TOLEDO, OH (WTOL) - The soaring cost of childcare can be a barrier for low-income parents to work. Ohio's childcare assistance program was meant to change that, but as the economy floundered, more people began taking advantage of the program and its cost ballooned. In Lucas County alone, it rose to $32 million in 2010.
The state tightened eligibility requirements for new program applicants as of July 1. Before, people making double the poverty level qualified for assistance, but now only those making 25 percent above the poverty level do. That represents a substantial number of people who live in Lucas County.
"Those are basically your low wage, working poor people that are able to get some assistance with childcare so they can keep their jobs," said Deb Ortiz-Flores, executive director of the Lucas County Department of Job and Family Services.
Not only will Ohio offer fewer people assistance, but daycare centers that receive assistance for qualified children could get about seven percent less beginning in August, roughly $10 per child.
Julie MacKinnon, owner of Kidz Watch in Toledo, said she got notice of the cut last week, and it could cost her business as much as $5,000 per month.
"You don't have time to make plans or budget changes in how you're doing things," MacKinnon said.
When daycares faced a similar cut in 2008, MacKinnon had to close two daycare centers and lay off staff. Now, her small business is facing a revenue cut, even as expenses continue to rise.
"You just cant continue to pay increases in wages, increases in hydro-utility bills and absorb that loss at the same time," MacKinnon said.
Ortiz-Flores said she worries some daycare centers may not have enough funds to cover public assistance recipients.
Copyright 2011 WTOL. All rights reserved.
Click HERE for PDF