Child care center grant program announced

PHOENIX - Child care centers can get a share of $47 million in grants to help them keep their doors open and, if they want, make or keep their rates affordable.

The program, announced Thursday by the state Department of Economic Security, will provide $300 for each child who was enrolled and attended a licensed facility in January. The only exception will be for child-care centers that did not open until later.

And facilities in rural areas -- defined as anywhere outside of Pima and Maricopa counties -- will get an additional $1,000 on top as part of the goal of maintaining access to child care in remote areas.

There also are provisions for aid to operations that closed during the pandemic, providing them with cash if they agree to reopen and provide services by the end of September.

The move comes amid reports that nearly half of all child care centers in the state have closed since the COVID-19 pandemic. The Arizona Association for the Education of Young Children which represents many providers said last month the state went from having 171,000 slots for child care to just 76,000

Some of that is due to the fact that parents who typically require child care have been laid off. That leaves them not only with less money to pay for the service but the fact that they may not need it because they are home.

The state also has imposed various safety restrictions and capacity reductions.

In a press release Thursday announcing the program, DES said it hopes to help providers stay open or reopen. That includes supplementing the operating costs to prevent permanent closures.

Cash is coming from federal coronavirus relief dollars awarded to the state.

DES Director Michael Wisehart said having child care providers available is important not just overall for families but in particular for first responders and essential workers.

"This additional funding is vital for the continued success of our child care system when their services are needed most during this public health emergency, as well as the state’s recovery as we safely reopen the economy,'' he said in a prepared statement.

There appear to be no real strings on how the owners of eligible child care centers can use the cash.

According to DES, they can lower the tuition and registration fees they charge to families. But they also can use it to pay lease or mortgage payments, liability insurance or to purchase cleaning or classroom supplies and materials.

And it also can be used to pay salaries and benefits for employees. But DES says they cannot simply retain the cash for profits.

The additional dollars also do not appear to be linked to need, with all child care centers eligible, whether they are serving children from rich or poor households.

That $47 million is only part of the money being doled out in connection with child care.

A separate grant will provide $24 million for what is called the Arizona Enrichment Centers Program. This is described as a partnership with 546 providers across the state for child care services and scholarships for first responders, health care workers and other essential services during the COVID-19 emergency.

According to the governor's office, qualifying household must have a combined income of $65,000 or less. DES then pays the scholarships, averaging $925 a month per child, directly to the care provider.

DES also is setting aside another $7 million for paid absences of youngsters from child care centers.

Under current regulations, DES pays for two absences a month. This would increase that to five based on the risks of the coronavirus and the need for parents to keep their children home if they are showing signs of illness.

And another $10 million is being set aside in reserve if the economy does not improve and more parents seek state-subsidized child care.

In a separate announcement, the governor said he was providing up to $10 million in grants to some of the small businesses that have been affected by his closure orders, including gyms, fitness centers, bars and water parks. The grants of up to $25,000 will be given out based on a priority to those who are found to me most in need of cash to fund their rent or mortgage obligations and do not have access to other financial support.

On Twitter: @azcapmedia


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