1. (a) Funds available to the Commission for child care services will be allocated to the workforce areas using need-based formulas, as set forth in this section.

2. (b) Child Care and Development Fund (CCDF) Mandatory Funds authorized under the Social Security Act §418(a)(1), as amended, together with state general revenue Maintenance of Effort (MOE) Funds, Social Services Block Grant funds, and TANF funds appropriated for child care (excluding any amounts withheld for state-level responsibilities) will be allocated on the following basis:

   1. (1) fifty percent will be based on the relative proportion of the total number of children under the age of five years old residing within the workforce area to the statewide total number of children under the age of five years old, and
   2. (2) fifty percent will be based on the relative proportion of the total number of people residing within the workforce area whose income does not exceed 100% of the poverty level to the statewide total number of people whose income does not exceed 100% of the poverty level.
3. (c) Child Care and Development Fund (CCDF) Matching Funds authorized under the Social Security Act §418(a)(2), as amended, together with state general revenue matching funds and estimated appropriated receipts of donated funds, will be allocated according to the relative proportion of children under the age of 13 years old residing within the workforce area to the statewide total number of children under the age of 13 years old.
4. (d) Child Care and Development Fund (CCDF) Discretionary Funds authorized under the Child Care and Development Block Grant Act of 1990 §658B, as amended, will be allocated according to the relative proportion of the total number of children under the age of 13 years old in families whose income does not exceed 150% of the poverty level residing within the workforce area to the statewide total number of children under the age of 13 years old in families whose income does not exceed 150% of the poverty level.
5. (e) For Food Stamp Employment and Training child care, funds will be allocated among workforce areas on the basis of the relative proportion of the total number of children aged 6-12 years in households of mandatory food stamp work registrants residing within the workforce area to the statewide total number of children aged 6-12 years in households of mandatory food stamp work registrants.

6. (f) The following provisions apply to the funds allocated in subsections (b) - (d) of this section:

   1. (1) No more than 5% of the total expenditure of funds may be used for administrative costs as defined in federal regulations contained in 45 Code of Federal Regulations §98.52, as may be amended.
   2. (2) At least 4.0% of the total expenditure of funds must be used for activities to improve the quality of child care as defined in federal regulations contained in 45 Code of Federal Regulations §98.51, as may be amended. At the local workforce development board's (Board) discretion, more than 4.0% of the expenditures may be used for these activities.
   3. (3) Transitional clients who are eligible for child care for their children and Choices clients who are eligible for child care for their children shall be served on a priority basis to enable parents to participate in work, education, or training activities.
   4. (4) The percentage of the total expenditure of the funds allocated for child care that is expended in direct child care services in fiscal year 2000 and all succeeding fiscal years, shall equal, or exceed, the percentage of the total expenditure of funds allocated for child care that was expended for direct child care services in fiscal year 1999.
   5. (5) The Board shall comply with any additional requirements adopted by the Commission or contained in the Board contract.
7. (g) The provisions in this section shall be applicable to allocations for child care beginning in fiscal year 2000.

Source Note:The provisions of this §800.58 adopted to be effective February 10, 1999, 24 TexReg 794.