
The largest subsidized child care program in the state is running an $8.7 million deficit just three months into the new fiscal year, and there’s concerns that the number will grow.
The $122 million Care4Kids program, which is a joint federal-state initiative, tightened its eligibility requirements this summer and closed enrollment to new families. But it’s still not enough to stop the red ink.
The nonpartisan Office of Fiscal Analysis said last week that if the Office of Early Childhood fails to manage the program there could be a $33 million shortfall in the account.
Former Office of Early Childhood Commissioner Myra Taylor Jones and Democratic Gov. Dannel P. Malloy called on Congress earlier this year to increase funding to help the state pay for the cost of the federal government’s newly mandated eligibility requirements. Those requirements, such as mandating a subsidy be given to a family for one year, increased the cost of the program. At the same time, Congress never allocated any new funding to help states pay for the mandates.
In the meantime, Linda Goodman, the acting commissioner of the Office of Early Childhood, said they will “continue to track enrollment trends and expenditure data as we explore all possible options.”
At the moment, families who are participating in the program don’t have to reapply for 12 months. Previously, the program required families to reapply after eight months so there were a lot of families going on and off the program based on increases and decreases in their income. The decision to keep families on for an entire year was supposed to create more stability for the families, but it ended up costing the state.
“This is a mess,” Helen Figueroa, director of Family Child Care Team at CSEA/SEIU 2001, said Friday.
She said the infrastructure of childcare in the state is “imploding” and it will have an impact on the business community because those low-wage workers will have to make a decision about whether to work or stay home with their child.
Most of the families receiving benefits work in the retail, fast food, and health care sector of the economy.
Figueroa said the state needs to tell the business community that they need to either “up the ante into how much you’re paying your staff so they can afford to earn a living wage, or you need to be able to afford to pay more taxes on the other end so we can afford the service families need in order to work in your company.”
Lt. Gov. Nancy Wyman, who chairs the Early Childhood Cabinet, said she doesn’t know how they are going to resolve the shortfall in the account, but they are monitoring it very closely.
She said she hopes they are able to find money elsewhere in order to keep the program going, but at this point it’s unclear what is going to happen.
She expects a decision will be made in the next few months.

Merrill Gay, executive director of the Early Childhood Alliance, said the only way the Care4Kids program can save money is to end the subsidies for families already on the program once they hit their redetermination date. Those redetermination dates are based on when a family applies for the program.
He estimated that as many as 900 families could their coverage each month. Those 900 families have more than 1,300 children. Over the next fiscal year it means 5,000 to 8,000 children could lose their childcare, which means parents will be forced to make some tough decisions that could have dire consequences.
Without reliable child care these children will be “pushed into unregulated care,” Gay said.
The consequences of leaving a child with a person who is not qualified could be deadly and “too horrible to fathom,” Gay added.
Support authentic, locally owned and operated public service journalism!
He said he hopes the state is able to find the money because he doesn’t want these families to be forced into making bad decisions.
The Malloy administration and the Office of Early Childcare have the ability to make changes to the program in order to save money, but have yet to announce any plans.
Gay said a plan to start terminating families would start with posting a 30-day notice on the CTCare4Kids website. But that has yet to happen.
“The fact remains, we take very seriously any decision to change eligibility to the program,” Goodman said Friday.
More State Budget news

Stefanowski Talks Abortion, Employee Raises & Budget In First Press Conference
For a half-hour Wednesday, Bob Stefanowski stood outside the state Capitol and fielded questions on abortion rights and state employee raises in a sign the Republican candidate plans to run a more conventional campaign in this year’s rematch with Gov. Ned Lamont.
Keep reading
Lamont Signs The Budget
Alongside Democratic legislative leaders, Gov. Ned Lamont signed the $24 billion budget adjustment Monday that includes $600 million in tax relief. That’s more than they anticipated they would be able to offer Connecticut residents this Election year because revenue came in higher than expected, but it still creates about an $800 million deficit in 2024. …
Keep reading
ANALYSIS | It’s A Wrap: The Winners and Losers of the 2022 Session
It was a short legislative session, but the House and the Senate were able to move a lot of business this year, including the passage of a $24-billion budget with around $600 million in tax cuts.
Keep reading
Connecticut Acts To Help Its Lead-Poisoned Children
After decades of inertia, Connecticut is finally moving to help its thousands of lead-poisoned children and prevent thousands of other young children from being damaged by the widespread neurotoxin.
Keep reading
Bill Bolstering Contracting Oversight Board In Jeopardy After Lamont Administration Raises Concerns
It passed unanimously in the Senate, but a bill that would give the State Contracting Standards Board greater oversight over state contracting appeared stalled in the House Wednesday on the last day of session. “The governor and I have not talked about the bill,” House Speaker Matt Ritter said. “The commissioners have sent us a…
Keep reading
Senate Approves Tax Cuts, Sends $24B Budget to the Governor
The state Senate gave final approval late Tuesday to a $24 billion election year budget plan that includes around $600 million in tax relief while enabling the state to make an $3.5 billion payment on its unfunded pension debt. Senators voted 24-12 at around 10:30 p.m. to send the midterm budget adjustment to the desk…
Keep reading
House Green-Lights $24B Budget
On a party-line vote early Tuesday, the House passed a $24 billion budget adjustment package containing more than $600 million in tax cuts which Democrats heralded as “historic” and Republicans derided as temporary. Lawmakers voted 95 – 52 at around 12:20 a.m. to send the 673-page budget document to the Senate for consideration before the…
Keep reading
Budget Materials
The General Assembly is preparing to debate adjustments to the $24 billion state budget. Below are a few of the documents we’ve been provided as back-up materials. The budget, HB 5506. Town runs. Car tax impact on municipalities. Finance Committee Power Point.
Keep reading
Lawmakers May Vote for First Pay Increase in 20 Years
With legislative retirements mounting, lawmakers on both sides of the aisle were considering Monday raising the salaries of General Assembly members for the first time in more than two decades and indexing their pay in the future. During a morning press briefing, House Speaker Matt Ritter told reporters that funding for pay raises had been…
Keep reading
Amid Surging Revenue, House Prepares to Vote on Budget Adjustments
Connecticut’s House of Representatives was expected to vote Monday on a $24 billion budget adjustment package, buoyed by revised revenue predictions that exceeded expectations by more than $350 million. The revised consensus figures released Monday confirm the surge in revenues that enabled Gov. Ned Lamont and legislative Democrats to reach an agreement last week on…
Keep reading
Dems Detail Budget Deal With $500 Mil in Tax Cuts, Extension of Gas Tax Holiday
Legislative Democrats and Gov. Ned Lamont’s administration announced Wednesday the details of a $24.2 billion budget adjustment package, which they say provides around $500 million in tax relief including extending a gas tax holiday until December. Lamont and legislative leaders outlined the agreement during an afternoon press conference in the state Capitol building. Both chambers…
Keep reading
Health Care Workers Call for New Hires
After a record number of health care workers are expected to retire this year, health care staff called on Gov. Ned Lamont to commit to filling 1,000 vacant positions by August 1 of this year. A record 1,137 state workers who notified the state that they will retire this year comes at a moment of…
Keep reading
Senate Joins House And Votes To Give Raises, Bonuses To State Employees
The Senate gave final approval by a 22-13 vote on a plan to give unionized state workers a set of raises and bonuses. The plan, negotiated by Gov. Ned Lamont’s administration and a coalition of public sector labor unions, provides three years of 2.5% raises and step increases as well as a total of $3,500…
Keep reading
House Advances Labor Deal In Historic Vote
Lawmakers in Connecticut’s House of Representatives signed off on a plan to give state workers a set of raises and bonuses Thursday in a mostly partisan vote on a negotiated labor agreement. The House voted 96 to 52 in support of the deal with 1 Republican, Rep. Tom Delnicki of South Windsor, joining all Democrats…
Keep reading
Republicans Propose Last-Minute Tax Package
Legislative Republicans pitched a $1.2 billion tax relief plan Thursday which reduces state income, sales and gas taxes and proposes to join other states in suing the federal government to challenge restrictions on spending pandemic relief funds. House and Senate Republicans announced the plan during a state Capitol press conference Thursday morning. It cuts the…
Keep reading
The Budget Battle Begins To Take Shape
Tax collections have improved and pushed Connecticut’s budget surplus to $4 billion, but the state budget still relies heavily on federal funding and without it the state would end up running a “sizeable operating deficit.” The Office of Policy and Management told state Comptroller Natalie Braswell Wednesday that if not for the use of the…
Keep readingMore Labor News

Lamont Inks New Employment Law Backed By Unions
In a victory for state labor unions, Gov. Ned Lamont ignored a lobbying effort by business organizations and signed a bill Tuesday prohibiting employers from holding “captive audience” meetings to potentially discourage workers from unionizing.
Keep reading
States With The Largest Unionized Workforces
Where does Connecticut stand in the list of states with the most unionized employees?
Keep reading
Business Leaders Make Push To Veto Captive Audience Bill
Connecticut business leaders are leaning on Gov. Ned Lamont to veto a bill that would restrict what employers can say in the workplace. The bill, which has been a priority of labor unions for years, is being described by business owners as an unconstitutional attempt to restrict workplace communications and an infringement on employer free…
Keep reading
‘Captive Audience’ Bill Headed To Governor’s Desk
Legislation prohibiting Connecticut employers from holding “captive audience” meetings to discourage workers from organizing received final approval in the House late Friday despite Republican arguments it was preempted by federal law. The bill passed in a 88 to 56 vote, generally along party lines. Eight Democrats joined all but one Republican in voting against it.…
Keep reading
Senate Advances Captive Audience Bill After All-Day Debate
The state Senate debated and passed a bill Thursday that outlines what employers can and can’t tell their employees in the workplace. Dubbed the “captive audience” bill, the legislation which passed the Senate 23-11, has been a topic of discussion for years at the state Capitol. It received bipartisan support this year despite opposition from…
Keep reading
Nursing Home Workers Ready To Strike in Windsor
A strike at a Windsor nursing home accused of unfair labor practices will proceed unless a tentative agreement for raises and other benefits is crafted by 6 a.m. Friday, according to officials with the New England Health Care Employees Union, SEIU 1199. The union and four other homes, Avery Heights, Bloomfield Health Care Center, the…
Keep reading