Economic Stimulus for Child Care = Jobs in Florida

By Phyllis Kalifeh, President and CEO of The Children's Forum

Congressional leaders have finally resolved their differences and have included $2 billion in the economic stimulus package for child care. The Children's Forum agrees with this decision that will immediately stimulate Florida's economy, help working families with child care expenses, and quickly create more than 5,000 new jobs. More than $105 million will be appropriated to Florida to pay for child care through the Child Care and Development Block Grant (CCDBG).

Child care expenses can consume up to 50 percent of take home pay for low wage earners leaving families feeling hopeless. Without help in paying at least a portion of the costs, parents are unable to seek or even maintain their jobs. Families receiving child care assistance pay about 7 percent of their net income for care making it much more manageable. The amount of child care subsidy decreases as the parent's income increases. And when families are working, they are hopeful, contributing to the tax base and can eventually realize the goal of self-sufficiency.

But according to information obtained from the Florida Agency for Workforce Innovation, Office of Early Learning, the waiting list for child care financial assistance averaged more than 57,000 children for the first half of the state's fiscal year. These children need child care now and providing it will help struggling families pay for child care and will absolutely save jobs and create new jobs. Very importantly, it will result in children being safer and more ready to learn when they start school.

There's another positive angle on investing in child care. According to an analysis conducted by the Cornell University Department of City and Regional Planning, every $100 spent on child care in Florida yields $196 of total sales in the regional economy through the purchase of items such as food, toys, and supplies for the children creating positive effects on other industries. Florida stands to gain more than $105 million through the Child Care and Development Block Grant. The positive impact when considering the effects is exponential.

What effect will the infusion of $105 million have on employment? By some estimates, for every 10 additional children in child care one job is created in the child care industry. The economic recovery proposals estimate that 20,880 more children will be served in Florida. Do the math - that translates to approximately 2,088 jobs for child care practitioners. According to analysts, the impact of child care job creation is 3,173 more new jobs in the Florida economy where goods and services are purchased by the child care industry.

The Children's Forum, along with other child advocacy organizations commends Congressional lawmakers for including the additional $2 billion for the Child Care and Development Block Grant. Families and local communities stand to benefit not just in the short term, but for generations to come. It's good for business, good for children and a good strategy to keep Florida working.

Phyllis Kalifeh is the President and CEO of the Children's Forum in Tallahassee, Florida. She may be reached at 850-681-7002 or pkalifeh@thechildrensforum.com.

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Economic Stimulus for Child Care = Jobs in Florida