PRESS ADVISORY

A Press Conference will be held at:
10:00 AM, Tuesday, February 26, 2008
Methodist Building
321 Mississippi Street, Jackson, MS

Contacts:

Carol Burnett                             Beth Orlansky
T. 228-669-4827                      T. 601-352-2269
cburnett@mschildcare.org     borlansky@mscenterforjustice.org

New Report Demonstrates That a Strong Child Care System Strengthens Mississippi's Working Families, Businesses and Economy

View a PDF copy of the "Broadening the Base" Report

The Mississippi Low-Income Child Care Initiative commissioned a report from the Mississippi Economic Policy Center entitled, Broadening the Base: Strengthening Mississippi's Working Families, Businesses and Economy Through a System of Strong Child Care. The report provides a blueprint for Mississippi to build a strong child care system that supports family efforts to go to work and helps businesses retain their key employees.   TOP  »

Both parents work in 76% of Mississippi's families with children. Yet, 39% of working families with children are low-income. These working families need affordable child care. But child care is expensive—more expensive, in fact, than college tuition. Low-income working parents need help paying for child care so they can remain employed.

Mississippi has a child care subsidy program to help low-income working parents pay for child care. This program has proven to be a good investment. It is the work support that makes the single greatest difference in moving a single working mother toward self sufficiency. Mississippi's 2003 Self Sufficiency report demonstrates that child care subsidies can reduce child care costs for a single mother with two pre-school children from $658 per month to $132 per month. Studies show that single mothers who receive child care assistance are 40 percent more likely to remain employed after two years than those who do not receive assistance in paying for child care. Former welfare recipients with young children are 82 percent more likely to be employed after two years if they receive child care assistance.   TOP  »

Not only is subsidized child care for low-income working families a good investment, but the entire child care industry is an important component of economic development. Employers report that child care is necessary in order to recruit and retain employees. Reliable child care reduces employee absenteeism, reduces employee turnover, and increases worker productivity. Child care creates jobs, enables citizens to work, generates tax dollars, and contributes to local economies.   TOP  »

Despite Documented Benefits, Child Care Subsidies Can Serve
Only Fraction of Income-Eligible Children

Despite these benefits, Mississippi's child care subsidy program can only serve a fraction of income-eligible children due to insufficient funding. What can be done to increase the number of qualified children receiving assistance?

"Broadening the Base" includes recommendations to expand public funding for child care to strengthen the delivery of low-income child care throughout the state. These recommendations include the following:    TOP  »

• Explore options to maximize potential of Temporary Assistance for Needy Families (TANF) dollars through transfers to the Child Care Development Fund and direct expenditures to increase child care options for children currently not served by the CCDF program but living in families with incomes below the program income eligibility limits.
• Create or identify a pool of funds to facilitate the upward movement and stability of low-income child care centers through the quality ratings system.
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Upcoming Legislation: HB 1077 and HB 1111

The Mississippi House of Representatives is currently working on legislation that would build upon these recommendations: HB 1077 provides that all TANF money must be spent on TANF-approved activities every year, eliminating the practice of holding millions of dollars in reserve. As passed in committee, the bill does not specify spending on child care certificates, but child care is an allowable use of the money, and the work support that makes the biggest difference in helping parents remain employed and moving a family to self sufficiency.

HB 1111 directs the MS Department of Human Services to seek funds to create a grant program for child care centers wishing to participate in the new quality rating step system. Such a grant program will help child care centers cover the up-front and on-going increased costs associated with participating in the quality rating system.