Agenda - 11-07-2024; 8-a - Minutes

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47 1 2 During the pandemic, there was a decrease in demand for child care while there was an increase 3 in funds available. Some of these funds were allowed to cover parent fees, helping low-income 4 families return to employment. Orange County has continued paying parent fees to support low- 5 income working families at a cost of approximately $67,000 per month after Covid relief for fees 6 ended. This combination has resulted in insufficient funding to continue the current level of child 7 care subsidy service in Orange County. 8 9 Orange County has a long history of supporting low-income families through childcare subsidies. 10 The Board appointed a task force to study the issues in 2005 and has continued to recognize the 11 importance of child care for employment, child safety, school readiness and child development. 12 At times, the wait list for child care has grown to over 300 children with working families waiting 13 for years to receive support. In Fiscal Year 2015-16, the BOCC increased County support for 14 subsidy, and the waiting list was eliminated. Additional funds were added in subsequent years to 15 address the increased demand. There has not been a wait list since 2017. 16 17 The Social Services Board discussed the child care issue at its September 16, 2024 meeting, and 18 voted to ask the Board of Commissioners to consider Option 2 in the Manager's 19 Recommendations. 20 21 Nancy Coston, DSS Director, reviewed the background information for the item. She 22 shared that the following options are presented for the Board's consideration: 23 24 Option 1 — End parent fees effective November 30, 2024, and begin a waiting list for any 25 families working or seeking employment or training. There would be no 26 additional costs. 27 Option 2 — End parent fees effective November 30, 2024, and add up to twelve (12) 28 children per month to try to avoid a waiting list. The cost of this would be an 29 additional $726,000. 30 Option 3 — Continue parent fees and add up to twelve (12) children per month to try to 31 avoid a waiting list. The cost of this would be an additional $1,188,841. 32 33 Nancy Coston said 80% of children are in 5-star programs. 34 Commissioner Fowler asked how much parent fees are. 35 Tina Clark, Human Services Supervisor, said the parent fee is 10% of gross monthly 36 income for youngest child in household. 37 Nancy Coston said it costs the department about $67,000 a month to pay parent fees. 38 She said they are at a point if they keep paying the parent fees they will have to make a waiting 39 list. She said that currently they are the only county that is still paying the parent fee. 40 Commissioner Portie-Ascott asked how many children will stop coming if parent fees are 41 not paid. 42 Nancy Coston said they do not know. She said that parent fees are only covered for 43 working parents. She said they have thought about other programs that could help them, but do 44 not have a way to estimate how many families would not be able to afford it. 45 Tina Clark said that the average fee per month is between $200-250. She said that$200- 46 $250 a month can be a lot for a family struggling financially. 47 Commissioner Hamilton said it would be helpful to see a profile of the families currently 48 getting the subsidy.