This is an archive page. The links are no longer being updated.
STATEMENT
BY
WADE F. HORN, PhD.
ASSISTANT
SECRETARY FOR CHILDREN AND FAMILIES
HHS
BEFORE
THE
SUBCOMMITTEE
ON SOCIAL SECURITY AND FAMILY
POLICY
OF
THE COMMITTEE ON FINANCE
AND
THE
SUBCOMMITTEE
ON CHILDREN AND FAMILIES
OF
THE COMMITTEE ON HEALTH, EDUCATION, LABOR
AND
PENSIONS
UNITED
STATES SENATE
MARCH
19, 2002
Chairman
Breaux, Chairman Dodd, and members of the Committee, I am
pleased to appear before you today to talk about child care
and its role in advancing our welfare reform agenda. Promoting
child well-being and parents' ability to work, particularly
in the context of welfare reform, are two essential priorities
for this Administration and child care plays a key role
in both. Parents need access to affordable and safe child
care in order to succeed in the workplace. And children
need quality care that promotes their healthy development
and literacy skills so that they can succeed in school and
later life. Secretary Thompson recognized these fundamental
links during his experience as Governor when designing the
innovative Wisconsin welfare program and his commitment
to child care remains clear.
The President's budget seeks
to continue funding child care at its current historically
high level within the existing flexible framework of the
discretionary Child Care and Development Block Grant and
the mandatory Child Care funding as well as other critical
funding sources such as Head Start. The Administration is
committed to preserving the key aspects of the discretionary
and entitlement child care programs: support for work and
job training; healthy development and school readiness for
children in care; parental choice; and administrative flexibility
for States and Tribes. The major restructuring of the Federally-funded
child care programs under Personal Responsibility and Work
Opportunity Reconciliation Act (PRWORA) provides a statutory
foundation that remains an efficient method for distributing
child care funds to States, and an effective mechanism for
making these resources available to parents.
I would like to spend my time
today sharing information on each of these key aspects of
the program and the solid support they provide for entering
the next phase of welfare reform. I'd like to begin by briefly
discussing our commitment to a high level of child care
funding.
Child Care
Funding Commitment
The President's FY 2003 budget
includes $2.1 billion for the Child Care and Development
Block Grant and $2.7 billion for the mandatory Child Care
funding -- a total of $4.8 billion for what is referred
to as the Child Care and Development Fund or CCDF. This
continues the significant funding commitment these programs
have witnessed in the last several years. In fact, the amount
appropriated for the discretionary Child Care and Development
Block Grant is more than double the amount currently provided
for in the authorizing statute. Over the last decade, Federal
funding specifically appropriated for child care has tripled
-- from $1.6 billion in 1992 to $4.8 billion this year.
But these funds are only part
of the picture. Funding for child care is also available
through the Temporary Assistance for Needy Families program,
or TANF block grant, the Social Services Block Grant, or
SSBG, and other sources. Looking at recently available historical
data on State and Federal dollars associated with CCDF,
TANF and SSBG, we estimate that about $11 billion dollars
will be invested in child care through these three block
grants alone. The Head Start program, which I will speak
to in greater detail later, provides another $6.5 billion
for early childhood education in FY 2002.
TANF
is now a major source of child care funding. In 2000, States
transferred $2.3 billion from TANF to CCDF and directly
spent $1.4 billion of TANF funds for child care - almost
equaling the amount of Federal dollars available through
CCDF that year. Under our welfare reform proposal, States
continue to have flexibility to transfer up to 30 percent
of TANF funds to CCDF and to spend additional TANF dollars
directly for child care.
The SSBG, a $1.7 billion program
which funds a broad range of social services, is another
significant Federal funding source for child care. In 2000,
43 States reported spending $165 million in SSBG funds for
child care, accounting for 9.3 percent of the total $1.775
billion SSBG expenditures that year.
Funding available through
CCDF and TANF transfers alone will provide child care assistance
to an estimated average 2.2 million per month children this
year. This is a significant increase over the number served
just a few years ago (in 1998 about 1.5 million children
received subsidized care) and does not take into account
additional children that will be served by the Social Services
Block Grant and TANF direct spending for child care.
In addition to these Federal
funds, States contribute significant resources to child
care. A study of 17 States found a median increase of 78
percent in State child care spending between 1997 and 1999.
In order to access the total Federal CCDF and TANF funds
available, States must provide maintenance of effort (MOE)
expenditures and matching funds. In fact, State spending
accounts for about a quarter of total State and Federal
child care expenditures under the CCDF. In 2000, States
reported spending almost $2 billion in State funds under
the CCDF, exceeding the amount required to draw down Federal
funds. States spent at least an additional $774 million
dollars in State TANF funds for child care in 2000. It is
clear from these significant Federal and State funding commitments
that we all recognize the importance of child care.
I'd like to turn now to the
key aspects of CCDF that form the framework of the Administration's
child care program: supporting work and job training; promoting
child development and literacy; promoting parental choice
and State flexibility.
Supporting
Work and Job Training
Our child care reauthorization
proposal complements the expectation under the TANF reauthorization
that an increasing number of families will be engaged in
work and other meaningful activities by ensuring that resources
are available to support safe, affordable child care when
necessary. Child care is a critical support for working
families and studies in several communities and States show
that receipt of child care subsidies substantially increases
the likelihood of employment. Eighty-three percent of all
families who received child care subsidies in 1999 did so
because the parents were employed (with most of the other
parents receiving subsidies while in training or education).
Promoting
Child Development
In addition to supporting
working parents, quality child care promotes early childhood
development and literacy skills to help prepare children
for school and life. To improve quality and support the
child development component of child care, States engage
in a range of strategies and we manage a broad portfolio
of training and technical assistance activities to support
these State efforts.
According to the latest plans
submitted by States, the most common approaches include:
grants and loans to providers for specific quality improvements;
training and technical assistance for providers and staff;
monitoring of compliance with State regulatory requirements;
improving retention and compensation of child care providers;
and a special focus on improving the quality of care for
infants and toddlers. One recent trend is for States to
provide higher reimbursement rates to providers that meet
quality benchmarks, such as accreditation standards. One
study showed that in States that provided greater financial
incentives, this approach was successful in encouraging
providers to seek accreditation.
The President's budget maintains
funding for quality child care. A minimum of four percent
of the CCDF must be spent on activities to promote quality.
States often invest in child care quality in amounts that
go beyond that requirement. Overall, States spent $275 million
to improve the quality of child care services in FY 2000.
At 6.1 percent, that is approximately 50 percent more than
is required by the statute. In addition, the statute provides
set-asides for infant and toddler care, school-age care
and resource and referral services; additional quality expenditures;
and ongoing research to identify and promote effective child
care practices. Also, we are providing technical assistance
to equip States to make the best use of their quality funds,
including activities that promote literacy.
Parental
Choice
Our Nation's child care system
is built on the foundation of parental choice -- recognition
that parents, not government agencies, should decide what
is best for their children. In CCDF, we support parental
choice through vouchers and access to a wide range of child
care providers -- including relatives, neighbors, child
care centers, faith-based programs, and after-school programs.
In FY 2000, over 78 percent of CCDF subsidy payments were
made using certificates or vouchers. Using these vouchers
and other child care payments, 56 percent of children were
cared for in a child care center, while 31 percent were
in family child care homes, four percent were in group homes,
and nine percent were cared for in the child's own home.
It is important to recognize
that we also support parental choice by equipping parents
with the information and tools they need to make well-informed
choices for their children. States are required to provide
consumer education under the Child Care and Development
Fund. In 1999, States reported that they provided consumer
education to over 9.8 million families through a variety
of means, including materials, information on child care
licensing, knowledge of the State's parental complaint and
monitoring processes, and resource and referral agencies.
Resource and referral agencies
are a key component of efforts around the country to provide
child care consumer education. In recent years, Congress
has earmarked a portion of the CCDBG, $19.1 million, for
school-age services and resource and referral services.
Funded with a combination of both public and private dollars,
there now is a network of over 800 resource and referral
agencies around the country. The local resource and referral
agencies focus on helping parents meet their child care
needs, but they also provide general parenting information
through newsletters, web sites, phone consultations, and
other outreach mechanisms.
For the past two years, Congress
has provided a national gateway for child care consumer
education by earmarking money for Child Care Aware,
a national hotline and web site, operated by the National
Association for Child Care Resource and Referral Agencies.
Child Care Aware links parents to their local resource and
referral agency that can identify specific child care providers
in the family's local community and provide informal counseling
on choosing child care that meets the family's needs. The
Administration is committed to supporting parental choice
through consumer education and will fund both the resource
and referral set-aside and funding for Child Care Aware
in the FY 2003 budget request.
The parental choice component
in the child care subsidy program allows parents to choose
any provider--including a faith based program. In communities
across the country, faith-based programs provide preschool
and other child care programs. Of the children from birth
to age five who are cared for in center-based programs,
28 percent are cared for in a church, synagogue, mosque
or other religious institution.
Allowing
for State and Tribal Flexibility
The CCDF is administered by
all 50 States, five Territories, the District of Columbia,
and 262 Tribal Grantees (representing approximately 500
Indian Tribes). These grantees have significant flexibility
to decide how child care funds will be used and what will
be emphasized in achieving the overall goals of improving
the accessibility and quality of care. Within basic Federal
requirements, States determine eligibility criteria and
co-payments for families as well as provider reimbursement
rates. States also determine the amount of TANF funds that
will be transferred or directly spent for child care. Several
States have taken advantage of this State flexibility to
create a single integrated system with affordable co-payments
that serves low-income families, regardless of welfare status.
The statute reserves "not
less than one percent and no more than two percent" of the
aggregate Child Care and Development Fund for Indian Tribes
and we have elected to reserve the full two percent set-aside.
In FY 2002, 262 tribal grantees, representing approximately
500 federally recognized Indian Tribes and Alaska Native
Villages were awarded over $96 million in CCDF funds. Tribes
receive CCDF funding either directly or through consortium
arrangements. With few exceptions, tribal CCDF grantees
are located in rural, economically challenged areas. In
tribal communities, CCDF plays a critical role in offering
affordable, accessible and quality child care options to
parents as they move toward economic self-sufficiency. There
is a strong emphasis on traditional culture and language
in tribal child care settings, which is usually reflected
in a Tribe's overall program activities.
It is for these reasons that
the Administration believes the current framework for child
care is the right strategy for the future. Now I would like
to highlight other important early childhood strategies
supported by the Administration.
Looking
Beyond CCDF in Meeting the Needs of Parents
Looking beyond State and Federal
spending under the block grants, other resources also support
child care in the context of early childhood strategies
-- including Head Start, State-funded pre-kindergarten programs,
and 21st Century Community Learning Centers.
Head Start, a $6.5 billion dollar program, provides comprehensive
developmental services for low-income preschool children
and social services for their families. Early Head Start
serves low-income families with children under three, and
pregnant women. While originally designed as a part-day
program, a growing number of Head Start programs have expanded
to provide full-day services -- which further helps meet
the child care needs of working families. Head Start served
905,000 children in 2001, many of them in full-day, full-year
programs. Much of the expansion to full-day, full-year programs
has been accomplished through collaboration with child care.
And many States supplement Federal funds to serve additional
children through Head Start.
State-funded pre-kindergarten,
or pre-K, programs are another key investment in early childhood
education. About 40 States fund pre-K programs for at least
some of their preschool-aged children, an increase from
about 10 States in 1980. According to Education Week,
State spending for pre-K programs now exceeds $1.9 billion
annually and serves over 760,000 children in a school year.
Most of these programs provide part-day services for a subgroup
of preschool children, usually those from low-income families
or with other risk factors. Nevertheless, they are an important
support for working families and for promoting child development
-- and can be a key partner to other early childhood providers.
Recognizing the similar goals
of these programs, the Administration is promoting collaboration
across the different programs in the early childhood and
education field--including child care, Head Start and pre-kindergarten
programs. Programs in communities across the country have
led the way by working together to share facilities, professional
development activities and other resources. For example,
Massachusetts' pre-K initiative provides services through
local partnership councils that include public schools,
Head Start agencies, and private child care providers. When
collaboration works, as it should, families receive comprehensive,
quality services on a full-day, full-year basis that meets
the needs of working parents. At the Federal level, we are
providing technical assistance to publicize and share collaborative
models with communities across the country.
One excellent example of our
collaborative efforts is the focus on promoting early literacy
efforts across early childhood programs. Last summer, the
First Lady hosted a White House Summit on Early Childhood
Cognitive Development. At the summit, we learned that effective
early language and cognitive development strategies are
available that can be used at home and in child care settings
to ensure that children, even those at-risk of failure,
can enter their first classroom ready to read and ready
to learn. Risk factors that presage academic failure can
be trumped by the efforts of child care providers armed
with solid information about how best to engage children
in the use of language and the joy of reading, and how to
do it systematically. Many States and private organizations
already are taking creative steps to incorporate early literacy
into their programs. We will be seeking additional way to
strengthen cognitive development components of learning
in early childhood and child care programs. And many of
you played a major role in enacting the President's No Child
Left Behind Act, which authorized a new $75 million Department
of Education program called Early Reading First, which supports
early literacy efforts for preschool-aged children.
Finally, as we prepare younger
children to read, we cannot forget about older children
or youth. Some studies show troublesome outcomes for adolescents
when their parents are in welfare-to-work programs, including
increased behavioral problems and lower academic achievement.
The Administration's response includes our positive youth
development initiative, an approach toward all youth that
builds on their assets and potential and helps counter the
problems that may affect them. Many public and private organizations,
such as after-school programs, are already engaged in a
wide array of positive activities to help young people acquire
the competencies, character, and protection they need to
seize the opportunities that lie ahead. For example, Head
Start agencies are supporting youth apprenticeship models
that allow older siblings to share in and benefit from the
family's Head Start experience.
Further, quality after-school
programs provide a safe haven and enriching activities that
promote academic performance, social adjustment, self-esteem
and appropriate conduct in school. Thirty-seven percent
of the children receiving CCDF subsidies are school-aged
children under age 13. Some States are using TANF funds
for after-school programs for older children. The No Child
Left Behind Act authorizes new flexibility for after-school
programs through the Department of Education's 21st
Century Community Learning Centers. These Centers are focused
on providing academic enrichment opportunities during non-school
hours; but they also offer an array of additional activities
such as youth development, drug and violence prevention,
counseling, art, music, recreation, technology education
and character education. This program currently funds about
6,800 Centers in 1,600 communities, providing services for
1.2 million children and 400,000 adults. These numbers are
sure to increase, since funding has increased by 18 percent,
to $1 billion this year.
Conclusion
In closing, the Administration
clearly recognizes that a strong commitment to child care
is fundamental to our self-sufficiency strategy for low-income
families. As I have highlighted, our commitment is founded
on a multi-faceted approach that includes a high level of
Federal resources and collaboration through child care,
child development, youth development, and educational opportunities
at the State and local levels.
Within this context, our proposal
for reauthorizing child care is straightforward -- maintain
the current high level of Federal support for working families
this Administration is providing and the flexible approach
that supports maximum parental choice, healthy development
and school readiness for children, and State and tribal
flexibility.
I would be pleased to answer
your questions.
HHS Home (www.hhs.gov) |
Topics (www.hhs.gov/SiteMap.html) |
What's New (www.hhs.gov/about/index.html#topiclist) |
For Kids (www.hhs.gov/kids/) |
FAQs (answers.hhs.gov) |
Disclaimers (www.hhs.gov/Disclaimer.html) |
Privacy Notice (www.hhs.gov/Privacy.html) |
FOIA (www.hhs.gov/foia/) |
Accessibility (www.hhs.gov/Accessibility.html) |
Contact Us (www.hhs.gov/ContactUs.html)
Last
revised: March 20, 2002