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.

10,000 Kids have been turned away from Childcare 12/2/09

10,000 Children Turned Away From Child Care

Number of working poor families receiving assistance plummets,

Since February, all eligible low income working families who applied for DES child care assistance have been turned away. These parents want to work to provide for their family and need a safe and reliable setting for their children, but cannot afford child care. The Department of Economic Security (DES) provided a subsidy that helps parents with a portion of the cost of care, with the parents’ paying based on a sliding fee schedule. As a result of budget cuts, DES implemented a so-called “waiting list” that denies child care for any new families. The program is steadily declining through attrition: those who leave are not replaced. With no end in sight, the continuation of the turn away list is having a devastating impact on the families, the workforce, and businesses.

The turn away list continues to grow.

As of November 27th there were 9,912 children on the turn away list. With an average increase of 200 per week, by mid-week that number should hit 10,000. If continued, at the current rate, 17,500 children will have been turned away by June 2010. The number served in the program is dropping rapidly. One year ago, 49,000 children received child care; in September only 35,000 received care. The program has decreased by 29% – a reduction that is growing larger every day. The continued decline could result in reductions of 50% by the end of the fiscal year. There is no end in sight. Will families on the waiting list ever get assistance? DES targeted the child care program for a $30 million cut. If continued at the current rate of expenditure the cut will be $50 to $55 million. What is the target for reductions to the child care program? FAMILIES WANTING TO WORK ARE TURNED AWAY. The “waiting” list denies child care when parents need help to accept a job or keep working. The State will spend more on public assistance. THESE PARENTS HAVE NO GOOD OR SAFE 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. THE CHILD CARE CUTS HAVE INCREASED UNEMPLOYMENT. Parents lose jobs and hope when denied a subsidy. Employers do not hold low wage jobs. Fewer children in care reduces the workforce. 8 fewer children in care eliminates one teacher; with 1,750 jobs lost since November. Reduced State support will result in centers closing, particularly in low income neighborhoods. STATE CHILD CARE CUTS SHORTSIGHTED – HURTING FAMILIES AND THE ECONOMY. The dramatic decline of public support for child care jeopardizes the child care infrastructure that all working parents rely on and that provides employers with a stable workforce: Protecting essential safety net work supports, allowing working poor families to place their children in safe settings, and making cost effective spending decisions is the right thing to do for children, families, employers, and the State. We call upon the Governor and the Legislature to remove children from the waiting list and stop turning away eligible low income parents who need child care assistance to work.