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HomeMy WebLinkAboutCCCAP Letter 05.26.2026 To: Executive Director Dr. Roy, Colorado Department of Early Childhood Re: Formal Written Testimony Regarding the Proposed CCCAP Comprehensive Rule Package Dear Dr. Roy, On behalf of Pitkin County, I am writing to express strong opposition to the proposed Colorado Child Care Assistance Program (CCCAP) Comprehensive Rule Package, specifically regarding the Fiscal Oversight sections. While we support the goal of a stable and transparent program, the current proposal undermines local administration, conflicts with established state statutes, and threatens the economic stability of families across Colorado. Statutory and Contractual Conflicts The proposed rules (3.104.C and 3.105.D) grant the Department broad discretionary authority to revise county plans or block grant allocations mid-year based on undefined "funding concerns," even if a county is not projected to overspend. This unilateral authority directly conflicts with C.R.S. § 26.5-4-110(2), which requires an annual allocation formula agreed upon by the Department and the Allocation Committee. As these rules go beyond what is allowable under statute, they also fall short by omitting the seven factors that must be considered when determining annual allocations as described in C.R.S. § 26.5-4.110(3). Furthermore, these proposed rules circumvent existing performance-based contracts, as described in C.R.S. § 26.5-4-115(3), between counties and the state. Changing the block grant allocation mid-year constitutes a change to the annual performance contract, which requires agreement by the county and triggers a dispute resolution process under statute. The current proposed rules omit this essential statutory safeguard. Additionally, these contracts only permit a reduction in a future county block grant annual allocation within the penalty section, not changes to current allocations midyear. Operational Volatility and Inadequate Notice The proposed 30-calendar-day notice period for major allocation adjustments (Rule 3.105.D.2) is operationally impossible when such an adjustment would be a reduction. Counties cannot responsibly Pitkin County | 530 E. Main Street | Aspen, CO 81611 | 970-920-5200 reduce spending or staffing in such a short window, especially as families cannot be immediately removed from the program. Additionally, the rules lack a definition for what triggers a "desirable" or "necessary" mid-year adjustment. The broad discretionary and unilateral authority for CDEC to mandate a waitlist or freeze (Rule 3.103.XX) further exacerbates this financial uncertainty and restricts local control. Negative Economic Impact These rules are proposed against the backdrop of a $39 million structural budget shortfall. Increasing state control without addressing this shortfall will inevitably restrict access. Projections indicate that up to 64% fewer eligible families may be served, potentially leaving 18,500 children without assistance. This forced reduction in child care access will compel parents to reduce their employment, leading to a direct decline in Colorado’s GDP and disposable personal income. Pitkin County Impact Pitkin County’s primary concern is that the proposed changes would expand state fiscal oversight authority in ways that could require counties to reduce or restrict child care assistance mid-year, even when a county is not projected to overspend. Because CCCAP expenditures are tied to ongoing care arrangements already approved for families and providers, Pitkin County cannot quickly reduce spending without disrupting child care continuity, provider operations, and family employment stability. Pitkin County has historically operated above its annual CCCAP allocation due to sustained community demand, local workforce realities, and the high cost of care in the region. To maintain continuity for families, the County has historically relied on statewide redistribution or “buy-back” dollars from counties that underspend their allocations during closeout. Pitkin County is currently projected to exceed its 2025 CCCAP allocation by approximately $100,000, driven primarily by increased utilization and expanded engagement with eligible families following the transition of CCCAP administration into Family Services oversight. State-required provider rate increases implemented in late 2025 have also contributed to overall expenditure growth. Pitkin County is also concerned that proposed allocation methodology changes may reduce the predictability and flexibility of the current statewide redistribution process that has historically helped the County manage enrollment pressures. Sudden allocation reductions and short implementation timelines could create significant operational and fiscal strain for high-cost communities like Pitkin County while increasing broader risks to family stability, employment retention, provider stability, and demand on other county support systems. Pitkin County | 530 E. Main Street | Aspen, CO 81611 | 970-920-5200 Transparency and Strategic Direction Since its inception in 2022, CDEC has not established clear goals to guide CCCAP, continuously focusing on stretching available resources. This lack of strategic leadership causes counties to manage the resulting instability as they serve families and providers directly. The Department has stated that the proposed rules aim to improve transparency in spending and address the federal block grant freeze. However, the fiscal section of the proposed rules does nothing to address either issue. The concerns CDEC is attempting to manage could instead be addressed by implementing concrete parameters on the closeout process, which would maintain compliance while preserving proper county authorities. Conclusion and Recommendations We urge CDEC to pause the adoption of the fiscal oversight sections and work with counties to ensure that the rules align with and provide clarity and implementation of state statute. Thank you for your continued leadership and consideration of this critical matter. Sincerely, Jeffrey H. Woodruff Pitkin County Board of County Commissioners, Board Chair Pitkin County | 530 E. Main Street | Aspen, CO 81611 | 970-920-5200