Legislation Document

WHEREAS, the Purchase of Care (POC) Program in Delaware is a subsidy that provides support for early childhood and after-school education for children from birth through age 12 living within 215 percent of the federal poverty level; and

WHEREAS, funding for POC comes from federal and state sources, which help low-income families pay for their childcare so that parents or guardians can work or receive workforce training; and

WHEREAS, the Delaware Division of Social Services (DSS) is responsible for setting the standards and distributing this benefit to Delawareans; and

WHEREAS, having accurate data is integral to determining appropriate funding for the POC program as well assisting in formulating policy to expertly build and expand the program; and

WHEREAS, in June 2025, House Resolution No. 14 was enacted, requiring the Department of Health and Social Services to periodically report certain data regarding early child care; and

WHEREAS, this resolution continues and updates the reporting requirements originally set forth under House Resolution No. 14.

NOW, THEREFORE:

BE IT RESOLVED by the House of Representatives of the 153rd General Assembly of the State of Delaware that the Secretary of the Department of Health and Social Services (DHSS) is directed to provide a report on or before October 1, 2026 and April 1, 2027, on Delaware POC that details the number of individual children served each month in Fiscal Years 2025 and 2026; the total amount of money spent on POC in Fiscal Years 2025 and 2026; and what portion of the funds came from state, federal, or one-time stimulus sources, parent co-pays, and any other sources. For federal funding sources, DHSS shall provide a breakdown including the Child Care and Development Fund (CCDF), Temporary Assistance for Needy Families (TANF), Social Services Block Grant Program (SSBG), the Supplemental Nutrition Assistance Program (SNAP), and any other funding source and whether those funds are one-time funded. The report must include the following information, if available:

1. Utilization data, including number of children by month or unduplicated throughout the year billed for full day, day and a half, and part-time care rates, school age only children, school age summer only children, children who receive part day during the school year and full time in the summer, number of children authorized, percentage of children who use the POC program compared to the percentage of children who never utilize the POC service, and attendance of children by month and for the year, using an unduplicated count statewide and broken down by county.

2. Utilization data in FY2025 and FY2026 and FY2027 during the months of September through June, including school age children billed part day, number of children enrolled, and the percentage of school age children who use POC compared to the percentage of utilization data from 2025 and 2026 during the months of July and August, including full time school age children only, and the percentage of school age children who use POC. The report shall include the number of absent days covered for children utilizing the service, for 0-5 and school age, including how many individual children missed 10 or more days for more than 3 months per year. The average attendance by families per month, including how many attend 19 or more days and how many attend fewer than 10 days.

3. The demographics of children and their families that utilize POC, including race, household income range by percentage of the federal poverty level, and household type, by county.

4. The number of unduplicated children, per year, receiving a special education rate, disaggregated by age and setting.

5. A breakdown of POC spending and children served by setting type (center-based, family childcare, license-exempt/FFN).

6. The number of families that apply, how many are deemed ineligible and reasons for declined eligibility.

7. The number of families who are a asked to pay co-pays, including if this changes based on the number of children.

8. Re-determination rates, lapses in coverage, and reasons for case closure including income and the FPL when they are deemed ineligible.

9. The number of families and children who are authorized for 90 days and then reauthorized or not reauthorized.

10. A report on Fiscal Year 2026, broken down by state and federal funding, on spending to date by quarter, anticipated spending by quarter, the number of children anticipated to attend each month, and anticipated remaining funding at the end of Fiscal Year 2026, including an assessment of what portion of the budget is being held in reserve in the event attendance increases or for any other purposes. The report should include a cost estimation for families and households at 300%, 350%, and 400% of the federal poverty level; cost estimation for extending the graduated phase out to 350%, and 400% of federal poverty level; and a cost estimation for increasing rates to the federal benchmark of the 75th percentile of the market rate study.

11. Progress made toward implementing policies adopted in the Child Care Development Fund plan, including contracting for enrollment, and incentivizing providing care during non-traditional hours.

12. Any anticipated and enacted changes in the reporting period to policies including co-payments, absence days, and other changes.

13. The amount of co-pays assessed and an explanation regarding whether the amount changes based on the number of children.

14. The number of families who apply and how many are eligible and authorized, including the reasons for declined eligibility.

15. An accounting of re-determination rates, lapses in coverage, and reasons for case closure.

BE IT FURTHER RESOLVED that DHSS shall report and summarize cost estimation for the new alternative methodology for rate setting, known as “cost estimation modeling,” which shall be included in the reports. The report shall include cost estimates for paying providers based on the estimated cost of quality care.

BE IT FURTHER RESOLVED that DHSS and DOE shall present to the Delaware Early Childhood Council and the Interagency Resource Management Committee (IRMC) data collection and implementation, and the data included in this report. The reports shall be made public on a state website within one week of the published date.

BE IT FURTHER RESOLVED that any report described herein must be submitted to the Controller General, the Director of the Office of Management and Budget, the Co-Chairs of the Joint Finance Committee, the Delaware Early Childhood Council, and the Interagency Resource Management Committee (IRMC).