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Governor eliminates child care services for 17,527 children in Los Angeles and jeopardizes employment for 11,142 Working Families and thousands of child care providers

LOS ANGELES, CA - On Friday, October 8, 2010 Governor Schwarzenegger in his completion of the 2010-11 Budget, eliminated child care services for low income working families in Stage 3. This single act destroys California’s 15 year investment in moving families from welfare to work and places thousands of California families on the unemployment and welfare rolls and leaves 17,000 children across the state without access to safe quality child care.

The immediate impacts of these cuts will include:

  • Placing roughly 12,000 families who are currently working, paying taxes and contributing to Los Angeles’ struggling economy will be forced to make difficult decisions between caring for their children or maintaining their employment. 3,500 of these families are served by Crystal Stairs

  • 6,000 providers, including licensed family child care homes and child care centers throughout the state will lose payment for services placing their businesses, already hard hit by Los Angeles’ struggling economy at risk of closure. 2,700 of these providers are contracted with Crystal Stairs

  • $1.2 billion dollars of economic input will be lost to Los Angeles County annually

Adelina Elzy is a child care provider in Los Angeles County who provides care to families on Stage 3. “I am currently providing care for one parent whose children are all on Stage 3”, says Ms. Elzy. “We will all be devastated. I recently had to lay off my three staff and downsize my business as a result of the economy and the budget delay. She has relied on me to provide care for her children while she worked... Now, I will have to tell her this news. The Governor said he was cutting child care for a rainy day fund. This cut is a real rainy day fund scenario for thousands of parents, children and small business providers. The Governor essentially said he does not care about us.”

The massive elimination of child care services will result not only in lost employment for low income working parents and their child care teachers and providers, but also in endangered child safety and lost learning opportunities for the over 6,600 young children from the Crystal Stairs service area who will be jerked from their child care programs beginning November 1, 2010.

Child care providers are already struggling with high vacancy rates due to the 12.6% local unemployment rate for Los Angeles County. The loss of an additional 17,000 children from these programs will place many licensed child care programs in very difficult financial positions and potential closure

Further, these cuts will have a ripple effect of employers losing employees who are no longer able to come to work, closure of already struggling child care businesses which will impact all working families who depend upon child care services to go to work.