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State may help with child care; As residents struggle to pay, politicians look to provide assistance

Maryland Gazette - 2/7/2018

Ashley Hammond's state voucher for child care was her ticket to stability.

The extra money balanced her budget and the life she had carefully built: a job as a nursing aide, an apartment in Catonsville and a spot in a day care center where her young daughter Armoni took ballet and mastered potty training.

When Hammond lost the voucher in 2016, she joined thousands of other low-income parents on the wait list for the chronically underfunded program. Her life came undone.

"I lost day care for my daughter," said Hammond, 24. "I started losing time at work. I got fired, and I ended up getting evicted.

"It was a really horrible experience. I was losing everything all at the same time."

Meanwhile, the value of the voucher itself has failed to keep pace with rising costs for so long that it now covers costs only at the cheapest 9 percent of child care centers in Maryland - among the lowest market values in the country, and far below the 75 percent threshold recommended by the federal government. The last time Maryland hit 75 percent was in 2001.

But now, for the first time in more than 15 years, the little-known child care subsidy is getting election year attention from politicians in Annapolis.

Even so, they acknowledge they can't spend nearly enough to help everyone who needs it.

"This thing was chronically underfunded for a long, long time," Gov. Larry Hogan said.

"Child care is critically important, especially for poor families that need the help. ... We have finally turned the economy around and dug out of the deficit and have some cash to invest in it."

Hogan, a popular Republican seeking re-election in a state dominated by Democrats, has announced plans to spend $11.5 million to provide vouchers for everyone on the wait list and to increase the voucher's value by 8 percent. That would push spending over $100 million annually to help 13,800 children.

Alec Ross, one of the seven Democrats running to replace Hogan, has published a detailed critique of the child care subsidy program. And a pair of veteran lawmakers introduced a bill this month to gradually increase the voucher's value to 60 percent of market rates by 2022.

State lawmakers are also looking for other ways to help defray the cost of child care for working families.

A proposal introduced last month would extend access to a child care tax credit to families that earn $150,000 a year, up from the current cap of $50,000, set in 2001. The number of families who qualified declined 40 percent from 2004 to 2014, reducing the tax benefits extended to families from $9.4 million to $3.6 million.

Del. Ariana Kelly, a Montgomery County Democrat who sponsored the child care tax credit, said that when she was a child, her parents relied on the child care subsidy to help pull the family from the edge of poverty to the middle class by the time she was in high school.

"My mother told me that we wouldn't have made it if it weren't for that program," Kelly said. "Every couple hundred bucks we can do for working families can help. Right now, these laws are just sitting on the books not working for us."

The election year attention allows both Republicans and Democrats to emphasize that they care about the social safety net and about working families, issues that can have cross-party appeal but particularly resonate with Democrats in deep blue Maryland.

Mileah Kromer, professor of political science at Goucher College, likened the attention to the paid sick leave debate that Annapolis politicians continue to have - both sides support it, but Democrats want to go much further with the policy.

"Just like sick leave, it becomes a contest of how much is enough?" she said. "And we may get to see that debate play out again."

The proposal to increase the subsidy voucher has strong support in the state Senate, where 32 senators have sponsored the measure - eight more than required for passage.

Hogan, lawmakers and advocates for the working poor say none of it would be enough to meet the actual need. Some predict it would take an additional tens of millions a year in one of the country's wealthiest states to ramp up the program, and it would still fall short.

Even with extra money and matching funds from the federal government, the Hogan administration says, the enhanced program would serve only about 13 percent of the people eligible for it.

For the past three years, the Joint Committee on Children, Youth and Families has been investigating how the state's child care programs have been working - or not working. State Sen. Nancy King, who co-chairs that committee, is co-sponsoring the bill that would raise the voucher rates.

"We'll never have enough money to take all the people who need it," the Montgomery County Democrat said. "We're trying to kind of chip away at it."

Maryland is one of 20 states with waiting lists for the program, the National Women's Law Center reported in October.

While Maryland's voucher rates are among the lowest in the nation, the co-payments required from parents are the second-highest, the Washington-based advocacy group reported.

Back when Hammond was one of the lucky parents to get a voucher, she still paid $500 a month out of pocket at the day care she loved to cover the difference between the voucher's value and tuition for then 3-year-old Armoni.

She missed a deadline to file paperwork with the state and lost the voucher. Without it, Hammond could no longer afford the tab at Armoni's day care, or anywhere else.

Her attempt to cobble together child care from family and friends fell short. She started missing shifts at her $10.50-an-hour job. She took Armoni to work with her. She was soon let go, and evicted from her apartment.

Hammond moved in with family and started to look for another job while she waited for another chance to receive the voucher. It never came.

Hammond hopes the lawmakers who are considering how to expand the program will take time to understand life for people like her, living on the edge and grasping for stability.

"They should feel how it feels, understand what we go through for people who want to do something with their life," she said.

Advocates for working families say they're thrilled the Hogan administration is ending the waiting list. But they say the subsidy rates are so low that giving more people vouchers would still leave parents with limited options.

"The wait list is a big deal, I'm not going to pretend that it isn't, but that's far from the only problem that plagues this program," said Clinton Macsherry, public policy director with the advocacy group Maryland Family Network.

"The subsidy rates that we are paying are almost more insidious, because it limits parents profoundly in what they can afford, even if they're lucky enough to be in the program," he said. "We are relegating low-income families to the cheapest and, by proxy, the lowest-quality care they can find."

The federal government warned Maryland in 2016 that its voucher rates were so low that "we continue to be concerned that your rates may not allow for equal access" to care.

The voucher, which is issued on a sliding scale depending on a family's poverty level, comes with a co-pay. No child care provider is required to take it. If the cost of care exceeds the value of the voucher, families are on the hook for the difference.

Families qualify for the program if the parents work or attend school, have immunized children, seek child support if the parents do not live together, and meet income thresholds. A family of two can earn no more than $24,277 a year. A family of six can earn no more than $47,127.

People in the highest two of 10 income divisions have been on a waiting list for more than seven years.

When vouchers do not cover the entire cost of child care, providers are left with the choice between offering discounts or turning people away.

In the 12 years Jennifer Dorsey has run a day care in East Baltimore, she said, she routinely has heard parents on vouchers confess they can no longer afford the full tuition. Dorsey said she ends up cutting them a break rather than leave them to unlicensed caregivers or neighbors.

The 8 percent increase proposed by Hogan would give families with a $109 voucher an extra $8.72 a week, not enough to make a big difference in Dorsey's bottom line.

"But we're not going to look a gift horse in the mouth," she said. "We're not going to turn down anything. It's a step in the right direction. It's an acknowledgment that the system is broken."

Credit: By Erin Cox; Yvonne Wenger - The Baltimore Sun

Caption: Ashley Hammond, 24, reads with her 4-year old daughter, Armoni Hammond-Santilli, at home. After losing a state voucher, Hammond has struggled with child care costs. State officials are working to provide more assistance to residents with child care expenses.

Amy Davis/Baltimore Sun