Senate Committee - Health and Human Services Budget Division
Statement of Ms. Lisa Thompson
Senate Committee - Health and Human Services Budget Division
02/11/09, 8:30AM, Room 123 Capitol Building
Purpose of Hearing: Public testimony on the effects of Governor’s Budget Proposal
Good Morning, Madame Chair, Members of the Committee. Thank you for allowing me to come before you this morning to voice my objections to the proposed cuts in the reimbursement rates for child care for low-income families and the proposed increases in co-payments those parents make.
My name is Lisa Thompson. I have been a home-based, family child care provider in Ramsey County for over 15 years. I am also president of the union here for family child care providers - Child Care Providers Together (CCPT).
I have been hearing from other family child care providers about their reaction to the proposed cuts to reimbursement rates. I have heard disbelief, frustration and outrage at what the cuts will do to the families we serve and our businesses.
I have already experienced a dramatic decline in my business with our souring economy. One third of my families have experienced a job loss just over the past several months. With their job loss, I have been forced to layoff my assistant. If I have to take another 3% cut in income from the reimbursement payments, I will be forced to also let go of my part-time helper.
Even without the 3% cut, the state reimbursement rates are below the market rates for child care. As reported on the DHS website, the 2007 maximum reimbursement rates cover only 55% of providers’ regular rates. That’s down from nearly 70% just 3 years before. This leaves either the parent to pay the extra amount ON TOP of their co-pays (which is rarely manageable for the families), or the provider must simply absorb the loss.
We simply CAN NOT absorb any more loss if we want to stay in business!
Now the Governor’s proposal is to also add more burden on these low-income families receiving assistance by increasing their co-payments by 3%. These are parents going to work every day and STILL struggling to stay above the poverty line. I have heard time and again from parents and providers that families are just barely holding on as it is.
I ask you to please know that cuts to the child care reimbursement programs will force families deeper into poverty because without the supports in place to keep them working, they won’t be able to continue working. They will in fact be showing up on other - more expensive - programs and actually create a heavier burden on our state’s human service budget at a cost much greater than that 3% savings.
Thank you for your time this morning.
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