Child care assistance is essential, judge rules

t Carol Mathey's Center for Children and Families in Oakdale, "everything was normal," before the state government shutdown took effect July 1, says Director Stacie Penn.

But the mood changed a bit at the center after a majority of the government coffers closed at the beginning of the month.

When Gov. Mark Dayton and the Legislature couldn't reach a budget agreement by June 30, funding for essential services was set to continue. But, child care assistance was not one of them, says Child Care Works Executive Director Mary Nienow.

Child Care Works provides advocacy for providers and followed activity of the state during the 2011 legislative session, she says.

Appeals to the decision about eliminating child care assistance during the shutdown were in effect almost immediately and luckily, providers say, it was deemed essential again last week.

It happened just a day before a breakthrough between Gov. Dayton and the Republicans that may end the government shutdown.

The offer included increasing aid shifts from schools by $700 million and borrowing $700 million against future tobacco revenues to close the remaining $1.4 billion budget gap, according to a letter from Gov. Dayton's office issued last Thursday.

Gov. Dayton then awaited a response from the Legislature and planned to call a special session to work on the budget "around the clock," according to the letter. The Legislature met last weekend and a special session had not been set as of Monday.

Some relief ...

Child care providers are waiting to hear if they will receive back payments of funding they did not receive due to the government shutdown.

In the meantime, they know future payments will not be delayed.

Penn says 40 percent of kids at Carol Mathey's are from low-income families and almost all of them are on government assistance of some kind.

The assistance is issued as a reimbursement to the center, which is a nonprofit organization, for its child care services and can be anywhere between $16,000 and $20,000 per month, she says.

When Ramsey County District Court Judge Kathleen Gearin passed the ruling to restore the funding, it came at the same time child care providers told Nienow they would have run out of resources, she says.

They worried about not being able to pay their mortgage, taxes, layoffs and even closing, Nienow says.

At Carol Mathey's, three full-time employees would have been laid off, Penn adds.

There shouldn't be any cutbacks now with the restored funding.

"We'll work with the families, we want them to continue to have quality care and consistency," Penn says. "We're glad the judge was able to realize child care is essential."

But, looming budget cuts

While child care providers and parents received some good news with the restored funding, there are still looming concerns about how the final budget allocations will shake out.

Nienow says she heard the proposed cut to child care assistance is 5 percent, plus the loss of grants that support a statewide resource and referral program for families seeking child care.

"The last six months we have been very vocal about how harmful that will be to child care to both the Legislature and Governor Dayton's office," she says.

Plus, Nienow says the state of Minnesota does not supply the level of reimbursement to providers it should be based on federal standards.

The federal government recommends assistance cover 75 percent of the market cost, but in Minnesota it is only covers 35 percent, she says.

"The rate (the state) pays for child care assistance has not kept up (with the) market so families receiving assistance have less choice in what they can afford. This additional 5 percent rate cut is going to move us in the wrong direction," Nienow says.

Child care assistance in Minnesota serves nearly 20,000 families and more than 35,000 children with about $16.5 million in funds each month, she says.

The Maple Tree Child Care Center at St. Paul's Monastery in Maplewood has less families who receive child care assistance than other providers, however staff are concerned about future budget cuts, says Director Jennie Schlauch.

"We are already subsidizing our county clients quite a bit because the county doesn't pay what we charge," Schlauch says. "We cover that difference and try to help our families in that way, but if it gets cut further, that gets concerning."

Overall Penn says the government shutdown, even if it is over soon, is affecting business because their clients with state jobs aren't working and don't need child care.

"The more people don't have jobs, (they) will take their kids out of day care," Penn says. "I hope they can learn to compromise and come to a solution so they can get people back to work."

Source: http://oakdalelakeelmoreview.com/main.asp?SectionID=4&SubSectionID=233&ArticleID=7885