Wednesday, May 9, 2012

Tidal Waves

Things are different this year in Springfield.  There is a slow motion earthquake underway, unlike any time in 20 years or more.

And with earthquakes, come tsunamis .

The first wave hit us last week with news that the state ran out of child subsidy money two months early (before end of fiscal year).  No more payments for centers like Commons until July at earliest.   Many smaller centers are talking about closing.  Now there is news that State might have found funding to fix the next 2 months... but it must pass legislature.  So maybe first wave isn't as big as feared?

However,  a much bigger second wave is coming.  Proposals are to drastically reduce eligibility for child care , making many working poor families ineligible... if this happens, you will see many child cares swamped by it, shutting their doors.  We will know more by end of May.  Watch for thousands of parents to show up in Springfield on May 16th.

At Commons, we are preparing for the waves, we will survive, but the threat to the families that we serve is enormous.


Thursday, May 3, 2012

More on child care crisis

More on the emerging child care funding crisis here.

The only positive is that the State of Illinois is truly starting to hit bottom.  Maybe leaders will finally start to take some bold actions??

This situation is a total disgrace.  The state is forcing many small child care centers to decide -- either mortgage everything and gamble that the state will eventually catch up on payments,  or close down now and stop serving their good customers -- hard working low-income families who are paying a portion of the child care, but cannot afford the full freight without a subsidy.  

Chicago Commons currently has enough cash on hand to last for a couple of months, but this is very worrisome to us also.

Over 100 parents from Chicago Commons will be going to Springfield on May 16th to say something about all of this.



Wednesday, May 2, 2012

Child Care is at the heart of our economy

Child Care is at the heart of our economy... especially right now among low-wage workers.  Low-wage households cannot continue to work full-time without child care subsidies.  The cost of full time child care easily eats up most of these families' paychecks.  Without subsidy, they are better off working odd jobs or irregular hours.

This is proven... see the National Bureau of Economic Research.  Families with child care are between 13 and 32% more likely to be employed.  This from one of the nation’s most influential economics organizations, the one that officially declares when recessions begin and end.

It is time for us to wake up and understand child care's critical role in our economy.  

In the meantime, funding for State of Illinois child care subsidy just ran out this month , so organizations like Chicago Commons might not get paid for May or June.  Unless the State takes action on this, we will soon be forced to decide whether to cut off families who come to us for full day care.  A suburban center was on the news tonight because they just broke the news to parents that they might cut off full day care immediately.