The Sycamore School

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 1^st.  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 teacher 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 18^th. and by June 30th 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. Ask that this be applied now!

We need your help, now:

First, call the Governor's Office at 602-542-4331 to  voice your opinion or go to their web site  and write your comments.