C-401: Time Frames for Securing Local Match

Workforce Development Boards (Boards) must secure local match within the time frames set forth in §800.73 of the General Administration rules:

“By the end of the fourth month following the beginning of the program year, Boards shall secure donations, transfers, and certifications totaling at least 100% of the amount a Board needs to secure in order to access the unmatched federal child care funds available to the workforce area at the beginning of the program year.”

Boards must be aware that Child Care and Development Fund federal matching funds that are not secured with eligible child care local matching funds by the end of the fourth program month can be subject to deobligation.

Boards must complete donations, transfers and certifications as required by the following:

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C-402: Child Care Local Match Agreement Start and End Dates

Workforce Development Boards may establish a Child Care Local Match Contribution Agreement PDF (local match agreement) with a start date beginning after, or an end date ending before, the effective period in which the funds are contracted. 

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C-403: Verification of Public Certifications for Direct Child Care Services

The Board must ensure that a public entity certifying expenditures for direct child care services determines and verifies that the expenditures are for child care provided to an eligible child. 

At a minimum, the Board must ensure that the public entity verifies the following:

  • The child is under 13 years of age, or at the option of the Board, is a child with disabilities and under 19 years of age.
  • The child resides with both of the following:

Rule Reference: §809.17(c)

Certification of expenditures may be satisfied by the local public entity certifying that the match expenditures are for direct child care services delivered to children under 13 years of age and that the amount of local match expenditures is proportional to the low-income population as determined by using one of the following methods:

  • The poverty rate of the children served by the child care facility based on US Census Bureau American FactFinder data
  • The number of children enrolled in the free and reduced-price lunch program in the workforce area served by the child care program
  • The number of children receiving Children’s Health Insurance Program (CHIP) benefits or other public benefits in the workforce area served by the child care program

The proportion of expenditures may be based on the relative proportion of low-income population in the workforce area, county, city or ZIP codes, or the school district or attendance zones in which the direct child care services are delivered through the local expenditures. 

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C-404: Restrictions on Public Prekindergarten Expenditures for Local Match

Workforce Development Boards must be aware that the Texas Workforce Commission (TWC) cannot accept local expenditure certifications for public prekindergarten (pre-K) programs referenced in 45 Code of Federal Regulations §98.55 because the state is already maximizing pre-K expenditures as match to the fullest extent, and federal regulations prohibit counting the same contribution more than once.

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C-405: Restrictions on Texas School Ready! Project Expenditures for Local Match

Workforce Development Boards must be aware that the Texas Workforce Commission cannot accept local expenditure certifications for the Texas School Ready! (TSR!) project because the Texas Education Agency certifies state general revenue funds for the TSR! project as match for Child Care and Development Fund federal matching funds.

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C-406: Local Match Agreements with Independent School Districts Using Public Expenditures for License-Exempt Before-and After-School Programs

Workforce Development Boards (Boards) must be aware that public expenditures by an independent school district for license-exempt before- and after-school child care programs may be certified as local match for Child Care and Development Fund (CCDF) funding.

Boards must ensure that the certification of expenditures for direct care at license-exempt before- and after-school programs follow the guidelines described in C-403.

Boards must be aware that expenditures certified for local match by a public entity can include expenditures for any quality improvement activity described in Part H - Consumer Education and Child Care Quality Activities.

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C-407: Private Entity Donations

Boards must be aware that pursuant to 45 CFR §98.55(f), TWC, through the Child Care and Development Fund (CCDF) State Plan for Texas, identifies Boards as entities designated by the state to receive private donated funds.

Boards must be aware that pursuant to CCDF regulations at 45 CFR §98.55(e)(2)(v), expenditures of donations from private sources are subject to the audit requirements in CCDF §98.65.

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C-408: Private Entity Restrictions

Boards must be aware that if a private entity contributor is party to an administrative proceeding before TWC’s three-member Commission (Commission), Texas Labor Code §301.021(b) prohibits TWC from accepting the local match agreement until 30 calendar days after the date the decision in the proceeding becomes final.

TWC interprets the term “administrative proceeding” in this context to refer to a “contested case,” as defined by Texas Government Code §2001.003, that is, “a proceeding, including a ratemaking or licensing proceeding, in which the legal rights, duties, or privileges of a party are to be determined by a state agency after an opportunity for adjudicative hearing.”

Consistent with Texas Labor Code §301.021(b), Boards must establish procedures that prohibit the Board from accepting local private donations from an entity that is a party to a Board-level complaint or appeal pursuant to Chapter 823, Subchapter B.

The local match agreement reflects this limitation. This restriction does not apply to transfers or certifications from public entities.

C-408.a:  For-Profit Entity Restrictions

Boards must be aware that Texas Labor Code §301.021(c) prohibits TWC from accepting private donations from for-profit entities that have either of the following:

  • A contract with TWC for services or products with a value of $50,000 or greater
  • A bid in response to a request for proposals (RFP) for such contract before TWC

This condition does not apply to a contract or bid that relates only to providing child care services.

Additionally, Boards must be aware that pursuant to Texas Labor Code §301.021(d), upon execution of a local match agreement for privately donated funds from a for-profit entity, the contributor must not enter into a contract with TWC or submit a bid in response to an RFP issued by TWC before the first anniversary of the date on which TWC accepted a donation from the contributor, unless the contract or bid relates only to providing child care services.

Consistent with Texas Labor Code §301.021(c), Boards must not accept a private donation from a for-profit entity that has either of the following:

  • A contract with the Board for services or products with a value of $50,000 or greater
  • A bid in response to an RFP for such contract before the Board

This condition does not apply to a contract or bid that relates only to providing child care services.

Additionally, Boards must be aware that pursuant to Texas Labor Code §301.021(d), upon Board acceptance of a local match agreement for privately donated funds from a for-profit entity, the contributor must not enter into a contract with the Board or submit a bid in response to an RFP issued by the Board before the first anniversary of the date on which the Board accepted the donation from the contributor, unless the contract or bid relates only to providing child care services.

The local match agreement reflects these limitations. This restriction does not apply to transfers or certifications from public entities. 

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Part A - Definitions

Part H - Consumer Education and Child Care Quality Activities

Part J - Appendix