Transcript REDUCING CHILD CARE ASSISTANCE: THE IMPACT ON WEST VIRGINIA’S LOWINCOME WORKING FAMILIES Governor’s Child Care Assistance Meeting Friday, November 9, 2012 TED BOETTNER, Executive.

REDUCING CHILD CARE ASSISTANCE:
THE IMPACT ON WEST VIRGINIA’S LOWINCOME WORKING FAMILIES
Governor’s Child Care Assistance Meeting
Friday, November 9, 2012
TED BOETTNER, Executive Director
[email protected]
The report focuses on…
• The impact of recent changes in parental copayments and
income eligibility.
• Relevant research on child care assistance.
• The structure of the WV Child Care Program, including
• Eligibility
• Enrollment
• Parental copayments (fees)
• Reimbursement rates
• Financing child care assistance
• The importance of child care assistance to the state’s
economy.
• Policy solutions to help low-income families with child
care assistance.
Child Care Assistance Works
• Research shows that child care assistance is crucial to helping low-income
families maintain employment, stay off welfare, and have higher earnings.
• Several studies show a positive relationship between decreasing child care
costs and women’s labor force participation.
90.0%
West Virginia's Labor Force Participation Rate for Single
Mothers is the Lowest in the Nation (2011)
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
0.0%
WV
NM
PA
KY
LA
SC
MS
TN
MA
AL
AR
OK
OH
MI
MT
CA
AZ
IN
NY
NC
ME
OR
TX
WA
RI
VA
MO
NJ
HI
CO
FL
IL
DE
GA
KS
IA
NV
CT
NE
VT
UT
NH
ID
MD
SD
ND
WY
WI
AK
MN
10.0%
Source: U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics
Eligibility
• In general, child care assistance is provided to children under the age of 13
(up to age 18 for children with developmental disabilities, physical or
behavioral disorders, or under court supervision).
• Parents must be employed or in school and can continue receiving child care
assistance for 30 days after losing a job.
• Beginning January 1, 2013, families with income between 150 and 185
percent of poverty will no longer receive child care assistance.
300%
250%
200%
150%
100%
50%
0%
Nebraska
Idaho
Ohio
Indiana
Missouri
Michigan
Alabama
Colorado
Iowa
Montana
Virginia
Florida
Kentucky
South Carolina
Texas
West Virginia
Georgia
Arkansas
Maryland
Arizona
North Dakota
Tennessee
Washington
Rhode Island
South Dakota
Minnesota
Illinois
Kansas
Mississippi
Oklahoma
Oregon
Wisconsin
Utah
Louisiana
Vermont
Delaware
New Jersey
New Mexico
New York
Pennsylvania
Massachusetts
California
North Carolina
Connecticut
Wyoming
Nevada
Maine
New Hampshire
Hawaii
Alaska
As a perent of 2012 federal poverty leve ( family of three)
West Virginia's Income Eligibility Limits Among the Lowest in 2012
Source: National Women’s Law Center
Enrollment
• In 2010, 30 percent were infants and toddlers (0-2 years), 36 percent were pre-
school age (3-5 years), and 34 percent were school-age (6-13 years).
• 86 percent of the parents were employed, and 13 percent were receiving job
training or were in school.
• 74 percent of enrollees were white,12 percent multi-racial,11 percent African
American, and two percent as other.
• Approximately 1,400 children will no longer receive assistance beginning January
1, 2013.
Enrollment in W.Va. Child Care Assistance Declining
(Average number of children served per month)
21,024
15,432
14,159
2000
2001
2002
2003
2004
14,736
14,457
13,823
13,411
13,599
14,050
13,819
13,449
2005
2006
2007
2008
2009
2010
2011
2012
Source: West Virginia Department of Health and Human Services
Families Potentially Eligible for Child Care
Assistance
102,497
73,219
46,760
Children (Ages 0-12) at or Below 150% FPL
Children (Ages 0-12) at or Below 150% FPL with at Children (Ages 0-12) at or Below 150% FPL with
Least One Parent Working
Both Parents Working or the Only Parent Working
(if living with only one parent)
Source: Center on Law and Social Policy analysis of 2008-2010 ACS data
Parental Copayments (Fees)
• For a single parent at 100 percent of poverty with one child daily fees
increased from $1.00 to $3.75 in 2012.
• For a single parent at 150 percent of poverty with one child daily fees
increased from $2.00 to $7.75 in 2012.
Copayments for Single Parent with One Child
As a percent of monthly family income
12.0%
10.0%
9.6%
9.4%
9.1%
2007
8.2%
8.0%
2008
2009
6.0%
2011
2012 (old)
4.0%
2012 (new)
2.0%
0.0%
50% FPL
100% FPL
Source: West Virginia Department of Health and Human Services..
Note: These calculations assume 23 days of child day care in a month. Data for 2010 could not be located
150% FPL
185% FPL
Parental Copayments (Fees)
• For a single parent at 100 percent of poverty with two children daily fees
increased from $3.00 to $6.00 in 2012.
• For a single parent at 150 percent of poverty with two children daily fees
increased from $5.00 to $9.50 in 2012.
Copayments for a Single Parent with Two Children
As a percent of monthly family income
12.0%
9.8%
10.0%
8.7%
9.2%
8.7%
2007
2008
8.0%
2009
6.0%
2011
2012 (old)
4.0%
2012 (new)
2.0%
0.0%
50% FPL
100% FPL
Source: West Virginia Department of Health and Human Services..
Note: These calculations assume 23 days of child day care in a month. Data for 2010 could not be located
150% FPL
185% FPL
0%
Arkansas
California
New York
South Dakota
Wyoming
Iowa
Utah
Vermont
Michigan
Rhode Island
Alaska
Minnesota
Nevada
West Virginia
Alabama
Arizona
Connecticut
Illinois
Kansas
Montana
Nebraska
New Mexico
South Carolina
Washington
Indiana
New Jersey
Texas
Wisconsin
Mississippi
Missouri
Ohio
Tennessee
Delaware
Florida
Georgia
Kentucky
Maine
New Hampshire
Oklahoma
Pennsylvania
Massachusetts
Oregon
Colorado
Louisiana
North Carolina
Virginia
Idaho
Hawaii
Maryland
North Dakota
W.Va. Copayments Below Average (6%)
Parental Copayments for Family of Three
With An Income at 100 Percent of Poverty and One Child in Care
16%
14%
12%
10%
8%
6%
4%
2%
Source: National Women’s Law Center and WVCBP analysis of WV DHHR data
Federal Government Pays for Almost All Child
Care Assistance ($68.1 million in SFY 2011)
Federal CCDF
($26.9 million)
40%
WV CCDF Match
($3.2 million)
5%
W.Va.
9%
WV TANF/CCDF
MOE
($2.9 million)
4%
Federal TANF
($29.4 million)
43%
Federal ARRA
($5.4 million)
8%
Source: West Virginia Department of Health and Human Services
Child Care Assistance Spending Has
Fluctuated from 2000 to 2011
Federal CCDF
Federal TANF
WV General Revenue Fund
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
2000
2001
2002
2003
2004
2005
2006
State Fiscal Year
Source: West Virginia Department of Health and Human Services
2007
2008
2009
2010
2011
West Virginia’s TANF Reserves Have
Diminished
Total TANF Funds Used
Unobligated Balance
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Federal Fiscal Year
Source: U.S. Department of Health and Human Services, Administration for Children & Families, TANF Financial Data
Child Care Important Part of West Virginia’s
Economy
5,947
$13.46
$8.62
2,770
Child Care Workers in
Child Care Centers
Source: Workforce WV
Total Child Care Workers
Median Wage of Child
Care Workers
Source: Workforce WV
State Median Wage
Policy Recommendations
• Appropriate additional funds to the West Virginia Child Care Program.
• In 2010, nine states reported spending $82 million for child care assistance
beyond their CCDF matching and MOE requirements, including:
•
•
•
•
•
•
•
•
•
Alaska - $285,148
Colorado - $1,000,033
Connecticut - $30,299,905
Kansas - $7,871,217
Nebraska- $29,432,451
New Hampshire - $1,236,552
Ohio- $7,638,059
South Dakota - $537,567
Vermont- $3,646,266
• In SFY 2010, Illinois spent $27.3 million on child care assistance beyond their
matching and MOE requirements.
Policy Recommendations
• Increase transparency in WV Child Care Program
• Publish annual report on child care assistance statistics
• Examples: Minnesota and Illinois
Policy Recommendations
• Closely examine recent TANF spending categorized as
Authorized Under Prior Law (AUPL)
West Virginia TANF Expenditures under AUPL
$35,000,000
$30.0
$30,000,000
$26.3
$25,000,000
$19.0
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Federal Fiscal Year
Source: Center on Budget and Policy Priorities analysis of U.S. DHHS Data
Policy Recommendations
• Explore the possibility of using existing TANF funds
currently allocated by the state to Administration and
Systems on child care subsides.
Share of W.Va. and U.S. TANF Spending on Administration & Systems
West Virginia
United States Total
W.Va. Average
U.S. Average
25.00%
20.00%
16.53%
15.00%
10.00%
8.44%
5.00%
0.00%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Center on Budget and Policy Priorities analysis of U.S. DHHS Data
Policy Recommendations
• Explore the creation of a refundable child care tax credit.
• 28 States have Child and Dependent Care Tax benefits!
• These 13 states provide a refundable credit: Arkansas, California, Colorado, Hawaii,
Iowa, Louisiana, Maine, Minnesota, Nebraska, New Mexico, New York, Oregon, and
Vermont.
• Identify best practices in other states that could be used to
strengthen the WV Child Care Program.
• Join other states that invest more in child care assistance.
• Establish a legal entitlement to child care assistance (Rhode Island
and Illinois).
• Provide child care assistance to parents searching for jobs (16
states).
• Add budget language that requires WV DHHR to seek additional
funding from legislature before capping any services (Vermont).