1. Child Care & Early Childhood Educationin Minnesota CARE Fellowship Class 6 Child Care WORKS Alicia Frosch Child Care Works / CARE Fellowship Class 6 - 2011

2. Summary of Child Care and Early Education Programs in Minnesota Child Care Assistance Program (CCAP): provides child care financial assistance to families with low-incomes Early Childhood Family Education (ECFE): is a program that provides parenting and early education opportunities for young children and their families in MN Early Childhood Special Education (ECSE): Provides free and appropriate public education to young children with identified educational disabilities in order to maximize their potential Child Care Works / CARE Fellowship Class 6 - 2011

3. Summary of Child Care and Early Education Programs in Minnesota School Readiness Program: a public school program for children age 3 to kindergarten designed to help preschoolers enter kindergarten prepared for learning success Early Childhood Screening: a quick screening of 3 year olds to identify any possible health or learning concerns so that children can receive help with any concerns before they enter school Early Head Start: federally funded community-based program for low-income families with infants and toddlers and pregnant women to enhance the development of very young children, and to promote healthy family functioning Head Start: is a federally funded full-service program for preschool children and their families in low-income households with the goal of getting children ready for school Child Care Works / CARE Fellowship Class 6 - 2011

4. What does child care do for children and families? Work Support for Parents Healthy Development for Children Economic & Social Investments for Society Child Care Works / CARE Fellowship Class 6 - 2011

5. Work Support for Parents Close to 80% of MN mothers work More than 75% of children under 13 spend part of their day in non-parental care Parents of young children report that child care issues are the #1 reason driving them to seek assistance Child Care Works / CARE Fellowship Class 6 - 2011

6. Women in the Workforce Child Care Works / CARE Fellowship Class 6 - 2011 U.S. Bureau of Labor Statistics

7. Women in the Workforce:Minnesota and Nationally Child Care Works / CARE Fellowship Class 6 - 2011 U.S. Bureau of Labor Statistics

8. Minnesota Mothers in the Workforce Child Care Works / CARE Fellowship Class 6 - 2011 Office on the Economic Status of Women; Minnesota Compared to Other States and the United States: Summary of the Status of Women Profile Reports; 2005

9. Healthy Development for Children With 80-90% of the brain developed by age 5, the quality of care during these years matters Research shows that children in quality settings improve their cognitive, social, reading and math skills leading to greater education success Child Care Works / CARE Fellowship Class 6 - 2011

10. Early Care & Education is an Economic Investment Successful children turn into successful adults Studies have shown significant cost-benefits from investing in early care and education such as decreased grade retention, less use of justice system and less dependence on public assistance. The Federal Reserve Bank of Minnesota estimates a “return on public investment” of at least $12 for every $1 spent on quality early childhood (i.e. $1 spent on quality early childhood brings a return of $12 in money saved from special ed services, juvenile courts, welfare benefits ,etc.) Child Care Works / CARE Fellowship Class 6 - 2011 Rolnick, Art and Rob Grunewald, Early Education: Economic Development with a High Public Return, 2003

11. Child Care & Early Education ARE Social Issues Child Care Works / CARE Fellowship Class 6 - 2011

12. The Child Care Three-Legged Stool Child Care Works / CARE Fellowship Class 6 - 2011

13. Child Care Quality Child Care Works / CARE Fellowship Class 6 - 2011 Accessibility Affordability

14. Affordability Child Care Works / CARE Fellowship Class 6 - 2011

15. Affordability:MN Ranks Very Low Nationally MN is the least affordable state for infant care (average annual cost is $11,796) MN is the 2nd least affordable state for pre-school care (average annual cost is $8,832) [National Association of Child Care Resource and Referral Agencies. Breaking the Piggy Bank: Parents and the High Cost of Child Care, 2006.] Child Care Works / CARE Fellowship Class 6 - 2011

16. The Annual Cost of Full-Time Child Care: Family Child Care Homes Child Care Works / CARE Fellowship Class 6 - 2011

17. The Annual Cost of Full-Time Child Care: Child Care Centers Child Care Works / CARE Fellowship Class 6 - 2011

18. Financial Support for Families Child Care Assistance (CCAP) currently provides financial assistance to families who meet certain criteria: Low-income working families Entrance eligibility = 47% State Medium Income ($32,944 for family of 3) Exit eligibility = 67% State Medium Income ($46, 963 for family of 3) Families receiving public assistance (MFIP/TANF) Families recently leaving public assistance Child Care Works / CARE Fellowship Class 6 - 2011

19. Percentage of Family Budget Used for Child Care Child care is often the 2nd or 3rd highest budget item for families – after housing and transportation Families with lower incomes often pay 20-30% of their gross income for child care, while families with higher incomes typically pay about 7-10% of their gross income Child care costs from 1997 to 2004 are 84% higher for two-worker families Child Care Works / CARE Fellowship Class 6 - 2011

20. Accessibility Child Care Works / CARE Fellowship Class 6 - 2011

21. Accessibility In Minnesota, over 672,000 children need child care for some portion of their day between ages 0 and 12 – 265,000 of them are under 6 Currently there are only about 205,000 licensed child care slots – less than one-third of that amount Families use whatever care they can find and afford – lack of availability means lack of choices Child Care Works / CARE Fellowship Class 6 - 2011

22. Current Accessibility Barriers: Long CCAP waiting lists, even for eligible families (3,716 families as of July 2010) Many two-parent working families are not eligible for CCAP Providers refusing to care for children using CCAP Difference in the rate paid by the State and the rates charged by providers Child Care Works / CARE Fellowship Class 6 - 2011

23. Current Accessibility Barriers: Due to budget restraints programs like ECFE, School readiness and Head Start have extensive waiting lists which means that many children and families will not have the opportunity to participate in these programs An example: In Ramsey County there are currently 238 families on the waiting list for the Early Head Start & Head Start program. Child Care Works / CARE Fellowship Class 6 - 2011

24. Quality Child Care Works / CARE Fellowship Class 6 - 2011

25. Lasting Effects of Quality Early Childhood Education The first five years of a child’s life are critical for brain development – missed opportunities aren’t necessarily permanent, but are difficult and costly to correct. Many studies show significant cost-benefits to society through better school success, less use of juvenile and adult justice systems, better socialization, etc. Child Care Works / CARE Fellowship Class 6 - 2011

26. Brain Development vs Government Spending Child Care Works / CARE Fellowship Class 6 - 2011

27. Quality in Child Care Child Care Works / CARE Fellowship Class 6 - 2011

28. Child Care Wages & Turnover The middle half of all childcare workers made between $7.11 and $10.54 an hour in 2008. The lowest-paid 10 percent earned less than $6.21. The highest-paid 10 percent earned more than $13.01. Family child care providers average $3.00 an hour. Benefits are not typical. Turnover of child care staff is, on average, about 32% annually. Child Care Works / CARE Fellowship Class 6 - 2011 U.S. Bureau of Labor Statistics

29. 2003 Legislative Session:A Disaster for Child Care & Early Education Child Care Works / CARE Fellowship Class 6 - 2011

30. Budget Deficit = $86 million reduced from the state’s child care commitments Child Care Works / CARE Fellowship Class 6 - 2011

31. Legislative Changes in 2003 Lowered income eligibility for CCAP from about $40,000 (family of 3) to $27,000 & dramatically increased parent co-payments Eliminated financial incentives for accredited programs to care for low-income subsidized children Increased license fees for child care providers Reduced state funds targeted for quality improvements Funding cut dramatically for ECFE, School Readiness, and Head Start Child Care Works / CARE Fellowship Class 6 - 2011

32. Impacts Resulting from 2003 Changes Many child care, parent education and preschool programs closed Low-income children had less access to quality programs Waiting lists grew tremendously, then disappeared as fewer families were eligible for services and able to pay the parent co-pay Today, current waiting lists still exist for many ECFE, School Readiness and Head Start Programs Child Care Works / CARE Fellowship Class 6 - 2011

33. Child Care and Early Education Legislative Agendas Child Care Works / CARE Fellowship Class 6 - 2011 Fast Forward from 2003

34. In 2007 Child Care Legislative Priorities Child Care Assistance Reform bill Restore eligibility to 75% of the State Median Income Provide sliding fee assistance to ALL eligible families Lower parent co-pays to no more than 10% of the family’s gross income and provide lower parent co-pays for those families choosing high quality child care Lift reimbursement rate freeze Absent Day and Half-day rate changes Over 75 organizations signed on to support this bill! Note: The Fiscal note on this bill was over $1 billion!! Child Care Works / CARE Fellowship Class 6 - 2011

35. What actually happened? CCAP-Co-payments reduced to no more than 14% of family’s gross income, absent day changes, income eligibility switched from FPG to SMI. Afterschool-$5 million one-time GF 2008-09. Licensing/Quality-Studies to determine how annual visits can be paid for through GF & how to visit FFN sites. Professional Development-$500,000 one-time GF 2008-09 for new DHS ECPD system; $500,000 ongoing funds for TEACH; $500,000 one-time GF 2008-09 for Child Care Service grants. Child Care Works / CARE Fellowship Class 6 - 2011

36. 2008 Session the Bonding Year$935 million budget deficit The Good… Increased funding for early childhood screening ($936,000) Established State Advisory Council on Early Education and Care Established Child Care Advisory Task Force The Bad… Cuts to Basic Sliding Fee Child Care ($9.2 million) Cuts to Pre-K Allowances ($250,000) Cuts to Child Care Development Grants ($110,000) Vetoed Early Childhood Facilities bonding proposal ($2 million Child Care Works / CARE Fellowship Class 6 - 2011

37. 2009 & 2010 Session “The Ugly” Deficit$6.2 Billion budget deficit Investment in early education and child care was a clear priority for policymakers this session Support an expanded voluntary Quality Rating and Improvement System (QRIS) Funding to continue FFN grants $8 million additional appropriation from the Federal Stimulus dollars to decrease the waiting list Continue funding for quality early learning pilot program (School Readiness Connections) for low income families BSF one-time reduction of $7.5 Million Child Care Works / CARE Fellowship Class 6 - 2011

38. NOW…2011 Session (Post Shut Down) Child Care Works / CARE Fellowship Class 6 - 2011

39. Looking ahead to 2012 Session 2012 Elections! VOTE! Will work hard to keep the funding we DO have now for current Child Care program and funding Continue to push for restored funding for child care Facing a deficit in 2012 (HUGE Numbers ???) Child Care Works / CARE Fellowship Class 6 - 2011