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Child Care - 12/6 Event

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PRESIDENT CLINTON CALLS ON CONGRESS TO FINISH THEIR WORK TO HELP WORKING FAMILIES MEET THEIR NEED FOR CHILD CARE December 6, 2000 (??) Today, President Clinton will release two reports showing that low-income working families are struggling with the high cost of child care and federal child care subsidies fall far short of meeting the demand of eligible families. The President will also use the opportunity to again call on Congress to finish the work it has left undone for nearly two months, work that included an $817 million increase in federal child care subsidies and a $1 billion increase in Head Start. America's working families should not have to wait any longer to have access to affordable, quality child care for their children. QUALITY CHILD CARE IS TOO EXPENSIVE FOR MOST LOW-INCOME WORKING FAMILIES: The President will release a report by the Children's Defense Fund, which shows that the cost of child care is the greatest barrier low-income families face in finding quality child care for their children, care families rely on to enable them to work and to provide early education experiences for their children. In fact, the report points out that the average cost of child care for a 4-year old in an urban area is more than the average annual cost of public college tuition. This high cost provides little choice for low-income families, forcing many families to choose lower-cost and often lower-quality care for their children. CHILD CARE SUBSIDIES ARE WORKING, BUT MORE NEEDS TO BE DONE: The President will also release an interim report from the U.S. Department of Health and Human Services, which is part of a five-year research effort to explore how states and communities implement policies and programs to meet the child care needs of families moving from welfare to work. This report shows that in the three-years since the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act, states have provided child care to [hundreds of thousands??] more children. In fact, 12 of the 15 states studied experienced over 30 percent growth in the number of children receiving child care subsidies. The report demonstrates, however, that even with this increased investment in child care there remains a significant unmet need for child care subsidies - most states were only serving 15-20 percent of eligible children from all federal and state sources. CONGRESS SHOULD FINISH ITS BUSINESS IN SUPPORT OF AMERICA'S CHILDREN AND FAMILIES: Today, the President urged Congress to finish their work to ensure that America's hardest working families have access to affordable, quality child care. Before Congress left town two months ago, they had reached a bipartisan agreement with the Clinton Administration to provide an $817 million increase for the Child Care and Development Block Grant to bring it to $2 billion. This increase would enable the program to provide child care subsidies for nearly 150,000 more children in 2001. With these new resources, combined with the child care funds provided in welfare reform, the program could serve over 2.2 million children in 2001, an increase of nearly 1 million since 1997. The Child Care and Development Block Grant is the primary federal effort to help low-income families pay for child care, helping low-income parents to work. The final negotiations with Congress also included $272 million for improving the quality of child care, $100 million of which must be used to improve the quality of infant and toddler care; $10 million for child care research; and $19 million for school- aged care and to improve information for parents about child care in their communities. Margy Waller 12/06/2000 11:30:10 AM Record Type: Record To: Anna Richter/OPD/EOP CC: bcc: Subject: Re: How's This? how's this? Anna Richter Anna Richter 12/06/2000 11:29:31 AM Record Type: Record To: Margy Waller/OPD/EOP@EOP CC: bcc: Subject: Re: How's This? what do you think? Margy Waller Margy Waller 12/06/2000 11:28:24 AM Record Type: Record To: Anna Richter/OPD/EOP@EOP CC: karin kullman/opd/eop@eop, heather h. howard/opd/eop@eop, ann o'leary/opd/eop@eop bcc: Subject: Re: How's This? remember - heather and ann are out. Anna Richter Anna Richter 12/06/2000 11:26:49 AM Record Type: Record To: Margy Waller/OPD/EOP@EOP CC: karin kullman/opd/eop@eop, heather h. howard/opd/eop@eop, ann o'leary/opd/eop@eop bcc: Subject: Re: How's This? What does everyone else think? Margy Waller Margy Waller 12/06/2000 11:20:50 AM Record Type: Record To: Anna Richter/OPD/EOP@EOP CC: karin kullman/opd/eop@eop, Heather H. Howard/OPD/EOP@EOP, Ann O'Leary/OPD/EOP@EOP bcc: Subject: Re: How's This? See one edit at the end below. Also - there are two studies - the HHS study shows the fact you cite. The CDF study apparently looks at affordability issues. The way you've edited it sorta blurs the fact that the CDF study is about something else. Is that a problem? Maybe we should only mention the HHS study? Anna Richter Anna Richter 12/06/2000 11:15:11 AM Record Type: Record To: Margy Waller/OPD/EOP@EOP, Karin Kullman/OPD/EOP@EOP. CC: Subject: How's This? STATEMENT BY THE PRESIDENT December 6, 2000 Today, the U.S. Department of Health and Human Services and the Children's Defense Fund are is releasing two an important reports showing that in 1999 states were able to provide child care assistance to only 12 percent of all federally eligible low-income working families. Also today, the Children's Defense Fund is releasing a report showing that the cost of child care is the greatest barrier low-income families face in finding quality care for their children. Under my Administration, federal funding for child care has more than doubled, and the 1996 welfare reform law increased child care funding by $4 billion to provide child care assistance to families moving from welfare to work and other low-income families. However, these new findings demonstrate that still too many working families are struggling with the high cost of child care and that we must do more to ensure America's families have access to quality child care they can afford so they can balance their responsibilities both at work and at home. Two months ago, we reached a bipartisan agreement with Congress to provide an $817 million increase for the Child Care and Development Block Grant program, bringing funding to $2 billion. This increase would enable the program to provide child care subsidies for nearly 200,000 more children. With these new resources, combined with the child care funds provided as part of welfare reform, the program could serve more than 2.1 million children in 2001, an increase of nearly 1 million since 1997. We are still meeting only a fraction of the need, but this is a critical step forward. I urge Congress to heed the message of these reports and complete their work by to increaseing funding for affordable, quality child care. America's working families should not have to wait any longer. Child Care and Development Block Grant/Child Care and Development Fund Children served in Fiscal Year 1999 (average monthly) Eligible if state at State FY1998 FY1999 Federal Maximum Percent Served Alabama 20,530 24,500 233,300 11% Alaska 5,080 6,260 46,700 13% Arizona 33,060 36,590 283,800 13% Arkansas 9,240 11,250 180,600 6% California 100,640 226,750 1,732,500 13% Colorado 20,170 23,790 226,300 11% Connecticut 11,910 9,790 187,700 5% Delaware 6,140 5,920 50,700 12% District of Columbia 3,850 1,040 31,500 3% Florida 46,640 58,630 705,300 8% Georgia 47,210 38,170 485,200 8% Hawaii 6,670 7,110 81,200 9% daho 6,550 7,560 68,200 11% llinois 88,330 92,030 676,000 14% ndiana 12,670 20,230 299,800 7% owa 11,810 15,720 199,200 8% Kansas 10,240 11,570 172,800 7% Kentucky 25,010 26,220 170,200 15% Louisiana 35,180 38,980 219,700 18% Maine 8,890 60,900 15% Maryland 21,380 22,070 259,900 8% Massachusetts 46,010 40,200 301,700 13% Michigan 92,060 101,890 545,100 19% Minnesota 25,530 17,200 297,400 6% Mississippi 7,870 17,870 185,500 10% Missouri 42,600 58,390 305,600 19% Montana 5,530 6,430 60,800 11% Nebraska 9,350 12,140 115,000 11% Nevada 4,830 5,900 97,000 6% New Hampshire 6,390 6,790 71,600 9% New Jersey 32,500 34,000 350,500 10% New Mexico 14,980 16,610 126,900 13% New York 158,610 164,200 880,900 19% North Carolina 74,250 67,100 411,400 16% North Dakota 4,160 4,450 37,700 12% Ohio 59,360 58,440 577,300 10% Oklahoma 39,930 30,820 191,100 16% Oregon 15,210 20,490 188,500 11% Pennsylvania 72,680 82,750 533,900 15% Rhode Island 6,330 6,390 42,500 15% South Carolina 21,730 17,840 231,000 8% South Dakota 3,530 3,680 46,200 8% Tennessee 54,820 63,090 346,000 18% Texas 78,960 96,640 1,161,700 8% Utah 12,250 13,260 130,400 10% Vermont 4,740 4,980 33,400 15% Virginia 23,880 27,120 348,100 8% Washington 41,850 46,130 310,500 15% West Virginia 12,900 13,310 52,700 25% Wisconsin 23,870 24,940 365,800 7% Wyoming 3,200 3,330 31,600 11% U.S. Total 1,530,500 1,760,260 14,749,500 12% Note: Eligible children under the maximum limit allowed under federal law are in families with income below 85 percent of State Median Income. Numbers are from 1999 Access to Child Care for Low-Income Working Families Report FOR IMMEDIATE RELEASE Contact: Michael Kharfen Wednesday, Dec. 6, 2000 (202) 401-9215 NEW STATISTICS SHOW ONLY SMALL PERCENTAGE OF ELIGIBLE FAMILIES RECEIVE CHILD CARE HELP HHS Secretary Donna E. Shalala today released new statistics on child care for low-income families showing that, because of a lack of federal funding, only 12 percent of eligible children received federal assistance in 1999, despite a slight increase in the number of children being served. According to new state-reported statistics for fiscal year 1999, 1.8 million children in low- income families are receiving federal child-care subsidies on an average monthly basis. This is a slight increase from the 1.5 million children served in 1998. Yet, with 15 million children estimated to be eligible for federal support, only 12 percent of those children are receiving federal help due to limited federal funds. A companion report, "National Study of Child Care for Low-Income Families, State and Community Substudy," confirmed that even when additional state funds are included, many children still go unserved. The study also reported that, because of the strong economy and more parents working, states were spending significantly more for child care, with a median increase of 78 percent from 1997 to 1999 in the states studied. Yet, a survey of 17 states showed that those states were only able to serve 15 to 20 percent of federally eligible children in 1999. The study, prepared by Abt Associates for HHS, also reported waiting lists in 12 of the 17 states. "The information released today confirms that working families still do not have adequate access to safe and affordable child care for their children--something that is crucial if they are to keep their jobs," said Secretary Shalala. "Our appropriations bill now before Congress includes an $817 million increase in the Child Care and Development Block Grant. It is imperative that Congress pass this bill now and provide critical child care support for America's working families." Even though states are continuing to use all the federal funds available to them for child care, today's findings demonstrate the extent that eligible children are going unserved. In fiscal year 1999, states spent $5.2 billion in federal funds, including transfers from their welfare block grant, and spent $1.6 billion from their own funds. During that time, only 1.8 million of the approximately 15 million children eligible for federal child care support received federal funds. Studies in Florida and North Carolina have found that increased child care subsidies result in increased employment rates and earnings for low-income working families. Conversely, parents who have no child care support are seven times more likely to rely on public assistance than employed parents who receive a subsidy. A study of Santa Clara, Calif. showed that one-third of low-income parents were unable to work because they could not afford child care, while another third reduced - 2 - "Studies show that subsidized child care helps parents stay employed while a lack of subsidies results in more parents giving up jobs or reducing their work hours," said Olivia A. Golden, HHS assistant secretary for children and families. "This is the reason that the administration has proposed a major increase in child care funds, which is currently part of the bipartisan conference agreement on Labor-HHS appropriations before Congress. Prompt action by Congress is needed to ensure that these funds reach the working families who need them." Never before has the American economy been this strong and the need for affordable, quality child care this critical, Golden noted. With the unemployment rate recently at a 30-year low, many employers are straining to find workers. Meanwhile, more parents are entering the work force. In 1996, 3 out of 4 mothers with children between 6 and 17 were working compared to 1 in 4 mothers in 1965. Two-thirds of mothers with children under 6 now work. The state-reported statistics released today highlight that 84 percent of all families who received child care subsidies did SO because the parents were employed. The majority of families, 68 percent, were responsible for co-payments at an average of 6 percent of their income. Nearly three- quarters of all children receiving subsidies were served in licensed care, while 15 percent of all children receiving subsidies were cared for by relatives. About two-thirds of the children were under 6 years old. A state-by-state listing of children served follows. ### Note: For other HHS Press Releases and Fact Sheets pertaining to the subject of this announcement, please visit our Press Release and Fact Sheet search engine at: http://www.hhs.gov/search/press.html. PRESIDENT CLINTON CALLS ON CONGRESS TO FINISH THEIR WORK TO HELP WORKING FAMILIES MEET THEIR NEED FOR CHILD CARE December 6, 2000 (??) Today, President Clinton will release two reports showing that low-income working families are struggling with the high cost of child care and federal child care subsidies fall far short of meeting the demand of eligible families. The President will also use the opportunity to again call on Congress to finish the work it has left undone for nearly two months, work that included an $817 million increase in federal child care subsidies and a $1 billion increase in Head Start. America's working families should not have to wait any longer to have access to affordable, quality child care for their children. QUALITY CHILD CARE IS TOO EXPENSIVE FOR MOST LOW-INCOME WORKING FAMILIES: The President will release a report by the Children's Defense Fund, which shows that the cost of child care is the greatest barrier low-income families face in finding quality child care for their children, care families rely on to enable them to work and to provide early education experiences for their children. In fact, the report points out that the average cost of child care for a 4-year old in an urban area is more than the average annual cost of public college tuition. This high cost provides little choice for low-income families, forcing many families to choose lower-cost and often lower-quality care for their children. CHILD CARE SUBSIDIES ARE WORKING, BUT MORE NEEDS TO BE DONE: The President will also release an interim report from the U.S. Department of Health and Human Services, which is part of a five-year research effort to explore how states and communities implement policies and programs to meet the child care needs of families moving from welfare to work. This report shows that in the three-years since the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act, states have provided child care to [hundreds of thousands??] more children. In fact, 12 of the 15 states studied experienced over 30 percent growth in the number of children receiving child care subsidies. The report demonstrates, however, that even with this increased investment in child care there remains a significant unmet need for child care subsidies - most states were only serving 15-20 percent of eligible children from all federal and state sources. CONGRESS SHOULD FINISH ITS BUSINESS IN SUPPORT OF AMERICA'S CHILDREN AND FAMILIES: Today, the President urged Congress to finish their work to ensure that America's hardest working families have access to affordable, quality child care. Before Congress left town two months ago, they had reached a bipartisan agreement with the Clinton Administration to provide an $817 million increase for the Child Care and Development Block Grant to bring it to $2 billion. This increase would enable the program to provide child care subsidies for nearly 150,000 more children in 2001. With these new resources, combined with the child care funds provided in welfare reform, the program could serve over 2.2 million children in 2001, an increase of nearly 1 million since 1997. The Child Care and Development Block Grant is the primary federal effort to help low-income families pay for child care, helping low-income parents to work. The final negotiations with Congress also included $272 million for improving the quality of child care, $100 million of which must be used to improve the quality of infant and toddler care; $10 million for child care research; and $19 million for school- aged care and to improve information for parents about child care in their communities. STATEMENT BY THE PRESIDENT DECEMBER 6, 2000 Today, the U.S. Department of Health and Human Services and the Children's Defense Fund are releasing two important reports showing that low-income working families are struggling with the high cost of child care and that federal child care assistance falls far short of meeting the demand of eligible families. Indeed, most states serve only 15-20 percent of all eligible children with all federal and state sources of funding combined. [HHS - is this accurate?] These reports underscore the critical importance of ensuring that America's hard pressed working families have access to quality child care they can afford, trust and rely on, care that families depend on to enable them to work and to provide early education experiences for their children. Two months ago, we reached a bipartisan agreement with Congress to provide an $817 million increase for the Child Care and Development Block Grant program, bringing funding to $2 billion. This increase would enable the program to provide child care subsidies for nearly 150,000 more children in 2001. With these new resources, combined with the child care funds provided as part of welfare reform, the program could serve over 2.2 million children in 2001, an increase of nearly 1 million since 1997. This means we are still meeting only a fraction of the need, but it is a critical step forward for America's families. I urge Congress to heed the message of these reports and finish their work by fulfilling the agreement to increase funding affordable, quality child care. America's working families should not have to wait any longer.

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    "ocrText": "PRESIDENT CLINTON CALLS ON CONGRESS TO FINISH THEIR WORK TO HELP\nWORKING FAMILIES MEET THEIR NEED FOR CHILD CARE\nDecember 6, 2000 (??)\nToday, President Clinton will release two reports showing that low-income working families are\nstruggling with the high cost of child care and federal child care subsidies fall far short of\nmeeting the demand of eligible families. The President will also use the opportunity to again call\non Congress to finish the work it has left undone for nearly two months, work that included an\n$817 million increase in federal child care subsidies and a $1 billion increase in Head Start.\nAmerica's working families should not have to wait any longer to have access to affordable,\nquality child care for their children.\nQUALITY CHILD CARE IS TOO EXPENSIVE FOR MOST LOW-INCOME\nWORKING FAMILIES: The President will release a report by the Children's Defense Fund,\nwhich shows that the cost of child care is the greatest barrier low-income families face in finding\nquality child care for their children, care families rely on to enable them to work and to provide\nearly education experiences for their children. In fact, the report points out that the average cost\nof child care for a 4-year old in an urban area is more than the average annual cost of public\ncollege tuition. This high cost provides little choice for low-income families, forcing many\nfamilies to choose lower-cost and often lower-quality care for their children.\nCHILD CARE SUBSIDIES ARE WORKING, BUT MORE NEEDS TO BE DONE: The\nPresident will also release an interim report from the U.S. Department of Health and Human\nServices, which is part of a five-year research effort to explore how states and communities\nimplement policies and programs to meet the child care needs of families moving from welfare\nto work. This report shows that in the three-years since the enactment of the Personal\nResponsibility and Work Opportunity Reconciliation Act, states have provided child care to\n[hundreds of thousands??] more children. In fact, 12 of the 15 states studied experienced over\n30 percent growth in the number of children receiving child care subsidies. The report\ndemonstrates, however, that even with this increased investment in child care there remains a\nsignificant unmet need for child care subsidies - most states were only serving 15-20 percent of\neligible children from all federal and state sources.\nCONGRESS SHOULD FINISH ITS BUSINESS IN SUPPORT OF AMERICA'S\nCHILDREN AND FAMILIES: Today, the President urged Congress to finish their work to\nensure that America's hardest working families have access to affordable, quality child care.\nBefore Congress left town two months ago, they had reached a bipartisan agreement with the\nClinton Administration to provide an $817 million increase for the Child Care and Development\nBlock Grant to bring it to $2 billion. This increase would enable the program to provide child\ncare subsidies for nearly 150,000 more children in 2001. With these new resources, combined\nwith the child care funds provided in welfare reform, the program could serve over 2.2 million\nchildren in 2001, an increase of nearly 1 million since 1997. The Child Care and Development\nBlock Grant is the primary federal effort to help low-income families pay for child care, helping\nlow-income parents to work. The final negotiations with Congress also included $272 million\nfor improving the quality of child care, $100 million of which must be used to improve the\nquality of infant and toddler care; $10 million for child care research; and $19 million for school-\naged care and to improve information for parents about child care in their communities.\nMargy Waller\n12/06/2000 11:30:10 AM\nRecord Type:\nRecord\nTo:\nAnna Richter/OPD/EOP\nCC:\nbcc:\nSubject: Re: How's This?\nhow's this?\nAnna Richter\nAnna Richter\n12/06/2000 11:29:31 AM\nRecord Type:\nRecord\nTo:\nMargy Waller/OPD/EOP@EOP\nCC:\nbcc:\nSubject: Re: How's This?\nwhat do you think?\nMargy Waller\nMargy Waller\n12/06/2000 11:28:24 AM\nRecord Type:\nRecord\nTo:\nAnna Richter/OPD/EOP@EOP\nCC:\nkarin kullman/opd/eop@eop, heather h. howard/opd/eop@eop, ann o'leary/opd/eop@eop\nbcc:\nSubject: Re: How's This?\nremember - heather and ann are out.\nAnna Richter\nAnna Richter\n12/06/2000 11:26:49 AM\nRecord Type:\nRecord\nTo:\nMargy Waller/OPD/EOP@EOP\nCC:\nkarin kullman/opd/eop@eop, heather h. howard/opd/eop@eop, ann o'leary/opd/eop@eop\nbcc:\nSubject: Re: How's This?\nWhat does everyone else think?\nMargy Waller\nMargy Waller\n12/06/2000 11:20:50 AM\nRecord Type:\nRecord\nTo:\nAnna Richter/OPD/EOP@EOP\nCC:\nkarin kullman/opd/eop@eop, Heather H. Howard/OPD/EOP@EOP, Ann O'Leary/OPD/EOP@EOP\nbcc:\nSubject: Re: How's This?\nSee one edit at the end below. Also - there are two studies - the HHS study shows the fact you cite. The\nCDF study apparently looks at affordability issues. The way you've edited it sorta blurs the fact that the\nCDF study is about something else. Is that a problem? Maybe we should only mention the HHS study?\nAnna Richter\nAnna Richter\n12/06/2000 11:15:11 AM\nRecord Type:\nRecord\nTo:\nMargy Waller/OPD/EOP@EOP, Karin Kullman/OPD/EOP@EOP.\nCC:\nSubject: How's This?\nSTATEMENT BY THE PRESIDENT\nDecember 6, 2000\nToday, the U.S. Department of Health and Human Services and the Children's Defense\nFund are is releasing two an important reports showing that in 1999 states were able to\nprovide child care assistance to only 12 percent of all federally eligible low-income working\nfamilies. Also today, the Children's Defense Fund is releasing a report showing that the cost\nof child care is the greatest barrier low-income families face in finding quality care for their\nchildren. Under my Administration, federal funding for child care has more than doubled, and\nthe 1996 welfare reform law increased child care funding by $4 billion to provide child care\nassistance to families moving from welfare to work and other low-income families. However,\nthese new findings demonstrate that still too many working families are struggling with the\nhigh cost of child care and that we must do more to ensure America's families have access to\nquality child care they can afford so they can balance their responsibilities both at work and at\nhome.\nTwo months ago, we reached a bipartisan agreement with Congress to provide an $817\nmillion increase for the Child Care and Development Block Grant program, bringing funding\nto $2 billion. This increase would enable the program to provide child care subsidies for\nnearly 200,000 more children. With these new resources, combined with the child care funds\nprovided as part of welfare reform, the program could serve more than 2.1 million children in\n2001, an increase of nearly 1 million since 1997. We are still meeting only a fraction of the\nneed, but this is a critical step forward. I urge Congress to heed the message of these reports\nand complete their work by to\nincreaseing funding for affordable, quality child care. America's working families should not\nhave to wait any longer.\nChild Care and Development Block Grant/Child Care and Development Fund\nChildren served in Fiscal Year 1999 (average monthly)\nEligible if state at\nState\nFY1998\nFY1999\nFederal Maximum\nPercent Served\nAlabama\n20,530\n24,500\n233,300\n11%\nAlaska\n5,080\n6,260\n46,700\n13%\nArizona\n33,060\n36,590\n283,800\n13%\nArkansas\n9,240\n11,250\n180,600\n6%\nCalifornia\n100,640\n226,750\n1,732,500\n13%\nColorado\n20,170\n23,790\n226,300\n11%\nConnecticut\n11,910\n9,790\n187,700\n5%\nDelaware\n6,140\n5,920\n50,700\n12%\nDistrict of Columbia\n3,850\n1,040\n31,500\n3%\nFlorida\n46,640\n58,630\n705,300\n8%\nGeorgia\n47,210\n38,170\n485,200\n8%\nHawaii\n6,670\n7,110\n81,200\n9%\ndaho\n6,550\n7,560\n68,200\n11%\nllinois\n88,330\n92,030\n676,000\n14%\nndiana\n12,670\n20,230\n299,800\n7%\nowa\n11,810\n15,720\n199,200\n8%\nKansas\n10,240\n11,570\n172,800\n7%\nKentucky\n25,010\n26,220\n170,200\n15%\nLouisiana\n35,180\n38,980\n219,700\n18%\nMaine\n8,890\n60,900\n15%\nMaryland\n21,380\n22,070\n259,900\n8%\nMassachusetts\n46,010\n40,200\n301,700\n13%\nMichigan\n92,060\n101,890\n545,100\n19%\nMinnesota\n25,530\n17,200\n297,400\n6%\nMississippi\n7,870\n17,870\n185,500\n10%\nMissouri\n42,600\n58,390\n305,600\n19%\nMontana\n5,530\n6,430\n60,800\n11%\nNebraska\n9,350\n12,140\n115,000\n11%\nNevada\n4,830\n5,900\n97,000\n6%\nNew Hampshire\n6,390\n6,790\n71,600\n9%\nNew Jersey\n32,500\n34,000\n350,500\n10%\nNew Mexico\n14,980\n16,610\n126,900\n13%\nNew York\n158,610\n164,200\n880,900\n19%\nNorth Carolina\n74,250\n67,100\n411,400\n16%\nNorth Dakota\n4,160\n4,450\n37,700\n12%\nOhio\n59,360\n58,440\n577,300\n10%\nOklahoma\n39,930\n30,820\n191,100\n16%\nOregon\n15,210\n20,490\n188,500\n11%\nPennsylvania\n72,680\n82,750\n533,900\n15%\nRhode Island\n6,330\n6,390\n42,500\n15%\nSouth Carolina\n21,730\n17,840\n231,000\n8%\nSouth Dakota\n3,530\n3,680\n46,200\n8%\nTennessee\n54,820\n63,090\n346,000\n18%\nTexas\n78,960\n96,640\n1,161,700\n8%\nUtah\n12,250\n13,260\n130,400\n10%\nVermont\n4,740\n4,980\n33,400\n15%\nVirginia\n23,880\n27,120\n348,100\n8%\nWashington\n41,850\n46,130\n310,500\n15%\nWest Virginia\n12,900\n13,310\n52,700\n25%\nWisconsin\n23,870\n24,940\n365,800\n7%\nWyoming\n3,200\n3,330\n31,600\n11%\nU.S. Total\n1,530,500\n1,760,260\n14,749,500\n12%\nNote: Eligible children under the maximum limit allowed under federal law are in families with income below\n85 percent of State Median Income. Numbers are from 1999 Access to Child Care for Low-Income Working\nFamilies Report\nFOR IMMEDIATE RELEASE\nContact: Michael Kharfen\nWednesday, Dec. 6, 2000\n(202) 401-9215\nNEW STATISTICS SHOW ONLY SMALL PERCENTAGE OF ELIGIBLE FAMILIES\nRECEIVE CHILD CARE HELP\nHHS Secretary Donna E. Shalala today released new statistics on child care for low-income\nfamilies showing that, because of a lack of federal funding, only 12 percent of eligible children\nreceived federal assistance in 1999, despite a slight increase in the number of children being served.\nAccording to new state-reported statistics for fiscal year 1999, 1.8 million children in low-\nincome families are receiving federal child-care subsidies on an average monthly basis. This is a\nslight increase from the 1.5 million children served in 1998. Yet, with 15 million children estimated\nto be eligible for federal support, only 12 percent of those children are receiving federal help due to\nlimited federal funds.\nA companion report, \"National Study of Child Care for Low-Income Families, State and\nCommunity Substudy,\" confirmed that even when additional state funds are included, many children\nstill go unserved. The study also reported that, because of the strong economy and more parents\nworking, states were spending significantly more for child care, with a median increase of 78 percent\nfrom 1997 to 1999 in the states studied. Yet, a survey of 17 states showed that those states were only\nable to serve 15 to 20 percent of federally eligible children in 1999. The study, prepared by Abt\nAssociates for HHS, also reported waiting lists in 12 of the 17 states.\n\"The information released today confirms that working families still do not have adequate\naccess to safe and affordable child care for their children--something that is crucial if they are to keep\ntheir jobs,\" said Secretary Shalala. \"Our appropriations bill now before Congress includes an $817\nmillion increase in the Child Care and Development Block Grant. It is imperative that Congress pass\nthis bill now and provide critical child care support for America's working families.\"\nEven though states are continuing to use all the federal funds available to them for child care,\ntoday's findings demonstrate the extent that eligible children are going unserved. In fiscal year 1999,\nstates spent $5.2 billion in federal funds, including transfers from their welfare block grant, and spent\n$1.6 billion from their own funds. During that time, only 1.8 million of the approximately 15 million\nchildren eligible for federal child care support received federal funds.\nStudies in Florida and North Carolina have found that increased child care subsidies result in\nincreased employment rates and earnings for low-income working families. Conversely, parents who\nhave no child care support are seven times more likely to rely on public assistance than employed\nparents who receive a subsidy. A study of Santa Clara, Calif. showed that one-third of low-income\nparents were unable to work because they could not afford child care, while another third reduced\n- 2 -\n\"Studies show that subsidized child care helps parents stay employed while a lack of subsidies\nresults in more parents giving up jobs or reducing their work hours,\" said Olivia A. Golden, HHS\nassistant secretary for children and families. \"This is the reason that the administration has proposed\na major increase in child care funds, which is currently part of the bipartisan conference agreement on\nLabor-HHS appropriations before Congress. Prompt action by Congress is needed to ensure that\nthese funds reach the working families who need them.\"\nNever before has the American economy been this strong and the need for affordable, quality\nchild care this critical, Golden noted. With the unemployment rate recently at a 30-year low, many\nemployers are straining to find workers. Meanwhile, more parents are entering the work force. In\n1996, 3 out of 4 mothers with children between 6 and 17 were working compared to 1 in 4 mothers in\n1965. Two-thirds of mothers with children under 6 now work.\nThe state-reported statistics released today highlight that 84 percent of all families who\nreceived child care subsidies did SO because the parents were employed. The majority of families, 68\npercent, were responsible for co-payments at an average of 6 percent of their income. Nearly three-\nquarters of all children receiving subsidies were served in licensed care, while 15 percent of all\nchildren receiving subsidies were cared for by relatives. About two-thirds of the children were under\n6 years old.\nA state-by-state listing of children served follows.\n###\nNote: For other HHS Press Releases and Fact Sheets pertaining to the subject of this announcement,\nplease visit our Press Release and Fact Sheet search engine at: http://www.hhs.gov/search/press.html.\nPRESIDENT CLINTON CALLS ON CONGRESS TO FINISH THEIR WORK TO HELP\nWORKING FAMILIES MEET THEIR NEED FOR CHILD CARE\nDecember 6, 2000 (??)\nToday, President Clinton will release two reports showing that low-income working families are\nstruggling with the high cost of child care and federal child care subsidies fall far short of\nmeeting the demand of eligible families. The President will also use the opportunity to again call\non Congress to finish the work it has left undone for nearly two months, work that included an\n$817 million increase in federal child care subsidies and a $1 billion increase in Head Start.\nAmerica's working families should not have to wait any longer to have access to affordable,\nquality child care for their children.\nQUALITY CHILD CARE IS TOO EXPENSIVE FOR MOST LOW-INCOME\nWORKING FAMILIES: The President will release a report by the Children's Defense Fund,\nwhich shows that the cost of child care is the greatest barrier low-income families face in finding\nquality child care for their children, care families rely on to enable them to work and to provide\nearly education experiences for their children. In fact, the report points out that the average cost\nof child care for a 4-year old in an urban area is more than the average annual cost of public\ncollege tuition. This high cost provides little choice for low-income families, forcing many\nfamilies to choose lower-cost and often lower-quality care for their children.\nCHILD CARE SUBSIDIES ARE WORKING, BUT MORE NEEDS TO BE DONE: The\nPresident will also release an interim report from the U.S. Department of Health and Human\nServices, which is part of a five-year research effort to explore how states and communities\nimplement policies and programs to meet the child care needs of families moving from welfare\nto work. This report shows that in the three-years since the enactment of the Personal\nResponsibility and Work Opportunity Reconciliation Act, states have provided child care to\n[hundreds of thousands??] more children. In fact, 12 of the 15 states studied experienced over\n30 percent growth in the number of children receiving child care subsidies. The report\ndemonstrates, however, that even with this increased investment in child care there remains a\nsignificant unmet need for child care subsidies - most states were only serving 15-20 percent of\neligible children from all federal and state sources.\nCONGRESS SHOULD FINISH ITS BUSINESS IN SUPPORT OF AMERICA'S\nCHILDREN AND FAMILIES: Today, the President urged Congress to finish their work to\nensure that America's hardest working families have access to affordable, quality child care.\nBefore Congress left town two months ago, they had reached a bipartisan agreement with the\nClinton Administration to provide an $817 million increase for the Child Care and Development\nBlock Grant to bring it to $2 billion. This increase would enable the program to provide child\ncare subsidies for nearly 150,000 more children in 2001. With these new resources, combined\nwith the child care funds provided in welfare reform, the program could serve over 2.2 million\nchildren in 2001, an increase of nearly 1 million since 1997. The Child Care and Development\nBlock Grant is the primary federal effort to help low-income families pay for child care, helping\nlow-income parents to work. The final negotiations with Congress also included $272 million\nfor improving the quality of child care, $100 million of which must be used to improve the\nquality of infant and toddler care; $10 million for child care research; and $19 million for school-\naged care and to improve information for parents about child care in their communities.\nSTATEMENT BY THE PRESIDENT\nDECEMBER 6, 2000\nToday, the U.S. Department of Health and Human Services and the Children's Defense\nFund are releasing two important reports showing that low-income working families are\nstruggling with the high cost of child care and that federal child care assistance falls far short of\nmeeting the demand of eligible families. Indeed, most states serve only 15-20 percent of all\neligible children with all federal and state sources of funding combined. [HHS - is this\naccurate?] These reports underscore the critical importance of ensuring that America's hard\npressed working families have access to quality child care they can afford, trust and rely on, care\nthat families depend on to enable them to work and to provide early education experiences for\ntheir children.\nTwo months ago, we reached a bipartisan agreement with Congress to provide an $817\nmillion increase for the Child Care and Development Block Grant program, bringing funding to\n$2 billion. This increase would enable the program to provide child care subsidies for nearly\n150,000 more children in 2001. With these new resources, combined with the child care funds\nprovided as part of welfare reform, the program could serve over 2.2 million children in 2001, an\nincrease of nearly 1 million since 1997. This means we are still meeting only a fraction of the\nneed, but it is a critical step forward for America's families. I urge Congress to heed the\nmessage of these reports and finish their work by fulfilling the agreement to increase funding\naffordable, quality child care. America's working families should not have to wait any longer."
}