BY CASSANDRA JENKINS & SIERRA MARTIN
Staff at local child care facilities have been working to overcome and persevere through the hurdles experienced during the COVID-19 pandemic. Now an expiration in American Rescue Plan Act funding could prove to be the next hurdle in the industry. As part of the ARPA signed into law in 2021, the federal government allocated $24 billion in grants to child care providers to help create financial relief through the COVID-19 pandemic. Texas alone received a little over $4 billion through the Child Care Stabilization Program—funded through the American Rescue Plan Act—but with the end of fiscal year 2022-23, that funding was cut off Sept. 30. Child care cliff: Funds run out
The big picture
The cost of care Local data provided by the U.S. Department of Labor Women’s Bureau shows an almost $2,000 rise in the cost of care in Comal County between 2018 and 2023. Median yearly price in 2018: $8,666 Median yearly price in 2023 (estimated): $10,200 Childcare price as share of median family income: 9.8%
According to the White House website, the stabi- lization grants were used to help small businesses stay open by providing funds to pay rent, improve facilities and/or retain employees. In Texas, the stabilization program served 836,000 children with 10,790 child care pro- grams in the state receiving support from the government. Estimates show that without financial support: • Nearly 4,000 child care programs could close statewide. • Over 300,000 children could be left without care in Texas. • Total cost of turnover and loss of productivity in Texas is nearly $1 billion . • Nationwide, the foundation reported more than 70,000 child care programs will likely close, and about 3.2 million children could lose their child care spots.
Comal County demographics
Women's labor force participation rate: 67.4% Women's median earnings: $30,194 Median family income: $88,431 Percent of families in poverty: 5.7%
SOURCE: U.S. CENSUS BUREAU/COMMUNITY IMPACT
What’s next?
7 ballot to create targeted property tax cuts for child care centers. Senate Bill 1145 prohibits the exemption from being less than 50% of the appraised value. If the constitutional amendment passes in November, counties and municipalities can adopt the exemption effective Jan. 1.
care,” Kofron said. “The remaining centers will have to either lower wages or increase tuition. Neither of those are good choices.” During the 88th Texas Legislative Session, a $2.3 billion House proposal for child care was left out of the final budget. However, a joint resolution was passed to put a constitutional amendment on the Nov.
Kim Kofron, senior director of education for Children at Risk, a Houston-based nonprofit advocacy group, said she has already begun to hear stories of longtime day care centers beginning to close. “We already have child care deserts, [and] with the impending child care cliff, we are anticipating even more closures, and because of that it will be even harder to find child
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