THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Monday, February 10, 1997 TAG: 9702100043
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY ELIZABETH SIMPSON, STAFF WRITER
LENGTH: 131 lines
When Roma Jackson got a part-time job several years ago, child care costs for her two preschoolers just about drove her onto the welfare rolls.
She considered working more hours. But that would have meant more child care.
``It was like the more I made, the less I made,'' said Jackson, a single mother who lives in Virginia Beach.
What saved Jackson, and 9,000 other working parents across the state, is a child-care subsidy for low-income families that foots most of the bill, usually 90 percent.
``If I didn't have the subsidy, pretty much my whole paycheck would go to child care,'' said Jackson, who now works full time at Lady Foot Locker, a women's athletic wear store in Chesapeake. ``It helps a lot.''
The subsidy began in Virginia in 1986 to prevent families from going on welfare. Administrators considered ways to market the program and sent out fliers about it.
``Now we wish we could keep it quiet,'' said Jean Collins, who administers the program for the state.
In the five South Hampton Roads cities, the families of almost 1,000 children receive the subsidies. More than 2,600 families are on a waiting list. Parents wait upwards of two years in some cities. The numbers don't include families who receive day-care subsidies as part of a transition from welfare to work.
The waiting lists range from 24 families in Suffolk to more than 1,000 each in Norfolk and Virginia Beach. Many who call are frustrated by the length of the list and don't bother to add their names.
``They need child care tomorrow, not a year from now,'' said Vicki Reece, who coordinates the program in Chesapeake and Portsmouth.
In most area cities, working parents whose income is less than 50 percent of the state median income - $47,732 for a family of four - qualify. Some cities, Virginia Beach, for instance, provide for families who make up to 70 percent of the median income, but require high-earning families to pay a bigger percentage.
In the past, separate funds have been set up for people working their way off welfare and for families who work but still struggle to make ends meet. But in the coming fiscal year, the funding will be combined.
With welfare reform set to be launched in Hampton Roads later this year, the demand for the subsidies will likely increase.
Local administrators worry that some families may be crowded off the program to make room for parents who previously received Aid to Families with Dependent Children. Former AFDC families are required by law to receive child-care help for up to a year once they get a job.
People receiving the subsidy now are hoping Virginia won't experience what families in Ohio did last year. In Hamilton County, Ohio, 1,450 working poor families lost their child-care subsidy to make room for welfare recipients moving onto the job market.
Hazel Rhodes, who receives a subsidy to help with before-school care for the 9-year-old grandson she is rearing, said she doesn't know what she would do without the subsidy.
``It's been a lifesaver for me,'' said Rhodes, who lives in Portsmouth and works as a soldering assistant at Lockheed Martin. ``It took me 14 months on the waiting list before I could get it.''
Rhodes makes $6.23 an hour, and child-care costs more than $200 a month, so the subsidy keeps her from falling behind on other expenses.
Jean Collins, who administers the child-subsidy program for the Virginia Department of Social Services, said state workers are trying to draw up a plan that will meet the needs of welfare parents - something that's mandated by law - while still serving parents who live at the margins of poverty.
``There's no way we can serve everyone who walks in the door,'' Collins said. ``The money just isn't there.''
State employees won't know what kind of child-care pot they're working with until after the General Assembly firms up a spending plan. Two budget amendments kick in more than what Gov. George F. Allen's budget proposed, which fell short of providing enough matching funds to get the maximum federal dollars available.
The House Appropriations Committee has proposed a $12.7 million boost for day care, and the Senate Finance Committee has proposed a $4.2 million increase.
Once the budget is firm, and the plan is written, the public will have a chance to comment during regional hearings that have not yet been scheduled. The plan must be submitted to the federal government by July.
While training, job opportunities and transportation all play a part in moving parents from welfare to work, the child-care piece of the puzzle is often what can scuttle a parent's work efforts.
``If you have a minimum-wage job that pays $700 a month, and your child-care costs are $500, that doesn't leave much to live on,'' said Linda Ross, program administrator for The Planning Council, which administers the subsidy program in Norfolk, Chesapeake and Portsmouth.
States further along in welfare reform have tried a variety of ways to stretch subsidy money. Some have allowed greater use of unregulated care, which tends to be less expensive than licensed care. Others have experimented with making parents pay more and limiting how long a family can receive a subsidy.
In South Hampton Roads, Virginia Beach limits subsidies to five years and requires parents who make more to pay a bigger percentage. Norfolk, which pays 90 percent, is examining limits as well.
Donna Pavetti, who works for the Urban Institute, a nonpartisan agency tracking welfare reform, says some states are using money they saved from people moving off welfare.
``Some states have been more willing than others to invest that money in child care,'' Pavetti said. ``Michigan, for instance, doesn't have a waiting list.'' ILLUSTRATION: [Color Photo]
A child-care aid program
Since 1986, Virginia has subsidized child care for low-income
families to prevent them from going on welfare. In the five South
Hampton Roads cities, the families of almost 1,000 children receive
the subsidies. More than 2,600 families are on a waiting list, and
the wait can be up to two years.
A potential conflict with welfare
In the past, separate funds have been set up for people working
their way off welfare and for families who work but still struggle
to make ends meet. But in the coming fiscal year, the funding will
be combined. With welfare reform set to be launched in Hampton Roads
later this year, the demand for the subsidies will likely increase,
and local administrators worry that some families may be crowded off
the program to make room for parents who previously received federal
aid.
Its impact: One family's story
Hazel Rhodes, who receives a subsidy to help with before-school
care for her 9-year-old grandson Justin, whom she is rearing, said
she doesn't know what she would do without the aid. ``It's been a
lifesaver for me,'' said Rhodes, who lives in Portsmouth and works
as a soldering assistant at Lockheed Martin. ``It took me 14 months
on the waiting list before I could get it.''
KEYWORDS: WELFARE REFORM