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Child Care Subsidy in Nevada www.caanv.org 1

This report was written jointly by Jared Busker and Aaliyah Goodie fromthe Children's Advocacy Alliance. The stories featured in this book were

collected in 2019 by Shelby Henderson, Aaliyah Goodie, and Jared Busker.We are grateful to all the Nevadan parents and child care providers who

shared their stories.

The Children’s Advocacy Alliance (CAA) is a community-based nonprofit organization that  advocates for thewell-being of Nevada’s Children and brings peopletogether to build consensus around priorities and to

leverage our collective strength toward real changes inpolicy and practice.

CHILD CARESUBSIDY INNEVADA

STORIES FROMNEVADANS

WHY INVESTIN EARLYCHILDHOODEDUCATION

ENDNOTES

Child Care Subsidy

in Nevada

2Child Care Subsidy in Nevada www.caanv.org

In Nevada, over 65% of children ages 0-5 livein families where all available parents are inthe workforce. These working parents facethe challenge of finding quality childcare thatthey can afford. Currently, the averageannual cost of child care in licensed centersin Nevada ranges from $11,137 for an infant to$8,835 for preschoolers (age 3-5). These highcosts cause a huge financial burden to allworking families, especially those living inpoverty.

To help reduce this financial burden, the Federal Child Care and Development Fund provides childcare subsidies to families with children up to age 13 living in poverty (up to 75% of Nevada’smedian income) .¹ There are two types of subsidies provided to families, mandatory anddiscretionary. Mandatory subsidies are provided to children who have a parent participating in theNew Employees of Nevada (NEON) Program; the state is required to provide subsidies to all NEONfamilies who apply. Discretionary subsidies are provided to all other eligible at-risk families.Currently, parents who are enrolled in continuing education programs, such as attending a NevadaSystem of Higher Education college/university or apprenticeship program, are not eligible forsubsidy unless they were first eligible under the work and income requirements. The inability forparents to receive assistance paying for child care can discourage or prohibit them from betteringtheir educational and professional opportunities.

Cost Comparisons

• $8,835: Annual average cost forinfant center care in Nevada

• $11,137: Annual average cost forpreschool center care in Nevada•$7,764: Average annual cost ofUNLV/UNR tuition for an in-state

undergraduate student

Unfortunately, the subsidy program is lacking theproper funding to reach those in need. Nevada’s

subsidy program currently only serves 5.84% eligiblechildren.² To access care outside of what the state will

reimburse, parents, including foster parents, must paythe overage between the State’s maximum

reimbursement rate and providers’ actual market rate.For pre-kindergarten in Clark County and Washoe

County, under the current reimbursement rate only afive-star provider recieves reimbursement at the 75th

percentile of the 2015 market rate with lower starcenters receiving a lower percentile. This is a

significant difference than the nationalrecommendation that all providers receive

reimbursement at the 75th Percentile of the mostcurrent market rate .

5.84%

Nevada’s subsidyprogram currently onlyserves 5.84% eligible

children.

3Child Care Subsidy in Nevada www.caanv.org

In addition to providing parents with the necessary resources needed to become productivemembers of society, Child Care Development Fund Subsidies have the potential to help at-riskchildren to gain a strong start. Research shows low-income children that have access to highquality preschool programs are less likely to need special education, less likely to repeat agrade, less likely to be arrested and are more likely to graduate high school, attend collegeand be employed. Additionally, while children are in high-quality child care, parents can become betteremployees. Access to child care has been shown to increase parent employment rates, reduceworker turnover, absenteeism and increase productivity. RECOMMENDATIONS FOR IMPROVEMENT:

Provide additional funding to increase the percentage of eligible children served bysubsidies, including those children under 13 years of age who live at or below 75% ofNevada’s median income in single-earner moms, single-earner dads or dual earnerhouseholds to allow them to work, seek employment, or attend school/vocational training.

Increase the reimbursement rate to meet the most current market rates.

Increase the number of QRIS coaches for rating centers.

Provide incentives to providers to serve children during nontraditional hours so their parentshave safe, high-quality child care while working in our 24-hour state.

Ensure that child care providers serving foster children are paid at 100% of the currentmarket rate cost of care so foster parents are not required to pay the overage of what thesubsidy will pay and what the center charges.

Work to increase the state's capacity and number of providers serving children withdocumented disabilities.

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KORYN THOMASLas Vegas, NV

After having her twin boys, Koryn Thomas returnedto work to provide for her family but quickly learnedthat doing so was uneconomical. "In order for meto send them both to child care during the weekwhile I worked a full time job it would have cost meabout $1200 per month, $600 a child. I was onlymaking $1200 a month" says Koryn. Even so, she didher best to work but having unreliable child careplaced her job in jeopardy. "I would end up callingoff from work or having to come in super late. I wasconstantly written up for my attendance due tochild care issues" remembers Koryn. When her children were one years of age, Korynapplied for and qualified for child care subsidyassistance. "I found a wonderful child care providerfor my children. They accepted the subsidy paymentand have played a very big part in my children'supbringing", says Koryn. She has received child caresubsidy assistance since and credits child caresubsidy for helping her afford to work. "I wouldhave never have been able to afford to pay out ofpocket to send my kids to child care. My childrenlove the women at Happy Day's MontessoriAcademy. I cannot thank them enough and themany caseworkers at Urban League I have workedwith that always stayed on top of their jobs ,communicating with me and letting me know what Ineeded to do in order to receive services. I havealways felt like they really wanted to help me andthey have."

Child Care Subsidy in Nevada www.caanv.org

An examination of the economic impacts of the nation’s child

care crisis on working parents, employers, and taxpayers

show that there is an annual economic cost of $57 billion in

lost earnings, productivity, and revenue. ¹²

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5Child Care Subsidy in Nevada www.caanv.org

In December of 2017, Giavonni Nobles applied andreceived child care subsidy assistance. For Giavonni, asingle mom who worked full time, was going to collegeclasses and was caring for her 17-year-old sister, havingaccess to a high-quality early learning program was lifechanging. Having access to childcare helped Giovonnibalance her schedule, and knowing Jayceon, her son, washappy and safe, she was able to focus more at work andschool. In addition to childcare subsidy helping Giavonniwork and go to school, being able to place her young sonin a high-quality early learning program helped him tolearn and grow. During his time, according to Giavonni,Jayceon built his social skills, learned his colors, numbersand ABC’s, and he was potty trained. Giavonni recentlygraduated college in May 2019, with her Bachelor’s inCriminal Justice and credits child care assistance as amajor factor in her success.

GIAVONNI NOBLES Las Vegas, NV

Rhiannon first received child care subsidy assistance in2017 after being placed on a waiting list. Beforereceiving the assistance, her children attended the mostaffordable care she could find. This resulted in her havingto drive across town to drop them off, then back acrosstown to attend work. Day to day life was a struggle forher and her family. “I was paying so much for rent andchild care that sometimes I couldn’t afford food or wasn’table to pay all my bills”. Now, with the assistance,Rhiannon was able to apply and be hired for a new jobas a licensed social worker at the Department of Childand Family Services.

RHIANNON FOREMANLas Vegas, NV

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As a police officer, her husband’s schedule changes frequently. “He’s not always homefrom work on time. There are lots of days that he finds out he has court last minute, daysthat he gets called into work early, and days that he has last minute mandatorytraining”, Brooke adds. These uncertainties in her husband’s schedule has resulted inBrooke only working on days he is off. “I have to sacrifice spending time with my family inorder to work. If child care prices were made more affordable it would greatly help ourfamily out”, says Brooke. Having access to child care subsidy would reduce the burden.

BROOKE GROSELas Vegas, NV

Child Care Subsidy in Nevada www.caanv.org

Prior to having a child, Brooke Grose,working as a small business owner and hairstylist, had long days and a busy schedule.Her husband is a police officer whichrequires him to works swing shift and be on-call throughout the week. After having theirfirst child, Brooke and her husband had tomake significant adjustments due to thehigh and unaffordable prices of child care.“It was more cost-efficient for me to cutback on my availability and decrease myclientele than pay for child care”, saysBrooke, “My income has decreasedimmensely."

SANDRA COSEYLas Vegas, NV

After gaining guardianship of her grandson alongwith raising her own 6-month old son, Sandra Coseyapplied to receive child care subsidy assistance. Atfirst, Sandra was placed on a long waitlist. This had adevastating repercussions on her livelihood. “It was astruggle, sometimes I bought minimal food. I wasn’tsure how I could afford to pay bills”, remembersSandra. But thanks to the increase in federal fundingto the Child Care Development Fund, Sandra wasremoved from the waitlist. “It allows me to continue togo to work”, says Sandra when discussion theassistance, “It was a blessing”.7

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ALEXA SALTERLas Vegas, NV

Child Care Subsidy in Nevada www.caanv.org

Alexa Salter and her spouse planned tohave a family. They both have bachelordegrees, bought an affordable house,both drive affordable family cars, gotmarried and waited two years beforehaving their first child. What they did notexpect was the high cost of child care.“It’s a mortgage. It’s money that could gotowards saving for our kid’s collegeeducation”, says Alexa. Without child care assistance, Alexa andher spouse work opposite days off to tryto save money on child care. “My spouseand I are off a total of four days a week,so we only need child care for three daysa week”, states Alexa. In addition toworking opposite days, Alexa and herspouse work opposite shifts to need carefor fewer hours on those three days. “Iget home by 6:30 pm and my spousegoes in to work at 1:30 pm. We are luckyto have schedules to do this”, Alexaadds.

If all Nevada families with incomes below 150 percent of the federal

poverty guidelines (FPG) who meet the other eligibility criteria and

want a subsidy receive one: ³18,600 additional children could receive subsidy in an average month2,700 children could be lifted out of poverty

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8Child Care Subsidy in Nevda www.caanv.org

EMILY WARRENLas Vegas, NV

Emily Warren is a single mother raising herdaughter, Bria. To improve the long termoutcomes for her daughter and herself,Emily decided to return to school andattend the University of Nevada, Las Vegasto receive her degree in social work. To accomplish all the requirements of herdegree, which included a lengthyinternship, Emily was still able to work part-time. Although her part-time job didn'tcover all her expenses, especially the costof child care. The cost of her daughter'schild care was almost $9,000 for the year.To pay for such a cost, Emily had to takeout student loans to pay for the expense.She also decided to move back home withher mother and received food stamps. "Ipaid less for my own college tuition thanfor my daughter's preschool costs", saidEmily. When asked if she had applied forchild care subsidy assistance, Emily saidshe was discouraged from applying whentold that there was a 2 year waitlist. Hadthe additional supports been available,Emily would not have been saddled with ahuge student loan debt to pay for childcare.

Access to affordable child care supports parentsseeking additional education and training, whichcontributes to higher earnings over an individual’s

lifetime. ⁴

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9Child Care Subsidy in Nevada www.caanv.org

Without any family in Reno, Caroline spent many hours researching and crunchingnumbers to find affordable child care that worked best for her and her daughter,Freya. “I was shocked to find the lack of options for children under 2, and the costwhich was basically my mortgage”, remembers Caroline. The need for child care was especially important for Caroline as she often has anunpredictable schedule as the State Director of NARAL Pro-Choice Nevada. Evenso, there were times that she was called to work without having child care for Freya.“Inevitably, I would find out last minute about a hearing that I needed to testify atand it seemed to always be in times that I didn’t have child care. I had no optionthan to bring her with me which I always dreaded”, says Caroline. “Luckily, we werewelcome by lobbyists and legislators alike but this is not always an option for manyother parents.”

CAROLINE MELLO ROBINSONReno, NV

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10Child Care Subsidy in Nevada www.caanv.org

MACY BAILEYHenderson, NV

“My children currently do not attend child care inNevada”, states Macy Bailey. During the schoolyear, Macy’s 3-yr-old daughter is cared for by hergrandfather during the day from 7:30 am to5:30pm. In the summer both her daughter and 8-yr-old son are both with him. “Due to the highcost of child care, we’ve solely relied on him tocare for them while we are at work.Unfortunately, he is the only means of child carebecause all of our other family members work thesame hours we do. If there is ever a day he is sickor not feeling well we’ve had to call in sick towork and miss out on a day’s worth of pay.” For the first five years of her son's life, Macy andher husband went through the cost of child careand realized that it would cost roughly the sameas their entire monthly income. “We decided thatit would make more economic sense for one of usto stay home with our son and the other to work”,remembers Macy. Relying on her family membersto help provide care has also put strains on herrelationships. “I feel like we are asking a favor ofa family member and they are doing it at no cost.I also feel like my voice as a parent is not alwaystaken into consideration. I feel like I’moverstepping boundaries if I ask them to be fedcertain foods, be restrained from sugarydrinks/foods or ask for them not to watch TV allday because at the end of the day they arealready doing me a favor by watching my kids forfree. If childcare were more affordable I would100% choose to have my children attend apreschool/after school program versus having afamily member watch them. I wouldn’t feel theburden of asking for a favor, it would be morereliable and my children would have more accessto academic learning throughout the day."

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It was more than a year ago thatVictoria was stressed about findingchild care for her son, Valentin. “I wasworried that I would not be able tocontinue working, provide financially formy family, and go to school to finish mydegree. It was a difficult time for myfamily”, remembers Victoria. SinceVictoria and her husband were not ableto afford child care, their son wasstaying with family while they bothworked. “Valentin was having too muchscreen time, he was delayed in hisspeech, and didn’t have any interactionswith children his age" says Victoria. Around that time, Victoria applied andreceived child care assistance. “I knew Ihad to make a change, so I found childcare assistance”, she says. With theassistance, Victoria was able tocontinue working, and graduated fromschool with her bachelor’s degree. Afterattending child care for the past year,Victoria also noticed positive changesfor her son. “He is doing an amazing job,thanks to his teachers. He is speakingEnglish and Spanish fluently. Valentinhas developed his social, physical,cognitive, and language skills. SunriseChildren’s Foundation and ChildcareAssistance have made a huge impact inour lives, and my son is on his way toschool readiness.”

VICTORIA HERNANDEZLas Vegas, NV

Child Care Subsidy in Nevada www.caanv.org

Child care is not just akey work support forparents, but it is also

critical for the healthydevelopment of children

to ensure they startschool ready to learn. ⁵

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His Kids Preschool in Reno, NV hasaccepted child care subsidy for the lastten years. Doing so was often fiscallychallenging for the center. "Historically,the center did not receive subsidyreimbursement amounts that coveredthe actual expense of caring for a childin our center, especially in ourinfant/toddler classrooms", says DirectorLela Arney. With the increases to thesubsidy reimbursements and throughparticipation in the Nevada Silver StateStars Quality Rating and ImprovementSystem the centers funding hasimproved, noted Lela. "Between theQRIS grants and the Children’s Cabinetsubsidy increase, we have been able tobulk up our science and social/emotional materials and will soon bepurchasing all new tables and chairs, asours do not meet quality standards.

HIS KIDS PRESCHOOLReno, NV

Child Subsidy in Nevada www.caanv.org

Although, more still needs to be done according to Lela, " the increase is not enough toelevate pay and staff benefits, which helps us to retain our staff. Child care staff workvery hard to remain abreast current educational philosophy and practices, withadministrative training and support. It can be challenging as a Director to train and equipstaff that are transient in the field because of low wages, along with a very emotionallyand physically taxing job. The tuition we charge does not allow us to offer competitivewages/benefits year-round.

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Zoo'n Around preschool has seen a directbenefit from participating in the NevadaSilver State Stars Quality Rating andImprovement System (QRIS) which isfunded through the Child Care andDevelopment Block Grant. "This programhas been of great value to centers likemine, but increased quality is veryexpensive to maintain. We went from a 2to a 4-star center thanks to the help ofgrants for supplies and QRIS coaching."notes owner Evelyn Knight.

ZOO'N AROUND PRESCHOOLFernley, NV

Child Subsidy in Nevada www.caanv.org

SUNRISE CHILDREN'S FOUNDATIONClark County, NV

The Sunrise Children's Foundation providesfree, no co-pay infant/toddler childdevelopment services in 15 centers throughoutClark County. They do this by working closelywithin the community, fundraising, and utilizingprograms such as the child care subsidyprogram and early head start. As such, whenthe CCDBG was reauthorized and the stateincreased their child care subsidyreimbursement rates, the Foundation saw adirect benefit. According to the Director ofProgramming at the Foundation, AngelaTriché, "The increase enhanced our budget forneeded supplies and materials; classroomhealth & safety repair and maintenance; thecost associated with improved staff benefitsand employee retention; and of course,extended-day services for children andfamilies."

WHY INVEST IN EARLY

CHILDHOOD EDUCATION

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Short-term Benefits In Nevada, 63% of families with children under the age of six have all availableparents in the workforce. For these parents, the ability to send their children to a highquality early learning program is invaluable and offers them peace of mind while atwork. Having access to stable and reliable high quality child care is also invaluablefor the business as it increases employee: ⁶

AttendanceMoraleProductivity

Funding for early education programs goes back into the local economy as earlyeducation professionals generally spend most of their earnings locally. States realizeroughly $2 in local spending for each dollar invested in child care. ⁷ Children who attend high-quality early learning programs are provided with the skillsto have a strong start in school and life. ⁸ Participants in high-quality early learning and care programs:

Have 10 point higher IQ scoresAre 40 percent less likely to repeat a grade Are eight percent more likely to graduate high school Have higher language scores after only one year

Investing in early childhood education programs provides both short-term andlong-term benefits to Nevada’s children and families.

WHY INVEST IN EARLY

CHILDHOOD EDUCATION

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Today more than ever, Nevada needs employees who are well prepared to succeedin the labor market. Our current workforce pipeline is not sufficient—not forbusinesses that need well-prepared employees, not for young people who needgood jobs, and not for the state that needs a growing economy.⁹ Without aconcerted action to prepare more Nevadans for jobs in STEM-intensive fields, skillsshortages could limit growth in the state’s most promising target industries andNevadans could miss out on employment that offers superior paths to opportunityand advancement. ¹⁰ An investment in high quality early learning programs is the first step a businesscommunity can take to develop Nevada’s future workforce. Participants in high-quality early learning and care programs:

Are 2.5 times more likely to go to collegeHave employment rates seven to 13 percent higher by age 30Earn 42 percent higher median monthly income by age 40Are more likely to own a home and less likely to receive governmentassistance in adulthoodHave lower rates of felony arrests, convictions, and incarceration ¹¹

Long-term Benefits

ENDNOTES

16Child Care Subsidy in Nevada www.caanv.org

`1. Nevada is receiving a $26 million increase to the overall child care subsidy budget in theupcoming biennium as a result of the FY 2018 Omnibus Spending Bill. 2. Children’s Cabinet (2018). Nevada 2018 Early Education & Care Fact Sheet. 3. Giannarelli, L., Adams, G., Minton, S., & Dwyer, K. (2019). What If We Expanded Child CareSubsidies? Retrieved from https://www.urban.org/research/publication/what-if-we-expanded-child-care-subsidies 4. Child Care in State Economies - Committee for Economic ... (n.d.). Retrieved fromhttps://www.ced.org/pdf/Report - Child Care in State Economies.pdf 5. Ibid 6. Relationship Between Productivity and Child Care. (n.d.). Retrieved fromhttps://childcarecouncil.com/wp-content/uploads/2014/07/Why-Should-Employers-Care-ECLC.pdf 7. Business Case for Early Childhood Investments. (n.d.). Retrieved fromhttp://www.ncsl.org/documents/cyf/Dugger_RN1_33075.pdf 8. First Five Years Fund (2018, August 10). The Short- And Long-Term Benefits Of Investing InEarly Childhood Education. Retrieved from https://www.ffyf.org/short-long-term-benefits-investing-early-childhood-education/ 9. Copied from http://readynation.s3.amazonaws.com/wp-content/uploads/ReadyNation-Championing-Success-Brief.pdf 10. Copied fromhttp://www.brookings.edu/~/media/Research/Files/Reports/2014/11/nevada-stem/BMPP_NevadaSTEM_full-report-web-final.pdf?la=en 11. First Five Years Fund (2018, August 10). The Short- And Long-Term Benefits Of Investing InEarly Childhood Education. Retrieved from https://www.ffyf.org/short-long-term-benefits-investing-early-childhood-education/ 12. Want to Grow the Economy? Fix the Child Care Crisis. (2019). Retrieved fromhttps://strongnation.s3.amazonaws.com/documents/602/83bb2275-ce07-4d74-bcee-ff6178daf6bd.pdf?1547054862&inline;%20filename=%22Want%20to%20Grow%20the%20Economy?%20Fix%20the%20Child%20Care%20Crisis.pdf%22

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