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| Wilson Seeks to Ensure that New Mexico’s Day Care Centers Are Paid What They Are Due |
April 18, 2002 |
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Introduces bill to require payment of market rates
Washington, DC-Congresswoman Heather Wilson today announced that she is introducing the Fair Care for Kids Act, a bill to require that current market rates are paid to day care providers who receive federal funding. Low payment rates directly affect the kind of care children get and whether families can find quality childcare in their communities. In many instances, low payment rates force child care providers to cut corners in ways that lower the quality of care for children, including reducing number of staff, and eliminating staff training opportunities. The bill would require that market surveys, which identify market rates, be current and must be updated annually.
“Children whose parents are working their way off welfare or who are foster kids, need high quality early childhood experiences,” said Wilson. By paying less than cost for childcare, the federal government limits choices for parent to low quality settings. My bill takes us a step in the right direction to help New Mexico’s working parents and to better serve our children.”
For families with young children and a monthly income under $1,200, the cost of childcare typically consumes 25 percent of their income. States administer the funds for federally subsidized childcare programs. Reimbursement rates, which determine the maximum the state will pay a child care provider for the care of a child who receives a subsidy, are often too low to ensure that quality care is accessible to all families.
As of February 2002, New Mexico had over 22,000 children in federally subsidized childcare programs. There are more children in federally subsidized childcare than there are in Head Start. Increased payment rates lead to higher quality child care as child care providers are able to attract and retain qualified staff, provide salary increases and professional training, and maintain a safe and healthy environment.
Each day an estimated 13 million children, including 6 million infants and toddlers, spend some part of their day in childcare. Research shows that quality early care and education leads to increased cognitive abilities, positive classroom learning behavior, increased likelihood of long-term school success, and greater likelihood of long-term economic and social self-sufficiency. Children in low quality childcare are more likely to have delayed reading and language skills.
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