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Finding quality child care comes at a high cost ... from $4,000 to $10,000 and up per year. For many low-income families, that can amount to 75% of their income.
In a 2007 report published by the Center for Law and Social Policy (CLASP), authors Danielle Ewen and Hannah Matthews found that low-income parents who receive help paying for child care are more likely to be employed, to have higher incomes, and to remain off welfare. However, instead of making child care a priority, the current Administration has proposed a freeze in discretionary funding for the federal Child Care and Development Block Grant (CCDBG). The report cites the Administration’s own projections that 300,000 fewer children would receive child care assistance by 2010. The parents of these children may be forced into debt; return to welfare; choose lower-quality, less stable child care; or decide between paying for child care and paying for rent. High-quality child care improves the well-being and healthy development of low-income children, yet costs are prohibitive for many low-income families. The U.S. Census Bureau shows that families in the United States with children under 5 pay an average of 9.5% of their income while families living below the poverty line with children under 5 spend about 25% of their income for child care. The lack of adequate child care is identified as a barrier to low-income women's ability to work. Studies show that 60% of women reported that the lack of child care kept them from participating in work programs. Estimates suggest that 10% to 20% of mothers do not seek employment due to the lack of accessible and affordable child care. Adding to the dilemma is that child care workers earn about $15,000 per year and fewer than one-third have health insurance. The industry’s high turnover rate results in workers with little experience, education and training. Because research shows that quality child care benefits low income children, the National Association of Child Care Resource & Referral Agencies (NACCRRA) surveyed local Child Care Resource & Referral (CCR&R) agencies to gather data about the supply and cost of licensed or regulated child care arrangements in 13 economically challenged urban communities. Federal law requires states to ensure that licensed or regulated child care providers protect the health and safety of children. While standards vary by state, licensing and regulation are indicators of quality care. As it stands, associations and organizations are forming networks to advance the cause of affordable, quality child care; campaigns to promote the improvement of the industry are being built; and advocates are encouraging community leaders to get involved. Without these efforts and legislation to ensure affordable child care, working families risk disruptions that can affect employment, restrict advancement opportunities, and even result in job loss.
The copyright of the article Finding and Financing Child Care in Parenting Resources is owned by Michelle Gardner. Permission to republish Finding and Financing Child Care in print or online must be granted by the author in writing.
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