Why cleveland.com wants Ohio to rethink how we pay for child care

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Why cleveland.com wants Ohio to rethink how we pay for child care
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From unaffordable costs to limited access, we dive into the need for a new approach to child care in Ohio.

More than half of a child care center’s budget goes to wages. Most offer some kind of health insurance, plus paid time off. Many offer tuition reimbursements or discounts for teachers’ children to attend their child care center. But tuition generally is not free. And wages are low.

It’s a cycle: If centers can’t hire enough staff, they can’t accept enough students to make decent profit margins. They can’t find staff because they can’t pay enough, and they can’t pay more because they can’t charge their families more, because families are already strapped.Prior to 1998 when the government first began subsidizing child care, just 67% of Quebec women with children ages 3 to 5 worked outside the home. By 2014, that number was 82%.

At the opposite end of the spectrum, eight states offer subsidies for those making triple the poverty level or more, with the highest cutoff being New Mexico, at 400%. Other states at 300% or higher are are Vermont , California , Alaska , North Dakota , Hawaii , New York and South Carolina .Elizabeth Bailey, a mother of three, wanted to work.

She says the system of government vouchers for low-income families also discourages providers in certain areas because her reimbursements are based on her own personal income and where she lives. Subsidies cover only about half of her regular rates.

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