IDAHO, USA — After weeks of debate and controversy, the Idaho Joint Finance-Appropriations Committee voted on Tuesday to approve the use of $28 million in federal money for child care providers.
The federal government first allocated American Rescue Plan Act money during the early days of the COVID-19 pandemic, when daycares were struggling to keep their doors open.
To date, Idaho has received more than $100 million. About 700 child care businesses receive up to $20,000 every month, and 3,600 individual child care providers receive $300 every month.
That funding is set to expire in June, although people in the child care industry worried JFAC might end it sooner. Krystal McFarlane, TLC for TOTS director, said they meticulously planned for that money through the beginning of summer.
"We had no idea what we were going to do," she said. "That was budgeted all the way through June. All providers have relied on that, or at least the participating providers."
There was originally $43 million on the table. After several weeks of uncertainty, the committee just approved $28 million, which is still subject to floor votes in the House and Senate.
"In the interim, the Department of Health and Welfare had continued making distributions for that child care, on the same ratio or pattern that they had been doing," Senator Scott Grow (R-Eagle) said. "So, the funds were down to $28 million at this time."
Many people weren't happy with JFAC's delayed decision. However, Grow said committee members were concerned about some other federal money for child care that might not have been distributed correctly by the Idaho Department of Health and Welfare.
He said that $14 million was approved by last year's legislature.
"Some of these grants that were distributed were for children under the age of 5 down to zero, for federal purposes, that was okay," Grow said. "But for state law, our law specifically said that it was only for ages five up to 13. And so that was what put a hold on the whole thing."
Grow said JFAC members wanted to wait until they could "determine legally the appropriate way to disperse funds." Now, the Idaho Department of Labor will distribute the $28 million instead of DHW.
Of course, that's if the House and Senate agree. Grow said he hopes lawmakers make a decision quickly, possibly even this week.
"We didn't want legislators to be concerned that we were giving money back to health and welfare, to the same folks that had some ineligible distributions," he said.
Even if funds are completely approved, the $28 million will still run out in June.
McFarlane said federal money help keep the lights on since they have to keep up with rising wages and other facility costs. She said TLC for Tots has already increased tuition for families in preparation for the funds dropping off. In the last two years, the tuition rate for infants has gone up $200.
That's the biggest increase since the child care business opened 15 years ago, McFarlane said.
"We've increased our tuition incrementally to make sure we got to where we would need to be," she said, "So that [when the funding ran out], we could maintain our business still without having to put that burden all on the families all at once."
While McFarlane said the child care industry shouldn't rely on this federal money long-term, she believes "there's a lot that hasn't been addressed yet."
JFAC previously denied $36 million in child care funding earlier this year.
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