PARIS, Tenn. (WSMV) – Millions of dollars to help Tennessee families pay for childcare are frozen right now, leaving people scrambling and daycare owners concerned they could go out of business.
Only 35 full-time children are playing at Kilpatrick’s Childcare right now, which is less than half their 85-student capacity. Director Amy Curd said many families in Paris and Henry County can’t afford daycare without the state’s Smart Steps program, and the current freeze is eating into her emergency savings.
Curd is losing more than $6,000 a week with empty spots in classrooms and no one available to fill them. She said daycare centers across the state are dealing with the same problem.
Federal funding cuts trigger statewide program changes
The crisis began in August when Tennessee’s Child Care Development Fund allocation was reduced by approximately $44.5 million from the anticipated amount, according to a Department of Human Services spokesperson.
Tennessee used those federal dollars to support the Smart Steps Child Care Payment Assistance program, expand childcare slots and provide quality contracts for provider supports. With COVID-19 relief funding also ended, the state’s childcare funding returned to pre-pandemic levels.
A waitlist for new applicants to the Smart Steps program was started, but DHS said it does not impact those currently enrolled.
Curd said many daycares are facing laying of teachers or even going out of business.
“I want them to stay with me. They are amazing workers. They are amazing individuals. In order to keep them, I have to pay them what they are worth,” Curd said. “This financially is hurting me because I’m having to dig deep into savings in order to keep those teachers employed even though there’s not enough enrollment to meet that payroll right now.”
Families face steep costs without assistance
Having three kids under two years old is a lot to handle for Cassondra Holloman. The single mom said she was only able to send her twin boys and baby girl to Kilpatrick’s Childcare because of the state’s Smart Steps program that helps families cover daycare costs.
“This is a huge resource. Everybody needs childcare if they want to work,” Holloman said.
But that help suddenly stopped in August when Holloman missed a renewal deadline, found out the program was frozen, and then had to start paying full price.
Without state assistance, she was facing a $788 weekly bill for childcare and was forced to pull her two older children out to be watched by family members.
“A lot of people barely make that every two weeks,” Holloman said. “Especially in this area because a lot of people around here make maybe a little over minimum wage on average.”
Holloman is now one of the many people on the waitlist for state money. She said Smart Steps is the only way single mothers like her can survive.
“Getting that program was something that was so groundbreaking because it’s helped so much with expenses,” Holloman said. “People are barely already making enough to meet the basic needs for their expenses. Shelter, food, people are barely making enough to even afford that.”
Daycare centers struggle to stay afloat
Curd said almost all of her families are impacted by this funding change. Without the state money, she’s struggling to pay her staff while watching families she’s served for years struggle financially.
“When families come here, we become an extension of them,” Curd said. “It breaks our hearts when we see them struggling and hurting. It hurts us too. We just scramble and try to find whatever we can resource-wise.”
Curd is used to having a nearly two-year-long waitlist for families wanting to send their children to Kilpatrick’s, but she hasn’t even been able to fill spots with that because all the families are also waiting for Smart Steps approval so they can afford childcare, she said.
“Not a whole lot longer before I have to make some tough decisions that I don’t want to make,” Curd said. “I mean, I’m uncertain. I’m 54 years old. I’ve never done anything else because I love what I do. I love working with the families. I love what we do with these kids. We know what we do makes a difference in these kids’ lives. We have watched children and now we are watching their children.”
State prioritizes highest-need families amid budget constraints
The Department of Human Services said it had to adjust its budget to reflect the current federal grant award and priority programming. The state is now prioritizing Smart Steps Child Care Payment Assistance categories that serve families with the highest need.
“Over the past several years, Tennessee has been fortunate to receive significant child care funding to support families and child care providers during the COVID-19 response and recovery,” a DHS spokesperson said in a statement. “As COVID-19 relief funding has ended, our CCDF funding has returned to pre-COVID levels.”
Curd questions why alternative funding sources haven’t been explored, noting the program existed before federal COVID funding began.
DHS said it does not know how long the program will be frozen or where it might be able to find more money to restart the program.
For families like Holloman’s, the lack of information from the state is frustrating.
“They tell us there’s a waiting list. That’s pretty much it. That’s it. That’s all that we know,” Holloman said. “We need our money for other things, like rent and utilities and food.”
Both Holloman and Curd said their biggest concerns are daycares going out of business or teachers leaving for other jobs, which would create an even bigger childcare crisis down the line.
“We’re talking about trying to keep small businesses alive,” Holloman said. “All that money is being pulled from the daycares. It’s really not only the parents that are being affected. (The community is) losing jobs. The daycares are losing money.”
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