State continues to turn away eligible families

The State began turning away all eligible families and placing them on a “waiting” (denial) list in February 2009.  The Governor and legislature will continue to turn away all eligible children until June 2011, phasing out the subsidy for low income working families. As families struggle in the current economy to provide for and protect their children, the State has stopped helping low income parents who want to work and cannot afford child care.  The short-sighted decision to reduce a child care subsidy jeopardizes the safety of children and is having a serious negative economic impact: reducing employment and damaging small businesses and non-profits.

FAMILIES WANTING TO WORK ARE BEING TURNED AWAY WITH NO END IN SIGHT. All eligible low income working families have been turned away for a year.  Parents are denied child care at the very time parents need help to accept a job or keep working.  The State provides child care for families with ties to welfare and CPS, but phasing out subsidy for new parents wanting to work to avoid welfare:

• 48,300 children received subsidy in February 2009 versus 30,300 in February 2010 (est.)
• With 18,000 fewer children, the subsidy has decreased by 37% already.
• 11,391 children were on the turn away list on February 26^th with 17,000 children expected to be turned away by June 2010.
• Child care for low income working families will be virtually eliminated by 2011.
• By June 2011, only 20,000 to 24,000 children, or 50-60% fewer, will receive a subsidy.

THESE PARENTS HAVE NO GOOD OR SAFE OPTIONS. Families only seek State help with child care when they have no other options.  Without state assistance parents have no choice but to leave their children home alone or with siblings, or boyfriends, quit or reduce work hours, use caregivers who do not meet basic qualifications, or seek other more costly State aid to support their family.

CUTTING CHILD CARE COSTS MORE. The cuts have increased unemployment.  Parents lose jobs when denied a subsidy and fewer children in care results in the elimination of teaching jobs. Employers do not hold low wage jobs for parents with no hope of getting off the turn away list.

• At least 2,250 jobs in child care have been lost due to the “turn away” list.
• Ultimately 3,500 jobs will be lost in child care and over 5,250 total jobs will be lost in Arizona.

PERMANENT DAMAGE TO CHILD CARE IN ARIZONA. Payment rates for providers who serve poor children have been pushed back to the cost of care in 2000 and parents’ required share of costs increased significantly. The dramatic decline of public support for child care jeopardizes the entire child care infrastructure that all working parents rely on and that provides employers with a stable workforce:  Reduced State support will result in centers closing, particularly in low income neighborhoods.

We call upon the Governor and Legislature to find solutions to remove children from the denial list and serve all eligible low income parents who need child care assistance to work.  Protecting essential safety net work supports, allowing working poor families to place their children in safe settings is the right thing to do for children, families, and Arizona.