ARIZONA CHILD CARE ASSOCIATION
15,000 Children to Lose Child Care March 1st
Another 5,000 Children to Be Denied by June 30th
The Department of Economic Security (DES) provided preliminary details of the impact of the agencies’ shortfalls, legislative lump sum reductions, and fund sweeps totaling $153 million. DES provides a partial subsidy for child care to allow low income parents to work. Over $25 million of the reductions the agency was required to make were in child care. Given the magnitude of these reductions, the impact will be devastating for children and low income working parents who will loose their child care virtually overnight. Teachers who care for children will be laid off and providers who serve a large number of poor children will see their income immediately drop, for some to levels that may put them out of business. More specific information is expected to be received, and some figures may change but this is what we know.
15,000 children will no longer receive the subsidy March 1st. This is about 1/3 of all DES children who receive the subsidy and includes parents whose qualifying incomes are as low as an estimated $9.25 per hour or $1,600 per month for a family of three.
The cuts create an immediate crisis for almost 8,200 parents. The vast majority are single parents who have no other options and need child care assistance to work and stay off welfare.
These reductions will have an immediate impact on the child care workforce. For every 10 -11 children that a child care center loses, 1 teachers or staff member will lose their jobs – over 1,100 people in total as a result of these cuts.
In addition to the removal of thousands of children from care, co-pays parents are required to make will be increased by 30% for parents with two children remaining in care. Also, the rates paid to the child care providers will be reduced to the cost of care in the year 2000, with parents expected to make up the difference. Since the costs of staff and facilities are fixed, lower State payments will have to be passed on to parents who can’t afford to pay any more.
The waiting list will be put into place February 18th. and by June 30th, and 5,000 children will have been denied child care at the time when parents need assistance to take a job.
The final Conference Agreement for the Economic Recovery package has $2 billion specified
for child care and will be available upon enactment. It is estimated that Arizona’s share is estimated
at $25 million per year for the next two years – enough to restore the child care services for eligible families. For details go to http://clasp.org/publications/aara_childcarestatealloc.pdf
ACCA calls on the Governor and legislature to immediately draw down federal child care funds to prevent these cuts and continue to provide child care to eligible working families.
Please contact Bruce Liggett, Executive Director at 602-291-9451 for additional information.
“The Arizona Child Care Association is a professional non-profit organization of licensed private non-profit and proprietary child care centers. The ACCA mission is to promote accessible, affordable, and quality early care and education that meets the needs of Arizona’s families and children.”
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