NWLC: State Child Care Assistance Policies 2009: Most States Hold the Line; Some Lose Ground in Hard Times

 A study released in September by the National Women’s Law Center of child care policies in 50 states and the District of Columbia reveals that between February of 2008 and February of 2009 more states made cuts than made improvements in desperately needed child care assistance, worsening an already bleak landscape for parents trying to afford reliable child care.

The study also provides a preliminary look at the response of states since February 2009 to both worsening state budget deficits and the availability of new child care funds from the American Recovery and Reinvestment Act (ARRA). Since February 2009, some states are proposing to or have cut their child care assistance programs, but other states have used ARRA funds to maintain or expand their program.

While Connecticut has managed in the past couple of years to cover the cost of running the child care assistance program (Care 4 Kids), federally funded by the Child Care and Development Block Fund as well as with state funding, earlier in the year Connecticut opted to take steps backward in the advancement of child care policies. As of May 12, 2009, child care assistance to working families has been closed to a number of families who had previously been eligible.

CAHS's Sherry Linton, early care and education policy analyst, reviewed the several doccuments specific to Connecticut and found Connecticut, like many other states, work to balance state budgets, funding to vital services, like child care, was reduced or held at flat funding, irrespective of the rising cost of living.

• Connecticut’s child care reimbursement rate is significantly lower than the federally recommended rate. Consequently, families are forced to pay more out of pocket to access child care and child care providers struggle to keep their doors open with the limited funds they are receiving for reimbursement.

• Eligibility for child care assistance in Connecticut is only accessible to those who 1) receive Temporary Assistance to Needy Families (cash assistance), 2) received cash assistance in the last five years, or 3) in need of care to complete high school or equivalent program. Families who would otherwise be eligible are now being placed on wait lists indefinitely. This current child care enrollment policy denies access to many working families who spend upwards of 30% of their income to pay for child care in order to work.