Federal and State Child Care Cuts Strain Local Providers and Families

INDIANA — Recent funding cuts to Indiana’s early childhood voucher program are creating challenges for care providers and leaving families on long waiting lists.

Citing a projected $225 million federal funding gap through next year, the state announced reductions to reimbursement rates for providers last month: 10% for infants and toddlers, 15% for pre-K, and 35% for school-age children.

The South Bend early childhood education alliance, Let’s Grow St. Joe, hosted a panel discussion Thursday at the St. Joseph County Public Library to highlight the local impact.

Local Impacts

Terri Kosik, director of Let’s Grow St. Joe, said the cuts forced 45 centers statewide to close in September. In St. Joseph County:

  • Over 1,500 families are now on the voucher waiting list, which did not exist before February.

  • Enrollment in the state’s On My Way pre-K voucher program for 4-year-olds dropped to 86 children, down from 283 last year.

Aleyna Mitchell, director of development and outreach at El Campito, a South Bend early childhood center, described the impact on staff and families:
“It’s now at the point where I have teacher moms that don’t make enough to cover their tuition, so they’re leaving. We’re losing families and educators because of this, which is really sad,” Mitchell said.

Expert Perspective

Mark Herriman, president and CEO of the United Way of St. Joseph County, criticized the cuts, saying early childhood education provides a $7 return on every public dollar invested.
“We don’t have that drug. Not something you can swallow. Instead it’s called early childhood education. It’s one of the answers to making good citizens,” Herriman said. “I understand the budget pressures, but I wish they would reassess and find cuts that don’t compromise a program with such a strong long-term return on investment.”

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.

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