HAR §17-799.1-24. §17-799

1-24 Termination for insufficient funds. (a) When there are insufficient funds to pay child care payments at current amounts through the end of the State fiscal year, the department may, at its discretion, refuse to take new applications during the application period, refuse to enroll applicants who have been waitlisted, reduce payments, or terminate payments. (b) During the application period, reducing payments or terminating payments will be accomplished in reverse chronological order from the date the application was received by the department, and if there are not enough funds for all family units, then the department will further determine priority groups in the following order: (1) Children who are two years old by July 31 of the specified program year; (2) Children who are three years old by July 31 of the specified program year; and (3) Children who are eligible to enter kindergarten by the end of the specified program year. Family units shall be income-ranked from highest to lowest within their priority group, by dividing their monthly gross income by five hundred per cent of the Federal Poverty Guidelines in effect for the specified program year for a family of the same size, as updated for the specified program year. Payments shall be reduced or terminated in order from higher- to lower- income family units within each priority group. (c) The department budget will be managed by reviewing monthly expenditures and evaluating whether the cumulative expenditures at the end of any given month are less than or equal to the number of months that have expired in the fiscal year times 1/12 of the budget appropriation for child care payments for the State fiscal year . (d) When the department determines that the budget appropriation has or soon will be exceeded, notices of adverse action may be issued to limit the number of children receiving payments in any given month or to take other necessary action to operate within the child 799.1-34