ERIC ED474492: Child Care Assistance: Helping Families Work. Annual Report, 2001-2002.

14 Pages·2002·0.5 MB·English

by  ERIC

DOCUMENT RESUME
ED 474 492
PS 031 095
Child Care Assistance: Helping Families Work. Annual Report,
TITLE
2001-2002.
Greater Minneapolis Day Care Association, MN.
INSTITUTION
2002-00-00
PUB DATE
13p.; For the 2000-2001 Annual Report, see PS 031 002.
NOTE
AVAILABLE FROM
Greater Minneapolis Day Care Association, 1628 Elliot Avenue
South, Minneapolis, MN 55404. Tel: [phone]; Web site:
http://www.gmdca.org.
PUB TYPE
Reports
Descriptive (141)
EDRS Price MF01/PC01 Plus Postage.
EDRS PRICE
DESCRIPTORS
Annual Reports; *Child Care; Family Income; Infants; Nuclear
Family; One Parent Family; *Organizations (Groups); Program
Descriptions; Toddlers
IDENTIFIERS
Minnesota (Minneapolis); *Subsidized Child Care Services
ABSTRACT
This annual report of the Greater Minneapolis Day Care
Association (GMDCA) details the accomplishments of the organization for 2001-
2002. The report begins with a letter from the executive director focusing on
need to continue funding for the Basic Sliding Fee Child-Care Assistance
program to help low- and moderate-income working families. The report then
describes how the GMDCA responds to family needs by offering child care
assistance on a sliding fee scale. The experiences of three families are
highlighted, one family in which both parents work and receive child care
assistance, a one-parent family that waited 12 months for child care
assistance, and a 2-parent family receiving assistance through the At-Home-
Infant Care program to allow the mother to provide at-home care for their
premature infant. Charts portray the annual income and expenses for a family
of 4 to illustrate an annual deficit of over $3,000. A second chart
illustrates the industries employing families that receive child care
assistance through GMDCA. The report then lists GMDCA services provided in
2001-2002 and includes a financial statement of the GMDCA. Completing the
annual report is a list of board members, volunteers, and donors.
(KB)
Reproductions supplied by EDRS are the best that can be made
from the original document.
.1
A
414
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PERMISSION TO REPRODUCE AND
Office of Educational Research and Improvement
DISSEMINATE THIS MATERIAL HAS
EDUCATIONAL RESOURCES INFORMATION
BEEN GRANTED BY
CENTER (ERIC)
Air his document has been reproduced as
received from the person or organization
,SiCtrOtt
/Mt)
originating it.
Minor changes have been made to
improve reproduction quality.
TO THE EDUCATIONAL RESOURCES
Points of view or opinions stated in this
INFORMATION CENTER (ERIC)
document do not necessarily represent
official OERI position or policy.
Helping Families Work
-
A
I
Greater Minneapolis Day Care Association
2001-7002-Annual Report
BEST COPY AVAILABLE
January 2003
The full-time earnings of employees in
service sector jobs such as nurse's
aides, bank tellers, child-care workers,
Dear Friends,
and ambulance drivers are so low that
any one of the "essentials" eats up a
considerable portion of their income.
A bank teller, for example, earning
We know the social value of caring for Through a contract with Hennepin
$21,500 a year* would pay about 35%
our youngest children. We've argued
County, GMDCA administers the
of her income for licensed infant care.
"non-welfare" portion of the
about the balance between societal
With child-care assistance, she would
and personal responsibility. Facing a
program. Last year, GMDCA provided
have a manageable co-payment of
massive budget deficit, our elected
child-care assistance to 1,438 families.
$76 a month, leaving more for other
officials are saying that like a family,
The average family receiving
necessities. The Minnesota Basic Sliding
we (i.e., the government) have to
assistance had 1.67 children, earned
Fee program helps families work. It
tighten our belt and live within our
between $25,000-30,000 annually,
makes it possible for parents raising
means. But we cannot ignore three
young children to continue working.
received an average monthly child-
stark realities facing low- and
care assistance grant of $926 and
Most importantly, it provides safe care
moderate-income working families:
had a monthly co-payment of $140.
for children. Minnesota's children and
families are worth the investment.
Families with young
This year, legislators will be tempted
to tinker with eligibility and reduce
children are at the low
Sincerely,
funding for the program. But in tough
end of their earning
economic times, our elected officials
potential; maintaining a
3\tItt._
must weigh the consequences of these
basic standard of living
actions. Low- and moderate-income
Sharon Henry-Blythe,
uses up a substantial
working families are truly one
Executive Director
portion of their disposable
paycheck away from homelessness.
income; and even living
With soaring housing and health-care
costs, families with young children
modestly, it is very difficult
also have to juggle the high cost of
for families to manage
child care. Families are stretched to
without two incomes.
their limit. Those with one infant
Contents
in full-time child care in Hennepin
The Basic Sliding Fee Child-Care
County pay between $7,500 and
Assistance program offers short-term
$12,000 annually, depending on the
support to help low- and moderate-
type of care. The cost of care for two
income families balance these
young children is between $14,000
realities. Although the program has
and $20,000. Middle-income families
long waiting lists, it is fair for families
reel at the sticker shock. Low- and
and addresses market rates that work
moderate-income families are forced
well for child-care providers. The
to make impossible choices: which bills
program encourages work and self-
A
do they NOT pay? Is it better to quit
sufficiency, supports the needs of
work and go on welfare? Or should
young children, and allows for parent
they put their children in substandard
choice in selecting child care.
-
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care?
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How the program
Responding to family needs: In
In the early 1980's,
helps families: The
the state legislature
1975, GMDCA piloted Minnesota's first
purpose of Basic Sliding Fee program
decided to pilot the program,
child-care assistance program offered
is to support families as they work,
launching it with an annual budget
on a sliding fee scale. Funded by
go to school, or participate in job
of about $100,000. As counties began
Minneapolis Community Development
search activities. Over 70% of eligible
to document needs and the demands
Block Grant dollars, the program
families are employed, most earning
grew, advocates successfully lobbied
began in Hennepin County in response
between $12,000 and $22,000 annually.
for expansion. This year, the program
to needs of working families earning
Without child-care assistance, families
will serve more than 4,500 families
slightly above poverty-level wages
would pay more than 30% of their
in Hennepin County alone, with
income for child care (see Monthly
an annual budget of just over
Expenses for a Family of Four, page 5.)
$31 million (see below for
-
current funding sources).
Challenges ahead: As of December
.
Eligible families pay
2002, more than 3,000 families in
between 2% and 20%
-
Hennepin County are waiting for
of their gross family
assistance. Eligible families have to
.
income to purchase child
wait as long as 10 to 12 months for
care at the legal provider
-
assistance. To make matters worse,
-
of their choice. Originally,
-
Minnesota's budget deficits threaten
eligible families paid no more than
the effectiveness of this program.
15% of their income for child care,
In recent years, attempts have been
but Minnesota legislators changed the
(between 60 to 75% of the state
made to drastically reduce access to
median income). At the time, only
guidelines in 1999 and increased
family co-payments.
poverty-level families were eligible
for child-care benefits.
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.
r.re
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f
4.55..et,
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J-tilci
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P\c-
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cAPP/
we, !?\
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uoti
aka
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13.0% Fle.\.\efir, Co.
the program
by raising family co-payments and
1.0%
1,\PYI
lowering eligibility. If this happens,
Other)
(cpl?
more families will turn to welfare
and/or leave their children in unstable
43.0% State
child-care situations. Children will fare
worse as economic and family stresses
impact their lives.
total:$31,5oS1O75
N
43.0%
ederal
4
3
BEST COPY AVAILABI_E
Patrick and Norma Wilson, parents
of three children, both work.
But without the help of the
Basic Sliding Fee child-care
assistance program, the
Wilsons would have to
Assistance allows the Wilsons to
pay more than half
choose high-quality child care without
their gross family
having to worry about the cost. Aaron
income for child
and Alyssa attend Edina Kids Club,
care. Patrick
operated in their elementary school
sells shoes in a
by the Edina School District. The
department
children are in the program before
store for $8.50
and after school and during summers.
an hour and
"I like using the computer lab and
Norma works for an
playing in the gym," said Alyssa.
insurance company
Norma adds, "The children are happy
earning $12 an
and the program has provided them
hour. Their children
with consistency for three years."
are 8-year-old twins
Kevon, their preschooler, has attended
Aaron and Alyssa and
a child-care center five minutes from
4-year-old Kevon.
their house since he was three months
When the twins were
old. "The program is great," said
younger, they were
Norma. "Now that Kevon is 4 years
in a family child-care
old, he is getting a good pre-school
program full-time
experience right in the child-care
operated by a friend.
center."
Even with a "friend-
Norma believes that without child-
of-the-family" discount,
care assistance, their options would
the Wilsons paid $200
be limited. Either she would have to
a week for the two
cut back to part-time work to care for
children. "And that was
their children, or she and her husband
a struggle," said Norma.
would have to work split shifts,
Today, care for their three
leaving little time together as a family.
children averages $1,670 a
month. With child-care assistance,
With child-care assistance, Norma
the Wilsons have a manageable
and Patrick are both able to work
co-payment of $77 a month.
to provide for their family, and their
children benefit from stable, high-
quality child-care programs.
5
4
Angela called GMDCA in December
2002 to apply for child-care assistance
only to find out there is a one-year
waiting list.
Although Angela is grateful for the
time she's had to be with her son, she
needs to find a job. "I know I can't be
choosy," Angela said. "Child care is
expensive, and as a single parent,
I need it even to look for work."
"It's pretty tough," said Angela Ferris,
If Angela didn't have to wait a year,
about having to wait 12 months for
she could use child-care assistance
child care assistance. She and her
for 5 to 10 weeks while she looks
11-month old son, Daniel, are living
for work. Assuming she lands a job
off her 401(k). "Fortunately, I have this
that pays approximately $12 an hour,
resource. I know many people don't,"
her child-care assistance co-payment
said Angela. "But it won't last much
would be $145 a month compared to
longer." It's been a rough two years
$600 to $1,000 each month for child
for Angela, a resident of South
care. Without assistance, Angela will
Minneapolis.
have to pay 30%
Waiting
or more of her income for child
Working as a machine operator at a
care. Unfortunately, it looks like
plastics plant, Angela and several of
Angela and Daniel have another
her coworkers lost their jobs when the
challenging and uncertain year
economy started to sour in 2000 and
their company's sales fell. About the
ahead.
same time, Angela learned she was
Today, approximately 3,000
pregnant with her first child. She used
families are on the waiting list
up her unemployment benefits and
in Hennepin County for child
was able to get public assistance for
care assistance.
a few months right after her son's
birth. She was ineligible for further
assistance, however, when her 401(k)
matured and was considered an asset.
To earn extra income while at home
with her infant, Angela provided child
care for a friend until the friend was
also laid off.
6
5
inancial
At the same time, Corey was
laid off because the company
he worked for was sold and
moved to Texas. "We used up
all of our savings," said Rose.
"Without AHIC, we would
have become homeless.
.
For the first year of Alysha's life,
-I
AHIC provided the only income
.
-
(approximately $349 a month) we
could rely on."
At -Home
41
Rose is still
:
1
.
at home with
I
.
Alysha full
time, although
AHIC assistance has ended. Rose and
Alysha Baumgardt, now a healthy
Corey continue to struggle financially.
18-month old, was born five weeks
In fact, Rose said, "We're hardly
premature. The At-Home-Infant Care
making it, but we feel strongly about
(AHIC) program allowed Alysha's
caring for Alysha ourselves." Rose
mother, Rose Sparber, to stay at
is committed to providing pumped
home and provide the care Alysha
I
breast milk for Alysha. Rose believes
needed to thrive.
6
it would have been impossible for her
The goal of the AHIC program, which
to have maintained a job and pump
-
is funded by the Minnesota State
milk for Alysha every 2-3 hours while
.
-
Legislature, is to help working parents
she was in child care.
:
stay at home longer after the birth
The AHIC program was a lifesaver
I
-
of their infants. Families are eligible
for Rose, Corey, and Alysha. "The
for a monthly stipend based on their
money spent on the AHIC Program
income and can access AHIC for a
is a worthwhile investment because
lifetime maximum of 12 months.
6..
the more time parents have with
Rose Sparber and Corey Baumgardt
their babies," Rose asserts, "the fewer
used the full 12-month allotment with
problems they will have when their
Alysha, their only child, because of
children are older."
unexpected circumstances. Rose was
put on bed rest at 7-1/2 weeks into
her pregnancy and eventually lost her
job working with vulnerable adults.
7
6
BESTCOPYAVAILABLE
Realities
Some jobs don't pay enough to cover the necessities.
for a
Of cow-
$11,640
Housing/Utilities'
c_A etN'e'
Child Care (without subsidy)'
10,704
7,332
Net Taxes'
6-)
).\d
Jilcirer\, ayes
?1\
fo 0
6,084
Transportation
6,060
Food
ey:1$
j
3,948
Health Care'
6v)°
2,964
Clothing/Miscellaneous
6..2% Cioti,i,\I
$48,732
Total
Reaffk Care
S.1%
rvi
Annual Household Income at
$21.76/hour for 40 hours/week*
45,261
$ 3,471
Annual Deficit
N
11.4%
cood
Z3.1% Rooky
*This amount is 251% of the Federal Poverty
.10
Guideline and would make this family
utilities
a
ineligible for child care assistance if
proposed legislation passes.
1Z-5%
Tra,\yort a fib r\
Notes (All data, except child care costs, compiled by Jobs Now
Coalition, St. Paul, MN for metro area, 2000; housing and
clothing expenses are for 1999):
I Three bedroom apartment with utilities and phone
2 Average cost for a toddler and a school age child in Hennepin
County; under the current program, this family would receive a
subsidy of $730 per month.
i5.0% Net Taxes
11.6% Ca Care
3 Includes state, federal, social security, and Medicare taxes as
well as deductions and earned income credit
4 Includes premiums, co-pays, and out-of-pocket expenses
(without
through an employer sponsored plan.
ea. x
36%
Care
4\11 ()ger,
cerui,e5
Soaial
_
lbe5
Dij
Care
elue
e L
tea
15% Rs-ail
ae% Cd,atio,,
4155i5f-pv.e
ceruic.e,
()ger/
y
471°0
07,1
kar\te rT
r\Sura rv,e
o
1
ceruic-es
7-% RospitalitN
8
7
Highlights
Financia
To the Board of Directors
Greater Minneapolis Day Care Association
Greater Minneapolis
Statement of Financial Position
Day Care Association
June 30, 2002 and 2001
Minneapolis, MN
ASSETS
We have audited, in accordance
2002
2001
Current assets
with auditing standards generally
Cash and cash equivalents
$ 875,629
$ 1,215,430
accepted in the United States of
Accounts receivable
369,435
881,335
America, the financial position of
Notes receivable
131,987
127,406
Greater Minneapolis Day Care
Grants receivable
5,776
5,776
Association as of June 30, 2002 and
Total current assets
1,722,628
1,890,146
the related statements of financial
Building and equipment, at cost
position, functional expenses and
Building (net of accumulated depreciation
cash flows for the year then ended
of $184,575 in 2002 and $169,570 in 2001)
288,038
303,044
(not presented herein); and in our
Equipment (net of accumulated depreciation
of $245,858 in 2002 and $219,204 in 2001)
42,550
23,671
report dated August 28, 2002, we
311,709
345,594
expressed an unqualified opinion
Total current assets
$ 2,034,337
$2,235,740
on those financial statements.
In our opinion, the information set
LIABILITIES AND NET ASSETS
forth in the accompanying condensed
Current liabilities
financial statements is fairly stated, in
Accounts payable
$27,050
$23,991
all material respects, in relation to the
Refundable advances
91,405
477,387
financial statements from which it has
Accrued liabilities
7,053
1,319
been derived.
Total current liabilities
122,449
505,756
Kaliher, Passolt
Net assets
& Co., Ltd.
Unrestricted
Minnetonka,
0
-.0
Designated
128,600
227,411
Minnesota
Undesignated
564,430
489,939
August 28, 2002
693,030 717,350
Temporarily restricted
1,218,858
1,012,634
1,911,888
1,729,984
Total liabilities and net assets
$ 2,034,337
$2,235,740
Program Services (includes $8,894,485
in Program Pass-thru Dollars)
$10,803,675
General Administration
121,764
Fund Raising
29,736
Total
$10,955,175
9
8
GMDCA
Board Members
for 2001-2002
Retierve
Deborah Achor,
Hennepin County Library
$11,137,079
Louis Alemayehu,
Parent & Community Representative
cierr\h-,er\f:
Gwen Bush,
$10,712,286 (96.2%)
\
Minneapolis Public Schools
Judy Canney,
Minneapolis Technical and
Community College
cerui6e tees:
Darcy Folger,
$45,479 (0.4%)
New Horizon Kids Quest
()ger: $379,314 (3.4%)
Dr. BraVada Garrett-Akinsanya,
Community Representative
Gwen Johnson,
CXfer\,e
University Good Samaritan, President
Bauz Nengchu,
$10,955,175
Office of Ombudsperson for Families
Vro,rah-, cerui6es
$10,803,673 (98.6%)
Patricia Ray,
Children's Initiative,
Minnesota Department
of Human Services
46\c1).-kisfrai-io,\
er\eral
$121,764 (1.1%)
Cur\draiSir\5
$29,736 (0.3%)
AVAILABLE
BEST COPY
Drawing by Jada, age 8