Mecklenburg County to extend child care subsidies to more families. Here’s how to apply.

Charlotte Observer - 4/19/2022

Financial support for child care will open up to 700 more Mecklenburg County children this summer, county officials say.

The new program will allow people of greater incomes to access subsidies, as well as those who work fewer hours. The two-year pilot program will cost $10.5 million and be administered by Child Care Resources Inc.

In a presentation Tuesday to the Board of Commissioners, Robert Nesbit, chief of staff for the county’s Consolidated Human Services Agency, said he believes Mecklenburg County will be the first in the state to extend benefits in this way.

The program is expected to launch in June.

“I’m just excited to see there is something on the horizon for people who need it the most,” said county commissioner Vilma Leake. “And that’s women, single women, single mothers with children struggling to survive.”

Who currently gets subsidies?

The state sets guidelines for which parents can access child care subsidies that are paid for by the state. Because this program uses county money, though, the county can extend those benefits to more people.

There are three barriers the county program hopes to address: income levels; the “benefits cliff” from career advancement; and the working hours limit.

Under the state’s guidelines, families of three can access subsidies if they earn less than about $43,900 a month for children under age 5. For children between the ages of five and 12, three-person households can access subsidies if they earn less than $29,208.

Nesbit gave an example of a single woman with two children ages three and 10. She makes $44,000 gross a year. Because she’s just a few dollars over the income threshold, she can’t access subsidies.

Childcare can cost anywhere from $800 to $1,500 a month. If she spends $1,000 a month on childcare, $1,500 on rent and $1,400 a month on other household expenses, she’ll come up several hundred dollars short short every month.

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The program aims also aims to ease the “benefits cliff.” When a parent gets a new job or a raise that puts them over the threshold, they lose benefits under the state guidelines. This can deter people from furthering their careers for fear of losing benefits, Nesbit said.

The last barrier deals with the number of hours a person can work while still receiving subsidies. Under state guidelines, a single parent making less than 200% of the federal poverty level can only access benefits if they work 30 hours or more every week.

Who can apply for the new program?

The program will increase the income eligibility threshold for up to to 300% of the household federal poverty level, or about $69,000 for a family of three, Nesbit said.

It will also decrease the work requirement from 30 hours per week to 20 hours per week for households under 200% of the federal poverty level. Nesbit said they will work with families to get them additional working hours and help them qualify for state-funded subsidies.

The family copayment will be 10% of monthly gross income. Nesbit said he expects about 700 Mecklenburg County children will now be eligible for benefits when they previously were not.

People can apply be calling Child Care Resources Inc. at 704-348-2181 or by visiting childcareresourcesinc.org.