Legislature Hopes to Save CalWorks Day Care Subsidies from Arnold’s Wrecking Ball

Sure, Arnold Schwarzenegger has left the Horseshoe, but that doesn’t mean that we can just forget about him or what he did to the state.  In this case, we’re talking about the child care subsidies for parents who have recently left welfare.  For this one, there at least seems to be a remedy that gets us through to the next budget. (hopefully)

Assembly Speaker John Pérez will announce today that state officials have found a way to save child care subsidies for 55,000 low-income families – a program that then-Gov. Arnold Schwarzenegger tried to eliminate last year.

The subsidies are available to parents who were formerly on cash assistance but now have jobs or are in school. Supporters had argued that eliminating the subsidies was shortsighted and could ultimately cost taxpayers more than keeping it, because many parents would quit their jobs and apply for welfare if they were unable to afford day care.

Under a plan Pérez will announce today, state officials will use $60 million in child care funds left from previous years to fund the subsidies through March. The program’s funding would be restored April 1 under Gov. Jerry Brown’s budget proposal unveiled this week.(SF Chronicle)

Now, clearly this is a stopgap gimmick, but a necessary one.  We really cannot afford to let this program just die for three months.  If we are really attempting to get people off of welfare rolls and back in jobs, we can hardly pull the rug out on them so quickly.  There has to be an effort to transition off of being a full-time child care provider as a parent to a place where the parent can reasonably afford child care expenses.  We can’t say we want people to work while at the same time presenting a net loss in money coming into the household if they are working a low-wage job.

CalWorks has been a pretty successful welfare to work program, and that’s what the Right has been clamoring for.  But, when times get tough, better to squeeze the poor than the rich, right?

UPDATE: Just got the word that the effort worked. Find the full press release (with a timeline) over the flip.

Speaker Pérez: Child Care Effort Succeeds– Big Victory for Thousands of Working Families and Small Businesses

SACRAMENTO-Assembly Speaker John A. Pérez (D-Los Angeles) today announced that thanks to efforts by the Assembly, California’s local First 5 Commissions, and the Brown Administration, thousands of working parents in California will continue to receive the child care services that allow them to stay in their jobs and keep their families off welfare.

“With the stroke of his blue pencil last fall, former Governor Schwarzenegger forced thousands of working parents to face the choice of losing their jobs or letting their kids fend for themselves,” Pérez said. “Today, I am pleased to announce that we did not let that happen and that this program is in fact being restored and is included in Governor Brown’s budget. This is a big win for working parents and their children, and also for the thousands of small business child care providers who would have had to close their doors or lay off their employees.”

In December, Speaker Pérez introduced AB 1, the first bill introduced in the 2011-2012 session of the Assembly, to reverse Schwarzenegger’s veto and restore the Stage 3 Child Care services that enable parents to transition from welfare to work.  Speaking from the Assembly floor today, Pérez announced AB 1 would now be used as a vehicle if one is necessary to allocate existing transition funding until the budget is enacted and the program officially restored.

“Not only did Governor Brown hear us and restore Stage 3 Child Care in his budget this week, his administration is also actively working with us to identify existing funding that can be used to transition until the budget is enacted,” Pérez said. “As we move forward, should it be determined that any interim funding we identify requires authorizing legislation, I will make AB 1 available for that purpose.”

More than $40 million in bridge funding – including $6 million from cuts Speaker Pérez made to the Assembly’s own budget and additional funding he sought from the county First 5 commissions – helped buy time until Stage 3 Child Care services could be restored.  A judge’s stay of the elimination of the services also allowed time for Speaker Pérez and other advocates to successfully push for the program’s restoration.

“Of course, there are still difficult cuts proposed to all child care programs – and undoubtedly, the final budget will have to include some of the proposed reductions,” Pérez said. “But as painful as those cuts may be, they will still be far better than Governor Schwarzenegger’s wholesale elimination throwing 60,000 families out of the workforce or their children into harm’s way. This is a very positive sign we can work with this Governor to create jobs, put California’s fiscal house in order, and make sure every Californian can find opportunity and the chance to succeed.”

Timeline:

October 8, 2010-Governor Schwarzenegger blue-pencils Stage 3 Child Care funds eliminating services for 81,000 children in 60,000 families transitioning from welfare to work.

October 19, 2010- Assembly Speaker John A. Pérez pledges $6 million from part of his 15% cut to the Assembly operating budget and contacts state and county First 5 commissions asking for help in providing bridge funding until Stage 3 Child Care can be restored.  Local commissions take action throughout the next several weeks.

October 29, 2010-Alameda County judge issues stay in implementation of the cuts and orders November hearing.

November 5, 2010-Speaker Pérez announces more than $40 Million in bridge funding pledged so far.

November 17, 2010-Judge approves settlement keeping child care services available through end of year.

Dec 6, 2010- Speaker Pérez introduces AB 1 to reverse the veto and restore Stage 3 Child Care.

January 10, 2011-Governor Brown includes Stage 3 Child Care funding in his 2011-2012 budget proposal.

January 14, 2011-Speaker Pérez announces victory for working families and providers. Moves AB 1 to become authorizing vehicle if necessary for interim funding identified by Assembly and Brown Administration.

Website of Assembly Speaker John A. Pérez: www.asmdc.org/speaker  

2 thoughts on “Legislature Hopes to Save CalWorks Day Care Subsidies from Arnold’s Wrecking Ball”

  1. You hit the nail right on the head Brian. Three months without childcare would endanger new jobs, and probably children, as parents look for other childcare options they can afford. But anything that puts people back to work benefits more than just the new workers and their families. They now pay taxes instead of receiving them. They have more money to spend in the local economy, creating new tax revenues and jobs there as well.

    Helping people stay employed is a win-win proposition for everybody. Cutting off support they need to keep their jobs is a typically short-sighted strategy we saw all too often under the previous administration.

  2. This sounds like a worthwhile program

    ……So find cuts in the budget that equal the cost of this program

    That should work

    Find off setting cuts

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