Advocates for Early Childhood Iowa told lawmakers they believe federal funding can be drawn down without the need to move certain funding streams to state Department of Health and Human Services control, as proposed in a bill moved forward Monday.
Finalized amendment language is not yet public for Senate File 2462, but the bill as discussed by a Senate appropriations subcommittee is significantly different from the initial language discussed in earlier meetings about the proposal. The measure would direct money for home visitations, family support services and parent education programs in the “School Ready Fund,” currently allocated through the ECI system, to HHS oversight in order to draw down federal funding through the Family First Act.
Of the roughly $28 million currently appropriated through Iowa’s system of 34 local ECI boards, roughly half goes toward home visitation services through the “School Ready Fund.” These contracts would be taken over by the state if the measure moves forward.
Janée Harvey, HHS division director of Family Well-Being and Protection, said at the subcommittee meeting Monday this change will allow Iowa to turn on “a brand new financial spigot from the federal level that, at a minimum, we anticipate bringing in $7.5 million new dollars into our state.”
While some opponents to the bill said the measure will strip local ECI boards of the ability to fund services that best suit their communities’ needs, Harvey said the proposed amendment to the bill will involve revenue sharing with the ECI system. If approved, 25% of the new federal money that comes to the state through the drawdown would be “shared as a direct investment back into ECI” in the first year of implementation, Harvey said. In year two, that funding would reduce to 15%, and in year three to 5%.
“At that point, we believe legislators could take this up and decide how much of a percentage or how much money should be shared …” in the future, Harvey said.
The move to state oversight is proposed in order to allow Iowa to qualify for Title IV-E federal funding through the Family First Act, HHS officials said, as the federal match applies to “evidence-based” home visitation models. But some advocates, like Kate Walton with the Association of Early Childhood Iowa Area Boards and Advocates, questioned whether pursuing this funding will allow the same focus currently being pursued by ECI boards for early childhood development services. The federal funding stream being pursued is meant for a wider age range of minors, from ages 0 through 18, who are at risk of entering the foster care system.
“The sticking point is not the priority on maximizing those federal funds,” Walton said. “But I also do want to point out that Early Childhood Iowa’s focus is birth to 5, and it is for all children in that area. And what is being contemplated with this appropriation … would go birth to 18, and also children who are at risk in the Human Services (system) — which, again, providing services to those children is a priority, but it is not the priority of Early Childhood Iowa. Our priority is slightly different and broader.”
HHS officials and Sen. Kara Warme, R-Ames, who chaired the committee, reassured individuals at the meeting that the intent of the legislation is to continue focusing these funds on services for young children.
Even if the state moves forward with pursuing the federal matching dollars available, several speakers said they believed it could be possible for local ECI boards to retain control and oversight of this funding.
Barb Bremner, Polk County Early Childhood Iowa director, told lawmakers members of the Association of Early Childhood Iowa Area Boards and Advocates met Friday and received information from Chapin Hall, one of the consultants hired by HHS to conduct a study of the ECI system. During this meeting, Bremner said members learned funding would still be available if an entity outside of HHS administers home visitation contracts, provided that a “robust” memorandum of understanding is used.
Amy Grunewaldt, Linn County ECI director and the chair of the association, said the group is asking lawmakers not to move forward with the changes, but instead pursue a study “that brings state and local systems together, one that looks (at) how do we align our efforts, strengthen our partnerships, and build a coordinated system that works for families across Iowa.”
Grunewaldt said the proposed amendment is a “very state-led” approach to changing the system that shifts administration and funding oversight “without first answering the biggest question, ‘what should this system actually look like?’”
“We already have a strong foundation through Early Childhood Iowa,” Grunewaldt said. “We have established an infrastructure that aligns community voice, local partnerships and service delivery across the state. This system is already coordinating services. We’re already leveraging funding and responding to local needs. So we should build on that, not around it, with a thoughtful approach. We can align the existing system with federal requirements and the department’s goals of the (Early Childhood and Family Services) funding. That means leveraging what’s already working and avoiding the duplication and ensuring that we are delivering the most efficient and effective programs for families right now.”
Several speakers at the packed meeting also spoke of the importance of maintaining the local control through the current ECI system. Matt Ohman, director of the Siouxland Human Investment Partnership, said he believed the change would consolidate more power in state government.
“I’m a lifelong Republican and I just have to question, why are we building more bureaucracy, more state government?” Ohman said. “Why are we centralizing power in Des Moines and taking it away from the local communities? I don’t think it’s a DOGE thing. I don’t think it’s an efficiency thing. I don’t think it’s going to save money. I feel like local decision-making … the system you have set up — is the best way to handle this.”
Warme and Sen. Mark Costello signed off on the bill moving forward, while Democratic Sen. Cindy Winckler did not. Warme said the legislation is still being worked on, and that more discussions will continue as the amendment language on the bill is released.
“I think there are pieces of this that that we certainly want to continue looking at,” Warme said. “And so we will continue that dialogue, and we hope you’ll stay in contact with us as additional language is public.”
