LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 4544

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 19, 2024

 

 

SUMMARY

 

Synopsis:

Expands eligibility requirements of State's child care assistance program to include full-time graduate and post-graduate students.

Type of Impact:

Annual State expenditure increase.

Agencies Affected:

Department of Human Services.

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

State Expenditure Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that the bill’s provisions would result in an indeterminate increase to State expenditures due to growth in the number of families who would qualify for benefits under the child care assistance program.  In FY 2025, the estimated average annual cost per child under the program is approximately $11,576. 

 

BILL DESCRIPTION

 

      This bill requires the Division of Family Development in the Department of Human Services, subject to the availability of funds appropriated in the annual appropriations act for the purposes of the bill, to expand the work, school, and training eligibility requirements of the State’s child care assistance program to include that an applicant who is a full-time graduate student or a full-time post-graduate student is eligible to participate in the program, if the applicant meets all other eligible criteria regarding income, assets, and residency.

      Currently, the eligibility requirements of the child care assistance program include full-time students, enrolled at a college or university as part of a two-year associate’s or four-year baccalaureate degree program, with the goal to achieve a degree or credentials to gain employment, who qualify for financial assistance under the program.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the bill’s provisions would result in an indeterminate increase in State expenditures due to growth in the number of families who would qualify for benefits under the child care assistance program.  The child care assistance program is administered by the Division of Family Development in the Department Human Services and provides low-and moderate-income parents who are working, attending undergraduate schooling, or participating in a training program with subsidies for child care, including preschool instruction, after-school programs for children up to age 13, and care for children and teens with special needs.  Subject to the necessary appropriations included in the annual appropriations act, which this estimate assumes will occur, this bill would allow parents who are full-time graduate or post-graduate students to be eligible for subsidies under the program.  In FY 2025, the estimated average annual cost per child under the program is approximately $11,576. 

      The OLS estimates that there are 12,827 full-time graduate and post-graduate students who are raising children in the State.  Of these students, it is unknown how many would be otherwise eligible for child care assistance benefits and would also be in need of child care.  Of the existing eligibility factors, the OLS assumes that income would be the most significant determinate of a full-time graduate or post-graduate student’s participation in the program.  Currently, at initial eligibility, a family of four can earn no more than $62,400 a year to be eligible for the child care assistance program.  Moreover, it is not known the number of children in need of child care per eligible graduate or post-graduate student.

      For reference, assuming 13 percent of all full-time graduate and post-graduate students in the State with children, or 1,667, would be otherwise eligible for the child care assistance program, would elect to apply for benefits, and had, on average, 1.5 children with child care needs, the cost under the bill would be approximately $29 million.  As the child care assistance program receives federal support in the form of block grants, this estimate assumes that the increase in costs under the bill would be incurred solely by the State.

 

 

Section:

Human Services

Analyst:

Sarah Schmidt

Lead Research Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).