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Reduced child care costs leave Hamilton County families 'thrilled'

Chattanooga Times Free Press - 8/14/2022

Aug. 14—Hamilton County families, and families across the state, can now benefit from reduced child care costs through state-funded programs.

The Tennessee Department of Human Services recently announced a 20% reimbursement rate increase to child care providers that are part of the Child Care Certificate Program. The program offers care services to help low-income families, parents enrolled in post-secondary education, foster care parents and teen parents afford child care.

Under the program, the state pays the reimbursement rate directly to child care providers. The increased rate will save participating families money by reducing the portion they must pay to cover tuition.

In addition to the 20% reimbursement rate increase, the state will waive any co-pay fees paid by parents participating in the state's child care payment assistance programs until Dec. 31. That means providers will be paid at the full rate.

"Parents are thrilled because they obviously need the assistance or they wouldn't have applied for it," Cathy Loftis, who oversees the School Aged Child Care programs for Hamilton County Schools, said in a phone call.

To qualify, families must have an income below the 85th percentile of the state median income. For example, a household of two must have a monthly income that's less than $3,228 to be eligible.

Hamilton County Schools has 34 child care sites and serves 30 families with children attending public school.

"It's a wonderful asset to give to parents," Loftis said, "for moms that are going to college — and it's not necessarily a single parent, it could be a mom and a dad together that get assistance as well."

Hamilton County has approximately 1,313 children, 943 families and 121 licensed child care agencies participating in the Child Care Certificate Program, according to state officials.

The state considers Hamilton County "top tier," meaning it's among the 20 counties with the highest populations and/or the highest per capita incomes. Child care providers in "low-tier" counties, meaning areas with child care deserts, receive a 15% bonus to the established state reimbursement rate.

"Our Child Care Services team works hard to maintain an understanding of the needs of child care providers and families, and recognized parents and providers feel the impact of the current economy," Human Services Commissioner Clarence Carter said in a news release. "It is important that we do our part to help ensure Tennessee families have sustainable access to affordable care for their children so they can work and pursue education. It's equally important that providers have the resources they need to provide safe, quality care."

While Hamilton County overall isn't a child care desert, a 2019 study conducted by the Tennesseans for Quality Early Education found two-thirds of Chattanooga parents said they struggled to afford child care and more than half said finding quality care affected their employment. The study estimated that inadequate child care costs Chattanooga parents, businesses and taxpayers roughly $74 million annually in lost earnings and revenue.

Contact Carmen Nesbitt at cnesbitt@timesfreepress.com or 423-757-6327. Follow her on Twitter @carmen_nesbitt.

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