The Governor’s commitment to a fair and equitable State recovery from the COVID-19 pandemic, especially for children and families is reflected in his proposed FY2022 budget. Much-needed additional funding for such programs for schools, public health, school aid, child care, and tax assistance for families will help to minimize the impact of the pandemic now and in the months ahead while providing funding to ensure that the needed systems are in-place to support our state’s economic recovery.
The proposed funding commitments to our youngest children is encouraging, specifically in preschool expansion, child care, home visitation, child dependent tax credit, and supports to Nurture NJ.
As we begin the second year of the pandemic, critical systems that support children, families and our state economy have been and continue to be in crisis. One of those systems that remains in peril is child care. The following testimony includes recommendations that ACNJ believes are critical in ensuring that the economy, working families and children can benefit from a stronger, more stable child care system.
The last Friday in March, this year on March 26th, is Social And Emotional Learning (SEL) Day, providing an excellent opportunity to support integrating evidence-based SEL in our schools, organizations and community.
SEL is the process through which children and adults acquire and effectively apply the knowledge, attitudes and skills necessary to understand and manage emotions, set and achieve positive goals, feel and show empathy for others, establish and maintain positive relationships, and make responsible decisions. SEL improves academic outcomes, builds a positive school climate and provides children with the necessary skills to excel in today’s workforce.
Much like physical development, we need to foster social and emotional health by ensuring a full spectrum of services, from prevention to intervention to treatment, is available to address children’s mental health needs. Research demonstrates that early prevention and treatment are more beneficial and cost-effective than attempting to treat emotional difficulties and their effects on learning and health after they become serious.
At the request of the New Jersey Association of School Psychologists (NJASP), Governor Murphy and Lt. Governor Oliver signed a proclamation recognizing the importance of the day and encouraging the community to educate others on SEL.
Sign up for SEL Day on March 26 to help showcase, promote, advocate for and support SEL in your school and community. Share on social media with the hashtag #SELday and help spread the word about what SEL is and why it’s so critical!
The recently passed American Rescue Plan, which provides COVID-19 relief and economic stimulus, sends a total of more than $39 billion in relief funding to the child care sector. This adds to the roughly $13.5 billion in child care funding in prior COVID-19 relief packages. The American Rescue Plan represents an enormous win for child care providers, who have been struggling during this crisis, and by extension the children and families that they serve.
These funds for New Jersey are roughly divided into two categories:
$267 million for the Child Care Development Block Grant (CCDBG) and
$426 million for the “Child Care Stabilization Fund.”
Smaller amounts will be available for additional Head Start and Temporary Aid to Needy Families (TANF) child care funding.
The CCDBG funds come with significant flexibility in how they can be used to support children, families, and providers. The state will decide the specific policies to put in place and how to distribute funds. Exactly how and when this funding will be available to providers is still yet to be determined.
Because they are built on an existing program, the Child Care Development Block Grant funds will be similar to the previous federal stimulus child care investments, meaning that states do not have to meet minimum direct service or quality spending targets and can fund child care for essential workers regardless of their income level and include child care providers who have not previously participated in the subsidy program.
The Child Care Stabilization Grant is a new program, designed to send funds to providers in the form of grants. The design of the program is still to be determined, but it is focused on losses and costs incurred by child care providers after the declaration of the public health emergency on January 31, 2020. These funds could be used to support all licensed, regulated or registered providers under state law, not just child care providers who accept child care subsidy. These funds could potentially cover personnel costs, rent or mortgage payments, COVID-related costs such as personal protective equipment or cleaning supplies, or mental health supports for children and child care employees.
Potential guidance from the federal government on how the CCDBG funds can be used is not yet available. However, in previous federal child care relief packages, states have a substantial amount of flexibility to determine how funds are spent. Examples of policy changes paid for through previous federal child care stimulus include:
Paying providers based on enrollment rather than attendance;
Creating incentive payments to boost compensation for provider staff;
Expanding eligibility for state-subsidized child care;
Establishing higher reimbursement rates for subsidy providers that have reopened;
Covering costs of PPE, cleaning/sanitizing materials, etc.;
Increasing the availability of scholarships for providers;
Waiving co-pays and parent fees; and
Paying for direct grants to providers to fund COVID-related operating costs.
Importantly, these funds must all be used to supplement, not replace, other federal, state and local child care funds.
The New Jersey Department of Human Services has made information available on its website https://www.childcarenj.gov/covid19, but direct communication is also made with providers through the workforce registry, NJCCIS. The local resource and referral agencies are also distributing information. The Department of Human Services plans to provide technical assistance, as it has in prior federal relief efforts.
Most existing federal rules around Child Care Development Block Grant funding still apply to those funds, which means that these funds cannot be used for major facility renovations or redesign. However, a state may allow some of the funds to be used for small renovations such as emergency exits or handwashing stations to meet health and safety standards or state quality standards.
However, funds in the Child Care Stabilization Fund can only be used for operating expenses, not facilities. “Facility maintenance” is included as a category of allowable expenses, but these likely do not include capital improvements. (For a full list of allowable expenses in the legislation, see the statutory text here.)
It depends. The state will determine the size and length of each subgrant, but it will be based on current operating expenses, including salaries and benefit, rent/mortgage costs, etc.
It’s not yet known exactly when funding or grant applications will be available. However, the goal of the legislation is to support providers as soon as possible.
Note, however, that the legislation anticipates getting the grants expended by September 30, 2021.
Absent finalized federal guidance, it is hard to say for certain. But to be eligible for the child care stabilization grant, the child care provider must either 1) be an eligible child care provider in the Child Care and Development Block Grant, or 2) be licensed, regulated, or registered in New Jersey, meeting applicable state and local health and safety requirements. The Department of Human Services may be able to make a final determination of which providers will be eligible within these federal requirements.
New Jersey school districts may contract with child care providers for pre-K services, and have been required to continue paying those contracts based on enrollment during the pandemic. However, these programs may be incurring other expenses and costs associated with the pandemic that may make them eligible for stabilization funds. They may also be eligible for grants through CCDBG to pay for PPE and other health and safety materials, or to otherwise improve quality through professional learning opportunities or purchasing new materials and resources. Whether these are available will depend on policy choices at NJDHS.
Contracted providers should also be eligible for support through the $2.7 billion in Pre-K-12 school funding in the American Rescue Plan, which covers costs of reopening, staff costs, extended learning opportunities and mental health support. (More information on the school grant program from the US Department of Education here.)
The law actually requires that states set aside funding to provide technical assistance to child care providers to help them apply for subgrants, as well as publicize the availability of subgrants. This is a critical component, because so many child care providers are often small businesses or agencies unfamiliar with the process of applying for federal grants and the paperwork that goes with it.
As mentioned above, information and technical assistance will be coordinated through the Department of Human Services through the workforce registry, through direct outreach to child care providers, and through the child care resource and referral agencies.
The NJ Department of Children and Families is accepting applications for its Youth Council, beginning in Fall 2021. Young people between the ages of 16-32 who have been involved in the Division of Child Protection and Permanency (DCP&P), formerly known as DYFS, the NJ Children’s System of Care or CSOC, (also known as CMO) and/or DCF”s Office of Education, or a DCF Regional School are eligible to apply. If you are interested in creating change in the policies and practices in one of these systems and want to elevate youth voice in case planning, please click here and apply TODAY!
For more than 20 years, ACNJ has produced KIDS COUNT data reports to bring you the most current data relating to the well-being of children. In an effort to continue to highlight important trends impacting our state’s children, ACNJ created the NJ KIDS COUNT Data Dashboard, which will now be updated on a quarterly basis. We encourage you to use these data to inform your programs, write grant reports, and educate members of your community.
Data updates for this quarter include:
NJ Earned Income Tax Credits, Recipients with at Least 1 Dependent Under Age 19 (# of credits issued and average claim amount)
Federal Earned Income Tax Credits, (# of credits issued and average claim amount)
Unemployment Rates
Infant Mortality Rates
Teens Ages 16 to 19 Not Working and Not in School
Youth Admissions to County Detention
Youth Commitments
Unsure how to navigate the dashboard? Check out this short video to help you get started. Jump to 4:05 mark to learn how to print the data that interests you!
Have any questions? Contact ACNJ’s KIDS COUNT Coordinator, Alana Vega at avega@acnj.org. And be sure to check back next quarter for new updates!