Written by Mark Payne, LINK nky politics and government reporter
The importance of access to child care was a frequent topic of discussion – and legislation – throughout the COVID-19 pandemic.
“It’s a large, unprecedented amount of money going into the childcare system in Kentucky,” said Kentucky Cabinet for Health and Family Services Secretary Eric Friedlander, “and I think it’s a good thing. It’s certainly needed.”
On Wednesday, the Senate Appropriations and Revenue Standing Committee heard from Friedlander and Dr. Sarah Vanover of the DCBS Division of Child Care Director. They broke down the COVID Relief Funds for Child Care.
“There are three really big pots of money,” Friedlander said.
The first is the federal Coronavirus Aid, Relief, and Economic Security, or CARES Act, accounting for nearly $68 million. The second is the federal Coronavirus Response and Relief Supplemental Appropriations Act funding (CRRSA) at almost $196 million. The last is the federal American Rescue Plan Act, or ARPA. ARPA is broken down into stabilization payments with $470 million in funding and the Child Care and Development Block Grant at over $293 million.
“What I think is very important, as we’ve gone through the pandemic, is the identification of the importance of childcare to the entire system,” Friedlander said about how it plays a huge role on how folks get to work. “I think it’s something we undervalued … it’s absolutely critical to economic development.”
Friedlander further broke down exactly how the money is being spent. CARES ACT Funding is broken down into six categories:
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Child Care Assistance Program (CCAP): $715,824
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Stabilization Payments: $35,377,867
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Hero Bonuses: $997,500
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Stabilization Payments: $29, 348,960
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Limited Duration Center Support: $1,301,250
The CRRSA Act Funding fits into three categories:
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Stabilization Payments $156,414,400
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Health and Safety Trainings $235,198
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CCAP Parent Co-Pays $11,135,678
The first rounds of ARPA funds were recently distributed, but it’s too early to report how the funds have been spent. The sustainability grants are based on pay level, with some places required to pay $13-15 per hour for workers.
“We are collecting monthly data through the entire time the sustainability payments are being issued,” Vanover said. “Some of that is federally mandated.”
While Friedlander noted that child care facilities across the state have struggled during the pandemic, the amount of money pouring in is quite significant. With $470 million in stabilization payments from ARPA funds going to roughly 1,700 facilities. This breaks down to around $276,000 per facility on average, though the amounts will vary based on the size of the facility.
“What you’ve shown us is an amazing, amazing amount of money flowing in really quickly for a time-limited period,” said Senator David Givens (R-Greensburg), who suggested maximizing admin fees and then saving that money “… to keep the childcare effort going.”
Photo: Kentucky Cabinet for Health and Family Services Secretary Eric Friedlander and Dr. Sarah Vanover, the director of the DCBS Division of Childcare, present to the Senate Appropriations and Revenue Committee Feb. 9. (Mark Payne)