Child care and early education programs have received increasing attention in recent years as more parents are forced to rely on child care providers, as more women, are employed outside the home. Findings on the critical importance of development during the early years have generated growing interest in the quality of care and the importance of preschool in fostering optimum development.

MICHIGAN’S CHILD CARE SUBSIDY PROGRAM LIMITS PARENTAL OPTIONS FOR CARE.

The state Child Development and Care Program provides supplemental child care payments enabling low-income parents to work. The subsidy can be used to purchase regulated child care in a center, group family home or a family home or unregulated care in the home of an adult relative or by an adult day care aide in the child’s home. Two of three children whose care is subsidized in Michigan receive unregulated care.

Low payment rates and eligibility levels for the child care subsidy have persisted for over a decade.  Income eligibility, which is stated in dollars, has not been adjusted for inflation and, as of 2008, had fallen to roughly 136 percent of the federal poverty level for a family of three—one of the lowest eligibility levels in the nation.1  A family of three at the cutoff level ($1,990 gross income) would need to spend one-quarter of gross income on the average monthly cost of full-time child care ($527). The average family using the subsidy has two children in care.

The payment rate has similarly lagged. Over the past 12 years the only across-the-board increase (2%) occurred in Fiscal Year 2009.2  With the recent increase, maximum payments, which are based on location, type of provider, and age of child, range from a high of $3.13 an hour for an infant/toddler in a center to a low of $1.40 for an in-home aide, no matter the age of the child.3

THE SUPPLY OF REGULATED CHILD CARE IS DWINDLING.

The actual supply of regulated child care “slots” available in the state is difficult to assess because of adult/child ratio requirements and preferences among regulated providers. For example, a family home can legally accommodate up to six children, but no more than two infants can be in the care of one adult. While most regulated child care “slots” in Michigan are available in child care centers, roughly one-third of those slots are only half-day. Centers also have to locate where they can draw from concentrations of families able to pay for care so center care is not likely to be an option for parents in high-poverty urban or rural communities. 

Michigan families who need child care are losing access to regulated family homes. Between 2000 and 2008, the number of these providers dropped by almost half, from roughly 12,000 to 6,000--representing a potential loss of 36,000 slots. Family homes represent 15 percent of total full-day slots and provide a more intimate setting, particularly for very young children. They are also more likely to be accessible since they are located in neighborhoods.

TWO PUBLICLY FUNDED OFFER PRESCHOOL PROGRAMS.

At a time when the importance of improving access to quality early care and education is supported by scientists, economists and many policy makers, two key public preschool programs address the need for such care. Head Start, which is federally funded, is administered by the U.S. Department of Health and Human Services while the Great Start Readiness Program (GSRP) is the state-funded program based in the Michigan Department of Education (MDE).4  The state-funded program was designed to expand access to preschool for children in families unable to qualify for Head Start or those without access because of too few available, funded Head Start slots. 

The two initiatives each offer a developmental preschool program but they differ substantially in eligibility and funding. The federally funded Head Start program primarily provides a four-day preschool experience during the school year (32 weeks) for children ages 3 or 4 in center-based programs, although that is changing as more parents need a full-day, full-year program. In 2006 the majority of Head Start participants were 4-year olds (23,000) with an additional 14,500 3-year olds involved. Early Head Start is a home-visiting component for pregnant women and children ages 0-2. Traditionally 90 percent of children qualified with family income below the poverty level.  

Head Start is a comprehensive program, obligated to provide access to oral and physical health services, and social services. Every Head Start program has a health manager, often a nurse, to complete any missing components of the required physical exam.5  Head Start staff also conduct screenings and provide follow-up with nutrition, socialization, and mental health counseling.

Unfortunately in the past several years Head Start has experienced a steady decline in funding—roughly 12 percent between 2002 and 2009 when adjusted for inflation. This funding shortfall will result in roughly 500 fewer children in Michigan being served by Head Start. Due to flat funding in recent years, some Michigan programs have already reduced enrollment to avoid compromising program quality.

Michigan’s Great Start School Readiness Program is essentially a 30-week classroom-based experience serving only 4-year olds.  At least half of children in any GSRP program must live in families with income below 300 percent of the poverty level, and all must qualify with at least two of 25 risk factors, such as living with a single parent. In 2007-08 the program served roughly 23,000 4-year-olds.  To meet the needs of parents, as of 2005-06 the state GSRP allowed programs to offer a full-day option.

The GSRP allocation per child was only recently increased to $3,400 after stalling at $3,300 for approximately seven years. To maintain the program during those years, school districts and other sponsoring organizations shouldered substantial in-kind costs, which have strained local resources.  For this reason some school districts have recently elected not to continue the program.