Colorado Legislative Council Staff



State General Fund Expenditure Impact

Cash Funds Revenue and Expenditure Impact

Cash Funds Exempt Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-045

Rep. S. Williams

Sen. B. Alexander


Bill Status:

Fiscal Analyst:

January 6, 1998

House HEWI

Janis Baron (866-3523)



Summary of Legislation


FY 1998/99

FY 1999/2000

State Revenues

General Fund

Credential Fee Cash Fund

$ 45,982

$ 31,684

State Expenditures

General Fund *

Cash Funds — Credential Fee Cash Fund

Cash Funds Exempt — Credential Fee Cash Fund

$ 38,482



$ 16,684



FTE Position Change



Local Government ImpactNone.


*    The fiscal note assumes a General Fund transfer of $38,482 will be made to the Credential Fee Cash Fund in FY 1998-99. The Credential Fee Cash Fund will require $16,684 General Fund in FY 1999-00 to support the program.

The bill includes the following provisions:

               establishes a voluntary, multi-tiered child care credentialing system in the Department of Human Services (DHS) for persons working in early childhood care and education programs (the system does not affect the existing child care licensing program);

               establishes a 15-member child care credentialing advisory committee (repealed July 1, 2008) with the requirement to recommend system implementation, the amount of credential fees charged, and training standards;

               establishes the Credential Fee Cash Fund (comprised of fees, General Fund, federal funds, and private donations), and makes a $67,000 General Fund appropriation to the Fund; and

               is effective upon signature of the Governor.

State Revenues

            Section 26-6-305 — requires the State Board of Human Services to adopt rules to implement the child care credentialing system. The rules are to include the amount of new and renewal credential fees; the amount of which is required to reflect the direct and indirect costs to DHS of issuing and renewing credentials. The fiscal note assumes the system will become effective January 1999, with no applications and fees collected until that time (6 months of FY 1998-99). DHS indicates it will set the fee at a reasonable level to: (1) allow for a high level of participation; and (2) allow the program to be self-sustaining in future years. It is estimated that the fee will be set at $15.

            Fees Collected. For FY 1998-99, it is estimated that out of 20,000 eligible individuals, 500 persons will apply for child care credentials, or 2.5 percent. Fees collected are estimated at $7,500 ($15 x 500 = $7,500). For FY 1999-00, it is estimated that 1,000 persons will apply for child care credentials, or 5 percent. Fees collected are estimated at $15,000.

Fee Impact on Individuals, Families or Business

            Pursuant to Section 2-2-322, C.R.S., which requires legislative service agency review of legislative measures which include the creation or increase of any fee collected by a state agency, the following analysis is provided.


Type of Fee

(identify each fee separately)

Current Fee

Proposed Fee

Fee Change

# of Affected Individuals, Families or Business

Total Fee Impact

Child Care Credential Fee

$ 0

$ 15

$ 15





State Expenditures

            The Department of Human Services will require $45,982 in new funding to implement the child care credentialing system in FY 1998-99, and $31,684 in FY 1999-00. DHS will incur costs in the following areas:


               Child Care Credentialing Advisory Board — Although the board members shall serve without compensation, they are entitled to reimbursement for reasonable travel expenses. These costs are estimated at $3,600 in FY 1998-99 (assumes three meetings prior to January 1999), and $2,400 in FY 1999-00 (assumes two meetings).


               State Department Staff — DHS will require $25,182 and 0.5 FTE to assist the board in the development of the credentialing standards and system. Costs for FY 1999-00 are estimated at $22,709. It is estimated that 2.5 percent of eligible individuals will apply for child care credentials in FY 1998-99, and 5 percent in FY 1999-00. Due to limited participation at the program’s implementation, this fiscal note assumes 0.5 FTE is warranted. As the program expands and more individuals participate, increased FTE support for the program may be required; an issue which can be addressed through the budget process.


               Programming and Marketing — DHS will require $7,200 to design and implement an automated tracking system of provider credentials to multi-tiered professional standards (160 hours x $45/hour = $7,200). Maintenance costs to the system are estimated at $1,575 annually thereafter. Additionally, the department will require $10,000 if FY 1998-99 and $5,00 annually thereafter to market the system (printing materials and distributing information to eligible applicants).

            Funding for the Child Care Credentialing System in FY 1998-99. The bill includes a $67,000 General Fund appropriation to the Credential Fee Cash Fund and authorization for 1.0 FTE. This fiscal analysis identifies a total need for $40,982 and 0.5 FTE. The fiscal note assumes a $38,482 General Fund appropriation to the Credential Fee Cash Fund. Additionally, $7,500 cash funds generated in fees is required to fully support the program. Fees will be inadequate to support the program in its first years of implementation, thus the need for General Fund support. Approximately 2,500 individuals will have to participate to make the system self-sustaining.

Expenditures Not Included

            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:


               inflationary cost factors;

               leased space; and

               indirect costs.

Spending Authority

            The fiscal note assumes that DHS should receive an appropriation of $45,982 and 0.5 FTE for FY 1998-99. Of the total amount, $7,500 is cash funds from the Credential Fee Cash Fund and $38,482 is cash funds exempt (CFE) from the Credential Fee Cash Fund. The CFE moneys are General Fund moneys transferred/appropriated to the Fund for this program. The General Fund transfer/appropriation to the Credential Fee Cash Fund should be $38,482.

Departments Contacted

            Human Services