CHENANGO COUNTY – A recent cut in federal aid is forcing the Chenango County Social Services to suspend child care subsidies to once qualifying families, leaving many working parents without a place to turn for help.
According to the Department of Social Services, federal funding for child care subsidies has dwindled over the last five years and it has put the county in a position to make one of two choices: increase the share of local taxpayers to maintain child care and day care subsidies as they are, or turn away families that exceed the federally mandated threshold for child care assistance.
“To keep it, the county would have had to increase what it pays by about $400,000 each year,” said Chenango County Department of Social Services Commissioner Bette Osborne. “The county decided that because of the local tax cap, they can’t increase the local share.”
Osborne explained that each year, the county receives federal money, which is funneled through New York State, to subsidize child care for qualifying families. Prior to the cuts in federal funding, Chenango County received more funding for child care than was allocated to local residents, allowing DSS to build a reserve account earmarked specifically for child care in the county. However, Osborne said the department has drawn from that reserve to compensate for federal funding cuts over the years, leaving little to allocate to families this year.
Changes to the child care assistance guidelines will affect 50 cases (94 kids) throughout the county, she added. “We sent letters to those families explaining it. We wanted to give them 30 days notice and give them time to adjust or make necessary arrangements.”
According to the Chenango County Department of Social Services 2013 annual report, a total $630,000 was appropriated for child care services last year. Those allocations were 100 percent reimbursed to the county through federal and state funding. The report also highlights a total 205 children (112 families) who were authorized for child care and day care assistance. Additionally, it states the purpose of childcare assistance is to enable families to be self-sufficient by allowing parents to “remain employed, seek employment, attend approved vocational training or as part of a child protective plan.”
In light of recent cuts in child care and day care funding, DSS is changing the local child care qualification threshold from 200 percent federal poverty level to 100 percent federal poverty level.
As per federal and state requirements, the county will still provide child care subsidies to families at 100 percent federal poverty level. This means help paying for child care will still be available for a family of two earning $15,730 or less annually. For a family of three, $19,790 is the cutoff point. For a family of four, it’s $23,850; and a family of five, $27,910.
There are concerns that parents who no longer qualify for child care and day care subsidies may quit their job and thus become eligible for cash assistance through the Temporary Assistance for Needy Families (TANF), Osborne said. But she said from a financial standpoint, this shouldn’t affect the local tax rate.
“TANF funding is 100 percent reimbursed by the federal government,” she said. “Money spent in TANF, we get back ... But if we spend over what’s allocated to the county for child care assistance, that’s paid 100 percent by local share.”
Osborne said DSS will close the 50 cases that no longer meet local child care subsidy guidelines by April 15, and incoming child care applicants who exceed 100 percent the federal poverty level will be denied.