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Fiscal Cliff

Impact of $15/hr
Average Income per Family Size
Compared to $15/hr
10 $100,000

9 Qualifying now – up to
8 150% of poverty $80,000

6 $60,000
Family Size

Income
5

4 $40,000

2 $20,000

0 $0
2 3 4 5 6 7 8 9 10

Family Size Average Income 150% FPL


Average Income per Family Size
Compared to $15/hr
10 $100,000

9 Range of Family Income for


8 Current Clients per Family Size $80,000

6 $60,000
Family Size

Income
5

4 $40,000

2 $20,000

0 $0
2 3 4 5 6 7 8 9 10

Family Size Average Income 150% FPL


Average Income per Family Size
Compared to $15/hr
10 $100,000

8 $80,000

7 Phase out at 85% of SMI


6 $60,000
Family Size

Income
5

4 $40,000

3
Qualifying now – up to
150% of poverty
2 $20,000

0 $0
2 3 4 5 6 7 8 9 10

Family Size Average Income 150% FPL 85% SMI


Average Income per Family Size
Compared to $15/hr
10 $100,000

9 Those who would continue


8 to qualify at $15/hr $80,000

6 $60,000
Family Size

Income
5

4 $40,000

2 $20,000

0 $0
2 3 4 5 6 7 8 9 10

Family Size Average Income 150% FPL $15/hr at FT


Average Income per Family Size
Compared to $15/hr
10 $100,000

8 $80,000

7 Phase out at 85% of SMI


6 $60,000
Family Size

Income
5 New Qualifying
4 Clients at $15/hr $40,000

2 Qualifying now – up to $20,000

1
150% of poverty
0 $0
2 3 4 5 6 7 8 9 10

Family Size Average Income 150% FPL 85% SMI


Average Income per Family Size
Compared to $15/hr
10 $100,000

8 $80,000

7 Phase out at 85% of SMI


6 $60,000
Family Size

Income
5
Already Participating and
4
Remaining Qualified at $15/hr $40,000

2 Qualifying now but no $20,000

1
Longer Qualifying at $15/hr
0 $0
2 3 4 5 6 7 8 9 10

Family Size Average Income 150% FPL 85% SMI


Family Income by Family Size Compared to $31,200
3000

2500
Total Families
Earning < $31,200 = 7,393 (85.59%)
2000 Earning > $31,200 = 1,229 (14.23%)

1500

1000

500

0
2 3 4 5 6 7 8 9 10
< $31,200 1656 2607 1747 831 291 156 78 15 12
> $31,201 39 203 458 285 155 55 17 15 2
Family Size and #s of Each
June 2018 data
Family Income - % of Impact by Family Size
100.00%

75.00%

50.00% % of families impacted

25.00%

% of families not impacted

0.00%
2 3 4 5 6 7 8 9 10
< $31,200 97.35% 92.71% 79.05% 74.46% 64.81% 73.93% 82.11% 50.00% 85.71%
> $31,201 2.29% 7.22% 20.72% 25.54% 34.52% 26.07% 17.89% 50.00% 14.29%
Marital Status by Family Size
3000

2500

2000
# of Families

1500

1000

500

0
2 3 4 5 6 7 8 9 10
Widowed 5 6 2 0 0 3 0 0 0
Divorced 25 62 67 31 14 2 4 0 0
Married 33 85 189 138 89 36 14 15 3
Separated 136 368 322 162 42 35 8 1 0
Single 1486 2277 1622 777 304 135 69 14 11
Average Weekly Cost of Care by Age
$200.00
$180.65
$164.36
$154.87
$150.00 $145.80
$138.64 $134.63
$116.55

$100.00

$50.00

$0.00
Family of 2 – Single Parent with Infant
Now With $15/hr
• Average Income $16,629.02 • Average income $31,200
• Cost of Care $9,393.80 • Cost of Care $9,393.80
• 56.49% of income
• 30.11% of income
• SR Subsidy $9,191.00 less
• SR Subsidy $0
• Average copay $1,175.20 ($4.52 daily)
• Paid on behalf of parent $8,015.80 • Average copay $0

• Cost to Parent: $1,378.00 • Cost to Parent $9,393.80


• (copay plus overage) • 30.11% of income
• 8.29% of income
• ($9393.80-9191.00)+1175.20

Average income, copay, and cost of care based on June 2018 data
Family of 3 – Single Parent with Infant & 4yr
Now With $15/hr
• Average Income $20,894.76 • Average income $31,200
• Cost of Care $16,603.08 • Cost of Care $16,603.08
• $9,393.80 + $7,209.28
• 79.46% of income • $9,393.80 + $7,209.28
• SR Subsidy $14,274 less copay • 53.22% of income
• $9,191.00 + $5,083.00 • SR Subsidy $0
• Average copay $1,939.60 ($7.46 daily) • Average copay $0
• Paid on behalf of parent $12,334.40

• Cost to Parent: $4,268.68 • Cost to Parent $16,603.08


• 20.43% of income • 53.22% of income
• ($16,603.08-14,274.00)+1,939.60

Average income, copay, and cost of care based on June 2018 data
Impact on Child Care Food Program
Reduced Families
Household Free Price
• Family Size of 2-3 no longer qualifies for free meal
Size Meal Meal
• Family Size of 2 no longer qualifies for reduced price
2 $21,398 $30,451
meal
3 $27,014 $38,443
4 $32,630 $46,435 Providers:
5 $38,246 $54,427 • A “for profit” center must have 25% or more children
6 $43,862 $62,419 enrolled who qualify for free or reduced price meals.
7 $49,478 $70,411 • Non-profit centers automatically quality as they do not
8 $55,094 $78,403 need to meet the 25% criteria.
9 $60,710 $86,395
10 $66,326 $94,387
Other Impacts
Vulnerable single parents
may not qualify for other
programs such as WIC.
WIC
Household Size Annual Income
2 $29,640
3 $37,296
Other?
4 $44,964 This is what I could locate
5 $52,620
6 $60,276
7 $67,956
8 $75,648
9
10
Impact on Head Start/Early Head Start/
EHS Child Care Partnership
• Head Start programs may enroll up to 10% of children from families
that have incomes above the Poverty Guidelines. Programs may also
serve up to an additional 35% of children from families whose
incomes are above the Poverty Guidelines, but below 130% of the
poverty line if the program can ensure that certain conditions
described in the section 645 (a)(1)(B)(iii)(II) of the Head Start Act have
been met.

Eligibility to Head Start, Early Head Start and EHS Child Care Partnership will be limited
by family income guidelines
Conclusions
• Families of 2-3 will no longer qualify
• These are the most vulnerable families
• Most are single, female head of households
• Only families with 3+ children will qualify
• Reinforces stereotype of subsidy for large, single parent households
• Possible entry to HS/EHS decreases
• Provider may have difficulty collecting higher fees from parents.
• Provider participation in Child Care Food Program will be impacted.