State Rates Vary From 4 to 24 Percent, Mass Right in the Middle

Health and Human Services Secretary Donna E. Shalala announced a new report in late October which shows that only 10 percent of children who were eligible for federal child care assistance in 1998 received it. The report, "Access to Child Care for Low-Income Working Families," estimates that 14.7 million children in low-income families were eligible to receive a subsidy under federal income limits in 1998, but only 1.5 million children received assistance. The percentage of children helped ranged from a low of 4 percent in Mississippi to a high of 24 percent in West Virginia with Massachusetts landing smack in the middle at 15 percent.

According to the report, a family of three earning $15,000 without child care assistance pays between 24 percent and 45 percent of their income on child care. If these same families receives child care subsidies, they only need to spend between 1 percent and 7 percent of their income on child care.

"This timely and important report provides conclusive evidence that millions of low-income parents eligible for child care assistance are not getting the critical support they need to stay employed," said Secretary Shalala. "Bipartisan support for a wise and worthwhile investment in child care for America's working families is growing, but the clock is ticking for Congress to act. For working parents and their children, there's not a moment to lose."

Recent studies of Florida and North Carolina have found that increased child care subsidies result in increased employment rates and earnings for low-income working families. Conversely, parents who wait for child care support are seven times more likely to rely on public assistance than employed parents who receive a subsidy.

Under the 1996 welfare law that consolidated most federal child care funding, states could serve 14.7 million children at the federal limit of 85 percent of the state median income level. However, most states have set their income caps well below the ceiling. There were approximately 10 million children eligible under state-set limits in 1998, of whom only 15 percent were served. At the federal maximum limit, 27 states are serving less than 10 percent of eligible children, with Massachusetts tying at sixth place in those states serving over 10 percent.

Even though states are continuing to use all the federal funds available to them for child care, large numbers of children still go unserved. In fiscal year 1998, states spent $3.5 billion in federal funds, including transfers from their welfare block grant, and spent $1.6 billion from their own funds. In 1998, the number of children served rose to 1.5 million, up from 1.25 million in 1997. These numbers cover children served by the Child Care and Development Block Grant, created by the 1996 welfare reform law.

"Recent studies conclude that child care subsidies make a difference for parents trying to get and keep a job," said Olivia A. Golden, HHS assistant secretary for children and families. "If we are to keep the promise to families leaving welfare, or struggling to avoid welfare in the first place, then we must increase the funds for child care to help them succeed at work and at home."

Never before has the American economy been this strong and the need for affordable child care this critical, Golden noted. With the unemployment rate at 4.2 percent, a 30-year low, many employers are straining to find workers. Meanwhile more parents are entering the work force. In 1996, 3 out of 4 mothers with children between 6 and 17 were working compared to 1in 4 mothers in 1965. Two-thirds of mothers with children under six now work.

The President's balanced budget includes an historic initiative to improve child care for America's working families. The initiative proposes over $19 billion over five years for child care - the single largest investment in child care in this country's history. The proposal would expand assistance through the Child Care and Development Block Grant (CCDBG) for working families, enhance child care tax credits, and give communities the resources to improve the quality of care for children across income levels.

The report also notes that many parents are working non-traditional shifts. These parents face even more complicated challenges, as availability of child care for those non-day shifts is extremely limited. Statistics further report that the proportion of low income employed parents working non-traditional shifts is greater than higher income parents. There are 4.2 million preschool children with mothers who work non-day shifts, representing 4 out of 10 preschoolers overall, and 52 percent of preschoolers from families with incomes below 200 percent of poverty.

The report contains previously released summaries of studies that describe the importance of quality child care and its impacts on the learning and social development of children. Several recent studies reveal that high quality child care programs result in higher test scores, better preparedness for school and reduced behavioral problems in children.

The full report is available on the Internet at: http://www.acf.dhhs.gov/news. A table of state by state numbers is available at: http://www.dhhs.gov/news/press/1999pres/991019.pdf (requires free Adobe Acrobat Reader software).

The Massachusetts Office of Child Care Services (OCCS) has just contracted for another 2 years with the Child Care Resource Center to provide a toll-free automated phone service to access information about child care. This service links parents seeking child care information and referral services to the child care resource and referral agency that serves the cities and towns in which they need care.

The toll free service, which CCRC has managed since the service was piloted in 1996, is designed to be easily accessible and user-friendly. A caller who dials into the toll free service hears a clear, concise explanation of the child care resource and referral system and how it can help them to find child care. After pressing the zip code for the area in which they are seeking child care, the caller is introduced to the child care resource and referral agency which serves that area. Callers are given the agency’s name, phone number and service hours, and may leave a message for a family counselor or speak to one directly.

For access to the toll free service, call 1-800-345-0101.

Are you a family day care provider in Somerville or Cambridge? Do you know about the Family Child Care Initiative?

Through the family child care initiative, you can receive resources and supports for your program, including:

• Training

• Literacy Programs through your public library

• Accreditation

To find out more call Annie Sarno, Family Child Care Project Specialist, at 617-547-1063 x201.

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