Survey Shows Providers Struggling with California's Child Care Payment System

OAKLAND, CA—Child care providers are struggling to support their families, even as they work to support the families of others.

This is the finding from a March 2009 survey by Child Care Providers United (CCPUnited) of California, which showed that more than two-thirds of child care providers face economic hardship because of late subsidy payments.

Although providers reported that most agencies had payment policies in place, nearly one-third said the agencies failed to follow their own rules.

As a result, nearly 70% of providers reported being late on rent or mortgage payments or had difficulty paying bills or meeting basic needs like food, clothing, and transportation.

Perhaps the most alarming finding was that the late payments were often beyond the provider's control (e.g., missing signatures from parents, agency staff shortages, state budget delays, etc.)

CCPUnited surveyed 225 child care providers statewide to rate their satisfaction with California's child care payment system.

In response, CCPUnited is sponsoring two legislative bills to solve these problems: Assembly Bill (AB) 304 and 315.

AB 304 (Price, D-LA) would help to ensure timely and consistent payments by making direct deposit available to all providers.

AB 315 (DeLeon, D-LA) would direct the California Department of Education (CDE) to simplify payment policies, enforce payment rules, and standardize payment periods across the state.

In the same survey, child care providers indicated that they overwhelmingly favored the direct deposit option to reduce payment errors and improve timeliness.

They also expressed their desire to be regularly notified of changes in approved hours of care and to have payment rules enforced more consistently.

With offices in California and Pennsylvania, CCPUnited is a union formed by child care providers for child care providers that advocates for early education and quality care for all families who work for a living.

To read more about the progress of these bills, click here.

To join Child Care Providers United, e-mail us or call toll free 1-866-336-9333.