Well, another summer another state budget struggle. It seems like it is a routine occurrence now! This year’s deficit is estimated at about $20,000,000,000. I put this out in long form because it is hard to visualize for most of us. The Governor’s May 14^th solution was to eliminate all child care subsidies except for state preschools and school age (afterschool) care. In addition, reductions of reimbursements to providers and the State Median Income level (family income eligibilities) were also in his proposal. This caused a strong reaction from families, providers and legislators. Both the Senate and Assembly Budget Committees rejected his proposal to eliminate child care but still in the discussion are the reimbursement and income eligibility levels. As of the end of May, there is a (combined Houses) Budget Conference Committee that will be reviewing the child care subsidy issues including family fees, family eligibility, a 38% cut to all child development programs and improper/overpayment provider payments.

This will be a distracted process as many legislators are tied into the election process. But it is an opportune time for PARENTS to write letters or send e-mails advising their representatives of the impact of subsidy changes. Can you afford NOT to have child care even moderately covered for you? How will you pay for this service that keeps you working? PROVIDERS need to respond to the reimbursement reductions and family eligibility as well – how much income will you lose if any of your families are not subsidized? According to a presentation by the Licensing Division, there are 54,000 licensed facilities in California. This is a tremendous economic force. The impact on local businesses (groceries, landlords, utilities, etc) will be significant.

Another area that will be impacted will be the working women. The recent recession has really changed the landscape for working women! According to the Center for American Progress, 50% of all U.S. workers are women and 4 out of every 10 mothers in the nation are the primary breadwinners for their family. The California Budget Report stated that between 2006 and 2009 there was a 78% increase in the number of married women with families who were the sole bread earners for their families in California. They need subsidies to keep their families afloat while husbands are trying to find employment. The condition of single mother families is even worse. The Governor’s proposals will eliminate many safety nets for these families – cash assistance, employment services, and disabled services are all on the block. Inside this issue is contact information for our representatives. Please use it!

Finally, I keep hearing this rumor pop up: that after the July 15^th provider reimbursements we are going to close our doors. THIS IS SIMPLY NOT TRUE. We have already been issued contracts for next fiscal year and intend to see them through to June of 2011. We are planning options depending on what occurs in September or October when the State budget is finalized but until that time we will remain the broad service, active agency we have been for nearly 30 years. If parents or providers have any questions about this, please ask us – don’t rely on rumors.

Have a safe and fun summer!