The secretary of the Department of Human Services told lawmakers that the funding for child care centers is not in “crisis.” Her comments came after dozens of child care providers closed this year due to uncertain funding and an inadequate subsidy amount.
Leaders with DoHS previously told lawmakers in April that a Sept. 1 funding cliff was coming, estimating the shortfall around $23 million. Without funding, the program could shrink eligibility, removing thousands of children from the state’s child care assistance program and financially impacting providers.
“There are some ways we can manage the funding that we have,” DoHS Secretary Cynthia Persily said Monday to lawmakers in a meeting of the Joint Committee on Finance. “Lots of things [are] coming, but there is not an immediate crisis. But we need to be planning, and we are.”
The shortfall was due to a federal mandate in February that states reimburse child care centers that serve children using state assistance programs based on enrollment rather than attendance.
The state has been using Temporary Assistance for Needy Families funds to cover the cost so far; Persily said it was hard to predict when those funds would run out.
“Those TANF funds are going to run out at some point. The cost for child care changes every month because it costs more for babies than school-aged children,” she said, adding that using the federal money on the problem was an effort to support the state’s workforce development.
Del. John Williams, D-Monongalia, said that he worried about using TANF funds, which provide cash to families for food and necessities, to cover the shortfall.
“My fear is that we’ll say, ‘Hey, great you’ve got child care, but you don’t have a jacket when you come home,’ then you have an increase in foster care. That can get out of hand,” he said. “I’m really happy to hear you foresee an end to using the TANF funds.”
While West Virginia needs more than 20,000 child care spots, 60 providers have closed this year largely due to issues surrounding the subsidy.
The state’s assistance program, which requires a parent or guardian to be employed, directly pays child care centers for enrolled children. About 15,000 West Virginia families used the child care assistance program in 2023.
Providers and families held a rally at the State Capitol on Sunday, calling on DoHS and lawmakers to address the funding shortfall — just one of many issues contributing to the state’s child care desert.
Persily told lawmakers that her department had a $200 million surplus. She hasn’t yet dipped into a $180 million reserve fund created by lawmakers, which could be used to pay for the child care funding.
She is also exploring grants that could help pay for subsidies.
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