Both the Senate and House Budget proposals leave much to be desired when it comes to ensuring that young children’s needs are supported and that they are in safe, enriching learning environments. Both proposals require cuts to four of North Carolina’s 16 child development agencies and fail to make up for lost ground in funding pre-K slots. While both the House and Senate Budget proposals add $5 million for additional pre-k slots, the funding is one time money meaning the slots expire after one year. It’s important to remember as well, that it doesn’t make up for the 2,400 slots that were lost in the budget passed last year.
In each proposal, troubling changes are also recommended to the income eligibility for the state’s child care subsidy program, which means about 12,000 children served last year would no longer be eligible according to legislative fiscal staff. The Child Care Subsidy program serves a two-fold purpose by both acting as a work support so parents can maintain employment and provide for their family, and to help families afford access to high quality child care so their children receive the early education they need to succeed in life.
The high cost of child care makes it difficult for many parents who work to obtain good quality care. In fact, child care is often the highest monthly expense for a family, with an average annual cost of full-time center care for one child at about $8,500 a year. Currently, the child care subsidy program provides families who earn less than 75% of the state median income (SMI; $42,201 for a family of three) the opportunity to ensure a safe, quality child care setting for their children while they work. Given the high cost of care, the federal government allows for states to qualify families up to 85% of the SMI, although most states, including North Carolina fall below this benchmark.
Instead of maintaining eligibility levels, and even increasing them as the federal directive allows, both the Senate and House budget proposals go in the opposite direction by reducing eligibility to 200% of the Federal Poverty Level (FPL; $39,060 for a family of three) for children 0-5 years old. Both proposals reduce eligibility even further for children 6-13 years old to 133% of FPL ($25,975 for a family of three). This means that to qualify to receive subsidies you have to earn less, even though families who earn up to 75% of the SMI still often can’t afford child care. As a result, fewer families will be able to access this critical support to help parents maintain work and help children be safe and successful in school. The impact on school age children is particularly damaging where the most drastic eligibility reduction is implemented. School age children with working parents still need before and after school care, as well as care during summer to ensure their safety and provide enrichment. When families can’t afford this care they are faced with leaving children home alone or in unsafe settings, missing work and potentially losing a job.