CONGRESSMAN MORELLE TAKES ACTION TO LOWER THE COST OF CHILDCARE FOR MONROE COUNTY FAMILIES

(Rochester, NY) - Today, Congressman Joe Morelle joined with community advocates to announce he has secured funding to lower the cost of childcare for Monroe County families. The provisions, passed as part of the Build Back Better Act, will expand federal cost assistance through Child Care Development Block Grants.

"Right now, New Yorkers are paying over twenty-three percent of their income on childcare costs—that places an enormous financial and emotional burden on parents, and it must change," said Congressman Morelle. "Supporting the needs of working families has always been my top priority, which is why I'm proud to have taken action to significantly lower costs and save families upwards of $10,000 a year on childcare. This will be transformative for Monroe County families and will help set our children up for success from an early age."

The average annual cost of a childcare center in New York is $12,361. Through provisions in the Build Back Better Act, it is expected that a family of four making $68,000 will pay no more than $1,360 annually—a savings of $11,000.[1] Under the legislation, subsidized childcare will be available for families of children age 5 and younger who are not enrolled in kindergarten. Parents must be working or participating in work-related activities such as job training to qualify.

Families earning incomes at and below 75 percent of State Median Income (SMI) will have no co-payment. Household SMI in New York State is approximately $68,000 annually. New York Families earning above 75 percent SMI will be charged copayments depending on their income level, as follows:

• Families earning above 75 percent and not more than 100 percent SMI (between $51,000 and $68,000) will have a copayment of more than 0 percent and not more than 2 percent of their family income. (Ex: Family making $68,000 would pay no more than $1,360 on childcare)
• Families earning above 100 percent and not more than 125 percent SMI (between $68,000 and $85,000) will have a copayment of more than 2 percent and not more than 4 percent of their family income. (Ex: Family making $85,000 would pay no more than $3,400 on childcare)
• Families earning above 125 percent and not more than 150 percent SMI (between $85,000 and $102,000) will have a copayment of more than 4 percent and not more than 7 percent of their family income. (Ex: Family making $100,000 would pay no more than $7,000 on childcare)
• Families earning above 150 percent and not more than 250 (between $102,000 and $170,000) percent SMI will have a copayment of no more than 7 percent of their family income.

The benefit amount for families would be sufficient to purchase care in an accredited childcare facility. If a state can cover the required populations more quickly, it may use payments in the first three years to expand access to direct services that go beyond the income eligibility phase-in thresholds, but do not exceed 250 percent SMI or $170,000 in New York State.

"This is a welcomed relief for families, and organizations like us, that are committed to providing this critical community service," said George Romell, President & CEO, YMCA of Greater Rochester. "It strengthens our ability to support working families, and ultimately, provides a roadmap for children to succeed in life. We look forward to working with vital community partners to find 21st century solutions to deliver dynamic care and we are grateful to Congressman Morelle for his leadership on this initiative and longtime support of the Y."

"Reducing the cost of high-quality childcare is a moral and necessary step towards economic and social justice," said Jerome H. Underwood, President & CEO of Action for a Better Community. "Utilizing funding from the Build Back Better Act as a means to this end is one way to ensure that the unprecedent level of funding coming to Monroe County is allocated where it is most needed. We look forward to the day when affordable childcare is a priority item with sustainable funding. ABC fully supports lowering childcare costs for economically marginalized families as a viable path towards an inclusive recovery. With other community partners, we will continue to advocate for permanently affordable childcare."

"It is both a moral imperative and an economic necessity for children to have safe and nurturing places to be while their parents work," said Larry Marx, CEO of The Children's Agenda. "We are on the brink of a once in a generation opportunity to transform how our nation cares for children. Providing universal preschool for all 3- and 4-year-olds and ensuring access to quality, affordable childcare are policies that will impact the health, education, and lifelong success of our children. The Children's Agenda thanks Congressman Morelle for his leadership on behalf of Monroe County's children, and we call on the US Senate to show the same kind of commitment by passing the Build Back Better Act, because there is no such thing as someone else's child."

"As a single father with a daughter who is almost 2 years old, the passage of this act will have a huge impact on my family," said local parent, Dan Blumerick. "Daycare expenses are tremendously high and the cost to send Cassidy full-time are higher than our housing costs, including mortgage and utilities. Often, I need to pay for daycare using credit cards and incur interest on the charges. Cassidy has thrived at daycare, showing tremendous social-emotional, cognitive and motor skill development. She is excited every day we go and her face lights up when we talk about daycare at home. We are incredibly grateful that Cassidy is able to have such a loving and nurturing environment to foster her growth."

Ann Marie Stephan, Executive Director of Rochester ChildfirstNetwork, said,

"If enacted into law, the childcare and pre-K provisions in the Build Back Better Act would provide much needed and long-awaited assistance for both families and childcare providers. As a local provider of childcare services, we often hear from families regarding the high cost of childcare. While existing subsidies help some families access childcare services, there are many who do not qualify, but still require financial assistance. The proposed changes in the Act would address the issue of more equitable access by providing affordable, high-quality childcare to eligible families, supporting them to either remain in or return to the workforce, which benefits our community.

"For too long, childcare centers have been hobbling along from year-to-year with inadequate and inconsistent funding streams. Rochester Childfirst Network, like other childcare centers, would benefit from receiving reimbursement rates that reflect the true cost of running a high-quality childcare program. This would, in turn, enable us to pay our valued childcare providers minimally a living wage and it would help us attract and retain childcare providers who are here consistently, which is important for children's social-emotional development. This Act prioritizes the needs of children and families and needed support to agencies that deliver these services. RCN extends our gratitude to Congressman Morelle and other local delegates for championing this bill."

The Build Back Better Act allocates $390 billion to make these historic investments. Each state will setup its own program to administer the funding it receives through Child Care Development Block Grants. In the first three years, states will receive a fixed amount of funding that they must use for specifics purposes. Estimates for New York State are as follows:

$557 million which must be used to provide childcare subsidies to eligible families.

• $228 million which must be used for provider activity to expand supply and improve quality (which can include raising wages for childcare workers, renovating spaces to build capacity, hiring new staff, etc).
• $228 million for either of the above buckets and state administrative costs, depending on need.
• In the following three years, the state will receive as much money as it needs to provide subsidies to all eligible families.