Showing posts with label CCDBG. Show all posts
Showing posts with label CCDBG. Show all posts

Friday, November 2, 2012

Poor peole, the rise in costs, and the threats to cut funding



RH Reality Check was on a roll the past few weeks. Sheila Bapat took a look at an article posted on the Huffington Post, which reported that parents are afraid of losing their jobs if they need to care for their sick children. The story correctly poses the need for more paid sick days and points out that when a child is ill, his/her parents typically need to pull him/her out of care and stay home with the child. 

However, as Bapat points out the story assumes child care is accessible to begin with. However, recent trend indicate that child care is becoming more costly, anywhere from $4,000 to $15,000 annually which is an added burden to the low-income. Bapat invokes the 50% of all American jobs pay less than $34,000 per year or less, which is an accurate figure, but juxtaposes that figure with outrageous child care costs. 

Now, there are public resources to help parents pay for child care, but new research shows these resources are not as plentiful as they used to be. The state of Maryland has discussed pulling some back into the welfare realm to subsidize TANF and food stamps if the feds cut back or sequester. The National Women’s Law Center issued a report in October showing 27 states had at least on child care assistance policy decline in its ability to serve low-earning parents compared to the previous year.
The NWLC report studies a range of state policies that impact access to child care subsidies for low-income individuals. These include income eligibility limits to qualify for child care assistance, co-payments, reimbursement rates for child care providers, waiting lists, and eligibility for assistance for parents searching for a job. The NWLC found these policies are critical to families’ access to child care assistance. 

Most states fell behind in 2001. There was a little help in 2009-2010 with the American Recovery and Reinvestment Act (ARRA) funds were applied to child care assistance, but those funds are long gone now.

So why the fall now? Most likely the budget crises and that child care assistance come in the form of block grants: the Child Care and Development Block Grant (CCDBG) and Temporary Assistance for Needy Families (TANF). Block grants provide flexibility for states to use the funds as they see fit. This is opposed to categorical grants, which have more requirements and regulations.
This structure allows child care funding to give the states freedom to help the working poor, but changes in the child care assistance policies are reflections of states making tradeoffs due to budget troubles. According to the NWLC, TANF and CCDBG yield $8.170 billion in 2012, and when adjusted for inflation, this comes to a bit less than 2011’s child care assistance funding and $2.5 billion less than 2001, when adjusted for inflation. So some states have to cut costs by making some programs stricter and others looser. 

Trade offs. This is a particular concern for those working with the low-income and welfare recipients. Those of us with Irish Catholic Guilt look at it as robbing Peter to pay Paul, but people are going to be missed, and the money is going to get tighter. I can’t look at my Google alert on welfare right now without seeing a half dozen or so articles, blogs, and editorials about the increase in federal spending on “WELFARE,” which has anyone writing about the increase read the report it is based off of, the request for the report, or could do basic statistical analysis they would understand where the increase comes from. Also the potential for fudging the numbers given they are counting everything as welfare except Veteran Assistance program.