Category: Early Childhood

2022 Governor's Budget Hits & Misses

Each year, Arizona’s legislative session begins with the Governor’s State of the State speech and the unveiling of his or her annual priorities and proposed budget. This session presents Governor Ducey a rare opportunity in his final year in office to provide much-needed help to children and families in Arizona. Despite the lingering pandemic, Arizona’s revenues have reached historic highs in large part due to the multiple federal economic rescue packages and temporary unemployment insurance expansion. Arizona currently has $1 billion in ongoing and $2.1 billion in one-time revenues. This is in addition to billions of dollars in unspent federal COVID relief dollars.

Also at the beginning of each year, Children’s Action Alliance publishes its list of legislative priorities. It is our hope each year that the Governor's priorities align with ours. This year, while we did see a few bright spots that address longstanding needs, that largely did not happen. Take a look at a comparison of where the Governors priorities and ours find common ground, and where opportunities missed the mark or weren’t addressed.

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Early Childhood

Secure state general fund investment in child care assistance  

Not addressed in the Governor’s budget or State of the State.

Increase Arizona Early Intervention Program provider rates  

Nearly 11,000 children under the age of 3 who have disabilities or developmental delays receive therapies and other support from the Arizona Early Intervention Program.  Current rates paid to providers are significantly below comparable rates paid by the program that provides services to children over age 3. The Governor’s budget proposal adds $18.6 million per year starting in fiscal year 2024 to bring the rates in line with rates paid by other programs.  A temporary rate increase will be funded in fiscal year 2023 using federal dollars.

Secure state investment in Healthy Families home visitation program  

The Governor’s budget provides $10 million, of which $7.5 million is new funding and $2.5 million replaces funds that will no longer be available. Healthy Families currently serves 4,000 families. The Governor’s budget would add an additional 1,500 families. The Governor’s budget also includes a total $15 million for fiscal years 24 and 25 which would increase the program’s ability to serve 8,000 families.

Fight any use of state funds appropriated for online early education  

Not addressed in the Governor’s budget or State of the State.

Education

Prevent a $1.2 billion cut to public schools by authorizing an annual exemption to the K-12 expenditure cap for this school year by March 1 

If the legislature does not override the education spending limit by March 1, 2022, Arizona’s district schools will be required to cut their current year budgets by $1.2 billion.  This issue is not addressed in the Governor’s budget or State of the State.

Refer a measure to the ballot to update or eliminate the outdated K-12 expenditure authority.  

Not addressed in the Governor’s budget or State of the State.

Expand access to affordable higher education and prevent increases in student debt 

The Governor’s budget proposal increases the Promise Grant funding by $12.5 million for a total $20 million.  These additional dollars will serve an additional 3,300 students.  The Promise Grant program covers the balance of tuition that remains for students who are fully eligible for Pell grants.  

The Governor’s budget, however, continues to suspend $10 million of the statutorily required deposit into the Student Financial Aid Trust Fund. This issue is not addressed preventing tuition increases.

Reduces inequities in school funding  

The Governor’s proposal increases results-based funding for excelling schools by $60.8 million for a total $129 million.  The Governor’s proposal also includes moving this funding into the Basic State Aid appropriation where it will lose its separate identity.  Schools continue to receive results-based funding as long as they meet the criteria.  For struggling schools the Governor’s proposal includes $58 million to create the Operation Excellence program which provides $150 per student for three years.  

Family Health

Extend postpartum Medicaid coverage to 12 months (currently 60 days) 

Approximately 15,000 to 18,000 pregnant adults could benefit from extended AHCCCS coverage. This issue is not addressed in the Governor’s budget or State of the State. 

Comprehensive adult dental coverage through Medicaid

Currently only a maximum of $1,000 annually of emergency services are available for most adult populations.  This issue is not addressed in the Governor’ budget or the State of the State.

Streamline Young Adult Transitional Insurance (YATI) re-enrollment for former foster youth 

Young adults who “age out” of foster care at age 18 are automatically eligible for enrollment in AHCCCS, the state’s Medicaid program.  If they do not respond to redetermination notices or requests for additional information, often because AHCCCS does not have an accurate address, they are disenrolled.  More than 5,200 young adults are currently enrolled through YATI.  This issue is not addressed in the Governor’s budget or State of the State.

Children's Health

Waive the Medicaid five-year residency requirement for otherwise eligible pregnant people and kids who are lawfully present immigrants 

Between 7,000 and 11,000 Arizona children are ineligibility for the state’s health insurance program because they have not been in the US for at least five years.  This issue is not addressed in the Governor’s budget or State of the State. Adopting the Immigrant Children’s Health Improvement Act (ICHIA) option would allow the state to provide high-quality health coverage to these children and to receive a higher federal reimbursement for their care. 

Provide 12-month continuous enrollment for children participating in AHCCCS or KidsCare 

More than 850,000 Arizona children are enrolled in Arizona’s Medicaid or CHIP programs. Though children who qualify are eligible for 12 months, families who experience income volatility may lose coverage due to a temporary or one-time increase. This has a negative impact on children’s health outcomes and presents an administrative burden to both AHCCCS and the families who lose coverage. This issue is not addressed in the Governor’s budget or State of the State.

Eliminate three-month wait period for KidsCare enrollment  

Arizona’s KidsCare program requires a child cannot be covered by any health insurance for three months prior to enrollment.  This presents a barrier to enrollment.  Even short lapses in health insurance coverage have a negative impact on children’s health outcomes.  This issue is not addressed in the Governor’s budget or State of the State.

Child Welfare & Juvenile Justice

Increase kinship foster care stipend

The Governor’s proposal quadruples the unlicensed rate from $75 to $300 per month and also increases the daily allowance that pays for clothing, school supplies, etc. This increase adds $19.8 million for a total $24.8 million for kinship placements. 

Reduced barriers to licensure for foster care and kinship care providers

Licensed foster care providers receive more than $600 a month compared to the current $75 for unlicensed kinship providers.  The Governor’s budget proposes removing barriers to licensure for kinship caregivers while maintaining home life and safety standards.

Increase the independent living subsidy provided for youth in extended foster care  

Currently, 651 former foster youth between ages 18 and 21 receive the independent living subsidy.  Currently the maximum subsidy is $715 and is reduced by $50 every six months. Neither the Governor’s budget nor the State of the State address this issue.

Reduce or eliminate juvenile court fines and fees  

This issue is not addressed in the Governor’s budget or State of the State.

Help for Families May Be On The Way

President Biden’s Build Back Better (BBB) plan comprises exciting historical investments in children and families. These investments are critical to the well-being of our nation as we continue to endure the impacts of the COVID-19 pandemic going into the year 2022. The Early Childhood funding packages provided in the BBB framework highlight the essential role quality early childhood systems play in restoring a robust workforce and vibrant economy in the United States.

The legislation provides for Child Care Assistance as well as Universal Pre-K. The Child Care Assistance aims to address child care deserts, scarcity of resources, family affordability, and workforce compensation and development challenges. The program is inclusive of all family-based programs, center-based programs, family-friend-neighbor (FFN) providers, as well as faith-based and local schools. Typical families are expected to save $100 a week or more on child care expenses. Additionally, states are required to use payment rates that cover the entire cost of high-quality child care in their communities, market rates will no longer be a factor. Universal Pre-K will be administered on the federal level by the Department of Health and Human Services. At the state level, each Governor will have the option to opt into the program and then determine which state agency the funding will funnel through. Universal Pre-K will be available to a string of eligible providers including but not limited to Head Start agencies, family providers, FFN programs, faith-based programs, and licensed programs. It is intended that this program will be inclusive of all of the programs families rely on at the local level. Children who are 3 and 4 years old become eligible for the Universal Pre-K program based on the school-age enrollment date determined by the Local Education Agency (LEA). Additionally, this bill requires that states create data systems, administer statewide needs assessment, and provide a livable wage for providers.

The new investments the BBB plan provides for Early Childhood pave the path for Arizona children to thrive in the upcoming years. It provides funding that fills significant gaps in our early childhood systems that will translate to stronger Arizona communities. We urge Governor Doug Ducey to support Arizona’s children, families, workforce, and economy by opting into these vital programs.

Let’s Keep the Progress Going

As the COVID-19 crisis approaches its 18th month, we are just now beginning to get a full picture of the damage the pandemic has done to our children and families, our schools, institutions, and our communities.  Initial data gave us a frightening look into how the pandemic might permanently damage the early childhood infrastructure and threaten the ability for parents to return to work as we emerged from the pandemic and as time has worn on, we are now able to see that many of our fears are coming true.

The National Association for the Education of Young Children (NAEYC) surveyed child care providers early in the pandemic and recently released a follow-up survey in late July Progress and Peril: Child Care at a Crossroads of 2021.  The Arizona state-level data became available last week.  Not surprisingly it showed that federal and state relief funds have “helped stabilize child care programs and prevented more program closures. However, staffing shortages, low wages, and a broken market mean that substantial, sustainable public investments are needed for this essential sector to recover and rebuild”.

The key takeaway here is that while the federal COVID relief packages were essential for immediate relief, it is vital that Arizonans, and our policymakers, support additional federal assistance like the $3.5T reconciliation proposal (also called the Biden Build Back Better plan) currently making its way through Congress. In addition, it is vital for the Arizona Legislature to support state investments to sustain the progress and assure that this essential service remains available to all of Arizona’s families and children.

Contact your congressional delegates

Much needed help is on the way to child care providers

Big thanks to the Arizona Department of Economic Security (DES) and the Governor’s Office for recently launching the Arizona Child Care Stabilization Grant Program. The program was made possible with funds from the American Rescue Plan, the most recent Biden Administration COVID relief package passed by Congress in March 2021.

To help sustain Arizona's child care system which continues to be severely impacted by the COVID pandemic, this DES grant program will provide a consistent funding source to help early child care and education providers to cover the increased costs and other challenges brought on by the pandemic. Funds can be used for a variety of expenses like rent, supplies, and utilities. Also, the funds can cover teacher salaries, benefits, enhanced wages, and/or bonuses + incentives to help address the workforce shortage that continues to plague the industry.

Licensed child care providers, DES non-certified relatives, DES certified family child care, DHS certified group home, and tribal and military regulated providers. Once approved, providers will receive automatic, monthly flat payments of up to $10,000 per month through July 2023. Apply by August 15 to receive the first payment at the end of August 2021.

More information about the grant program

Grant applications

Babies and Toddlers Need Help Too!

The pandemic has raised awareness of several issues and gaps in the early childhood system that have long existed. Much focus has been placed on the needs of preschool and school aged children and the gaps in access to high quality child care, but we do not want to forget our babies and toddlers who have entered the world during this tumultuous time. To help accomplish that, earlier this month a bipartisan group of Senators reintroduced the Resilience Investment, Support, and Expansion (“RISE”) from Trauma Act. This legislation is aimed at supporting children who have been exposed to Adverse Childhood Experiences (ACEs) and trauma.

We have long known that healthy, nurturing relationships with parents and caregivers are the key to a baby’s social and emotional development, also known as infant and early childhood mental health (IECMH). Policies and programs that address promotion, prevention, and treatment can provide parents and young children with support to promote social and emotional development and prevent and treat mental health issues as early as possible. Intervening early is the key to giving all our children the best chance at success in life.

The RISE from the Trauma Act would award grants to eligible entities to establish a national network of IECMH training institutes. Additional grant funds can be used to create scholarships and other supports for trainees, with emphasis on recruiting, retention, and career placement of trainees of color, who are underrepresented in the IECMH clinical workforce. The historic legislation places an emphasis on collaboration that will reflect diverse partnerships, including Historically Black Colleges and Universities (HBCU), Tribal Colleges, and State Associations of Infant Mental Health.

Additionally, the legislation would:

  • Increase funding for the Health Resources and Services Administration’s National Health Service Corps to expand the reach of available mental health clinicians in schools and community-based settings;
  • Enhance trauma-informed and resilience-focused practice among general education, special education teachers, and early childhood educators;
  • Enhance coordination between the Department of Health and Human Services and appropriate stakeholders with trauma-informed subject matter expertise to develop accessible and easily understandable tools for use by frontline service providers; and
  • Establish a National Law Enforcement Child and Youth Trauma Coordinating Center to aid state, local, and tribal law enforcement agencies in interacting with infants, children, and families who have experienced trauma

It is fast and easy to contact your members of Congress today and let them know that you support giving young children the best chance at a healthy and successful start in life.

Contact your members of congress

Thank you to Governor Ducey

For months, the early childhood community has experienced a workforce shortage crisis, and as more Arizonans return to work, it has been a challenge for child care providers to hire enough staff. For health and safety reasons, child care providers must maintain strict child-to-staff ratios, and with no new staff onboard, many have had to turn away parents seeking care for their children.

But help is now on the way!

On Friday, to coincide with Child Care Provider Appreciation Day, Governor Ducey and DES announced the release of $9M in remaining CARES Act funds for the Child Care Workforce Retention and Recruitment Grant program. These grant funds can be used for salaries and benefits for employees or bonus incentives for hiring and retention. Child care group homes and family child care homes without staff may utilize funds for a variety of expenses including licensing fees, liability insurance, tuition and registration relief for families, lease and mortgage payments, utilities, classroom materials, and supplies. Also, providers will receive additional supports and training on improving business practices that will help save time, money, and improve the quality of the services they deliver.

Special thanks to Governor Ducey for making these funds available. While the program will not completely solve the crisis we currently face, it is an important first step to assuring a competent, highly skilled workforce to care for our children.

More information about the grant program.

Federal Funding could help looming workforce shortage crisis in child care

In mid-March, Congress passed the American Recovery Act (ARA). The legislation was the latest in a string of COVID relief bills intended to assist families, businesses, and communities through the pandemic. The Act set aside $39 billion to help the child care system which has struggled to remain afloat for the past year. The Center for Law and Social Policy (CLASP) recently released its estimates for how much child care funding will come to each state to help the damaged child care system. Arizona’s share is expected to be just under $1 billion. The full estimates are included HERE.

This funding comes just in time to address a growing crisis in the child care workforce as 1 in 6 jobs in the child care sector have been lost during the pandemic. Despite increased signs of returning to a new normal, the staff who previously filled those jobs are not coming back. Child care providers must meet expanded health and safety requirements including strict student/teacher ratios. Even if they have the physical space to serve more children in their programs, they often do not have the staff to provide the care. Desperate parents returning to their previous work settings do not have the same options for child care that they had before. There was an existing shortage of child care workers prior to the pandemic. Child care workers are largely underpaid and undervalued. In 2018, typical annual wages for a woman working full time, year-round in the child care industry were $29,900 per year as 1 in 10 child care workers had incomes below the federal poverty line and twice the poverty rate for workers overall. As programs begin to reopen, many former workers are choosing to return to jobs with higher wages, fewer requirements, and with less risk for contracting COVID.

Ronnie Armstrong, executive director for Children's Campus and Premier Children's Center has provided child care in the Valley for nearly 35 years says, “The pandemic has accentuated the problems in an already broken child care system. Families are returning to work and our enrollments are growing every day. We do not have the quality, committed staff to meet the needs of families. The child care industry is in a hiring crisis which seems absurd considering the rate of unemployment in our country. We desperately need quality, committed staff to meet the needs of the children and families in our community.”

The Arizona Early Childhood Alliance (AZECA) is working collaboratively with DES to bring together stakeholders to make recommendations on how the state should spend the new federal ARA funds. Those recommendations will undoubtedly include ways to incentivize workers to return and remain in the child care workforce. We encourage the Governor and the Department to take these recommendations to heart and release the funds as soon as possible to avert this looming crisis.

Essential workers making poverty wages

While the state of Arizona is making strides toward increasing teacher pay, one group has been noticeably left behind, early childhood educators. A new report out by the Berkeley Center for the Study of Child Care Employment highlights that early childhood educators in Arizona are still lagging far behind. The field is largely made up of women and often women of color, and despite the fact that we ask them to provide care to our most vulnerable citizens, they often make poverty wages. During the COVID pandemic, it has become clear that child care is an essential service, yet the policy response at the state and federal level has largely ignored the educators themselves. Unfortunately, this was an existing problem that has only been made worse in the last 12 months. According to the report “The burden of school closures and parents continuing to work falls on child care providers. We need to be properly recognized through appropriate funding, PPE, and support systems. The government is largely ignoring the particularly unique burden that is put on child care during this pandemic.”

The Arizona data shows that the median wage for child care workers is $11.97 and even those with a bachelor’s degree make 21% less than their counterparts in the K-8 education system. And worse, the POVERTY rate for early educators is over 20%, double that for other Arizona workers. The gap in pay is an issue of parity in the education field, but it is also an equity and access issue. We cannot continue to expect the ECE workforce to bear the burden of care during this education crisis in America without compensating them adequately for the important work that they do.

Read the full report here.

Read the Arizona profile data here.

Good ideas that didn't fit the bill

The Arizona legislature set a deadline that any bills that did not receive an initial committee hearing by the end of last week cannot advance this session. Committee chairs wield a lot of power in deciding which bills receive consideration or not and with 1,823 bills introduced this session, we understand there simply is not enough time to hear every bill. But there were several good ideas that would improve the lives of Arizona’s children and families introduced this year that never had the opportunity to be considered in committee. Even though time has run out this year for those bills, we want to take a moment to highlight a few of those good ideas that merit stronger consideration in the future:

  • HB 2416: Sponsored by Representative Pawlik to appropriate $13 million for child care to raise reimbursement rates. Arizona’s child care assistance program continues to reimburse providers for care at rates that are far below what it costs to actually provide that care. Parents often have to pay the difference between the reimbursement rate and the cost, making accessing child care too expensive even for many low-income families who are eligible for the program.
  • HB 2291: Sponsored by Representative Osborne to provide comprehensive dental care to eligible pregnant women. Pregnant women are especially vulnerable to developing oral health problems, which if left untreated are associated with adverse birth outcomes and increased risk of dental disease in early childhood.
  • HB 2273: Sponsored by Representative Butler to increase income eligibility for KidsCare, Arizona’s health insurance program for low-income children, from 200 percent of the federal poverty level to 300 percent of the federal poverty level. Arizona currently has one of the lowest income eligibility thresholds for its children’s health insurance program in the nation. After years of progress toward reducing the rate of uninsured children, Arizona has taken an unfortunate turn. Between 2016 and 2019, the number of uninsured children grew by roughly 22%. In 2019, 161,000 Arizona children were uninsured – the fourth highest rate of uninsured children in the United States.
  • HB 2659: Sponsored by Senator Marsh to establish an annual conference on children and youth to identify and recommend policy solutions to the legislature that will improve the lives of children in Arizona.
  • HB 2146, HB 2147, HB 2148, HB 2283, HB 2566, SB 1098, SB 1736, SB 1737: Sponsored by Representatives Friese, Lieberman, and Bolding; and Senators Alston and Bowie. Several bills were introduced this session to provide much-needed reform to the private school tuition tax credit program which diverts public tax dollars to private schools. These bills would restrict use of these tax credits to low-income families and would limit the amount which can be used for administrative costs. The expansion of private school tuition tax credits has had a significant impact on reducing state revenues growing from a cost of $14 million in 1999 to $177 million in 2019.
  • HB 2728: Sponsored by Representative Sierra to make participation in extended foster care until the age of 21 an opt-out rather than opt-in program for youth aging out of foster care when they turn 18. Extended foster care can provide a better bridge to adulthood especially during the current health and economic crisis.
  • SCR 1017: Sponsored by Senator Quezada. A legislative proclamation identifying racism as a public health crisis affecting our entire society and avowing to support policies that reduce racial and ethnic health inequities and promote social justice.

The list above is not an exhaustive list. We are glad to see so many lawmakers introducing bills this session that will benefit Arizona’s children, and we hope many of those bills become law in the future.

Image source: ABC's Schoolhouse Rock