Parents, day cares feel pinch of DES cuts

A growing number of Arizona children - more than 8,000 - are on a waiting list to receive state-subsidized child care as the downturn in the economy drives an increasing number of families to seek assistance.

The increased need is coming at a time when Arizona has been forced to cut budgets for state agencies, including the Department of Economic Security, which administers the child care program.

The situation is creating a disaster for families who find themselves wondering each day which family member can watch the kids as they go off to work, child care operators say, with some parents going as far as to quit their jobs so they can take care of their children.

It's also resulting in child care centers laying off workers, and some are even considering closing their doors.

Child care centers refer to the subsidy waiting list as a "denial list," because no one expects people on that list to actually receive help any time soon. In fact, they fear that list may double in a year to more than 16,000 children. The last time there was a waiting list, in 2004, it was maxed out at 9,400 families.

"When people talk about the difficult choices to be made when developing a budget, that's an abstract term," said Steve Meissner, DES director of communications. "This is the concrete result."

Chandler resident Rosa Ortiz, 22, is juggling a full-time job and school. Her son, at 10 months old, could come to work with her - she is employed as a child care worker - but she cannot afford it.

She's been on the waiting list for state subsidy for two months.

Ortiz and her child's father live with her parents and her siblings. His work schedule fluctuates. When they both have to work, her dad tries to fill in. But that's not every day.

"I ask (dad) the day before, knowing when my boyfriend works," she said. "If not, I have to turn to friends. If my dad goes out of state for his family in California to help them out, it's hard because my mom is at work. My siblings are in school or working."

Still, Ortiz is trying to make it work. When she gets home, after spending time with her son, one of her siblings sometimes steps in so she can get homework done. She is studying early childhood education at a community college.

"It would be a lot easier knowing where he's at, at all times," Ortiz said of her baby. "If he were to come to my day care, I could see him more than a couple of hours a day when he's not sleeping."

Gov. Jan Brewer was able to keep the child care subsidy program from being completely eliminated earlier this year through the use of federal funds. But the overall budget was cut, so only families working with Child Protective Services or who were already receiving temporary assistance for needy families now qualify, as long as they remain eligible.

To get on the list, families must make less than 165 percent of the federal poverty level, said Brad Willis, DES program administrator. A family of three, which is the typical size of family DES sees, must have a monthly gross income below $2,519. The parent or guardian must be employed and must be in the country legally with the ability to work.

The amount of help families receive has also been cut by 5 percent. That took the subsidy to the levels it was at in 2000, one child care operator said.

In July, according to the latest complete data available, the guardians and parents of close to 37,000 children received $13.7 million in assistance. The prior year, 45,534 children were helped.

The situation with Arizona's budget is unlikely to improve. The governor has already started telling departments to expect a mid-year cut, much like what happened in the last fiscal year.

"This was nothing we did with ease," Meissner said. "That was a tough decision we had to make. They didn't micromanage us. They said, 'You have to cut spending.' We had to take a number of steps, and the waiting list was one of them."

At Chandler's Kids World Learning Center, about 90 percent of families were at one point receiving some child care subsidies from DES. There are about 40 kids daily at the center, down from 90 to 105 kids in March.

"That's why we're one of the hardest hit," said assistant director Lucille Montoya. "It's impacted us fairly hard, especially on the employees. If we don't have kids, they don't have the jobs. We just wait for parents to come in with the kids."

There was some relief for a few families when money from First Things First - a tax approved by voters in 2006 that funds early childhood and health programs - provided temporary scholarships. But that money has run out, she said.

"I know one family had to shut down their business and moved back with their parents," she said of a family that formerly received DES help.

The average weekly cost of child care at the center is $140. The daily rate is $35, with DES picking up $23 for those who are still able to get help, said Vennila Ramadoss, who operates Kids World.

Kids Can Doodle, with four Valley locations - including one in Mesa and one in Chandler - also has seen business drop off because parents can't get a state subsidy.

Prior to the DES cuts, the Mesa center had 150 to 160 kids; today that's dropped to 90 to 110 children.

"When you look at a family of five, ranging from infant to school-age children, and the going rate is $120 to $125 a week, that could be $600 a week, and they couldn't afford to pay that out of their own pockets," said Homi Karrys, operator of Kids Can Doodle.

Because of the decline in enrollment, Karrys had to lay off 24 employees last month, about six at each center.

Child care directors say they've tried to contact the families that have left to find out what they're doing.

"For the parents who did keep their jobs, they're leaving their children with young teenagers. They're having school-age children go home alone and stay home alone," Karrys said.

The situation is also creating an "underground economy" of unlicensed and unregulated child care providers, said Dale Fisher, who runs Mesa's Sycamore School with his wife. They've had the school for 15 years and offer care for children, from infants through sixth grade. His school has also lost kids. The average daily attendance was 129 kids about two years ago. Today, it's around 70, barely enough to keep the school open.

The school recently started advertising on Craigslist. When looking at the site last week, Fisher saw 300 new offers for child care. Many, he thinks, are probably moms who lost their jobs and decided to try to care for children in their homes.

"We're creating a new underground economy of home day care, with no concern for if (the children are) learning anything or what they're being fed or if they're just watching TV," he said. "That worries us."