childcare « Washington Policy Watch

January 18, 2012 • 8:29 am 0

Childcare subsidy cuts hurt working women and families

Economic trends show Washington women and families are falling behind in the economy, and repeated cuts to state childcare assistance is compounding the pain – especially for single mothers.

Washington has a high percentage of parents in the workforce – including 70% of single mothers – so it comes as no surprise that affordable childcare is critical to family economy security. But budget cuts are making childcare less affordable for working families, and more parents are struggling to balance work and parenthood.

Working Connections Child Care is Washington’s childcare subsidy program, helping lower-income working parents pay for childcare while staying in the workforce. But state budget shortfalls have raised co-pays, limited eligibility, and capped enrollments – effectively kicking thousands of Washington families off the subsidy.

For some families, losing the subsidy will mean parents who can no longer afford childcare will be forced to quit their jobs to take care of their children, or leave children in unsafe situations – choices no parent should have to make.

These subsidy cuts put more pressure on families already struggling to get by on lower wages and with fewer benefits, especially single parents. We shouldn’t let working families and children fall behind while special tax breaks remain firmly entrenched for Wall Street banks and multi-billion dollar corporations. Workers, families and children are Washington’s biggest asset, and it’s time to prioritize them.

Filed under: state economy, childcare, children, subsidy, Working Connections Child Care, working parents

February 1, 2011 • 12:34 pm 1

Preserving Working Connections Child Care protects our families and our economy

Gary Burris, Senior Policy Associate

Yesterday, my colleague Alex wrote about how the state’s Working Connections program helps working parents by making child care affordable. He’s right – but that’s only part of the story. High-quality child care is also crucial to getting children ready to succeed in school. And without Working Connections, thousands of working families simply can’t afford high-quality child care for their kids.

And while the agreement between the House, Senate and Governor has forestalled cuts to Working Connections for now, their agreement will only keep Working Connections in place through June. The long-term fate of Working Connections – and the children, parents and employers who rely on it – will be determined by the 2011-13 budget, which is still to be written.

Working Connections also keeps children out of unsafe situations. Parents aren’t faced with the no-win choice between going to work and leaving their children at home alone or in another (possibly unsafe) setting, or quitting work altogether and going on welfare.

Keeping Working Connections afloat has other benefits for our state. Both family home providers and child care centers alike operate on a thin margin. About 40% of children in the former, and a smaller percentage in the latter, are able to be there thanks to a subsidy from Working Connections. Losing that means child care workers lose hours – or their jobs – making the state’s already bleak employment picture worse. Some homes and centers might have to close, making it even harder for working parents to find high-quality child care.

In other words, by preserving Working Connections Child Care, we protect our families and our economy.

Filed under: early learning, budget, child care, childcare, state budget, Working Connections

January 31, 2011 • 3:14 pm 4

$14 million for face lifts and nose jobs — or child care for 39,000 working families?

Until a few days ago, Working Connections Child Care – one of the state’s most efficient welfare-to-work programs, according some – was slated to fall under the budget axe. Now lawmakers are now looking for $12 million in savings to maintain the program. Here’s where they can find it: by ending a $14 million state tax break on cosmetic surgery.

Working Connections works by offsetting some of the cost of child care for people earning low wages, making it possible for people to afford to go to work. By providing a pathway out of poverty and into the workforce, it has literally saved Washington tens of millions of dollars in reduced TANF outlays, restored the dignity of work to thousands of people.

But the steep decline in state revenues brought on by the recession threatened the success of Working Connections. Currently, families at 175% of the federal poverty level – up to $2,671/month for a family of three – are eligible for a child care credit. Proposed budget cuts would push that qualification level down to 82% of federal poverty, or just over $1,200/month for a family of three. That’s far below what one adult working at minimum wage earns, so it would all but eliminate the program.

As Jerry Large noted in his recent column, state lawmakers are seeking $12 million in other savings to save the program. That could mean any number of things – but in the current climate, it most likely means taking the money from some other crucial public service. A better alternative is to examine some of the 500+ special tax preferences and exemptions that have crept into law over the past 70 years.

Ending the tax break on cosmetic surgery would restore enough state revenue to keep Working Connections working well for Washington’s parents, children and employers alike — and even expand the program a bit, to make it easier for people to get a job and keep it during the recession.

Filed under: early learning, work and family, budget, childcare, tax break, tax loophole, Washington

October 12, 2010 • 5:24 am 5

State budget “savings” from child care cuts will increase costs for everyone

Child care subsidies for low income working parents make it possible for children to receive quality child care in licensed facilities while their parents are at work. Without these subsidies, most low-income working parents would not be able to afford child care while employed.

But the state’s revenue shortfall has taken its toll on this program.

In an effort to cover budget gap, Governor Gregoire has recently eliminated the child care subsidy from many low-income parents. Under the Governor’s directive, the eligibility for the Working Connections Child Care program will drop from families earning 200% of the federal poverty level to 175%. Around 2,500 families are predicted to lose the subsidy. Read the rest of this entry »

Filed under: early learning, tax and budget, childcare

Washington Policy Watch

Childcare subsidy cuts hurt working women and families

Preserving Working Connections Child Care protects our families and our economy

$14 million for face lifts and nose jobs — or child care for 39,000 working families?

State budget “savings” from child care cuts will increase costs for everyone

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