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Thursday, April 7, 2016

Report Examines "Child Care Crisis" in America

Public News Service - OH | April 2016 


April 7, 2016Some low-income Ohio families spend half their earnings on child care. (Pixabay)

Some low-income Ohio families spend half their earnings on child care. (Pixabay)


COLUMBUS, Ohio – Some Ohio families pay more than half of their salaries to cover the cost of child care, according to a new report that examines solutions to what it calls a child care crisis in America.

The Economic Policy Institute’s findings highlight how high quality child care is out of reach for many families.

Michael Shields, a researcher with Policy Matters Ohio, explains that in Ohio, care for a single infant costs about $9,000 a year – about 15 percent of the median family's budget.

He says that means child care is not affordable for more than two-thirds of Ohio families.

"Once we start looking at low-income families, the costs really become just insurmountable,” he points out. “A minimum-wage worker in the state – someone in that situation is earning about $17,000 per year and paying out $9,000 for infant care. That's more than 53 percent of that family's income."

Shields says better investments in early childhood care and education at the state and national level would reduce financial hardships for families and give children a foundation for a successful future.

The report recommends expanded public funding for home visits by nurses to help new parents, subsidies for affordable high-quality child care and publicly funded preschool.

Ohio has programs at the state level to help lower-income families afford child care, but Shields contends Ohio is moving away from increasing access for families with initial eligibility at 135 percent of the poverty level.

"That's a really low figure, but if we would increase that, actually to a number that it was at within the last several years, to 200 percent of the poverty level, then we're starting to cover more families,” he states. “That would cover families who are earning up to about $40,000 a year."

Shields says the child care crisis also is a problem for child care workers themselves.

The report finds the median child care worker in Ohio earns under $20,000 dollars a year, and would spend about 46 percent of earnings on care for one infant.

The findings suggest public investment that enables providers to pay wages that support qualified professional staff.
Mary Kuhlman, Public News Service - OH
- See more at: http://www.publicnewsservice.org/2016-04-07/livable-wages-working-families/report-examines-child-care-crisis-in-america/a51299-1#sthash.C3G3eP2C.dpuf

Colorado Bill Targets Companies Exploiting Public Assistance for Low-Wage Workers

Public News Service - CO | April 2016


April 7, 2016The Corporate Responsibility Act, introduced in the Colorado House of Representatives on Tuesday, would force companies paying workers less than $12 an hour to help cover the state's Medicaid expenses. (Colorado Fiscal Institute)

The Corporate Responsibility Act, introduced in the Colorado House of Representatives on Tuesday, would force companies paying workers less than $12 an hour to help cover the state's Medicaid expenses. (Colorado Fiscal Institute)



DENVER - New legislation to force businesses with more than 250 employees to pay their fair share of health care costs was introduced in the Colorado House this week. The Corporate Responsibility Act would close loopholes that allow companies to move low-wage workers onto the state's Medicaid rolls.

Dan Shannon, owner of Gary's Auto Service in Denver, said he pays his workers a living wage so they can pay for coverage, but he's competing on an uneven playing field.

"Since they're not paying their employees a living wage, they're not providing health-care insurance," he said. "It isn't fair to small-business owners, it isn't fair to taxpayers of Colorado."

The measure would charge per-hour fees for each worker making less than $12 an hour. According to the Colorado Fiscal Institute, if the bill passes, the state could tap an additional $80 to $130 million each year in federal matching funds to cover medical costs and the additional revenue would not count toward TABOR limits. If the bill clears the House, it's expected to face an uphill battle in the GOP controlled Senate.

Nearly one-in-four workers earning less than $12 an hour depends on Medicaid, which costs the state between $40 and $65 million a year.

Judy Amabile, president of Polar Bottle, a Boulder-based company, said people working for corporations that don't pay a living wage or provide coverage still need health care.

"Our company plays by the rules," she said. "We believe that it's part of your business model that you take care of your employees. And if your business model doesn't accommodate that, it ends up back on the backs of individual taxpayers."

Representative Crisanta Duran (D) of Denver, the bill's co-sponsor, notes that while Medicaid was designed to help the poorest Americans, there is a company whose sole purpose is helping corporations' low-wage employees get what they call "free government health insurance." Duran was referring to Benestream, a company that helps employers "migrate" workers onto Medicaid.

The full bill will be published here.
Eric Galatas, Public News Service - CO
- See more at: http://www.publicnewsservice.org/2016-04-07/health-issues/bill-targets-companies-exploiting-public-assistance-for-low-wage-workers/a51287-1#sthash.gppKcxL4.dpuf