Childcare providers are facing confusion over recent messaging from the federal government regarding a freeze to the Child Care Affordability Program (CCAP), and local centers are seeking answers as to how they’ll be impacted by the move.
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| Children play outside at Space to thrive, a childcare facility in Windham. Childcare providers are trying to decipher recent messaging from the federal government about a newly imposed freeze to the Child Care Affordability Program funding and how they will be impacted by it. COURTESY PHOTO |
“One of the things that is really interesting about the guidance, or lack thereof, is that the federal government has not yet put forward steps or any clear information about what this actually means,” said Hannah Marshall, Executive Director of Space to Thrive. “What they said is that there is going to be an extra layer of scrutiny or effort to prove that there isn’t fraud happening. We don’t have any information as to what that means - if it means we need to send an email or provide a ton of additional documentation, so that’s where our concerns are from an administrative standpoint.
“If we’re open, kids are here,” she said. “If there is an added administrative burden, that could heavily negatively impact programs because there is no time and no one available to do that work.”
The primary and most important funding source for local programs is the CCAP, under which the state and federal government provide funds to eligible parents to help offset the significant costs of childcare, Marshall explained. When entering the program, parents must provide significant details as to their finances, including paystubs from employers, hours worked, all details on their household financial accounts, and even factors in other adults who may live in the home, such as grandparents.
“If parents are deemed eligible, it’s not a one-size-fits-all amount,” Marshall said. “Based on their income, the parent fee is determined.”
About 10 percent of the center’s income currently comes from the program, meaning that a freeze in those funds would impact 15 to 20 children currently enrolled at Space to Thrive. While more parents who send their children to the center are eligible for the program, there is a significant waiting list to receive the funding, meaning many are unable to participate until more funding is available.
Centers also undergo significant scrutiny to be able to accept funding from the program. As Space to Thrive’s Windham location has a provisional license, the facility is visited by a licenser quarterly, where they spend several hours inspecting all child and staff records, along with other documentation. For centers with a standard license, they must undergo checks annually.
“Right now, in order to take these payments, you must be in good standing with licensing. For the first year, we have this provisional license and go through several of these inspections,” Marshall said. “I can appreciate there being concerns, and if there’s fraud, I understand wanting to mitigate that. Right now, there are already a lot of existing checks and balances.”
While fraud may be possible in any system, Marshall points to the lengthy process that each family must undertake to apply for the funding as a deterrent. Also, families must continually meet the program’s requirements, or they are removed quickly.
“I have seen families have to provide so much documentation,” Marshall said. “I’ve seen families, where they lose their CCAP if someone loses their job or gets laid off. It’s a short time frame before they get the letter to tell them they’re no longer eligible because there is an adult in their house not working. I can’t speak to whether there’s fraud happening or not happening. But I can tell you that these families work really hard and it is a lot of effort to submit everything that’s required.”
The state is also in a holding pattern, as they have not received any additional information from the federal government. Marshall said that it is hard to know how concerned to be due to the lack of details on what may come.
“We don’t know if everything will be fine and this funding will be available as it has been, with maybe a few extra requirements in place. We don’t know if this funding will evaporate entirely. The state of Maine funds the affordability program through both state and federal dollars, so if those dollars were to go away, I don’t know how much the state could make it,” she said. “There is not enough information to know whether I’m really worried or feel totally fine.”
Marshall also said that childcare centers operate with little room in their budgets for additional costs or administrative fees. There is considerable administrative leg work required and complex licensing rules to consider when making any decisions.
“I don’t think most people realize that the average childcare center operates on a less than 1 percent profit margin,” she said. “People may not realize the amount of behind-the-scenes effort for them to drop their child off in a space where they’re going to have a good education and good care. That’s not just the one teacher they see every day. No one in childcare is making a lot of money.” <
The primary and most important funding source for local programs is the CCAP, under which the state and federal government provide funds to eligible parents to help offset the significant costs of childcare, Marshall explained. When entering the program, parents must provide significant details as to their finances, including paystubs from employers, hours worked, all details on their household financial accounts, and even factors in other adults who may live in the home, such as grandparents.
“If parents are deemed eligible, it’s not a one-size-fits-all amount,” Marshall said. “Based on their income, the parent fee is determined.”
About 10 percent of the center’s income currently comes from the program, meaning that a freeze in those funds would impact 15 to 20 children currently enrolled at Space to Thrive. While more parents who send their children to the center are eligible for the program, there is a significant waiting list to receive the funding, meaning many are unable to participate until more funding is available.
Centers also undergo significant scrutiny to be able to accept funding from the program. As Space to Thrive’s Windham location has a provisional license, the facility is visited by a licenser quarterly, where they spend several hours inspecting all child and staff records, along with other documentation. For centers with a standard license, they must undergo checks annually.
“Right now, in order to take these payments, you must be in good standing with licensing. For the first year, we have this provisional license and go through several of these inspections,” Marshall said. “I can appreciate there being concerns, and if there’s fraud, I understand wanting to mitigate that. Right now, there are already a lot of existing checks and balances.”
While fraud may be possible in any system, Marshall points to the lengthy process that each family must undertake to apply for the funding as a deterrent. Also, families must continually meet the program’s requirements, or they are removed quickly.
“I have seen families have to provide so much documentation,” Marshall said. “I’ve seen families, where they lose their CCAP if someone loses their job or gets laid off. It’s a short time frame before they get the letter to tell them they’re no longer eligible because there is an adult in their house not working. I can’t speak to whether there’s fraud happening or not happening. But I can tell you that these families work really hard and it is a lot of effort to submit everything that’s required.”
The state is also in a holding pattern, as they have not received any additional information from the federal government. Marshall said that it is hard to know how concerned to be due to the lack of details on what may come.
“We don’t know if everything will be fine and this funding will be available as it has been, with maybe a few extra requirements in place. We don’t know if this funding will evaporate entirely. The state of Maine funds the affordability program through both state and federal dollars, so if those dollars were to go away, I don’t know how much the state could make it,” she said. “There is not enough information to know whether I’m really worried or feel totally fine.”
Marshall also said that childcare centers operate with little room in their budgets for additional costs or administrative fees. There is considerable administrative leg work required and complex licensing rules to consider when making any decisions.
“I don’t think most people realize that the average childcare center operates on a less than 1 percent profit margin,” she said. “People may not realize the amount of behind-the-scenes effort for them to drop their child off in a space where they’re going to have a good education and good care. That’s not just the one teacher they see every day. No one in childcare is making a lot of money.” <
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