HF 3894

as introduced - 90th Legislature (2017 - 2018) Posted on 03/15/2018 02:29pm

A bill for an act
relating to human services; modifying provisions governing child care assistance
program; forecasting the basic sliding fee child care assistance program; amending
Minnesota Statutes 2016, sections 119B.02, subdivisions 1, 2; 119B.03, subdivision
9; 119B.05, subdivision 5; 119B.08, subdivision 3; 119B.09, subdivision 4a;
256.017, subdivision 9; Minnesota Statutes 2017 Supplement, sections 119B.011,
subdivision 19b; 119B.05, subdivision 1; repealing Minnesota Statutes 2016,
sections 119B.03, subdivisions 1, 2, 5, 6, 6a, 6b, 8; 119B.09, subdivision 3;
Minnesota Statutes 2017 Supplement, sections 119B.011, subdivision 20a; 119B.03,
subdivision 4; Minnesota Rules, parts 3400.0020, subpart 8; 3400.0030; 3400.0060,
subparts 2, 4, 6, 6a, 7; 3400.0140, subpart 10; 3400.0183, subpart 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2017 Supplement, section 119B.011, subdivision 19b, is
amended to read:

Subd. 19b.

Student parent.

"Student parent" means a person who is:

(1) under 21 years of age and has a child;

(2) pursuing a high school diploma or commissioner of education-selected high school
equivalency certification; new text begin and
new text end

deleted text begin (3) residing within a county that has a basic sliding fee waiting list under section 119B.03,
subdivision 4; and
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end not an MFIP participant.

Sec. 2.

Minnesota Statutes 2016, section 119B.02, subdivision 1, is amended to read:

Subdivision 1.

Child care services.

The commissioner shall develop standards for county
and human services boards to provide child care services to enable eligible families to
participate in employment, training, or education programs. deleted text begin Within the limits of available
appropriations, deleted text end The commissioner shall distribute money to counties to reduce the costs of
child care for eligible families. The commissioner shall adopt rules to govern the program
in accordance with this section. The rules must establish a sliding schedule of fees for parents
receiving child care services. The rules shall provide that funds received as a lump-sum
payment of child support arrearages shall not be counted as income to a family in the month
received but shall be prorated over the 12 months following receipt and added to the family
income during those months. The commissioner shall maximize the use of federal money
under title I and title IV of Public Law 104-193, the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, and other programs that provide federal or state
reimbursement for child care services for low-income families who are in education, training,
job search, or other activities allowed under those programs. Money appropriated under
this section must be coordinated with the programs that provide federal reimbursement for
child care services to accomplish this purpose. deleted text begin Federal reimbursement obtained must be
allocated to the county that spent money for child care that is federally reimbursable under
programs that provide federal reimbursement for child care services. deleted text end The deleted text begin counties deleted text end
new text begin commissioner new text end shall use the federal money to expand child care services. The commissioner
may adopt rules under chapter 14 to implement and coordinate federal program requirements.

Sec. 3.

Minnesota Statutes 2016, section 119B.02, subdivision 2, is amended to read:

Subd. 2.

Contractual agreements with tribes.

The commissioner may enter into
contractual agreements with a federally recognized Indian tribe with a reservation in
Minnesota to carry out the responsibilities of county human service agencies to the extent
necessary for the tribe to operate child care assistance programs under sections 119B.03
and 119B.05. An agreement may allow the state to make payments for child care assistance
services provided under deleted text begin section deleted text end new text begin sections 119B.03 and new text end 119B.05. The commissioner shall
consult with the affected county or counties in the contractual agreement negotiations, if
the county or counties wish to be included, in order to avoid the duplication of county and
tribal child care services. deleted text begin Funding to support services under section 119B.03 may be
transferred to the federally recognized Indian tribe with a reservation in Minnesota from
allocations available to counties in which reservation boundaries lie. When funding is
transferred under section 119B.03, the amount shall be commensurate to estimates of the
proportion of reservation residents with characteristics identified in section 119B.03,
subdivision 6, to the total population of county residents with those same characteristics.
deleted text end

Sec. 4.

Minnesota Statutes 2016, section 119B.03, subdivision 9, is amended to read:

Subd. 9.

Portability pool.

deleted text begin (a) The commissioner shall establish a pool of up to five
percent of the annual appropriation for the basic sliding fee program to provide continuous
child care assistance for eligible families who move between Minnesota counties. At the
end of each allocation period, any unspent funds in the portability pool must be used for
assistance under the basic sliding fee program. If expenditures from the portability pool
exceed the amount of money available, the reallocation pool must be reduced to cover these
shortages.
deleted text end

deleted text begin (b) To be eligible for portable basic sliding fee assistance, a family that has moved from
a county in which it deleted text end new text begin (a) A family receiving child care assistance under the child care fund
that has moved from a county in which the family new text end was receiving deleted text begin basic sliding fee deleted text end new text begin child care new text end
assistance to deleted text begin a deleted text end new text begin another new text end county deleted text begin with a waiting list for the basic sliding fee program deleted text end must new text begin be
admitted into the receiving county's child care assistance program if the family new text end :

(1) deleted text begin meet deleted text end new text begin meets new text end the income and eligibility guidelines for the basic sliding fee program;
and

(2) deleted text begin notify deleted text end new text begin notifies new text end the new county of residence within 60 days of moving and deleted text begin submit
deleted text end new text begin submits new text end information to the new county of residence to verify eligibility for the basic sliding
fee program.

deleted text begin (c) deleted text end new text begin (b) new text end The receiving county must deleted text begin :
deleted text end

deleted text begin (1) deleted text end accept administrative responsibility deleted text begin for applicants for portable basic sliding fee
assistance deleted text end at the end of the two months of assistance under the Unitary Residency Act deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (2) continue basic sliding fee assistance for the lesser of six months or until the family
is able to receive assistance under the county's regular basic sliding program; and
deleted text end

deleted text begin (3) notify the commissioner through the quarterly reporting process of any family that
meets the criteria of the portable basic sliding fee assistance pool.
deleted text end

Sec. 5.

Minnesota Statutes 2017 Supplement, section 119B.05, subdivision 1, is amended
to read:

Subdivision 1.

Eligible participants.

Families eligible for child care assistance under
the MFIP child care program are:

(1) MFIP participants who are employed or in job search and meet the requirements of
section 119B.10;

(2) persons who are members of transition year families under section 119B.011,
subdivision 20, and meet the requirements of section 119B.10;

(3) families who are participating in employment orientation or job search, or other
employment or training activities that are included in an approved employability development
plan under section 256J.95;

(4) MFIP families who are participating in work job search, job support, employment,
or training activities as required in their employment plan, or in appeals, hearings,
assessments, or orientations according to chapter 256J;

(5) MFIP families who are participating in social services activities under chapter 256J
as required in their employment plan approved according to chapter 256J;

(6) families who are participating in services or activities that are included in an approved
family stabilization plan under section 256J.575;

(7) families who are participating in programs as required in tribal contracts under section
119B.02, subdivision 2, or 256.01, subdivision 2;

deleted text begin (8) families who are participating in the transition year extension under section 119B.011,
subdivision 20a;
deleted text end

deleted text begin (9) deleted text end new text begin (8) new text end student parents as defined under section 119B.011, subdivision 19b; and

deleted text begin (10) deleted text end new text begin (9) new text end student parents who turn 21 years of age and who continue to meet the other
requirements under section 119B.011, subdivision 19b. A student parent continues to be
eligible until the student parent is approved for basic sliding fee child care assistance or
until the student parent's redetermination, whichever comes first. At the student parent's
redetermination, if the student parent was not approved for basic sliding fee child care
assistance, a student parent's eligibility ends following a 15-day adverse action notice.

Sec. 6.

Minnesota Statutes 2016, section 119B.05, subdivision 5, is amended to read:

Subd. 5.

Federal reimbursement.

Counties new text begin and the state new text end shall maximize their federal
reimbursement under federal reimbursement programs for money spent for persons eligible
under this chapter. The commissioner shall allocate any federal earnings to the county to
be used to expand child care services under this chapter.

Sec. 7.

Minnesota Statutes 2016, section 119B.08, subdivision 3, is amended to read:

Subd. 3.

Child care fund plan.

The county and designated administering agency shall
submit a biennial child care fund plan to the commissioner. The commissioner shall establish
the dates by which the county must submit the plans. The plan shall include:

(1) a description of strategies to coordinate and maximize public and private community
resources, including school districts, health care facilities, government agencies,
neighborhood organizations, and other resources knowledgeable in early childhood
development, in particular to coordinate child care assistance with existing community-based
programs and service providers including child care resource and referral programs, early
childhood family education, school readiness, Head Start, local interagency early intervention
committees, special education services, early childhood screening, and other early childhood
care and education services and programs to the extent possible, to foster collaboration
among agencies and other community-based programs that provide flexible, family-focused
services to families with young children and to facilitate transition into kindergarten. The
county must describe a method by which to share information, responsibility, and
accountability among service and program providers;

(2) a description of procedures and methods to be used to make copies of the proposed
state plan reasonably available to the public, including members of the public particularly
interested in child care policies such as parents, child care providers, culturally specific
service organizations, child care resource and referral programs, interagency early
intervention committees, potential collaborative partners and agencies involved in the
provision of care and education to young children, and allowing sufficient time for public
review and comment; and

(3) information as requested by the department to ensure compliance with the child care
fund statutes and rules promulgated by the commissioner.

The commissioner shall notify counties within 90 days of the date the plan is submitted
whether the plan is approved or the corrections or information needed to approve the plan.
The commissioner shall withhold deleted text begin a county's allocation until it has an approved plan. Plans
not approved by the end of the second quarter after the plan is due may result in a 25 percent
reduction in allocation. Plans not approved by the end of the third quarter after the plan is
due may result in a 100 percent reduction in the allocation to the county deleted text end new text begin administrative
payments to a county until the county has an approved plan new text end . Counties are to maintain services
despite any deleted text begin reduction in their allocation deleted text end new text begin withholding of administrative payments new text end due to
plans not being approved.

Sec. 8.

Minnesota Statutes 2016, section 119B.09, subdivision 4a, is amended to read:

Subd. 4a.

Temporary ineligibility of military personnel.

Counties must reserve a
family's position under the child care assistance fund if a family has been receiving child
care assistance but is temporarily ineligible for assistance due to increased income from
active military service. Activated military personnel may be temporarily ineligible until
deactivation. deleted text begin A county must reserve a military family's position on the basic sliding fee
waiting list under the child care assistance fund if a family is approved to receive child care
assistance and reaches the top of the waiting list but is temporarily ineligible for assistance.
deleted text end

Sec. 9.

Minnesota Statutes 2016, section 256.017, subdivision 9, is amended to read:

Subd. 9.

Timing and disposition of penalty and case disallowance funds.

Quality
control case penalty and administrative penalty amounts shall be disallowed or withheld
from the next regular reimbursement made to the county agency for state and federal benefit
reimbursements and federal administrative reimbursements for all programs covered in this
section, according to procedures established in statute, but shall not be imposed sooner than
30 calendar days from the date of written notice of such penalties. Except for penalties
withheld under the child care assistance program, all penalties must be deposited in the
county incentive fund provided in section 256.018. Penalties withheld under the child care
assistance program shall be reallocated to counties deleted text begin using the allocation formula under section
119B.03, subdivision 5 deleted text end . All penalties must be imposed according to this provision until a
decision is made regarding the status of a written exception. Penalties must be returned to
county agencies when a review of a written exception results in a decision in their favor.

Sec. 10. new text begin DIRECTION TO COMMISSIONER OF MANAGEMENT AND BUDGET.
new text end

new text begin The state obligation for the basic sliding fee child care assistance program under
Minnesota Statutes, section 119B.03, must be included in the Department of Management
and Budget February and November forecasts of state revenues and expenditures under
Minnesota Statutes, section 16A.103, beginning with the November 2018 forecast.
new text end

Sec. 11. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2016, sections 119B.03, subdivisions 1, 2, 5, 6, 6a, 6b, and 8;
and 119B.09, subdivision 3, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2017 Supplement, sections 119B.011, subdivision 20a; and
119B.03, subdivision 4, new text end new text begin are repealed.
new text end

new text begin (c) new text end new text begin Minnesota Rules, parts 3400.0020, subpart 8; 3400.0030; 3400.0060, subparts 2, 4,
6, 6a, and 7; 3400.0140, subpart 10; and 3400.0183, subpart 1, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 18-7000

119B.011 DEFINITIONS.

Subd. 20a.

Transition year extension families.

"Transition year extension families" means families who have completed their transition year of child care assistance under this subdivision and who are eligible for, but on a waiting list for, services under section 119B.03. For purposes of sections 119B.03, subdivision 3, and 119B.05, subdivision 1, clause (2), families participating in extended transition year shall not be considered transition year families. Notwithstanding Minnesota Rules, parts 3400.0040, subpart 10, and 3400.0090, subpart 2, transition year extension child care may be used to support employment, approved education or training programs, or a job search that meets the requirements of section 119B.10 for the length of time necessary for families to be moved from the basic sliding fee waiting list into the basic sliding fee program.

119B.03 BASIC SLIDING FEE PROGRAM.

Subdivision 1.

Notice of allocation.

By October 1 of each year, the commissioner shall notify all counties of their final child care fund program allocation.

Subd. 2.

Waiting list.

Each county that receives funds under this section must keep a written record and report to the commissioner the number of eligible families who have applied for a child care subsidy or have requested child care assistance. Counties shall perform a preliminary determination of eligibility when a family requests child care assistance. At a minimum, a county must make a preliminary determination of eligibility based on family size, income, and authorized activity. A family seeking child care assistance must provide the required information to the county. A family that appears to be eligible must be put on a waiting list if funds are not immediately available. The waiting list must identify students in need of child care. Counties must review and update their waiting list at least every six months.

Subd. 4.

Funding priority.

(a) First priority for child care assistance under the basic sliding fee program must be given to eligible non-MFIP families who do not have a high school diploma or commissioner of education-selected high school equivalency certification or who need remedial and basic skill courses in order to pursue employment or to pursue education leading to employment and who need child care assistance to participate in the education program. This includes student parents as defined under section 119B.011, subdivision 19b. Within this priority, the following subpriorities must be used:

(1) child care needs of minor parents;

(2) child care needs of parents under 21 years of age; and

(3) child care needs of other parents within the priority group described in this paragraph.

(b) Second priority must be given to parents who have completed their MFIP or DWP transition year, or parents who are no longer receiving or eligible for diversionary work program supports.

(c) Third priority must be given to families who are eligible for portable basic sliding fee assistance through the portability pool under subdivision 9.

(d) Fourth priority must be given to families in which at least one parent is a veteran as defined under section 197.447.

(e) Families under paragraph (b) must be added to the basic sliding fee waiting list on the date they begin the transition year under section 119B.011, subdivision 20, and must be moved into the basic sliding fee program as soon as possible after they complete their transition year.

Subd. 5.

Review of use of funds; reallocation.

(a) After each quarter, the commissioner shall review the use of basic sliding fee program allocations by county. The commissioner may reallocate unexpended or unencumbered money among those counties who have expended their full allocation or may allow a county to expend up to ten percent of its allocation in the subsequent allocation period.

(b) Any unexpended state and federal appropriations from the first year of the biennium may be carried forward to the second year of the biennium.

Subd. 6.

Allocation formula.

The basic sliding fee state and federal funds shall be allocated on a calendar year basis. Funds shall be allocated first in amounts equal to each county's guaranteed floor according to subdivision 8, with any remaining available funds allocated according to the following formula:

(a) One-fourth of the funds shall be allocated in proportion to each county's total expenditures for the basic sliding fee child care program reported during the most recent fiscal year completed at the time of the notice of allocation.

(b) Up to one-fourth of the funds shall be allocated in proportion to the number of families participating in the transition year child care program as reported during and averaged over the most recent six months completed at the time of the notice of allocation. Funds in excess of the amount necessary to serve all families in this category shall be allocated according to paragraph (f).

(c) Up to one-fourth of the funds shall be allocated in proportion to the average of each county's most recent six months of reported first, second, and third priority waiting list as defined in subdivision 2 and the reinstatement list of those families whose assistance was terminated with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart 1. Funds in excess of the amount necessary to serve all families in this category shall be allocated according to paragraph (f).

(d) Up to one-fourth of the funds shall be allocated in proportion to the average of each county's most recent six months of reported waiting list as defined in subdivision 2 and the reinstatement list of those families whose assistance was terminated with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart 1. Funds in excess of the amount necessary to serve all families in this category shall be allocated according to paragraph (f).

(e) The amount necessary to serve all families in paragraphs (b), (c), and (d) shall be calculated based on the basic sliding fee average cost of care per family in the county with the highest cost in the most recently completed calendar year.

(f) Funds in excess of the amount necessary to serve all families in paragraphs (b), (c), and (d) shall be allocated in proportion to each county's total expenditures for the basic sliding fee child care program reported during the most recent fiscal year completed at the time of the notice of allocation.

Subd. 6a.

Allocation due to increased funding.

When funding increases are implemented within a calendar year, every county must receive an allocation at least equal to its original allocation for the same time period. The remainder of the allocation must be recalculated to reflect the funding increase, according to formulas identified in subdivision 6.

Subd. 6b.

Allocation due to decreased funding.

When funding decreases are implemented within a calendar year, county allocations must be reduced in an amount proportionate to the reduction in the total allocation for the same time period. This applies when a funding decrease necessitates the revision of an existing calendar year allocation.

Subd. 8.

Guaranteed floor.

(a) Beginning January 1, 1996, each county's guaranteed floor shall equal 90 percent of the allocation received in the preceding calendar year. For the period January 1, 1999, to December 31, 1999, each county's guaranteed floor must be equal to its original calendar year 1998 allocation or its actual earnings for calendar year 1998, whichever is less.

(b) When the amount of funds available for allocation is less than the amount available in the previous year, each county's previous year allocation shall be reduced in proportion to the reduction in the statewide funding, for the purpose of establishing the guaranteed floor.

119B.09 FINANCIAL ELIGIBILITY.

Subd. 3.

Priorities; allocations.

If a county projects that its child care allocation is insufficient to meet the needs of all eligible families, it may prioritize among the families that remain to be served after the county has complied with the priority requirements of section 119B.03. Counties that have established a priority for families who are not MFIP participants beyond those established under section 119B.03 must submit the policy in the annual child care fund plan.

Repealed Minnesota Rule: 18-7000

3400.0020 DEFINITIONS.

Subp. 8.

Allocation.

"Allocation" means the share of the total state appropriation of child care funds that a county may earn and be reimbursed for in an allocation period. A county's allocation may be raised or lowered during the allocation period when the commissioner redistributes unexpended or unencumbered allocations or when additional funds become available.

3400.0030 NOTICE OF BASIC SLIDING FEE PROGRAM ALLOCATION.

By July 1 of each year, the commissioner shall notify all county and human services boards of their allocation under the basic sliding fee program, including the amount available for payment of administrative expenses.

3400.0060 BASIC SLIDING FEE PROGRAM.

Subp. 2.

Basic sliding fee allocation.

The commissioner shall allocate child care funds for the basic sliding fee program as provided in Minnesota Statutes, section 119B.03, subdivisions 6 to 9.

3400.0060 BASIC SLIDING FEE PROGRAM.

Subp. 4.

Reallocation of unexpended or unencumbered funds.

The commissioner shall reallocate unexpended or unencumbered funds according to items A to D.

A.

The commissioner may reallocate unexpended or unencumbered funds following the first, second, and third quarters of the allocation period as provided in Minnesota Statutes, section 119B.03, subdivision 5. Following the fourth quarter of the allocation period, the commissioner shall review county expenditures under the basic sliding fee program and shall reallocate unearned allocations to counties that had direct service earnings in excess of their allocation.

B.

The amount reallocated to any county shall be based on direct service earnings in excess of its allocation. The amount reallocated shall not be greater than the direct service earnings in excess of allocation minus the county's fixed local match to be calculated as specified in Minnesota Statutes, section 119B.11, subdivision 1.

C.

If the amount of funds available for reallocation is less than total county direct service earnings in excess of allocations, the reallocated funds shall be prorated to each county based on the ratio of the county's direct service earnings in excess of its allocation to the total of all county direct service earnings in excess of their allocation.

D.

If the amount of funds available for reallocation is greater than total county direct service earnings in excess of allocations under the basic sliding fee program, the funds remaining after the basic sliding fee reallocation shall be carried forward and added to the funds available for allocation in the next allocation period.

3400.0060 BASIC SLIDING FEE PROGRAM.

Subp. 6.

Basic sliding fee program waiting lists.

Counties must keep a written record of families who have requested child care assistance. When a family requests information about child care assistance, the county shall perform a preliminary determination of eligibility. If it appears that a family is or will be eligible for child care assistance and funds are not immediately available, the family shall be placed on a child care waiting list. The county must determine the highest priority group for which a family qualifies and must notify the family of this determination.

Families who inquire or apply while they are temporarily ineligible shall be placed on the waiting list if it appears they will be eligible for child care assistance. When a family advances to the top of the county's waiting list and is temporarily ineligible for child care assistance, the county shall leave the family at the top of the list according to priority group and serve the applicant who is next on the waiting list unless a different procedure is provided in the county's child care fund plan.

3400.0060 BASIC SLIDING FEE PROGRAM.

Subp. 6a.

Transfer of families from waiting list to basic sliding fee program.

Families on the basic sliding fee waiting list shall be moved into the basic sliding fee program as funding permits according to the priorities listed in Minnesota Statutes, section 119B.03. After the county has complied with the priority requirement in section 119B.03, the county must comply with any priority requirements adopted under part 3400.0140, subpart 10, to move families on the waiting list into the basic sliding fee program.

3400.0060 BASIC SLIDING FEE PROGRAM.

Subp. 7.

Waiting list; transfer of transition year families to the basic sliding fee program.

A.

The county shall place transition year families on the county's basic sliding fee program waiting list effective on the date the family became eligible for transition year child care assistance.

B.

If a transition year family moves to a new county, the date the family was placed on the basic sliding fee waiting list in the original county shall transfer with the family.

C.

Families who are eligible for, but do not use, transition year child care assistance retain their priority status for the basic sliding fee program. Families lose their priority status at the conclusion of their transition year.

D.

The county shall manage its basic sliding fee allocation in a way that allows families to move from transition year to the basic sliding fee program without any interruption in services. The county shall not serve families who are a lower priority on the basic sliding fee waiting list than a transition year family unless the county can ensure basic sliding fee program funding for the transition year family at the end of the transition year.

E.

When the transition year ends, the county shall move the transition year family into the basic sliding fee program. A transition year family that does not come to the top of the county's basic sliding fee program waiting list before completion of the transition year shall be moved into the basic sliding fee program as funding becomes available according to the priority under Minnesota Statutes, section 119B.03, subdivision 4. Transition year extension child care may be used to support employment or a job search that meets the requirements of Minnesota Statutes, section 119B.10, for the time necessary for the family to be moved from the basic sliding fee waiting list into the basic sliding fee program.

3400.0140 COUNTY RESPONSIBILITIES.

Subp. 10.

Eligibility priorities for beginning assistance.

If a county's basic sliding fee program allocation for child care is insufficient to fund all applications for child care assistance, the county may prioritize eligibility among the groups that remain to be served after the county has complied with the priority requirements set forth in Minnesota Statutes, section 119B.03, subdivision 4. The county shall include its rationale for the prioritization of eligibility for beginning assistance in its biennial child care fund plan. To the extent of available allocations, no eligible family may be excluded from receiving child care assistance.

3400.0183 TERMINATION OF CHILD CARE ASSISTANCE.

Subpart 1.

Conditions for termination of child care assistance.

A.

A county may terminate child care assistance for families already receiving assistance when the county receives: (1) a revised allocation from the child care fund that is smaller than the allocation stated in the notice sent to the county under part 3400.0030; and (2) such short notice of a change in its allocation that the county could not have absorbed the difference in the allocation. The county must consult with and obtain approval from the commissioner before terminating assistance under this subpart.

B.

If the conditions described in this subpart occur, the county may terminate assistance to families in the order of last on, first off. When funds become available, counties must reinstate families that remain eligible for child care assistance and whose child care assistance was terminated due to insufficient funds before the county accepts new applications. Those families whose child care assistance was most recently terminated due to insufficient funds shall be reinstated first.