Task Force Proposes New Funding to Rescue Arkansas Childcare Centers
The childcare funding crisis in Arkansas is reaching a critical point. Many daycare centers are preparing for new reimbursement rates set to begin on November 1st. In light of this situation, a special task force comprised mainly of childcare providers convened in Little Rock to develop a funding strategy to present to the Department of Education.
Task Force Develops Funding Plan
The urgency is palpable as providers are concerned about their survival. Shahid Sheikh, President and CEO of Little Martians Learning Center, warns of significant upcoming closures. “By November 1, we anticipate a 40% chance of centers closing,” he states.
The task force’s proposal includes solutions for families facing high co-payments. Dawn Colyer, owner and director of Lil’ Sprouts Academy, explains their strategy. “We plan to cap co-pays at 7% of household income for families with multiple children. This means a mother with four kids won’t pay $200 a week but will instead pay between $50-60,” she notes.
Reimbursement Rate Adjustments
Another aspect of the plan involves adjusting reimbursement rates based on center size and quality. The task force suggests consolidating levels three and four into a new reimbursement tier. This tier would offer rates lower than levels five and six but higher than level two.
- This adjustment could result in $3.6 million in weekly spending.
- Currently, $28 million is available, providing about eight weeks of funding until year-end.
The plan now awaits presentation to the Early Childhood Commission and the Department of Education for approval. Sheikh expresses optimism about the commission’s response. “There’s no reason for them not to approve it. It fits within our financial constraints and doesn’t require legislative action,” he assures.
Impact and Next Steps
While the proposed plan offers some relief, childcare providers acknowledge they will still face financial difficulties. “Our proposal minimizes the extent of our losses, but we are still losing money,” Sheikh admits. This initiative is deemed crucial for stabilizing the childcare crisis impacting many Arkansas families.
Currently, over 1,000 families have already lost access to childcare services in their communities. Both Sheikh and Colyer are hopeful that a decision from the commission will arrive by Thursday, just two days ahead of the looming deadline. As the task force prepares for this pivotal moment, they are collectively advocating for a solution that ensures continued support for Arkansas childcare providers.
