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Authority: AS 47.25.001 7 AAC 41.050. Insufficient appropriations. (a) If the department determines that available appropriations are insufficient to provide full program benefits for participating families or to add new eligible families, the department may take one or more of the following actions:

(1) terminate, or require a designee to terminate, program benefits for one or more participating families;

(2) limit the activities eligible for a program benefit under 7 AAC 41.310(b)(2) — (5);

(3) establish a wait list under (d) of this section;

(4) reduce, or require a designee to reduce, program benefits for all participating families, by a percentage that is based on any shortfall in available appropriations. (b) In complying with (a)(1) of this section, the highest priority for retention in the child care assistance program will be given to a participating family lowest on the department’s Family Income and Contribution Schedule, adopted by reference in 7 AAC 41.335, prioritize by lowest income by family size within each of the two categories described in (d)(1) and (2) of this section. (c) If a designee develops a plan as an alternative to (a) and (b) of this section, the designee may submit that plan to the department for approval. If the department approves the plan, the approval constitutes a waiver of the requirements of (a) and (b) of this section for affected participants for the duration of the approved plan. (d) Subject to (f) of this section, if the department establishes a wait list under (a)(3) of this section, the wait list must prioritize eligible families for participation in the program, as follows:

(1) the highest priority is given to participating or applying families in which a single parent is, or both parents are

(A) working; or

(B) attending school, if the department has paid child care assistance for full-time student status for less than five years;

(2) the next priority is given to families in which a parent is

(A) searching for work and is in a participating family; or

(B) attending school, if the department has paid child care assistance for full-time