JBC trims some CCDF cuts but approves UPK and early‑intervention adjustments amid debate over Colorado Shines

Phoebe Kanagaraja, JBC staff, presented the Department of Early Childhood supplemental package and an updated memo showing revised projections of the CCDF ‘‘cliff.’’ Staff recommended partial approval of S1, reducing appropriations by $510,000 in FY25‑26 but not cutting Colorado Shines observations scheduled this year (staff said stopping those observations would be disruptive to providers who were already scheduled).

Kanagaraja said the department’s original S1 request would have reduced appropriations from CCDF by $910,000 in the current fiscal year and that updated projections shift the cliff later but it remains a concern. Staff explained that if the committee approved the S1 and related R1 actions, the cliff would be pushed to FY28‑29 and be smaller, whereas taking no action would produce a larger out‑year shortfall.

Members questioned technical elements throughout the presentation: how attrition within caseloads is modeled; whether capping family co‑pays at 7% versus the then‑current 10% would increase state costs; and how paying providers based on enrollment instead of attendance would interact with federal rules. Kanagaraja said some state statutory provisions are contingent on federal policy and that staff would follow up with OLLS to clarify which state provisions are prescriptive.

On Colorado Shines (the program that tiers CCAP provider rates by quality level), staff recommended not pausing observations already scheduled for the current year and noted that only about 33.7% of participating providers were at higher tiers (3–5). Committee members and several providers expressed concern that pausing observations could delay providers’ progress and that the question raised significant quality, access and cost tradeoffs.

The committee approved staff recommendations on S1 (6–0), S2 (7.3M early‑intervention rightsizing, 6–0) and S3 (UPK $10M increase, 5–1 with Kirk Meyer objecting). Several members requested written follow‑up from the department on provider‑stacking procedures between UPK and CCAP and on county‑level freezes and plans to lift them.

Kanagaraja told the committee she would return with clearer memos and that department staff would provide written responses to questions about eligibility changes, fund‑stacking assumptions and the March forecast effects.