Analysis of Child Welfare Services Expenditure Data and Child Day Care Expenditure Data: Phase II Report. B. Fungibility of Federal Monies


A related but unique situation arises from the States' desire to optimize the matching ratios from the various Federal funding sources (called 'fungibility'). Day Care and child welfare services can be funded from many Federal sources, each with different eligibility and matching requirements. Many States, often using the support of consulting experts in this area, are moving their funds among programs to obtain a larger overall amount of Federal dollars and/or to more effectively target State and local resources.

The result of these fungibility efforts are reflected in the VCIS reports as evidenced by major shifts in the amount of dollars from service to service. While our contacts with the States enabled the identification of areas where this condition had occurred, no major impact was noted in the total combined amount of Federal and State dollars expended.

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