Child care subsidies support families, but the budget isn’t matching the need
Lawmakers must invest in early childhood education now and in the future
Even with help from a subsidy, child care still cost Jenise Ramos $200 a week.
“That’s rent or mortgage money,” she said. “That’s groceries.”
The cost of care after the subsidy was almost as much as her entire paycheck, leaving behind little money for other essentials her family needs. She was faced with the same scenario many Connecticut families with children are making because affordable, quality care simply isn’t available.
“Instead, I had to make the impossible choice to keep my kids home,” Jenise said.
The situation is only going to get worse for Connecticut families if the state doesn’t make significant investments in early childhood education now. The data paints a dire picture: 63% of parents in Connecticut are spending more than 7% of their income on child care. That’s the threshold for what’s considered “affordable.”
A family of four in Connecticut needs to make at least $113,520 a year to survive, but half of households are making less than that. Meanwhile, it costs an average of $2,329 a month in child care for an infant and a preschooler – that’s $27,948 per year, as much as college tuition, for child care for two children. People aren’t making what they need to make ends meet, let alone saving for their family’s future.
The challenge isn’t only affording quality care, it’s finding it. More than half of Connecticut families that searched for child care within a year had problems finding a slot, and 29% took three months or longer to find care. It’s even harder for low-income families, especially those using subsidies.
The existing subsidy program doesn’t have enough funding to match the need, meaning not nearly enough parents who need it are able to access it. Only 35% of eligible families are receiving a subsidy, and 28% of parents who qualify aren’t applying because they don’t know if they meet the threshold for help.
Parents who can’t find child care are forced to take unpaid leave, cut their work hours, or exit the workforce altogether.
Christina Perez, a single mother of two, found jobs close to home that would’ve let her spend more time with her children. Those offers were revoked, however, when she was unable to find care that fit with her work schedule. Instead, she commutes 40 minutes to a job that matches her needs so she can provide for her children.
“Child care is so important for working families to be able to provide a roof over their heads,” she said.
That’s why it’s crucial for Connecticut lawmakers to invest in early childhood education now. Too many parents like Christina are facing the tough choice between affording care and stepping away from meaningful careers they love that provide for their families.
Connecticut’s child care crisis has a cascading effect that affects every corner of our state. Parents are struggling to find affordable, quality care for their children. Once they do, the cost is eating up too much of their paychecks. Parents are then forced to leave the workforce or cut down on their hours to care for their children, in turn bringing home less income to provide for their families and make ends meet. Fewer parents in the workforce makes it harder to find qualified applicants to fill the jobs that make our economy thrive, and also creates a bigger need for other government services.
Additionally, child care workers are barely making more than minimum wage, creating a revolving door of employees at a time when young children need stability. Providers need a living wage, and families with children need lower costs. Subsidies are a way lawmakers can show they support working families while respecting early educators with sustainable salaries.
American Rescue Plan Act (ARPA) funds the state has used to partially fund child care subsidies will run out this year. That $110 million gap means that some families receiving help will lose it unless the state invests in early childhood education now.
The funding crisis is twofold. The need is increasing as families struggle with rising costs of rent, groceries, child care, and utilities. At the same time, the state is facing a budget cliff when ARPA and CARES Act funds run out.
The state is sitting on a massive surplus that could be used to fill the gap, but the existing fiscal rules prevent the government from using it. Connecticut must thoughtfully and responsibly adjust the rules so that services aren’t cut, all while committing itself to investing additional money in child care to give more families the relief they desperately need.
Gov. Ned Lamont and some state lawmakers have signaled that they’re open to expanding funding for child care. They must follow through by committing revenue to continued investments in child care. Families need help now. The last thing they can afford is to lose services.
Parents deserve safe, affordable child care. The state also needs to show that it respects hardworking child care workers by providing them with the wages they deserve. Doing so will give children the best early start to life and give them the best chance at a thriving future.
