Western NC child care facing severe cuts; Raleigh advances emergency funding

With 29% of North Carolina child care programs saying they would close with many in the west of the state eyeing deep cuts, legislators have advanced emergency funding before a June 30 fiscal cliff.

The N.C. State House voted late June 26 to allocate about $67 million for the first half of the July 1 fiscal year in a bill that must still be approved by the Senate. The move came as a 2021 program using hundreds of millions of dollars in federal pandemic aid to boost child care was set to end. The federally funded stabilization grants that were administered by the state helped provide more than 10,000 child care slots in Buncombe, Henderson and Madison counties, state data said.

The loss of the stabilization grants would mean the closure of 29% of child care programs statewide, according to a February N.C. Child Care Resource and Referral Council survey. A report on the survey, conducted by Well World Solutions, did not make clear how many Western North Carolina programs said they would close. The Citizen Times reached out to June 26 to Well World.

Marcia Whitney, president and CEO of Verner Center, which serves 232 children as young as infants at programs in Swannanoa and Emma Elementary, said they did not want to cut salaries or raise tuition. But would have to look at eliminating positions.

"Where do we have potential? Streamlining positions and obviously cutting expenses every other place we can," Whitney told the Citizen Times four days before the funding cliff.

Those that don't receive free or subsidized care at Verner pay a monthly tuition of $1,656 for children up to 3 years old and $1,206 for those 3 to 5 years old.

Advocates have been asking the General Assembly in Raleigh to maintain the funding. But the Republican-controlled Senate and House were at a budget impasse.

Greg Borom, director of the WNC Early Childhood Coalition, said he had hoped legislators would step away from other budget issues and pass some kind of separate funding.

"We really can't go through the summer without our fragile child care landscape being stabilized," Borom told the Citizen Times June 26.

The grants were created in 2021, when Democratic Gov. Roy Cooper announced that $805 million from the federal American Rescue Plan Act would be used to boost pay for child care workers, many of whom were quitting during the pandemic.

How grants affected local child care

The stabilization grants have supported more than 10,000 child care slots in Buncombe, Henderson and Madison counties, according to the N.C. Division of Child Development and Early Education.

• Buncombe: 7,587 child care slots (1,022 staff positions supported)
• Henderson: 4,079 child care slots (398 staff positions supported)
• Madison: 231 child care slots (29 staff positions supported)

A 2023 N.C. Chamber Foundation survey found that 60% of parents with children who are ages 5 and younger said they had to miss work because of a problem with child care and 32% didn’t pursue job training or continued education because of a lack of affordable child care.

Despite the stabilization grants, some child care programs that have historically faced difficulties providing services in poorer areas, continued to struggle. In October of 2023 the nonprofit Southwestern Child Development closed seven programs in Cherokee, Clay, Graham, Haywood and Jackson counties. The nearly 300 children affected were were up to 5 years in age with most receiving free or subsidized care due to income.

As the grant money was set to run out in December 2023, advocates asked the legislature for $300 million. But the General Assembly came back with $100 million that extended the grants through June.

In his recommended budget for the fiscal year starting July 1, Cooper has said the state should add another $200 million. The House has proposed $135 million and the Senate $136.5 million in their opposing and deadlocked budget bills.

Isabel Taylor, director of Bells School in Fletcher, said because of her program's small classes they charge a bit more than other centers. If the funding didn't come they would likely have to raise rates, she said.

Taylor said her main concern was for centers that serve children coming from low-income households.

"If the state supports child care then they should support the centers that are serving the most needy children," Taylor said. "The centers that serve 50% public assistance are the most deserving of help from the state."

Joel Burgess has lived in WNC for more than 20 years, covering politics, government and other news. He's written award-winning stories on topics ranging from gerrymandering to police use of force. Got a tip? Contact Burgess at jburgess@citizentimes.com, 828-713-1095 or on Twitter @AVLreporter. Please help support this type of journalism with a subscription to the Citizen Times.