Article Link: http://exchangepress.com/article/welfare-reform-the-full-cost-of-quality-and-state-child-care-plans/5011571/
Last year's federal "welfare reform" legislation requires every state to submit a child care plan to the federal government by July 1, 1997. The plan must describe how the state will use its share of approximately $3 billion a year in federal child care funds. The direct effect of the state's plan on the lives of low income children will be dramatic - and, with limited dollars and many new families needing child care, it involves some tough choices.The impact of the plan is not limited to low income families and providers. It will also impact the entire child care system in at least three important ways:
_ Policy Ripple Effects
_ Funding Services for All Child Care
_ Funding the Future
Policy Ripple Effects
The policies the state makes for low income families have ripple effects that particularly affect how close market rates come to paying the full cost of quality.
Four of the more important policy issues that need to be decided in the state plan are:
_ how to divide subsidy dollars between welfare to work and working poor families;
_ how much a family can earn and still be eligible for subsidy;
_ what level of child care rates will be fully covered by the subsidy ...