STATUS OF THE STATE SUBSIDY – January 19, 2012

Click here to read the Status of the State Subsidy written by Bruce Liggett on January, 19 2012.

IMPACT OF THE STATE BUDGET CUTS ON THE CHILD CARE SUBSIDY

Please read the attached information regarding the IMPACT that the state budget cuts have had on the Child Care Subsidy.

Click here to read the Impact Summary.

Brief Summary of the Status of the DES Child Care Subsidy

Read the attached summary that includes the budget background, impact, and options regarding the status of DES Child Care Subsidy.

Click here to read the brief summary.

ACCA Review of Subsidy

Attached is a short description of the DES subsidy funding and caseload issues for ACCA members.  Much of what is contained in the description was discussed on the ACCA conference call on April 14th, with some minor updates.   We will update this as new information is received.

Subsidy Review

Letter to Governor Brewer asking for relief from the waiting list

This letter was sent to Governor Brewer on December 16, 2010.

December 15, 2010

The Honorable Janice K. Brewer
Governor of Arizona
1700 W. Washington
Phoenix, AZ 85007

Dear Governor Brewer,

Congratulations on your election victory.  Your leadership is critical as the State faces unprecedented declines in revenue and many competing and compelling needs for State support.  As you address these challenges, and prioritize funding, we urge you to consider both the immediate and future benefits to Arizona.  We urge you to continue to invest State funds in the Department of Economic Security (DES) child care subsidy, a program that allows Arizonans with children to work, creates jobs in child care, supports small businesses and community agencies, and is essential to the infrastructure that workers and employers rely on.  Child care is critical to the Arizona’s economy.

Click here to read the complete letter from the Arizona Child Care Association.

Subsidies for working poor are vital

Editorial from AZ Republic on July 27, 2010

Bill Berk – Tucson

Thank you for the attention you are bringing to the travesty involving child-care subsidies for the working poor (“State must not let subsidies die for those in need,” Editorial, Monday). The number of children currently on the waiting list can be counted. What can’t be counted is the number of children being left home alone or with unsuitable caregivers while their parents attempt to earn a living and support their families. The safety of all our children is at stake, yet the governor and Legislature seemingly turn a blind eye to the struggles of working parents as they try to better their lives.

Parents without access to safe, affordable and reliable child care are unable to work. Instead, they stop working and access more state-funded programs. While funding child care may seem expensive, the cost pales compared to supporting a family on welfare.

Preschools give jobless a hand

by Sonu Munshi – Jul. 17, 2010

The Arizona Republic

Imagine researching a company to a T, ironing your best duds for an interview and then taking your snotty-nosed toddler who is likely to cry or scream along to face a potential employer in an interview.

Peoria resident George Gormsen doesn’t have to imagine. The 31-year-old Web designer had the pleasure twice after he found himself in the unemployment market between November and June.

With his wife, Renee, working during the day, his daughter, Lorelai, now 14 months old, tagged along on interviews.

“That just didn’t look professional at all,” Gormsen said.

Shockingly, he didn’t land either position. He’s sure Lorelai’s presence was at least part of the reason.

But Gormsen is now back to work at a Peoria car dealership, and he can’t thank a Peoria day-care provider enough.

The Peoria dad was able to interview without Lorelai in tow, thanks to a free trial day at Sunrise Preschools.

The nearly 30-year-old Valley preschool, along with Tots Unlimited, another preschool and child-care center owned by the same company, is offering Interview Care, a free, no-strings-attached service to Valley parents of children ages 6 weeks to 12 years.

Dana Vela, president of Sunrise Preschools, hopes the offer of free licensed child care for unemployed parents to use when they go for an interview helps the community.

“There is a definite need out there,” she said.

The creative offer could have a longer-range benefit, helping to boost enrollment at a time when preschools are struggling as parents lose jobs.

The offer is open at all Valley locations on a space-available basis for an undetermined period.

Parents must make reservations in advance for up to four hours of care. Immunizations and other information are required.

State must not let subsidies die for those in need

Jul. 19, 2010 12:00 AM

The Arizona Republic

Child-care subsidies for the working poor are a rational response to a real need. This fact collided with a state budget deficit that required tough cuts. The crash left Arizona’s child-care subsidy program on life support.

It should not be allowed to fade away.
As the number of children being served shrinks and the waiting list of eligible children grows, Arizona needs to take a look at what can be done to preserve this program, which shows a commitment to things that are highly valued in our society: hard work and family.

For people with good-paying jobs, child care takes a big, but unavoidable bite out of the family budget.

For low-income earners, the cost of safe child care – as much as $5,000 to $8,000 a year per child – can be out of reach. Without a subsidy from the state, these working families can be forced to give up work or put children in unsafe settings.

Since February 2009, when Arizona imposed a waiting list for working families seeking child-care subsidies, the number of children in the state program went from about 48,000 children to 31,900 this April, according to the Department of Economic Security. If the waiting list is maintained, the number served will drop to 27,600 by December, says Steve Meissner, director of communications for the DES.

By that time, the number of children who are eligible but are not allowed in the program will exceed 19,000. Currently, about 10,300 are on the waiting list, with an additional 4,000 eligible but not included on the list.

Bruce Liggett, executive director of the Arizona Child Care Association, says calling it a “waiting list” is a benign description that creates the impression of a “one child out, one child in” process.

In fact, for the working poor, the waiting list is really a turn-away list, he says.
Liggett says that if the number of children served continues to shrink, the program could lose federal matching money.

The state continues to face a deficit, and more tough decisions will have to be made. But preserving a program that includes a big federal match makes sense.

Moving children off the waiting list and into the program to maintain the current level of funding would be a good temporary solution. When economic times improve in the state, the goal should be to increase investment in a program that helps keep children safe while parents work.

Over 13,000 children denied by “waiting” list

In February 2009, the State began turning away all eligible families and placing them on a “waiting” (denial) list.  The Governor and legislature will turn away all eligible children until at least June 2011, dramatically reducing child care 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 but cannot afford child care.  Reducing child care support 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.  “Waiting’ makes no sense; 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 is phasing out subsidy for new parents wanting to work to avoid welfare:

• Before the waiting list, 48,300 children received a subsidy versus 32,118 in March 2010
• With 16,728 fewer children, the total subsidy program has decreased by 34% already.
• Over 13,000 children have been placed on the waiting list with 15,000 projected by June 2010. 
• By June 2011, overall 50-60% fewer children will receive a subsidy.
• 23,000 fewer children from low income working families will receive subsidy, a 76% reduction.

 

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 2,100 jobs in child care have been lost already.
• Over 3,000 child care jobs will be lost and over 4,500 total jobs will be eliminated.

 

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 and employers rely on.  Reduced State support will continue to 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.

 

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.

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