Authority: Title 63.1, Chapters 1, 3, 6, 6.2, 6.5, and 12.1, Code of Virginia; P.L. 100-485, P.L. 100-435, P.L. 101-508, P.L. 104-193, Federal Code, as amended.

A. The amount for Financial Assistance for Individual and Family Services shall be expended under regulations of the Board of Social Services to reimburse county and city welfare/social services boards pursuant to § 63.1-92, Code of Virginia, and subject to the same percentage limitations for other administrative services performed by county and city public welfare/social services boards and superintendents of public welfare/social services pursuant to other provisions of the Code of Virginia.

B.1. Out of the total appropriation for day care, $3,050,000 from the general fund and $21,075,000 from federal funds the first year and $3,050,000 from the general fund and $21,075,000 from federal funds the second year will support state day care programs which will be administered on a sliding scale basis to income eligible families. The sliding fee scale and eligibility criteria are to be set according to the rules and regulations of the State Board of Social Services, except that the income eligibility thresholds for day care assistance shall account for variations in the local cost of living index by metropolitan statistical areas. The Department of Social Services shall report on the sliding fee scale and eligibility criteria adopted by the Board of Social Services by December 15 of each year. The Department of Social Services shall make the necessary amendments to the Child Care and Development Funds Plan to accomplish this intent. Funds shall be targeted to families who are most in need of assistance with day care costs. Localities may exceed the standards established by the state by supplementing state funds with local funds.

2. The Department of Social Services shall monitor local expenditures of allocated child day care assistance funds on a quarterly basis. Funds that have been properly allocated but not encumbered by the end of the second quarter shall be reallocated to localities that have a demonstrated need for additional day care funding. Reallocations resulting from unencumbered child day care funds shall be reported to the Chairmen of the House Appropriations and Senate Finance Committees no later than January 31 of each year. Any funds in this Item intended for child day care assistance which are unexpended on June 30, 1999, shall be reappropriated for use in the second year.

C. Out of the amounts for day care, $21,206,472 from the general fund and $26,508,091 from federal funds the first year and $21,206,472 from the general fund and $26,508,091 from federal funds the second year will support child care necessary to permit a TANF-eligible family member to prepare for employment, accept employment, or remain employed, and for families eligible for services after termination of TANF benefits in accordance with federal regulations.

D. Included in this appropriation are funds to reimburse local social service agencies for social workers who deliver program services which include but are not limited to: child and adult protective services complaint investigations; foster care and adoption services; and adult services.

E. Notwithstanding § 4-1.03 of this act, general fund and nongeneral fund appropriations for the Child Day Care Fee System At-risk and At-risk Pass-thru programs shall not be: (1) transferred to support other child day care programs or for any other purpose; and (2) administratively restricted to provide preferential eligibility for these programs to former Temporary Assistance for Needy Families recipients.

F. Included in this Item is funding to carry out the former responsibilities of the Virginia Council on Child Day Care and Early Childhood Programs. Nongeneral fund appropriations allocated for uses associated with the Head Start program shall not be transferred for any other use until eligible Head Start families have been fully served. Any remaining funds may be used to provide services to eligible low-income families in accordance with federal and state requirements. Families, who are working or in education and training programs, with income at or below the poverty level, whose children are enrolled in Head Start wraparound programs paid for with the federal block grant funding in this Item shall not be required to pay fees for these wraparound services.

G. Out of this appropriation shall be provided $105,871 from the general fund and $755,665 from the federal trust fund the first year and $105,871 from the general fund and $755,665 from the federal trust fund the second year to support the statewide Information and Referral System, to expand the system to provide resource and referral information on child day care availability and providers in localities throughout the state, and to publish consumer-oriented materials for those interested in learning the location of child day care providers throughout the state.

H. Included in this Item is funding in the amount of $600,000 the first year and $600,000 the second year for scholarships for students in early childhood education and related majors who plan to work in the field, or are working in the field, whether in public schools, child care or other early childhood programs, who enroll in a state community college or a state supported senior institution of higher education. Also included in this Item is funding in the amount of $505,000 the first year and $505,000 the second year for training of individuals in the field of early childhood education.

I. Out of this appropriation shall be provided $75,000 in the first year and $25,000 the second year from the general fund for the Craig County Child Care Center.

J. To the extent permitted by federal law, the eligibility for social services of an alien who is a qualified alien (as defined in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law No. 104-193) shall be determined without regard to alienage.

K. Out of appropriations in this Item shall be provided $300,000 the first year and $300,000 the second year from nongeneral funds for child care assistance provided to children in homeless and domestic violence shelters.

L. The Department of Social Services shall assess the implementation of the Child Care and Development Fund plan on an ongoing basis to determine how the plan's proposed use of child day care funds is meeting the needs of low-income families. The Department shall report its findings to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees by December 15 of each year.

M. Out of this appropriation, in addition to the current allocations in subprogram 49005, an additional $350,000 in the first year and $350,000 in the second year from the federal Social Services Block Grant shall be allocated to provide adult companion services for low-income elderly and disabled adults.

N. It is the intent of the General Assembly that the Department of Social Services develop a plan for automating day care assistance programs. The Department shall report on its plan and make budget recommendations to the Governor and the General Assembly by October 15, 1998.