Cutting Childcare Funding Hurts All

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A promise made by Gov. Gavin Newsom on Mother’s Day in 2021 detailed funding for thousands of new childcare spaces. This was a timely and celebrated announcement, given the weight of responsibilities that, largely, mothers shouldered during the pandemic as they tried to work and care for their children.

On the three-year anniversary of that pledge, these spaces, as well as funding for foster children, are now on the administration’s chopping block. But cutting childcare funding isn’t the answer to a budget deficit – in fact, working families and I would argue that childcare is the very glue that holds our economy together. It’s time that Gov. Newsom and the legislature prioritize our children, families and the Early Care and Education (ECE) workforce by adequately funding basic needs so childcare facilities have the stability to remain open and can recruit, train and maintain staff. The success of our workers, families, children and economy depends on it.

During this year’s A Day Without Child Care march, we joined with families and childcare providers in Northridge to demand the governor fully fund the promises he has made. In a direct correlation between California’s childcare inventory and health care, a doctor participating in the march shared how she had to put off earning her degree due to a lack of childcare. And she’s not the only one struggling to find care. Last year in Panorama City, there were only childcare spaces for 30% of the children who needed one. Families need the full 200,000 childcare slots promised to them in 2021.

The proposed budget cuts could also leave thousands of California children, a majority of whom are minorities, to languish in the foster system. The state’s highly successful Emergency Child Care Bridge Program has been ensuring families who take on the unexpected responsibility of a foster child can receive immediate support finding and securing childcare. For most families, the immediate availability of childcare is the determining factor in whether they will accept a foster child. These vulnerable children deserve the comfort and safety of a family member’s care, which is only an option when a caregiver’s employment isn’t at risk.

A reduction in childcare funding further harms already disadvantaged families of color struggling to care for their families. An analysis of California household incomes by race revealed white families earned about $145,200, while Black families earned $62,100 and Latino families earned $64,900 on average. With skyrocketing costs, the budgets of families and childcare facilities have been decimated. Since 2018, the cost of milk has gone up by 28%, baby formula increased 41%, baby wipes 20% and yearly childcare tuition ranges from $12,000-$19,000, all while labor costs continue to increase. Expenses far outpace incomes.

Childcare providers are struggling just to stay open and offer fair, competitive wages. This year, the state minimum wage for fast food workers went up to $20 per hour. Yet, the average hourly earnings for a childcare worker are a meager $11 per hour. Does California value a Big Mac more than the health and welfare of our children? Every parent who relies on childcare knows that our ECE workers are indispensable, so let’s stop acting like they aren’t and start paying them fair wages. This is a workforce that consists largely of immigrant women of color who already belong to low-income households. They deserve the dignity of fair wages.

The governor’s May Revision plan, however, is to cut Emergency Child Care Bridge funding by $35 million and to reduce the already promised and allocated 27,000 general childcare slots. The governor is also walking back his promise to add 200,000 slots for working in California families in 2025/26 and pausing the implementation of 80,000 promised slots, likely a permanent walk back in this governor’s administration. The legislature, however, proposes affordable solutions to the budget that increase slots without cutting services to the neediest.

This is the time to deliver desperately needed help to our families and ensure parents can continue to work. I have faith that the governor and legislature can do it – they’ve done it before. In recent years, the state allocated $3.7 billion for early care and learning, which helped to stabilize and continue childcare operations. We cannot continue to tie the well-being of children and families to budget surpluses or rainy-day funds.

“Investing state dollars in early care and education is a multi-prong strategy that will elevate our most vulnerable educators by paying them higher wages, which they can in turn spend in their community, increasing tax revenue. It also allows for parents and caregivers to work full time with the peace of mind that their children are being cared for in safe and nurturing environments,”  said Stuart Waldman, president of the Valley Industry & Commerce Association. “Thanks to UNITE-LA, our critical advocacy partner on issues pertaining to early care and education, and co-leads of our workforce and education committee, we have come to fully appreciate the notion that without a strong early care and education system, our entire workforce will struggle, and our economy cannot reach its full potential.

What the state invests in families today will result in the value of our state’s economy tomorrow. Gov. Newsom and the legislature can’t afford not to act.

Michael Olenick has led the Child Care Resource Center for more than 20 years, overseeing all programs, projects, and services provided to more than 60,000 children and families.

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