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Child care providers protest state changes to aid program

Providers are voicing their concerns about the Department of Health and Welfare's plan for the Idaho Child Care Program.

BOISE, Idaho — Child care providers continue using their voices to protest the Department of Health and Welfare's decisions regarding the Idaho Child Care Program, which helps families pay for child care with federal dollars. 

"By not investing in early childhood education, by not getting these kids served by high-quality care, we're [going to] see the repercussions of that for years and years to come," said Rebekah Grindstaff, Care House Learning Center director of operations. 

Health and Welfare announced in mid-November its plans to resume applications for the Idaho Child Care Program in January. However, some providers believe the state's changes to the program will leave behind families. 

The state paused the program in August to address a projected $15 million budget deficit, giving providers a 48-hour notice. 

"We were ecstatic to hear that the Department of Health and Welfare was unpausing the ICCP new enrollments," Grindstaff said. "Unfortunately, that news came with some baggage."

Health and Welfare director Alex Adams outlined the changes in a letter to lawmakers. Those include lowering the income eligibility threshold from 175% of the federal poverty level to the pre-COVID rate of 130 and adding an enrollment waitlist to "let the budget drive the program."

Lori Fascilla, Giraffe Laugh executive director, said the department's plan will place a "huge burden" on families since some will end up falling off the program. 

In addition, she said it will further affect centers already struggling with the financial hit of low enrollment because of the pause.

"It's changing the landscape of early childhood in Idaho, and this is statewide," she said, "people worried about being able to keep their programs open."

Grindstaff worries some child care centers might stop accepting ICCP altogether because it is "unreliable," and centers cannot count on it for their budgets. 

So far, she said Care House Learning Center has lost out on more than $16,000 because of the ordeal. 

Fascilla also worries about the department's plan to raise rates to providers starting on July 1 to the 65th percentile of 2024 local market survey rates. 

"Instead of on October 1, increasing that amount for parents, they decided to wait until July of 2025," she said," so I guess my biggest concern is, how are parents going to afford that, especially at a full-paying center that doesn't have scholarships or assistance like we do, and how are providers like us, that are nonprofits trying to help make up that difference going to be able to do that?"

Fascilla and Grindstaff said they are working on ways to increase fundraising so they can give more families scholarships but admitted they, and other providers, are in for a "rough ride."

Health and Welfare declined an interview, but in the letter, Director Adams said the changes ensure the program is financially sound for now.

"All of these changes to the program will restore eligibility to historical levels and ensure we continue to serve Idaho's neediest families while remaining within our appropriation," he wrote. "We remain ready, willing and able to work with the legislature to explore both regulatory reforms and budgetary solutions."

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