To: Board of Supervisors
From: Marla Stuart, Employment and Human Services Director
Report Title: Request and accept a Voluntary Temporary Transfer of California Department of Social Services funds for Alternative Payment Program
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a resolution to approve and authorize the Employment and Human Services Department Director, or designee, to apply for and accept a Voluntary Temporary Transfer of funds with the California Department of Social Services in an amount not to exceed $3,225,958 for the California Alternative Payment Program for the period July 1, 2025, through June 30, 2026.
FISCAL IMPACT:
100% State (California Department of Social Services) to be budgeted in FY 25-26. No County match required.
BACKGROUND:
This action seeks approval to apply for and accept a Voluntary Temporary Transfer (VTT) of State funds with the California Department of Social Services (CDSS) to allow continued provision for children and families eligible for the California Alternative Payment Program (CAPP) through June 30, 2026, without impacting their enrollment.
The Employment and Human Services Department (EHSD) administers four (4) State childcare funding streams: CalWORKs Stage 2 (C2AP), CAPP, California State Preschool Program, and the General Childcare and Development Program.
CAPP provides vouchers for eligible low-income families with children from birth to thirteen (13) years of age. Alternative Payment Program agencies help families enrolled in CAPP arrange childcare services and make direct payments to the childcare provider selected by the family. CAPP provides rolling two-year funding to support childcare vouchers for eligible families. Voucher payments vary based on the age of the child, length of care, and whether care is provided by a licensed childcare provider or a qualified license-exempt provider, such as a family member.
EHSD is projected to over-earn its CAPP contract for the current fiscal year. As a result, the Department has paused acceptance of new applications and has identified the need for an additional $3,225,958 to sustain current enrollment and maintain uninterrupted voucher payments.
CDSS permits contractors to request a VTT of contract funds between agencies. Contra Costa County’s designated Resource and Referral agency, CocoKids, has expressed willingness to transfer a portion of its unutilized contract funds to EHSD.
On December 17, 2024, the Board approved the Continued Funding Application for Fiscal Year 2025-2026 and accepted $29,723,382 (C.84). On March 11, 2025, the Board approved an administrative support allocation of $705,022 (C.32) to the Employment and Human Services Department (EHSD) as the contract administrator for C2AP and CAPP. Additionally, on September 16, 2025, the Board approved an amendment (C.38) to increase the total payment limit to $1,098,197.
Approval of this staff report and resolution authorizes the acceptance of $3,225,958 in funding through CDSS’s Voluntary Temporary Transfer process for Fiscal Year 2025-26, to allow the continued provision of CAPP services to program eligible children and families.
CONSEQUENCE OF NEGATIVE ACTION:
Should the proposed action not be approved by the Board of Supervisors, the County will not be able to serve currently enrolled California Alternative Payment Program families and children at the current levels.
CHILDREN’S IMPACT STATEMENT:
This funding supports three of the community outcomes established in the Children’s Report Card: 1) “Children Ready for and Succeeding in School”; 3) “Families that are Economically Self-Sufficient”; and 4) “Families that are Safe, Stable, and Nurturing” by offering comprehensive services, including high quality early childhood education, nutrition, and health services to low-income children throughout Contra Costa County.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF Request and accept a Voluntary Temporary Transfer of California Department of Social Services funds for the Alternative Payment Program.
WHEREAS, all contracting agencies with a governing board are required to obtain formal board approval of the Voluntary Temporary Transfer of funds for the Alternative Payment Program (CAPP) for Fiscal Year 2025-2026, and
WHEREAS, by authorizing the Employment and Human Services Director to sign a request to accept a Voluntary Temporary Transfer of California Department of Social Services (CDSS) Contract Funds (CCD 19C), the request will meet all requirements for submission to execute for Fiscal Year 2025-2026, and
WHEREAS, approval of this item will allow the continued provision of CAPP services to program eligible children and families, and
WHEREAS, CAPP provides vouchers for eligible low-income families, and
WHEREAS, Alternative Payment Program agencies help families enrolled in CAPP arrange childcare services and make payment for those services directly to the childcare provider selected by the family.
NOW, THEREFORE, BE IT RESOLVED the Contra Costa County Board of Supervisors ADOPT a resolution to approve and authorize the Employment and Human Services Department Director, or designee, to apply for and accept a Voluntary Temporary Transfer of funds with the California Department of Social Services in an amount not to exceed $3,225,958 for the California Alternative Payment Program for the period July 1, 2025 through June 30, 2026.