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Starting next year, half of the Oregon families who rely on state daycare subsidies will have to find another way to pay for childcare.
Currently, about 11,000 families receive Employ-ment Related Daycare (ERDC) statewide, and about 30 in Crook County.
Because of a nine percent, across-the-board cut to state services, the Employment Related Daycare Program (ERDC) has restricted their eligibility requirements. As of Oct. 1, new applicants to the daycare program must have received Temporary Assistance for Needy Families (TANF) for at least one month in the past two years. Those already receiving assistance will be held to the same guideline, but the new rules take effect on Dec. 31.
In order to be eligible for TANF, a family of four can earn no more than $795 per month nor hold assets, other than a home or car, with a value greater than $2,500.
The new guidelines are intended to continue providing help to those who have the greatest financial need.
“The purpose of the subsidy is to support people going back to work,” explained Oregon Department of Human Services Communications Officer Gene Evans.
At the same time, the changes could force working parents who cannot afford daycare to choose between remaining employed or taking care of their children.
“When you reduce that payment, it pulls the rug out from under them,” Evans said. “At the time we were talking abut those reductions, that was part of the discussion. We have heard from parents since the notifications (about the ERDC guidelines) went out. It was an extremely tough choice to make, but it is the position that the State of Oregon is in.”
The revised ERDC rules will save the program about $17 million, Evans said.
Not only will the new guidelines put parents in a bind, it will likely affect the income of daycare providers as well.
“I have two kids in Employment Related Daycare that I am losing,” said Prineville daycare provider Becky Groves. “It is about $800 a month. A lot of providers have Employment Related Daycare kids, so it will be hard for them. It (the new rules) is going to hurt a lot people, both parents and kids.”
At this point, it is unclear whether the changes made to ERDC are temporary or are expected to stick.
“It’s going to be up to the next legislature,” Evans said regarding any changes to the new daycare assistance rules. “For now, the cut has been made, so unless something changes with the legislature, that is the way it is.”
For Oregon Senator Doug Whitsett (R - Dist. 28), other programs will likely take priority over the ERDC as the state tries to balance the budget with shrinking resources.
“Our revenue has fallen for nine consecutive quarters,” Whitsett said. “There is really no end in sight. We’re going to have to prioritize our spending.”
He went on to highlight public safety as the top priority, followed by public health, then education.
“To me, Employment Related Daycare is a program that is useful, but is not top priority in my mind.”
