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One provider in Noble County said layoffs and enrollment shifts could occur as a result of the changes. She said the center experienced a significant decrease in enrollment due to last year's waitlist for CCDF and On My Way Pre-K vouchers.
FILE PHOTO: Jeanie Lindsay / IPB NewsIndiana child care workers and advocates are condemning the new cuts to the Child Care and Development Fund reimbursement rates.
The CCDF is a state-administered federal program that provides financial support to low-income families for child care so parents can work, go to school or attend training.
The Indiana Family and Social Services Administration, who provides the program, is decreasing the amount they will reimburse providers through the fund.
The cuts range from 10 percent to 35 percent depending on the child's age. Infant and toddler voucher rates will drop 10 percent, and voucher rates for children 3 to 5 years old will decrease by 15 percent. Vouchers for school-age children from kindergarten to 12 years old will see a 35 percent cut.
One provider in Noble County said layoffs and enrollment shifts could occur as a result of the changes.
Tina Lee is the director of Kendallville Day Care Center. She said the center experienced a significant decrease in enrollment due to last year's waitlist for CCDF and On My Way Pre-K vouchers.
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As a result, Lee said the day care ended up losing $10,000 a month. Once the new rates take effect, Lee said they'll take another financial hit: $65,000 a year — which equals three salaries for the center.
"If this does drop again and it all goes through, we're probably going to have to lay people off for sure—possibly terminate positions," Lee said.
Olivia Smith is a child care advocate and a policy analyst with the Indiana Community Action Poverty Institute. Smith said providers may have to pass on increased costs to parents as reimbursement rates go down. She said this might push parents to unenroll their child from child care.
"They're certainly going to be struggling to figure out how to pay all the bills and make ends meet on both sides of this equation, whether you're a parent or childcare provider, I think everyone is kind of losing from the situation," Smith said.
Lee said, if elected officials spent a day at child care centers across the state and saw what the money is going towards, maybe they would be unlikely to take it away in the future.
Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.
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