including $175,000 for administrative costs and $950,785 for direct purchase of services. For FY2026 we are requesting a total of $1,182,074, which includes $183,750 for administrative costs and $998,324 for direct purchase of services (which is not coming out of Union County funds). The additional funding request of $47,539 for direct services is a 5% increase to cover the cost of care with rising market rates, and the additional 5% increase of $8,750 for administrative costs is to offset the 11% funding cut from FY2025.
FINANCIAL IMPACT:
For FY2026 we are requesting a total of $1,182,074, which includes $183,750 for administrative costs and $998,324 for direct purchase of services. The FY2026 financial cost to Union County in association with this grant is an in-kind or cash contribution of 19%, which is primarily provided by County support and use of office space. We will know the exact funding amount for which we are eligible when the RFP is released in January 2025.