Providers worried state not putting aside enough money for childcare expansion
When Gov. Ned Lamont signed off on the creation of the Early Childcare Endowment last summer, he and Democratic lawmakers touted it as an innovative way to expand childcare around the state.
Lamont also placed $300 million, moving the state toward the goal of a $1 billion endowment in just four years.
This year, his budget office is projecting the contribution will be just $30 million.
Childcare providers are worried that the contribution won’t be enough to provide free childcare for many families next year, as required by the law that accompanied the fund’s creation.
“They’re not going to be able to meet what they promised the citizens of this state,” John Cattelan, vice president of government relations for the Connecticut Alliance of YMCAs, said.
The endowment is supposed to be funded by the annual surplus in the operation budget, with a maximum contribution of $300 million.
On Monday, Comptroller Sean Scanlon forecasted that the state budget is now on pace for a $6 million deficit when the fiscal year ends on June 30th.
That has led Lamont’s Office of Policy and Management to predict a smaller transfer to the endowment. An OPM spokesman said Lamont is still committed to working with lawmakers.
“Connecticut’s approach helps lower costs for parents and gives young children a stronger start for future learning success,” the spokesman, Chris Collibee, said in a statement. [Lamont’s] fully dedicated to making sure that we deliver on that vision and promise.”
Merrill Gay, executive director for the Connecticut Early Childcare Alliance, said concerns about future revenues are the reason the state should make a larger contribution this year.
“It really says to me we should be making a bigger investment this year, because the economy is likely to be in trouble next year,” he said.
The state’s budget is also projected for a $1.8-billion surplus in volatility revenue, money that cannot be used in the budget. Instead, it’s supposed to be used for the Rainy Day Fund and pension debt.
Providers are hoping Lamont and lawmakers will tap into that pool of money to increase the endowment contribution.
Families who earn up to $100,000 will be eligible for free childcare, and the state has pledged to subsidize costs for families making above that threshold.
The endowment is also supposed to fund pay raises for workers and expansions at care centers to increase the number of slots available.
Rep. Kate Fararr, (D-West Hartford), said she and other Democrats are also pushing on Lamont to increase the contribution, although she did not specifically identify the volatility surplus as an option.
“For it to come to fruition and be in state-funded centers, and for us to create more spaces, we have to make another significant contribution this year,” she said.
Republicans were critical of the endowment fund last year, saying the state should not put surplus money into an account outside the budget.
Rep. Tammy Nuccio, (R-Tolland), maintained that criticism Thursday, saying she supports expanding childcare but thinks the legislature should include that in the budget.
She questioned if the state could make any contribution this year and was doubtful it will be able to meet the promise of free childcare for many families next year. “There is no surplus,” she said. “As a matter of fact, we’re in deficit, so with that I would say that the program is in trouble.”
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