In the economic crisis Iowa’s families are facing, child care assistance can help. However, Iowa’s current program does not help families enough. We have one of the highest rates of working parents in the country — and also one of the most restrictive assistance policies. We are ranked 47th in country because our income eligibility limits are so low. As a result, too few low-income families are receiving support that will help them keep working.
Our new study, Strengthening Child Care Assistance in Iowa, found:
- • Resources used to provide child care assistance returns money to the state budget.
- • With program improvements where Iowa has some current weaknesses, it could be self-supporting or actually generate revenue in the future.
Two major weaknesses that could be addressed:
- • We currently reach too few working families who are struggling with child care costs (they are facing costs for child care with is higher than a year’s tuition at a regent university).
- • The current quality of subsidized care is lower than care for children without subsidies. We would generate more money back to the state budget and potentially make money for the state by improving the quality of care that subsidized children receive.
Regarding the state’s fiscal situation:
- • We did not make these program investments three years ago when the economy was better — we can’t count on it happening once things are better again, maybe three years from now.
- • Our current fiscal situation demands that we keep Iowans working and make smart investments with state dollars. Child care assistance does both.
- • Right now we have federal stimulus targeted for child care improvements and expansions. This is an opportunity for Iowa.
If Iowa policy makers seriously address the facts noted and challenges suggested by our report, they could change the landscape of child care in Iowa. This would be a big boost to working families who are struggling to get by.
Posted by Lily French, IPP Research Associate
