+-------------------+--------------------+----------------------------+
| **ACF**           | **U.S. DEPARTMENT  |                            |
|                   | OF HEALTH AND      |                            |
|                   | HUMAN SERVICES**   |                            |
|                   |                    |                            |
|                   | **Administration   |                            |
|                   | on Children, Youth |                            |
|                   | and Families**     |                            |
+-------------------+--------------------+----------------------------+
| *                 | **1. Log No.**     | **2. Issuance Date:**      |
| *Administration** |                    |                            |
|                   | **                 | **June 16, 1998**          |
|                   | ACYF-PI-CC-98-04** |                            |
+-------------------+--------------------+----------------------------+
| **for Children**  | **3. Originating   |                            |
|                   | Office: Child Care |                            |
|                   | Bureau**           |                            |
+-------------------+--------------------+----------------------------+
| **and Families**  | **4. Key Word: FY  |                            |
|                   | 1999 Child Care &  |                            |
|                   | Development Fund   |                            |
|                   | (CCDF)**           |                            |
|                   |                    |                            |
|                   | **Child Care &     |                            |
|                   | Development Block  |                            |
|                   | Grant (CCDBG)**    |                            |
+-------------------+--------------------+----------------------------+
|                   |                    |                            |
+-------------------+--------------------+----------------------------+

To State and Territorial Lead Agencies administering child care programs
under the Child Care and Development Block Grant (CCDBG) Act of 1990 as
amended, and other interested parties.

Subject Applying for FY 1999 CCDF Funds.

References The Child Care & Development Block Grant Act (the Act) of
1990, Section 418 of the Social Security Act, Appropriations for the
Department of Health And Human Services (P.L. 105-78).

Background In 1996, Section 418 of the Social Security Act appropriated
money for the Mandatory and Matching Funds of the Child Care &
Development Fund (CCDF) for the next 6 fiscal years (FYs). In 1997, P.L.
105-78 appropriated the Discretionary Fund of the CCDF for FY 1999.
(Although these funds were appropriated in advance of FY 1999, they are
nevertheless subject to the annual appropriation process now occurring
in the Congress.) FY 1999 CCDF funds will be available beginning on
October 1, 1998.

The appropriation for the Discretionary Fund once again earmarked
specific funds for resource and referral activities and school-age child
care activities. Unlike last year's funding, however, there is
[no]{.underline} earmark of funds for activities to increase the supply
of quality child care for infants and toddlers. (Nevertheless, Lead
Agencies have the flexibility to continue such activities and are
encouraged to do so.)

Amounts available The Attachment shows the estimated amounts available
in each of the CCDF

for FY 1999 funds to each State and Territory for FY 1999, including the
earmarked amounts required to be spent on resource and referral
activities and school-age child care activities.

Requesting FY For the first time, there is no "application" to receive a
FY's funds. Rather, States

1999 Funds and Territories request FY 1999 funds using the form ACF-696.
On the ACF-696 which is due to ACF by July 31, 1998, show the amount of
FY 1999 funds requested for the first quarter of FY 1999 by completing
block (c) of line 8, "Estimates for Next Quarter". (Instructions for
completing and submitting the ACF-696 are found in Program Instruction
(PI) ACYF-CC-PI-05, dated September 26, 1997. Please note that revisions
to that PI were sent to all child care administrators and financial
officers in January 1998.)

As in the past, FY 1999 funds are subject to existing drawdown
limitations.

(Continued on next page)

A reminder about A new State plan is [not]{.underline} required at this
time as the plans approved in October

amending the Plan 1997 are effective until October 1999. However, States
are reminded that significant changes to their current programs must be
reflected by amending that plan. For example, program changes made to
meet the earmark requirements may require changes to Part 3 (for
example, if contracts will be used for the first time to provide new
slots for school-age child care (SACC)), and/or to Part 5 (for R&R or
SACC activities, as appropriate) of the plan.

It is [not]{.underline} necessary to amend the estimates provided in
Sections 1.1, 1.2 or 5.1 of the State Plan.

Questions Questions should be directed to your Regional Office contact.

[/s/]{.underline}

Carmen Nazario

Associate Commissioner

Child Care Bureau

Attachment: FY 1999 CCDF Estimated Allocations