FSSA ANNOUNCES TANF TRANSFER TO RAISE FEDERAL POVERTY LEVEL
INDIANAPOLIS (October 3, 2007) - Today the Family and Social Services Administration’s (FSSA) Bureau of Child Care (BCC) announced the 2007 TANF transfer of an additional $10 million into the Child Care Development Fund (CCDF). Ultimately, this transfer will move
These dollars are targeted for TANF families – these funds are not focused on support for parents already in the workforce. How do we establish another child care funding stream?
“This funding gives our low-income Hoosiers piece of mind in knowing that their children are cared for in a safe environment while they work to provide for their families,” said Lt. Governor Becky Skillman. “The extra dollars in the Child Care Development Fund will help serve nearly 2,000 additional children whose parents are transitioning out of the welfare system.”
The focus here is on parents transitioning out of the welfare system. We must shift that focus to support families who are already in the workforce and paying taxes. That would mean an increase in income eligibility. In every county we visited during the Economic Impact of Child Care public awareness tour, the issue was always the same: not enough well trained young skilled workers; the region does not attract and retain young families and not enough high quality available and affordable child care.
Effective immediately, the TANF transfer will increase the FPL from 141% to 170% and increase reimbursement rates to licensed child care providers by an average of 3%.
According to the
How does this increase in the FPL impact the income eligibility for the voucher program? The original purpose of CCDBG was to support working families up to 250% - Indiana assisted families to 200% of poverty. At that time, AFDC child care program or the IVA program funds supported the current TANF families. When all child care was consolidated into one grant – Child Care Development Fund, we lost child care support for families in the workforce struggling to pay for quality child care. That is why we need an additional child care funding stream and we need to adopt the refundable tax credit for low income working families. This would be another progressive step for Indiana.
“Research shows that high quality learning experiences prepare children for future success,” said FSSA Secretary Mitch Roob. “Quality Rating System’s are a vital tool for parents as they make decisions about what child care settings are best for their children.”
We certainly agree that high quality learning experiences prepare children for future success. But, in every county during our public awareness tour, we learned that there was a shortage of high quality care available and affordable. The national model of QRS always includes as a critical component that of provider financial incentives. So, how do we do what we say we believe?
In addition to an FPL percentage increase and the QRS, expected results of this transfer include: an increase in the number of licensed capacity, an increase in the number of children with vouchers and an increase in the percentage of children with vouchers enrolled in licensed child care. The funds became effective October 1, 2007.
What will ensure that more children will have access to licensed care? If the income eligibility remains at $20,000 for a family of three – how can a family afford $8 -10,000 a year for child care? The only assistance to low income working parents would be the refundable tax credit or a working family child care stream of funding. The credit was offered to the GA last session, but Senator Kenley did not hear the bill. We had House support, but no hearing by the Tax and Fiscal Policy Committee.
The Stein Group
