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AGENCY TESTIMONY
ACS budget overview and childcare assistance funding challenges
0:15:29
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125 sec
Commissioner Dannhauser presents an overview of ACS's fiscal year 2026 executive budget and discusses the challenges faced with childcare assistance funding due to recent state budget changes. He expresses disappointment with the outcome of the state budget and its impact on New York City's child care assistance program.
- ACS's city fiscal year 2026 executive budget is $2.9 billion, including $1.05 billion in city tax levy.
- The state budget has imposed a 518% increase to New York City's annual maintenance of effort requirement for childcare assistance, from $53 million to $328 million.
- ACS had to stop issuing new low-income childcare vouchers starting May 5, 2025, and children meeting requirements will be placed on a waiting list.
- The agency has received approval for a plan to continue serving the vast majority of children currently with vouchers.
Jess Dannhauser
0:15:29
KCS's city fiscal year 2026 executive budget is 2,900,000,000.0 including 1,050,000,000.00 in city tax levy Despite the state's failure to fully fund its child care assistance program, which will be discussed in more detail, we believe that this budget enables ACS to build upon our progress.
0:15:47
ACS has made a particularly robust effort to expand access to child care assistance for families with limited income who are engaged in work, school, training, job search, or that are unhoused.
0:15:58
Compared with October 2022 when ACS opened applications citywide, the number of children enrolled in child care with costs offset by low income voucher has climbed from 10,683 to 68,783 as of 04/29/2025.
0:16:15
We're disappointed with the outcome of the state budget.
0:16:18
Despite New York City's success in implementing the governor and mayor's joint vision to expand child care assistance to thousands more families through the state's child care assistance program, the recent state budget creates an undue financial burden on the city to maintain these gains.
0:16:32
The state budget imposes a 518% increase to New York City's annual maintenance of effort requirement from 53,000,000 to 328,000,000, while leaving the MOE of every other county unchanged.
0:16:46
While the state has included the potential for New York City to access up to 350,000,000 by the end of the fiscal year twenty twenty six, the federal fiscal year I should say, this is one time funding that will require the city to spend significantly more CTO.
0:16:59
The solution fails to solve the long term issue that this program is not fully funded yet.
0:17:05
ACS had to stop issuing new low income childcare vouchers starting 05/05/2025.
0:17:11
Children that meet the income and programmatic requirements will be placed on a waiting list.
0:17:15
ASUS is working to maintain continuity of care for as many families currently receiving assistance as possible.
0:17:22
And we are in discussions with the state and OMB about this.
0:17:25
We have submitted a plan to the state that will allow us to continue serving the vast majority of children that currently have vouchers and last night around 10:30 we got the approval.