From the Desk of the
Executive Director
Economics is a subject that does not greatly respect one’s wishes. Nikita Khrushchev
California’s families will soon be learning this truth. On December 15th, the State will determine how severely under-budget the revenues are and a series of mid-year budget cuts will be implemented. Because of weakness in the housing market, end of the federal fiscal stimulus funds and declining governmental employment California is suffering a slow economic recovery. The statewide unemployment rate is 9.1% and Del Norte County’s is 12.7%.
As of last week, the State’s shortfall is estimated to be to be $3.7 billion under the June estimates and this will trigger approximately $2 billion in program and service cuts. These trigger cuts will reduce the amount of funding for child care and other child development programs for families.
Statewide there will be a reduction of $17 million for child care and this will undoubtedly affect the Child Care Council, its clients and child care providers. Based on information from the Legislative Analyst’s Office (LAO) current law generally requires programs to disenroll children from families earning the highest incomes first. Affected families will receive advance notice from the Alternative Payment staff regarding the status of their child care contracts.
We will let you know as soon as we have information from the State Child Development Division.
If you would like to see the Legislative Analyst’s complete report go to www.lao.ca.gov. If you would like to contact your local legislative representative, please refer to that part of this newsletter.
Please join us on December 14th for our annual Open House – we will be celebrating children even though the outlook for California is gloomy.
The State budget has been passed and we still have unanswered questions. Along with some contract reductions, there are still issues around Stage 3 child care. The dilemma of Stage 3 child care has now been submitted to the Alameda Superior Court. On October 29th the Judge extended the November 1st cutoff date for child care to November 5th. This is a statewide extension. We currently have 4 families who are affected by this legal action on their behalf. The position of the coalition that filed the petition for injunctive relief is that the last minute blue-line action by the Governor left 56,000 families statewide without subsidized child care. The condition of no child care subsidy will impede their ability to work. Undoubtedly, things will change after the printing of our newsletter but Del Norte Stage 3 families and their providers will be kept in the loop.
As we enter into the giving and thankful season, I would like to advise those parents and providers that we all owe a big thanks to the First Five Del Norte. Their loan of $52,000+ kept 44 providers of as many as 62 children in business during the months of August and September. Families and providers can send their thank you letters to Patti Vernelson, Executive Director, 494 Pacific Avenue, Crescent City.
One of the reasons that we were able to provide child care subsidy services during the impasse was that our staff agreed to work at a reduced level – including a 50% reduction for three weeks. I am always grateful for their dedication to the agency and the families we serve.
I am also grateful for the dedication and efforts of our annual fundraising events planner Billie Kaye Gavin-Tygart. This year’s Chills for Children was a huge success and the best ever attended! Billie and the staff of Six Degrees of Celebration were instrumental in our wonderful SEVENTH Chills event. Feedback was that it is the best party in town! We had attendees from as far away as Medford and Ashland. Thanks to everyone for the fantastic costumes and great revelry.
This newsletter is packed with information regarding our services, events and lots of good advice for both providers and families. Immunizations for winter illnesses, fun activities for children and safety information – even an article about one of our tastiest resources - are in this issue. We are heading into the time of shorter, darker days, rain and cold and possibly hardship for some Del Norte families and the newsletter has lots of good information. Our website has been updated and the Rumor Chaser is a good source of information regarding current issues. Please feel free to contact us if you have any questions or concerns. We are here to help.
We will be having our Annual Holiday Open House on Wednesday, December 15th from 4:00 to 6:00. Come join us for crafts and snacks!
On behalf of the Board and the Staff I wish you all a Happy and Safe Holiday Season!
Dear Provider,
This memo is to advise you that due to the lack of a State Budget, the Del Norte Child Care Council may not be able to pay for subsidized child care services provided after July 31st. We hope that you will honor your contracts for subsidized care during August and beyond. We will require you to continue submitting vouchers as described in the Subsidized Child Care Manual. As soon as the State passes its budget AND sends us our allocations, we will pay the reimbursements.
We apologize for the inconvenience and encourage you to call your State representative (we have contact information at the front counter and the list is also published in the Triplicate) to tell them how the lack of a budget is impeding your ability to serve subsidized families.
If you have any questions regarding your contract please contact Maggie Nunneley at 464 – 8311 X 19.
Respectfully,
Christin K. McCollum, Executive Director
July 2010
Dear Providers and Parents,
Well, another summer another state budget struggle. It seems like it is a routine occurrence now! This year’s deficit is estimated at about $20,000,000,000. I put this out in long form because it is hard to visualize for most of us. The Governor’s May 14th solution was to eliminate all child care subsidies except for state preschools and school age (afterschool) care. In addition, reductions of reimbursements to providers and the State Median Income level (family income eligibilities) were also in his proposal. This caused a strong reaction from families, providers and legislators. Both the Senate and Assembly Budget Committees rejected his proposal to eliminate child care but still in the discussion are the reimbursement and income eligibility levels. As of the end of May, there is a (combined Houses) Budget Conference Committee that will be reviewing the child care subsidy issues including family fees, family eligibility, a 38% cut to all child development programs and improper/overpayment provider payments.
This will be a distracted process as many legislators are tied into the election process. But it is an opportune time for PARENTS to write letters or send e-mails advising their representatives of the impact of subsidy changes. Can you afford NOT to have child care even moderately covered for you? How will you pay for this service that keeps you working? PROVIDERS need to respond to the reimbursement reductions and family eligibility as well – how much income will you lose if any of your families are not subsidized? According to a presentation by the Licensing Division, there are 54,000 licensed facilities in California. This is a tremendous economic force. The impact on local businesses (groceries, landlords, utilities, etc) will be significant.
Another area that will be impacted will be the working women. The recent recession has really changed the landscape for working women! According to the Center for American Progress, 50% of all U.S. workers are women and 4 out of every 10 mothers in the nation are the primary breadwinners for their family. The California Budget Report stated that between 2006 and 2009 there was a 78% increase in the number of married women with families who were the sole bread earners for their families in California. They need subsidies to keep their families afloat while husbands are trying to find employment. The condition of single mother families is even worse. The Governor’s proposals will eliminate many safety nets for these families – cash assistance, employment services, and disabled services are all on the block. Inside this issue is contact information for our representatives. Please use it!
Finally, I keep hearing this rumor pop up: that after the July 15th provider reimbursements we are going to close our doors. THIS IS SIMPLY NOT TRUE. We have already been issued contracts for next fiscal year and intend to see them through to June of 2011. We are planning options depending on what occurs in September or October when the State budget is finalized but until that time we will remain the broad service, active agency we have been for nearly 30 years. If parents or providers have any questions about this, please ask us – don’t rely on rumors.
Have a safe and fun summer!
707-464-8311
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