Shared Prosperity: Childcare Recommendations

Shared Prosperity Child Care Recommendations

November 2021 2019 Shared Prosperity Child Care Goal: Over the next five years, 1,000 children from lowincome families will have access to quality child care programs.

1. To increase provider participation in subsidy-supported child care and ensure affordable opportunities for families of lesser means: • Advocate for the following as part of Arlington’s legislative program • an increase of state subsidy amounts to provide a financial incentive for providers to participate in the program.

• Continuation, at least through June 2024, the following childcare subsidy program adjustments 1. Families may earn up to 85% SMI 2. Job search as a qualifying activity 3. Elimination of the family co-pay 4. Increased number of pre-approved absences (Young children are not eligible for the vaccine and are more prone, anyway, to catching illnesses. It seems premature to go back to pre-pandemic levels of allowed absences) • Creation of an opportunity for child care workers to participate in VRS or some other pooled retirement program.

• Alignment of state agencies to ensure seamless access for providers to the G3 training program (which provides free tuition for CDAs through the community colleges) and Virginia’s ACA program of health insurance.

• Use local child care funds to cover copays for families earning 30-50% of AMI who receive state child care subsidies. (County or ARPA funding) • Create a local fund to pay the first month of subsidy up front to the provider. (County or ARPA funding) Rationale: The state should increase reimbursements to account for the currently unfunded provider costs associated with program paperwork and other requirements.

During the Child Care Initiative action plan development, and confirmed since, the cost of the paperwork requirements, the need to chase families for co-pays and the month lag in reimbursement are all disincentives to provider participation in the state subsidy program, especially when demand for service far exceed supply.

In addition, providers say that the state’s reporting system is not reliable and takes precious time to manage. When children are absent, parents must log into the system to report those absences to ensure the provider gets paid.

Families of lesser means may struggle to make the 7% co-pay required by the state program. Using local funding to cover the co-pay relieves burden and creates certainty for both the provider and the family The State Subsidy is on a reimbursement basis. Using local funds to provide the first month’s tuition assures provider cash flow.

All child care providers run on small margins and generally require payment in advance of providing care.

2. Expand affordable slots for 3 and 4 year olds supported by state or federal funding by • Ensuring all VPI dollars are used either by APS or other high quality Arlington child care providers.

• Easing the requirement for appropriation of VPI local match funds through local governments, allowing private funding to more easily flow to support the required match • Building a community coalition to apply for Mixed Delivery grant funding, available through a Spring ‘22 funding round run by the Virginia Early Childhood Foundation.

• Working to assure that all Early Head Start slots managed by NVFS are filled.

Rationale: VPI funding can be used in multiple settings and currently a portion of Arlington’s VPI allocation is returned to the state each year.

Alexandria currently uses their VPI funding in public and private settings to ensure that all VPI funds allocated to the City are used. Arlington may have private providers who are willing to include VPI slots in their classrooms. The County in collaboration with APS, could issue an RFI to assess private provider interest. In addition, current rules require that private matching funds be run through the local government processes.

Because APS is strapped for space, it makes sense to pursue Mixed Delivery grant funding that can be used in licensed settings and is offered by the state through application to the Virginia Early Childhood Foundation.

Mixed Delivery targets children in families that make less than 200% of federal poverty. It requires a public-private leadership group. While in some instances public schools lead, their participation is NOT required. Often United Way, a non-profit or a local foundation has stepped in to assist with the initial application and program implementation.

As changes have been made to eligibility for VPI, NVFS has experienced a significant decline in Arlington families’ participation in Early Head Start. Every effort should be made to ensure that this resource is actively marketed to families who need it.

3. Use some portion of the unprogrammed ARPA funding to partner and achieve a bricks and mortar solution that will provide significant slots affordable to low-income earners for significant periods of time.

Space is expensive, hard to find, and a major cost driver in early childhood. The County investing in a longer-term physical solution could lead to a significant increase in affordable offerings, especially if focused on children under 3.