Without a state budget, NC child care facilities are days away from crisis
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Pandemic-era federal funding for child care facilities is days away from expiring, and as many as 100,000 North Carolina children could lose care after it does.
Why it matters: The legislature is likely to call it quits and go home at the end of this week without passing a budget, leaving thousands of child care facilities without the funding they need to remain open.
- Almost 3 in 10 child care centers throughout North Carolina say they'd be forced to close within six months if state lawmakers don't step in with financial support.
- "The cliff is upon us," said Janet Singerman, president and CEO of Child Care Resources Inc.
What's happening: State lawmakers have unveiled budget proposals in recent weeks that would direct millions to keep child care centers operating.
- But Republican legislative leaders are at odds over what else to include in this year's spending package. No resolution is in sight.
Inside the room: With budget negotiations stalled, the state House plans to move a standalone bill Wednesday that would fund child care stabilization grants with around $33.75 million through the end of September, according to a copy of the bill Axios obtained.
- House leadership plans to pass the bill — along with another bill that would enact teacher pay raises — through the chamber's Rules committee and take the legislation up for a vote on the House floor Wednesday, the speaker's office tells Axios.
- It's unclear, however, whether the state Senate would move the legislation, as relations between the two chambers' leaders have grown tense.
State of play: Lawmakers passed a two-year spending plan last year allocating funding through next summer. But this summer, they planned to make tweaks to the original budget and make additional allocations based on this year's $1 billion surplus.
Zoom out: Though many programs and projects are riding on whether lawmakers agree on a spending plan, stopgap spending for child care facilities is among the most urgent.
The big picture: Problems with child care are costing North Carolina's economy $5.65 billion annually, according to a recent report released by the NC Chamber. Having quality child care is necessary for working parents to maintain a job.
Meanwhile, the industry has already been struggling to stay afloat in recent years.
- Since February 2020, North Carolina lost 203 licensed child care programs statewide, EdNC recently reported.
How it works: Pandemic-era child care stabilization grants addressed two areas: operational costs and pay. The grants covering operational costs ended last April. The ones covering pay are set to expire on June 30.
- In many circumstances, teachers went from making $10-$12 an hour to $13-$15 an hour, according to industry experts. The industry has lost workers to higher-paying employers like Starbucks and Amazon in recent years.
- Absent government support, centers could soon increase tuition, decrease pay for workers or close their doors.
By the numbers: Child care professionals are asking for a one-time allocation of $300 million to extend stabilization grants beyond June.
- Democratic Gov. Roy Cooper recommended $200 million in his budget proposal.
- House Republicans proposed $135 million in a budget the chamber passed last week.
- "As we've worked diligently on the House budget, one thing has remained clear: we cannot leave Raleigh without addressing the child care crisis," Republican Rep. Donny Lambeth, a House Budget Chair, said in a press release unveiling the House's budget proposal.
- The Senate proposed nearly $136.5 million in its budget, which the chamber passed this week.
Editor's note: We've updated this story with details of the House's standalone bill.