The Senate Appropriations Subcommittee on My LEAP on March 31 voted 2‑1 to adopt the S‑1 amendment to Senate Bill 164 and to report the bill to the full committee, approving budget changes that include about $40 million in one‑time general fund to meet federal maintenance‑of‑effort requirements for childcare.

The nut graf: Subcommittee members spent most of the meeting on budget language and line items that fund both early childhood care and postsecondary programs overseen by the My LEAP portfolio. Committee staff told members the proposal raises the overall My LEAP budget and shifts state dollars to cover federal requirements and to increase pay and capacity for childcare providers, particularly for infant and toddler care.

Clerk: “The Miley proposal for the full Appropriations Subcommittee includes a 14.3% gross increase from $643,000,000 to $736,000,000,” the clerk told the panel, and said the general fund portion would rise about 66.2% from $136,500,000 to $226,900,000. The clerk said the subcommittee report adopts the governor’s baseline adjustments and identified a roughly $63 million increase in GF/GP for childcare funding, a $23 million increase targeted to provider pay for infant and toddler care, and a new private authorization of $750,000.

Committee discussion focused on two linked policy areas in the My LEAP portfolio: early childhood care and postsecondary supports. The chair emphasized that childcare is “a huge part of our economy” and that expanded child care capacity is necessary to allow parents and caregivers to work. The chair also described recent and proposed My LEAP higher education efforts to boost re‑enrollment of students who stopped out and to add college success grants and wraparound services, which can include childcare.

On federal maintenance‑of‑effort (MOE) requirements, staff explained two funding impacts. First, to move the state’s childcare payment model from post‑pay to prepay in a single fiscal year, the department must make additional payments up front; staff estimated that transition will cost about $38.5 million. Second, federal MOE rules require the state to show investment in contracting for services in areas where childcare is not available; the clerk said roughly $1.5 million is earmarked for that purpose. Combined, staff said, the one‑time cost to meet those MOE requirements is approximately $40 million.

The subcommittee also approved the following line‑item changes in the report the clerk summarized: a $2 million appropriation for re‑enrollment recruitment; replacement of a recurring dual‑enrollment line item with a one‑time, $10,000 appropriation to create a dual enrollment task force to study future delivery of those opportunities; a $16 million allocation for college success and wraparound supports (an increase of $1 million above the governor’s recommendation, with that additional $1 million designated for hunger‑free campus efforts); and nearly $4 million in expansion grants intended to help selected Head Start providers expand into full‑service childcare if they choose.

Several senators pressed staff for clarifications. A senator asked whether the maintenance‑of‑effort spending was due to recent federal cuts; staff said it is not a backfill for a specific recent cut but rather a requirement because federal funds do not cover all provider costs and because of the payment‑model change. When asked for detail about the boilerplate language the executive office had labeled “unenforceable,” staff said that language originated with the executive and that the executive has proposed cutting a report tied to that boilerplate.

Formal actions: the subcommittee adopted the S‑1 amendment and then voted to report SB 164 to the full committee. The motions were moved by Senator Kleinfeld and supported on the floor by the chair; the clerk called the roll and the subcommittee approved both actions on a 2‑1 vote. Senator Albert voted no.

The meeting closed after the vote; the subcommittee also adopted draft minutes from an earlier meeting without objection before adjourning.

Ending: The bill will proceed to the full Appropriations Committee with the S‑1 changes and the budget adjustments described above. The subcommittee did not adopt additional policy changes beyond the line‑item and boilerplate adjustments included in the report it forwarded.