Latest news with #Dannhauser
Yahoo
19-05-2025
- Business
- Yahoo
Majority of low-income families can keep their child care vouchers for now: ACS commissioner
New York City plans to pony up new funding for child care assistance, narrowly avoiding a doomsday scenario for now where tens of thousands of families could have lost access to their vouchers. During a City Council hearing Monday on the budget of the Administration for Children's Services, the city agency that issues the subsidy, Commissioner Jess Dannhauser said lawmakers could anticipate local investments that unlock matching funds from the state. 'Does that mean that we should fully anticipate that the [funding] will be included in the city's adopted budget in June?' asked Councilman Lincoln Restler (D-Brooklyn). 'The conversations we've had with OMB, that is our expectation,' said Dannhauser, referring to the Mayor's Office of Management and Budget. The commissioner offered the caveat, though, that their ability to provide families with vouchers is still subject to change based on federal and state policies. The popular Child Care Assistance Program was on the brink of a crisis earlier this year when state funding for assistance failed to keep pace with growing demand — threatening to kick 4,000 to 7,000 children off vouchers each month when their parents were due for annual recertification. Defending the growing costs as unsustainable for the state to shoulder alone, Gov. Hochul put forward a deal with the Legislature where New York City could draw down an additional up to $350 million — so long as it matches the commitment in the municipal budget. The city was the only county statewide that had to up its investment in order to qualify for the new funds. Despite the offer on the table, no funding for the vouchers was included in Mayor Adams' executive budget plan. In the weeks that followed, City Hall froze new enrollment in the voucher program for families not federally mandated to receive the assistance. Local officials also mounted a last-ditch appeal to Albany for more funding, which proved unsuccessful. But the state did approve a plan late Sunday night that will allow ACS to continue serving the 'vast majority' of children that currently have vouchers, Dannhauser revealed at the hearing. Under the terms of the agreement, families in three priority groups — under 300% of the federal poverty line, homeless or with disabilities — will be eligible for recertification. Previously, any family making less than 85% of the state median income qualified for the subsidy. The change in eligibility requirements is expected to result in a total of 2,000 low-income children losing their vouchers, out of nearly 70,000 enrolled with the at-risk subsidy. 'By and large, we're able, for the time being, to achieve continuity. But I have to say, the state has really stuck the city with the bill,' Dannhauser said. It was not clear Monday if and when the waitlist can be opened, though he promised to 'keep a close eye' on the matter. Under the state budget deal, New York raised how much the city has to contribute to the voucher program by 518% — from $53 million to $328 million. Only when the municipal budget hits that minimum will the city be able to unlock the one-time state matching funds, according the commissioner, which apply to every dollar over the former base. 'Who came up with this [ridiculous] process?' said Councilman Justin Brannan (D-Brooklyn), chair of the finance committee. Ahead of the hearing, dozens of child care advocates and children rallied on the steps of City Hall, calling on city lawmakers to invest in afterschool programs and child care vouchers. 'The state has made a commitment of funds to support the child care assistance program, but it requires the city to match it, and we need the city to do its part,' said Gregory Brender, chief policy and innovation officer of the Day Care Council of New York. Annie Minguez, director of government and community relations for Good Shepherd Services, also urged the city to invest in the vouchers: 'We want to work with the city to ensure that happens,' she said, calling the alternative 'devastating.' A final city budget is due at the end of next month.
New York Times
24-03-2025
- Business
- New York Times
A ‘Life-Changing' Child Care Program in New York Could Soon Collapse
For tens of thousands of New York City families, vouchers for free or discounted child care from the city's Administration for Children's Services have offered a lifeline as the cost of day care for infants and toddlers has skyrocketed. Those vouchers could start disappearing in a matter of weeks unless lawmakers in Albany act quickly to fund the program before an impending budget deadline. The program, which has been significantly expanded to serve more families, already faces a funding gap for the current fiscal year, Jess Dannhauser, the A.C.S. commissioner, said at a City Council hearing last week. The looming shortfall stems from the rollback of Covid-era policies and the rising costs of care. To continue to offer the more than 60,000 vouchers it currently subsidizes, the agency needs an additional $1 billion in state funding, Mr. Dannhauser said, which the governor and state legislators have not yet agreed to provide. The state's Constitution requires the budget to be approved in just over a week, by April 1, though negotiations often stretch beyond the deadline. The ballooning cost of child care has put an impossible strain on working parents of young children in New York City, where the average cost of enrollment in center-based care was $26,000 last year, according to an analysis by the city comptroller, Brad Lander. That figure represented a 43 percent increase since 2019. Only families earning an average of at least $334,000 annually can afford the cost of child care for a 2-year-old, Mr. Lander's report found. The median income for a family of three in the New York City region was $139,800 in 2024, according to city data. Susan Stamler, the executive director of United Neighborhood Houses, an organization that represents community centers in the city, said that the loss of vouchers — which are granted to families that earn less than 85 percent of the state's median income — could make it harder for those families to provide stability for their children. 'This is critical to all these families,' she said. When parents are unable to afford child care, they face difficult decisions about keeping their jobs or staying home with their children, said Gregory Bender, chief policy and innovation officer of the Day Care Council of New York. 'It has consequences for the economy, for their employers,' Mr. Bender said. Erika Reyes, a mother of two in Brooklyn, said A.C.S. vouchers had enabled her to keep her job as a discharge planner at NewYork-Presbyterian Hospital. Without vouchers, the burden of paying for care for her 1-year-old would be overwhelming — like a second rent, she said. 'How am I going to manage paying that, paying rent, paying food?' Ms. Reyes, 43, said. 'And then on top of that, bills and electricity, cable, their clothes. I mean, I have two kids, so it's a lot.' Roona Ray, a doctor in Queens, enrolled two of her three children in day care with help from A.C.S. vouchers just a few weeks ago. It's been 'life-changing,' she said. 'It's been an incredible relief, and I think it's been great for the kids too,' said Dr. Ray, 45. 'They're socializing. They're eating a more diverse diet. They're talking more and playing and making friends, so I think it's helping their development.' Dr. Ray, who specializes in family medicine and was laid off from Elmhurst Hospital Center last year, said losing the vouchers would be extremely disruptive to the routines her family was just beginning to establish. 'It would interrupt the development, the transition to school that my kids have started, my two little kids,' she said. 'For me, that would just set me back; it would make it harder to look for a job.' Typically, people who receive public assistance must demonstrate to the city that they are employed, looking for work or enrolled in a training program. Because of those work requirements, the city is required by law to provide them with free child care. But at the height of the Covid pandemic, the city suspended the work requirements, and the demand for child care among families on public assistance dropped. Lower demand among those families enabled the city to offer child care subsidies to more families who have low incomes but may not be receiving cash assistance, and over the last three years, the A.C.S. voucher program expanded significantly. In October 2022, the families of around 10,000 children were receiving the vouchers. As of last month, there were more than 62,000 children in the program, according to Mr. Dannhauser. But now work requirements have returned, and Mr. Dannhauser expects swelling demand for vouchers from families on cash assistance to eat up the funds A.C.S. had used to pay for the expanded voucher program. Gov. Kathy Hochul's executive budget proposal, released in January, included no additional funding for child care subsidies. Nor did the State Senate's version, which was released in March. The State Assembly's proposal included roughly $213 million for child care assistance statewide — far short of what A.C.S. says is needed to maintain its current caseload. Without any additional funding, Mr. Dannhauser told the City Council, the families of between 4,000 and 7,000 children could be turned away each month when they try to renew their vouchers, which most must do annually. All told, as many as 60,000 children could lose vouchers over the next year. Compounding the funding problem, the cost of child care has gone up. In October, the value of the vouchers increased by 20 percent after an analysis by the state's Office of Children and Family Services, which adjusted the rate the state pays providers to align with market trends. Now, the city is paying providers more, but the amount of money available to fund the program hasn't changed. Some lawmakers said they had only recently been made aware of the impending budget shortfall, and questioned why city leaders hadn't raised the issue earlier. Robert Carroll, a state assemblyman in Brooklyn, said he had learned of the situation from his colleagues in the Legislature, and that he had not heard 'one iota' about it from Mayor Eric Adams. 'This has not been a major issue for the mayor, which is shocking,' Mr. Carroll said. 'It is a dereliction of duty by the mayor's office that they have not been beating this drum incessantly.' Lincoln Restler, a City Council member in Brooklyn, applauded City Hall for expanding the voucher program in recent years. But he blamed Mr. Adams's 'negligence' for the peril the program now finds itself in. 'This is a quintessential example of the mayor being out to lunch, focused on his legal troubles, not managing the city,' he said. Mr. Bender of the Day Care Council, whose group represents child care providers, said he thinks many lawmakers don't 'understand or believe the severity of what might be about to happen.' 'I wish that the alarm to the state legislators and state leaders had been sounded earlier, and it had come from the mayor himself,' he said. The potential shortfall comes on the heels of Mr. Adams's decision not to include $112 million in funding for the city's 3-K program, which provides free preschool for some 3-year-olds, in his preliminary budget proposal earlier this year. Child care is among the issues animating the mayoral race, and several Democratic candidates challenging Mr. Adams have sharply criticized his policies. Allison Maser, a spokeswoman for the mayor's office, said in a statement that the Adams administration had 'been a leader' in pushing Albany lawmakers to fund child care. 'We will continue to use these final days of state budget negotiations to urge the governor and Legislature to ensure that the adopted state budget includes the funding New York City needs to preserve the tremendous gains we've made,' Ms. Maser said. 'We remain committed to our mission of making New York City the best place to raise a family.' For parents like Ms. Reyes, losing access to affordable child care would be 'very devastating.' Without the vouchers, families 'are going to suffer a great deal,' she said. 'That would be a complete chaotic mess.'
