Child Care Costs and the Family (and State) Budget

It cost California families on average $11,276 to enroll an infant in a licensed child care center in 2009; in some Bay Area counties, these average annual costs totaled $15,000 or more.

What’s the impact of those costs on a family budget? It’s heavy for many families, as $11,276 comes to about 15% of median family income in California ($67,038 in ’09), which also must cover other essentials such as housing, food, medical expenses and transportation.

Lower-income families feel the tightest pinch; $11,276 is more than half the income for a family that lives below the federal poverty level, which was $21,756 for a family of four in 2009. According to 2009 data, about 20% of California children lived in families below the federal poverty level, up from 17% in ’07.

These days, too, less governmental assistance is available in the form of subsidies or other programs. According to a June analysis from the California Budget Project, state budget cuts could translate to an estimated 60,000 children statewide losing access to child care and preschool due to cuts in funding for several programs and reductions in the income eligibility for child care services.

Just yesterday, the Sacramento Bee reported that if state revenue forecasts released this week are $1 billion below this summer’s budget assumptions, child care funding, among other programs, will be slashed by $23 million, on top of the $412 million in child care reductions from this summer.

More information on policy implications related to child care are available on kidsdata.org.

Posted by kidsdata.org

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