County commissioners have made significant progress in enhancing child care accessibility for families following a tax increase approved by voters last November, aimed at supporting expansive investments in the sector.
Out of the $75 million allocated last year, the county has granted $21 million in two contracts with Capital Area Workforce Solutions to provide direct scholarships to families and to offer gap funding to underfunded state-subsidized providers.
Currently, Workforce Solutions supports approximately 3,000 children through a network of 300 providers, yet thousands of families are still on waiting lists, with the current waitlist time reaching two years.
The new contracts are set to extend child care services to at least 1,000 additional children, making a notable impact on last year’s nearly 5,000-person waitlist.
At a meeting on Tuesday, Commissioner Brigid Shea expressed her enthusiasm, stating, ‘This is huge.’ This marks the largest investment made by the county since the passing of the Affordable Child Care Act last year, especially as federal and state funds faded after the pandemic.
In response to the pressing need for child care, the county approved immediate funding measures in May, focusing on providing childcare services, like daycare, for families outside regular hours.
Additionally, agreements were reached in August with several school districts, including Austin, Del Valle, and Manor, to offer after-school services to an estimated 2,000 youth.
While the long-term strategy for the remaining $75 million is still under development, initial drafts are expected to be presented to the court in November.
The overarching plan aims to prioritize four key objectives: 1) increasing subsidized child care spots to clear the waitlist for parents, 2) creating flexible options for parents with non-traditional work hours, 3) encouraging employers to offer child care as a benefit, and 4) addressing financial gaps in the state’s child care funding system.
The newly established contracts represent crucial steps toward achieving the first and fourth objectives on this agenda.
The first contract will kick off the program ‘Raising Travis County,’ which is designed to provide direct scholarships to families earning 85 percent or less of the state’s median family income, approximately $87,000 for a family of four.
This program, funded by $17.3 million from the $75 million budget, aims to assist 1,000 children aged 0-3 and will be managed by Workforce Solutions.
Corey Darling, director of the research and planning division at Travis County Health and Human Services, emphasized the program’s focus on ‘the cost of providing quality care.’
The cost of child care emerged as a critical discussion point during the previous voting process, with the county setting goals to ensure sufficient funding to guarantee child care providers a minimum hourly wage of $20.
The industry faces a staggering turnover rate of more than 30 percent annually, largely due to insufficient wages, which average around $14 an hour in Austin.
This disparity is attributed to inadequate state reimbursements for child care providers that fail to meet living wage standards.
Tamitha Blackmon, owner of Nehemiah Christian School, highlighted the dedication of child care providers in a press conference, remarking, ‘Each day, hundreds of providers open our doors and welcome children into a space that is safe, enriching, and fun.’
She continued, ‘We do this work because we are deeply committed to the children and their families in our care.
It’s our calling, our passion – but at the end of the day, it’s also our job.’
Blackmon noted the financial burdens of running a facility, including mortgage or rent payments and employee salaries.
Although the scholarships will help alleviate some costs for families, the actual cost of providing quality care often exceeds these funds, leaving providers to absorb the difference.
‘It’s encouraging that the funding approved by the Commissioners Court today will allow those of us in the child care community to continue doing what we love for years to come,’ added Blackmon.
The second contract, worth $4.16 million, addresses the financial distress of state-funded providers through gap funding payments.
This initiative will include quarterly reporting to monitor the number of children served by each provider benefitting from the gap funding, targeting support for approximately 850 children monthly.
County officials argue that improving wages not only honors the dignity of the job but also enhances retention in an industry struggling to meet growing demand.
County Judge Andy Brown reinforced the sentiment, stating, ‘We’re raising child-care quality by investing in our teachers and people who care for our children.’
He affirmed that this funding seeks to ensure that providers remain financially viable, enabling them to continue offering excellent child care services to community youth.
Moreover, commissioners have initiated the formation of an oversight body to enhance accountability and transparency.
This oversight group will comprise approximately 20 community members, including parents, youth aged 18-24, childcare providers, and key stakeholders from organizations like the city of Austin and the Chamber of Commerce.
Additionally, there will be five at-large seats appointed by the county commissioners and the judge.
Yael Lawson, interim CEO of Workforce Solutions, remarked that the funding ‘ensures that more working families can access life-changing opportunities at Workforce Solutions capital area.’
She highlighted the importance of tackling the persistent barrier that prevents many parents, especially women, from entering the workforce due to the lack of affordable quality child care.
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