Lawmakers and advocates press to protect Maryland’s Child Care Scholarship from copays and waitlists

Maryland lawmakers, agency officials and child‑care advocates urged the Budget & Taxation Education, Business and Administration Subcommittee to preserve access to the state’s Child Care Scholarship Program as the department and analysts described a fiscal shortfall and potential cost‑containment steps.

During the committee’s fiscal 2025 budget review, DLS analyst Natalie Andrade said the Child Care Scholarship Program’s costs increased sharply after policy changes and higher enrollment, and the fiscal 2025 allowance includes a proposed general‑fund deficiency of $217.9 million to cover prior shortfalls and anticipated spending. DLS highlighted administrative and technology changes (a replacement of the CCAPS system), the end of one‑time ARPA supports, and a projected $20.8 million gap between the FY25 allowance and one midrange forecast.

MSDE officials said the department has expanded participation, raised provider reimbursement rates and implemented a family and provider portal to streamline enrollment and payments. Deputy State Superintendent Diane Collins and Assistant State Superintendent Dr. Shana Cook said MSDE is migrating CCAPS to a Salesforce cloud environment, with an estimated project cost of $22 million and expected implementation by November 2024; annual maintenance costs after implementation were estimated in testimony.

Analysts and agency staff outlined two proposed cost‑containment levers: reinstating family copays for new or re‑redetermined recipients beginning July 1, 2024, and a possible authority to pause new enrollments (an enrollment freeze) that could be triggered under unspecified spending or growth thresholds. DLS requested MSDE provide clearer spending and enrollment triggers and detailed savings estimates for copays and an enrollment freeze.

Advocates and providers testified the program is an investment in families and Maryland’s economy, not merely an expense. Laura Wheeldreier of Maryland Family Network warned that an enrollment freeze “is profoundly destructive” and recalled the long waitlist after the 2011 freeze. Lisa Klingemeyer of Maryland RISE and Callie Schumetz of the Maryland Center on Economic Policy urged retaining full funding, warning that copays and a waitlist would harm families’ ability to work and could worsen labor‑market shortages. Ellie Cowan of the Maryland State Child Care Association emphasized the need to fund professional development and the Child Care Credentialing program for provider workforce stability.

MSDE also told the committee it will begin a statewide supply‑and‑demand study to guide local planning, and that updated pre‑K enrollment guidance will require collection of household income data at the point of enrollment beginning in fall 2024. Committee members repeatedly asked that MSDE return specifics about the thresholds that would justify an enrollment freeze and the projected savings from copay proposals.

The committee did not make a final decision during the hearing; members thanked witnesses and said they would weigh fiscal constraints against the broad economic and equity consequences that witnesses described.