Care4Kids Stimulus Checks Welcomed, But Also Highlights Need for Better Projections

HOPE for New Haven Executive Director Georgia Goldburn couldn’t believe her eyes when she opened her mail after the Memorial Day holiday break. It was a check from the Department of Social Services, made out to her center, for just under $15,000.

Where did the money come from? Connecticut received $13.7 million in 2009 in ARRA Child Care Development Block Grant (CCDBG) funds and was mandated to spend $93 million in order to keep these funds.  Last May, when DSS closed the Care4Kids program for six months (resulting in fewer children receiving early care and education) the state fell short of meeting the required $93 million. The state would have had to return the entire amount of nearly $14 million to the federal government, had it not spent the underlying $7 million by the end of this fiscal year (June 30). DSS believed issuing stimulus checks was the most expedient way of reaching the federal spending mandate.  Checks went out to over 5,500 providers who are active participants in Connecticut’s ‘Care4Kids’ program, which offers subsidized child care to eligible families. Payments ranged from $300 to $49,000, depending on the size of child care facility, number of Care4Kids clients and national accreditation status. They were mailed out Friday, May 28, to licensed group and family care homes, child care centers, school-based providers and summer camps.

As Goldburn noted, however, we can’t forget how this money came about.

When the program severely restricted eligibility last year, 6,000 children were dropped from the C4K rolls. That means less children enrolled in the program, less children attending early care and education programs. The subsidy is seen as a program to keep low-wage families working by helping them afford the cost of childcare, but with many families no longer eligible, that meant many parents had to leave their jobs or find affordable, but possibly not adequate, child care, because they could no longer afford their current arrangements. The last year has been a real struggle for providers of low-wage families. Even in good times, providers often find themselves struggling, so when C4K changed eligibility requirements, providers faced dire circumstances. But many providers were willing to struggle financially as small businesses to keep children in stable and consistent care and education. “This does make up for what we did lose,” said Goldburn. DSS offered strong suggestions to use the money to reduce family fees, increase staff compensation, make utility or energy-saving upgrades, make improvement to play areas and purchase supplies and equipment. “We realize there are may be several needs for your child care setting,” said DSS Commissioner Michael Starkowski in a letter dated May 25 to providers, making the suggestions on the use of the one-time funds.

“This is going to allow us to expand the Infant/Toddler program,” said Goldburn. “We’re excited about that.”

Some providers already have the money spent, like Gloria Hayes of Good Shepherd Child Development Center in Milford, who received approximately $7,900. “One of the things DSS suggested was to increase the quality of the outdoor and indoor play areas,” Hayes said. “We already spent it on new carpeting for a preschool room and new mulch for the outdoor play areas at both centers [Good Shepherd and East Shore Child Development Center].” Governor Rell called the checks “a common-sense decision” and that the program helps keep parents working. “These special payments will enable our child care providers to strengthen their services to children and families across the state,” Governor Rell said.  “This is especially important for families struggling to make ends meet. Access to high-quality, affordable child care services can mean the difference between going to work and unemployment.” But early care and education advocates argue that the $7 million would have been better spent by keeping the C4K program open instead of closing it, allowing families who needed it to continue to use it without interruption. Children would have most benefitted from a stable Care4Kids program, as opposed to one-time stimulus checks.