Child Care in Connecticut:
A Short Report on
Subsidies, Affordability, and Supply
This report summarizes recent child care information for the state of
Connecticut. The first section provides new information on
child care subsidies, based on eligibility estimates
generated by the Urban Institute and state administrative data reported to
the U.S. Department of Health and Human Services (HHS). The second
two parts, on affordability and
supply, draw on state and local data collected by the
Urban Institute during the summer of 1999 under contract with HHS.
A companion document to the national report entitled
"Access to Child Care for Low-Income
Working Families," the California report is one in a series of nine state
reports. [The other reports are:
California, Delaware,
Florida, Louisiana,
Michigan, Pennsylvania,
Texas, and Utah]
Figure 1. Child Care and Development Fund (CCDF) Eligibility and
Receipt in Connecticut
Sources: Urban Institute simulations and state administrative
data reported to the Child Care Bureau.
-
398,000 children under age 13, (or under age 19 if disabled), live in families
where the family head (and spouse if present) is working or is in an education
or training program, as shown in Figure 1. Children across all family income
levels are included in this estimate. Most of these children (380,000) are
under age 13 and living with working
parents.1
-
103,000 of these children, and 63,000 families, are estimated to meet
Connecticuts income guidelines for child care assistance under the
Child Care and Development Fund (CCDF) October 1997 state plan. The eligibility
estimate would be even higher 188,000 children
if Connecticut raised income eligibility limits to 85 percent of State Median
Income, the maximum level allowed under Federal
law.2
-
To be initially eligible under Connecticuts October 1997 state plan,
a family of 3 had to have income below $26,112, or 50 percent
of State Median Income. A family could continue to receive subsidies until
its income reached $39,168 or 75 percent of State Median Income.
-
Most eligible children (84 percent) live in families with annual income below
200 percent of the Federal poverty threshold and more than two-fifths (41
percent) are living in poverty. About 23 percent live in families that report
receiving cash welfare.
-
Most (89,000) eligible children are under age 13 with working parents; the
remaining children have parents in education/training programs or are disabled
youth under 19.
-
12,000 children in Connecticut received child care subsidies funded by CCDF
in an average month in 1998. This estimate suggests that 12 percent of the
eligible population under state limits (and 6 percent of children who would
be eligible under the Federal maximum limits) were served with CCDF funds.
In addition, Connecticut's state administrative data system indicates that
14,600 children were served with other Federal and state
funds.3
-
The Child Care and Development Fund (CCDF) is the major source of Federal
funding allocated to states to subsidize the child care expenses of low-
and moderate-income families so they can work, or attend education or training
programs. Using CCDF dollars along with state funds, Connecticut has designed
its own child care program within broad parameters specified under federal
law. CCDF-funded subsidies, and the number of children that the state reported
were served with these subsidies, are highlighted in this report because
CCDF is a primary source of funding in most states. Also, CCDF administrative
data is the most comparable source of child care data across states. It should
be noted, however, that Connecticut may, like many other states, also use
other funding sources to provide child care subsidies.
-
There is no waiting list for government subsidies in Connecticut.
The United Way of Connecticut/Child Care Infoline, a statewide child care
resource and referral agency, reports that the state only takes new applications
for subsidies when the funds are available. Connecticut has not had to stop
taking applications for at least 12 months. However, staff from the United
Way of Connecticut/Child Care Infoline believe that there are eligible families
that do not apply for
subsidies.4
-
Prices for child care vary considerably, by such factors as geographic area,
type of provider and age of child. Figure 2 shows the average monthly prices
for child care in Hartford and New Britain, Connecticut. Given that these
are average prices, it is clear that many families pay more or less than
these amounts.
-
Centers in Hartford, Connecticut charge an average of $481 per month
for preschool care and $618 per month for infant care, as shown in
Figure 2. This means that a family with $15,000 in income and one preschool
child in an average-priced center would spend more than one-third (38 percent)
of its total monthly income on child care expenses. Average-priced infant
care would represent an even higher share (50 percent) of monthly income
for a family earning $15,000.
-
In New Britain, Connecticut, center-based care costs an average of
$480 per month for preschool care, or 38 percent of monthly income
for a family earning $15,000, as shown in Figure 2. The average price for
infant center-based care in New Britain, Connecticut is $657 per month,
or 53 percent of monthly income for a family with $15,000 in income.
-
Family child care homes in Hartford, Connecticut charge an average of
$414 per month for preschool children and $456 per month for
infants. This means that a family with $15,000 in income and one child in
an average-priced family child care home would spend 33 percent of its
monthly income on care for a preschool child or 37 percent for an infant.
A family in New Britain, Connecticut with the same annual income using
average-priced care would spend 41 percent of its monthly income ($508
per month) for preschool care or 43 percent ($531 per month)
for an infant in a family child care home.
-
Families who receive child care subsidies usually pay much smaller monthly
co-payments, rather than the full market rate. Such co-payments are
established under a sliding fee schedule, and are based on family income
and family size. By law, families in Connecticut are required to make only
one co-payment regardless of the number of children they have in care.
-
For example, a family of three with $15,000 in income and one preschooler
or infant in average-priced care in Connecticut would be charged a monthly
co-payment of $50, or 4 percent of monthly income, as shown in Figure 2.
If this family of three had two preschoolers in average-priced care, its
monthly co-payment would also be $50.
-
In Connecticut, families receiving cash welfare assistance are not required
to make co-payments.
Figure 2. Child Care Prices and Co-Payments for Hypothetical Connecticut
Families
of Three Earning $15,000 with One Child in Care
|
WITHOUT SUBSIDY |
WITH SUBSIDY |
Average Monthly Prices
(Full Time Care) |
% of Income
(Family Income of $15,000 Annually) |
Monthly Co-Payments*
(If receive subsidy) |
% of Income*
(Family Income of $15,000 Annually) |
FAMILY LIVING IN HARTFORD, CONNECTICUT |
INFANT (1 year) |
Center-based |
$618 |
49.5% |
$50 |
4.0% |
Family child care home |
$456 |
36.5% |
$50 |
4.0% |
PRESCHOOLER (4 years) |
Center-based |
$481 |
38.4% |
$50 |
4.0% |
Family child care home |
$414 |
33.1% |
$50 |
4.0% |
FAMILY LIVING IN NEW BRITAIN, CONNECTICUT |
INFANT (1 year) |
Center-based |
$657 |
52.6% |
$50 |
4.0% |
Family child care home |
$531 |
42.5% |
$50 |
4.0% |
PRESCHOOLER (4 years) |
Center-based |
$480 |
38.4% |
$50 |
4.0% |
Family child care home |
$508 |
40.6% |
$50 |
4.0% |
* State policy does not prevent providers from charging parents additional
amounts, above the co-payment, if the providers' rates exceed the state
reimbursement level. Figures in this table represent the minimum co-payment.
Source: Data collected by the Urban Institute from United Way
Connecticut/Child Care Infoline, a child care resource and referral agency
serving Connecticut, summer 1999.
-
State policy does not prevent providers from charging parents additional
amounts, above the co-payment, if the providers rates exceed the state
reimbursement level. For example, the maximum CCDF rate for a preschooler
in a family child care home in New Britain, Connecticut is $433 per month,
which is $75 less than the $508 average price shown in Figure 2. If the $75
differential is paid by the family, the total cost to the family is $125
per month, more than twice the official co-payment of $50 shown in Figure
2. If the fee is not charged to the family, the provider loses $75 per month
for providing service to a subsidized child. The differential could be much
larger than $75 for some child care setting, including accredited centers
and other settings with higher than average rates, and for families with
more than one child in care.
-
Maximum reimbursement rates in Connecticut are determined on a regional basis.
Providers in Connecticut may be unwilling to accept subsidized children,
or may limit their enrollment, when the reimbursement rates are lower then
their prices (see example in section II). As a result, families receiving
subsidies may have limited choices of caregivers.
-
Staff from United Way Connecticut/Child Care Infoline, the resource and referral
agency serving Connecticut, report shortages in the supply of infant/toddler
care, school-age care, care during non-traditional hours, and care for children
who have special needs or are ill. Specifically:
-
There is a shortage of infant/toddler care in Connecticut. Many
center-based programs do not offer care, or offer limited services, to children
under the age of three.
-
School-age care in many areas of Connecticut can be difficult to find. Generally,
children must attend programs within their school district, and vacancy rates
vary by area. For example there is one school District in Hartford that has
no available school-age slots.
-
Care during non-traditional hours is in short supply in Connecticut. For
example, only 16 percent of family day care homes in Hartford offer any
non-traditional hour care. A smaller fraction, 5 percent, provide care during
weekend hours.
-
Connecticuts licensing regulations do not permit programs to offer
care for sick children.
1. Estimate based on microsimulations using the
Urban Institute's TRIM3 model, guidelines in the state's 1997-99 CCDF state
plan, and three years of Current Population Survey data (calendar years
1995-97). Back to text
2. Ibid. Back to text
3. Estimates based on state administrative data
reported to the Child Care Bureau and adjusted to reflect children funded
through CCDF only. 1998 figures based on April-September 1998.
Back to text
4. Waiting list data was obtained and compiled
by the Urban Institute from the United Way of Connecticut/Child Care Infoline
(the statewide child care resource and referral agency).
Back to text
5. Information in this section was obtained and
compiled by the Urban Institute from the United Way of Connecticut/Child
Care Infoline (the statewide child care resource and referral agency).
Back to text
6. Ibid. Back to text
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