Agenda - 03-19-1996 - X-D - Laserfiche WebLink

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3 CHILD CARE SUBSIDIES: MAKING A DIFFERENCE FOR FAMILIES IN ORANGE COUNTY Why is child care important for children and families? Child care is the essential ingredient for families to be able to work, pursue an education, or get job training. Without affordable child care, many low-income families find it necessary to quit their jobs and turn to public assistance. Other parents continue to work, but may leave their children alone or in unsafe conditions. Quality child care ensures that young children get the developmental support they need to thrive and grow. Studies have shown that high quality child care leads to improved intellectual, social, and emotional development. Unfortunately, the reverse is also true: poor child care, especially in the first few years of a child's life,can impair a child's development. What does child care cost in Orange County? Child care is one of the largest items on the family budget,following housing, food, and taxes. In Orange County, the average cost for child care is nearly$500 per month per child. A typical family pays nearly$6,000 a year for child care--three times more than one year's tuition at UNC. Without child care assistance,a family making$15,000 a year will pay 40% of their gross earnings for child care. Why is the cost of child care so high? Because Orange County has a very high proportion of quality child care programs, it has the highest child care costs in the state. Quality child care is expensive to provide: quality means there are a small number of children for each teacher, and that the environment is stimulating and child-oriented. Child care costs are also high because child care is a labor intensive industry, and all labor costs more in Orange County. Finally,child care is expensive because families in Orange County are well-educated and well off, and want high quality care programs. Orange County Families have the third highest median family income in the state,and thus the means to pay for the costs of quality care, which drives up the market costs of care for all families. What are child care subsidies? Who pays? The responsibility for paying for child care generally Child Can Subsidy Purchasing Partners falls on parents. Child care subsidies or scholarships i3.5 million annually are financial assistance programs that help families afford the cost of child care. Low-income parents who qualify for help may also pay a portion of the total child care costs based on a sliding fee scale. These programs are typically funded with federal and state dollars, although Orange County is fortunate in having other contributors. In Orange County, UWW $3,470,650 is available annually to subsidized children E] UAW WW,GRA- through the various purchasing partners, as indicated ■ in the table on the right. These combined resources ■ Mcm serve both preschool and school-age children, and ® GM include parent fees and provider in-kind contributions. Eighty-five percent is direct subsidies. Who is eligible? Family eligibility for child care subsidies is set by the various partners who fund these programs. In