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December 5, 2007

Bredesen Administration Moves to Make Day Care Less Available, More Expensive

tnflag.jpgTennessee's Democrat adminstration, being compassionate and all that, has announced a new policy intended to help welfare recipients with children in day care - but which may, in reality, put day cares out of business or force them to turn away children on welfare. Knoxville's WATE TV news reports:

The state gives a stipend to day care centers for every child whose family is on assistance. Until now, day cares have been able to charge these families the difference between the cost of the day care and the stipend. But now, the state says day cares must absorb the cost or make up the difference elsewhere.
In other words, the state is mandating price controls on a segment of the day care business, and forcing day cares to pass part of the real cost of providing the service to non-welfare parents, driving up the cost of day care for many Tennessee families who are not on welfare but who nonetheless may struggle to afford day care.

Does this make sense? Of course not. It's bad economics - it drives up the cost of day care and, if it drives some financially marginal day cares out of business, it will lead to fewer day care slots - and as almost any mom who has gone searching for day care can tell you, there's not exactly a surplus of day care slots.

It's also bad social policy. Even families on welfare ought to have to pay some small part of the cost, in order that they bear some of the responsibility for this important part of taking care of their children. Totally free day care simply increases the welfare families' dependence on government and decreases their motivation to get off the government dole - which, in turn, feeds the generational cycle of poverty that includes the high likelihood that their children will eventually grow up to have their own children dependent on government.

Fewer day care slots, higher prices, increased dependence on government, decreased reliance on self. Brought to you by Tennessee's Democrat administration - who are busy right now on plans to take more of your tax dollars to fund an expansion of the state's new state-funded day care system, also known as universal "Pre-K." But I'm sure the latter has nothing to do with the former.


Comments

Great post. You pulled it all together.

Posted by: The rep. at December 5, 2007 5:29 AM

You are out of date by a couple of days. The Department did announce a policy change prohibiting child care centers from charging additional fees for very low income children, instead of simply accepting the state rate which is less than market rate. This change was in conjunction with a long overdue modest increase in state reimbursement for this fairly small group of struggling Tennessee families. After hearing from providers the state rescinded the policy before it went into effect.
Also, your digs at the pre-K program are misplaced. A high quality voluntary pre-K program, like high quality child care with standards and oversight, is an important priority. Also, it is a priority supported by a large majority of Tennesseans and by a majority of both parties in the House and Senate.

Posted by: Stewart Clifton at December 5, 2007 7:06 AM

Stewart, the state has not rescinded the policy - it has delayed it.

From the WATE story I linked to:

A spokesperson for the state Department of Human Services says the letter was sent out prematurely. After meeting all day Monday, officials decided to delay the welfare policy change.

The rate increase will go into effect as planned on January 1. However, further study will be needed before they enact any policy changes.

Translation: Expect this to come back.

As for Pre-K: - kindergarten attendance also was once voluntary. And studies show that Pre-K has no long-term impact on the academic performance of children. So, in short, it is taxpayer-funded day care.

Posted by: Bill Hobbs at December 5, 2007 8:41 AM

You're right of course Bill. This is the kind of stuff that sounds good to many well meaning people, but there are myriad unintended consequences. Ultimately of course it is a question of who should raise children, families or the state?

Posted by: martin kennedy at December 5, 2007 1:14 PM
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