Legislature(2021 - 2022)ANCH LIO DENALI Rm
07/28/2021 02:00 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Overview(s): Support for Alaska's Childcare Sector | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
Anchorage, Alaska
July 28, 2021
2:07 p.m.
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Ivy Spohnholz, Co-Chair
Representative Calvin Schrage
Representative Ken McCarty
Representative David Nelson
MEMBERS ABSENT
Representative Liz Snyder
Representative James Kaufman
COMMITTEE CALENDAR
OVERVIEW(S): SUPPORT FOR ALASKA'S CHILDCARE SECTOR
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SHAWNDA O'BRIEN, Director
Division of Public Assistance
Department of Health and Social Services
Juneau, Alaska
POSITION STATEMENT: During the Support for Alaska's Childcare
Sector overview, gave a PowerPoint presentation, titled "Child
Care Program Update: Status of Relief Funding."
CHRISTINA HULQUIST
Division of Public Assistance
Department of Health and Social Services
Juneau, Alaska
POSITION STATEMENT: Offered information during the Support for
Alaska's Childcare Sector overview.
STEPHANIE BERGLUND, CEO
thread
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony during the
Support for Alaska's Childcare Sector overview.
CHRISTINA EUBANKS-OHANA, Executive Director
Hillcrest Children's Center
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony during the
Support for Alaska's Childcare Sector overview.
KAYLA SVINICKI, Owner
Little Moon Day Care
Juneau, Alaska
POSITION STATEMENT: Provided invited testimony during the
Support for Alaska's Childcare Sector overview.
SUSAN DELOACH, Owner and CEO
Bright Beginnings Early Learning Center
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony during the
Support for Alaska's Childcare Sector overview.
ACTION NARRATIVE
2:07:34 PM
CO-CHAIR ZACK FIELDS called the House Labor and Commerce
Standing Committee meeting to order at 2:07 p.m.
Representatives Schrage, McCarty, Spohnholz, Nelson, and Fields
were present at the call to order.
^OVERVIEW(S): SUPPORT FOR ALASKA'S CHILDCARE SECTOR
PRESENTATION(S): SUPPORT FOR ALASKA'S CHILDCARE SECTOR
[CO-CHAIR FIELDS announced that the only order of business would
be the Support for Alaska's Childcare Sector overview.]
[The committee took an at-ease to address technical issues.]
2:15:13 PM
SHAWNDA O'BRIEN, Director, Division of Public Assistance,
Department of Health and Social Services, gave an overview on
Support for Alaska's Childcare Sector via a presentation,
entitled "Child Care Program Update: Status of Relief Funding."
She listed relief funding appropriations [slide 2]: the
Coronavirus Response and Relief Supplemental Appropriations Act
of 2021 (CRRSAA); and the American Rescue Plan Act (ARPA) of
2021. The CRRSAA funding [slide 3] is $18.8 million for:
direct childcare services subsidies; implementation of virus
mitigation policies and practices; grants to stabilize childcare
providers; and assistance to providers not participating in the
subsidy system prior to the pandemic. She noted a link to a
letter to the Administration for Children and Families (ACF).
Ms. O'Brien covered ARPA funding [slide 4], which is $73
million: $45 million for childcare stabilization grants; and
$28 million in "supplemental l discretionary funds" to expand
access to high quality care and improve the equity of the
childcare system.
MS. O'BRIEN listed uses of relief funding [slide 5] for:
childcare stabilization grants, applications available August
2021; free training for providers through thread, July 1 through
fiscal year 2022 (FY 22); a "SEED ROOTS" wage bonus for the
childcare workforce, applications available December 2021; and
parent co-pays for June through September 2021. She mentioned
other uses of funds. She addressed planning efforts [slide 6],
listing the highest priority as the stabilization grants, which
require the use of applications available August 2021 - by
providers. She mentioned other efforts [listed on slide 6].
Ms. O'Brien concluded by noting a list of resources [slide 7]
and offering to answer question from the committee.
2:25:53 PM
MS. O'BRIEN, in response to a question from Representative
Schrage, said these are federal funds for this year; however,
there was a permanent increase in the area of childcare
development. She said $45 million to stabilization efforts is
anticipated to take longer to spend down, after which the
division will assess the remaining balance. She indicated it is
unknown at this point how much of the funds will "go out the
door initially."
2:28:56 PM
MS. O'BRIEN, in response to Representative McCarty, clarified
that she is speaking in terms of the fiscal year. She talked
about maintaining provider rates and forming a partnership to
figure out how the state can help providers "meet that level of
need." She said she understood the desire for a sustainable
model but said it will take time and effort to outline what that
is.
2:34:18 PM
MS. O'BRIEN, in response to a question from Co-Chair Spohnholz
regarding reimbursement rates for subsidized childcare, said the
Institute of Social and Economic Research (ISER) has been
helping with the surveys, and information will be made public in
the next couple of weeks. She said the requirement [to survey]
aligns with the three-year effective period of the state plan.
2:38:00 PM
CHRISTINA HULQUIST, Division of Public Assistance, Department of
Health and Social Services, confirmed the timing is every three
years.
2:38:21 PM
CO-CHAIR FIELDS moved to invited testimony.
2:39:00 PM
STEPHANIE BERGLUND, CEO, thread, described thread as a non-
profit organization supporting early education, with a focus on
childcare. She mentioned the $90 million and emphasized there
is great need for this funding and other COVID resources. She
talked about the support of thread during the pandemic, and its
work with the state and the Municipality of Anchorage. She
talked about concerns related to childcare pre-COVID and how
they have increased. She said quality childcare costs more than
parents can afford. She noted surveys that have shown that
early childcare programs are in a fragile state and need
financial support to stay open. Over 87 percent of childcare
programs express uncertainties about continuing service.
Precious COVID funding was used to pay for personal protection
equipment (PPE) and staff, while not covering other operating
costs. The primary support needed are for wages and bonuses.
Ms. Berglund advised as to the urgent need of funding.
MS. BERGLUND shared quotes from the surveys relating the
critical need of support. She talked about recommendations made
by childcare professionals: increased payment, including
payment based on enrollment rather than attendance; improved
payment policies; increased wages, including health insurance
benefits; and support for childcare in underserved populations.
She offered other factors, including the need for supplies,
safety, recruitment, and retention. In addition to the federal
dollars, thread recognizes other opportunities to leverage
financial support through local resources, businesses, and other
state departments. She recommended bringing back the early
childhood degree in the University of Alaska system and
providing incentives for businesses and local governments to
leverage subsidies and support for childcare. She noted plans
of support and the need for leadership capacity at all levels.
She concluded by stating that childcare needs to be more of a
priority in Alaska.
2:49:19 PM
CHRISTINA EUBANKS-OHANA, Executive Director, Hillcrest
Children's Center, expressed appreciation for the broadcast of
the Child Care Program Office on July 19, 2022, which outlined
the plan for federal disaster funding, the highest priority
being the stabilization grants to qualified providers working on
long-term sustainability, and she emphasized the need for that
funding to be distributed immediately. She discussed the
negative effects of having insufficient staff, the consequences
of quarantines during the pandemic, and how previous aid barely
made a difference for the average childcare worker making $13.96
an hour when the living wage in Anchorage for a single person
without children is $15.27 an hour. She asked for transparency
in CCPO's funding plans so that providers can plan accordingly.
Money awarded should make a noticeable difference in pay for
workers to positively effective recruitment and retention of
workers. She said quarterly payments of $500 are required to
raise the workforce to a living wage. She said the childcare
workforce shortage is increasing and providers need funds now to
sustain programs, and she encouraged "making a strong financial
impact now for programs in the workforce with these one-time
funds."
2:54:14 PM
KAYLA SVINICKI, Owner, Little Moon Day Care, expressed
disappointment in the state of the "city childcare office"
regarding fund distribution. She said she testified in May, and
this is not a new issue. She shared her history of childcare,
with increasing capacity based on the need of the community.
She remarked on the low wages of childcare staff and the
importance of childcare. She said, "We can't support our
revolving budget from the pockets of families." She described
an intergenerational care program. She stated that the
childcare services cannot survive without the immediate release
of the federal funds. She asked when the application for funds
would be issued and what "some" time means in terms of the
division's figuring out what it will do. She emphasized the
importance of being a reliable and safe environment to which
families can bring their children, especially during a pandemic.
She questioned what programs would be available for the funds,
and she remarked on planning for deficits.
3:04:27 PM
SUSAN DELOACH, Owner and CEO, Bright Beginnings Early Learning
Center, discussed the difficulty of running childcare programs
during the pandemic. She expressed gratitude for the generous
grants and loans that have been awarded but advised that
additional funds are required in order to remain operational.
She recommended a one-time grant of a certain dollar amount per
child spot. She talked about increasing childcare assistant
rates and a program that provides training and assistance to
licensed childcare centers. She thanked the committee for its
commitment to improving the quality and availability of
childcare for Alaska's children.
3:06:35 PM
MS. O'BRIEN, in response to the question from Ms. Svinicki, said
the application is being developed in partnership with thread;
the procurement process is lengthy, but the division is on
target to distribute the applications next month. She said $5
million is being split between 540 providers through the
application process; applications will be submitted to thread.
In response to Co-Chair Fields, she said approximately 11 other
states are already in the process of distributing the funds.
She emphasized the planning involved in complying with [federal]
guidelines. To another question, she said the state has not
been able to incorporate the "cost of care" system, and she
emphasized the importance of balance between cost of services
and sustainability.
3:12:01 PM
CO-CHAIR FIELDS commented that he would like to see a breakdown
of how funds are disbursed.
3:12:51 PM
MS. SVINICKI, in response to Representative McCarty, specified
the issue with staff availability is retention.
MS. DELOACH added that hiring quality staff is challenging.
3:16:10 PM
MS. O'BRIEN, in response to Representative Schrage, said the
division communicates with providers through its web page, e-
mail, and via thread, and she speculated on how the day-to-day
work of providers may affect the timing of their reading the
communications. To a follow-up question, she confirmed there
are funds that are directed toward communications.
3:19:05 PM
MS. BERGLUND offered details of how thread would reach providers
regarding the application.
3:20:34 PM
MS. HULQUIST, in response to Co-Chair Fields, emphasized the
need for funds to be applied toward stabilization of the
childcare workforce.
MS. SVINICKI concurred with Ms. Hulquist and emphasized the
desire for stabilization funds - the release of the block grant.
3:23:13 PM
CO-CHAIR FIELDS thanked the presenter and invited testifiers.
3:23:50 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:24 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 07.28.21 Child Care Update - Relief funds.pdf |
HL&C 7/28/2021 2:00:00 PM |