A panel of child care experts recommended several emergency steps Tuesday aimed at preventing layoffs and closures at Arkansas child care centers amid funding uncertainties caused by the federal government shutdown.
The working group, created last week by the state Early Childhood Commission, suggested that the Arkansas Department of Education adjust provider reimbursement rates, cap copayments for low-income families, and remove the 72-month limit on participation in the School Readiness Assistance Program. Officials said the changes could be implemented by Nov. 1 and would sustain the program for about eight weeks without needing additional state funding.
“If we can absorb a certain level of loss, we don’t have to shut down,” said Shahid Sheikh, who runs four Northwest Arkansas centers. Dawn Colyer, who operates a Sheridan child care center, emphasized that maintaining stable reimbursement and affordable copayments is critical to keeping centers open.
The federally funded program serves roughly 16,000 children statewide and has a waitlist of about 1,100 families. A survey presented to the commission found that, without immediate action, about 250 child care facilities across 50 counties could face 400 layoffs by next month.
The recommendations also include adjusting reimbursement rates so centers with higher quality ratings remain financially viable and scaling rates regionally to account for cost-of-living differences. Families below the poverty level would pay no copay for children before kindergarten, while families above the threshold would pay a percentage of their income capped at 7% for multiple children.
The Education Department and Early Childhood Commission plan to review the recommendations and determine next steps by the end of the week. Members of the working group hope to continue advising state leaders on child care policy beyond the immediate crisis.
The School Readiness Assistance Program relies on the federal Child Care and Development Fund, which has been largely inaccessible due to the ongoing shutdown that began Oct. 1. State officials said they have about $24.2 million available in CCDF funds, including $20.8 million for direct services and $3.8 million for quality investments.
For the original reporting from Arkansas Advocate, click here.
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