11

Breakout #6: The relationship Breakout #6: The relationship between subsidy and welfare-to-between subsidy and welfare-to-work systems and policies, and work systems and policies, and the child care and employment the child care and employment patterns of low-income parentspatterns of low-income parents

Facilitator: Lee KreaderFacilitator: Lee Kreader

Discussants: Deanna Discussants: Deanna Schexnayder, Gina Adams, Schexnayder, Gina Adams, Lisa Gennetian, and Lucy Lisa Gennetian, and Lucy

JordanJordan

22

I.I. The Texas Child Care The Texas Child Care Subsidy Program After Subsidy Program After

Devolution Devolution to the Local Levelto the Local Level

Presenter: Deanna Schexnayder Presenter: Deanna Schexnayder

Authors: Deanna Schexnayder, Laura Lein, Authors: Deanna Schexnayder, Laura Lein, Julie Beausoleil, Daniel Schroeder, Ying Julie Beausoleil, Daniel Schroeder, Ying

TangTang

The University of Texas at AustinThe University of Texas at AustinRay Marshall Center for the Study of Human ResourcesRay Marshall Center for the Study of Human Resources

Center for Social Work ResearchCenter for Social Work Research

33

Study OverviewStudy Overview

Texas devolved some child care policy authority to Texas devolved some child care policy authority to 28 local workforce boards in September 1999.28 local workforce boards in September 1999.

Project team collected data 2 years prior to and 4 Project team collected data 2 years prior to and 4 years following devolution: years following devolution: Child care subsidy policies and program participationChild care subsidy policies and program participation Local workforce board structure and other featuresLocal workforce board structure and other features Financial allocation and payment informationFinancial allocation and payment information TANF and UI wage administrative dataTANF and UI wage administrative data Provider and market rate dataProvider and market rate data County characteristics and economic dataCounty characteristics and economic data

Variations across Board areas and over time are Variations across Board areas and over time are reported here; econometric analysis being reported here; econometric analysis being conducted nowconducted now

44

FindingsFindings Income eligibility ceilings and share of low-income Income eligibility ceilings and share of low-income

children served vary among the 28 local board areas children served vary among the 28 local board areas but all areas are only serving a fraction of those in but all areas are only serving a fraction of those in need.need.

Boards’ ability to secure local matching funds Boards’ ability to secure local matching funds improved over time. improved over time.

Local policies varied considerably in the first two years Local policies varied considerably in the first two years after devolution. Because all Boards are required to after devolution. Because all Boards are required to serve TANF (Choices) children first and TANF serve TANF (Choices) children first and TANF performance measures tightened over time, policy performance measures tightened over time, policy flexibility diminished in later years.flexibility diminished in later years.

In response to funding shortages, many boards In response to funding shortages, many boards lowered eligibility ceilings and increased parent co-lowered eligibility ceilings and increased parent co-pays. The state froze reimbursement rates. pays. The state froze reimbursement rates.

55

FindingsFindings Initially, local boards were required to spend 4% of Initially, local boards were required to spend 4% of

their funds on quality initiatives. As local boards their funds on quality initiatives. As local boards were required to serve more children with subsidy were required to serve more children with subsidy dollars, the requirement for local expenditures on dollars, the requirement for local expenditures on quality initiatives was removed. quality initiatives was removed.

The share of care by Texas Rising Star (tiered The share of care by Texas Rising Star (tiered reimbursement) providers increased in early years reimbursement) providers increased in early years but leveled off in 2003. Other efforts to maintain but leveled off in 2003. Other efforts to maintain quality varied by Board area.quality varied by Board area.

Boards varied widely in their perceptions of the Boards varied widely in their perceptions of the policy flexibility available to them. policy flexibility available to them. (3 - high (3 - high flexibility; 4 - flexibility with some constraints; 3 - little flexibility; 4 - flexibility with some constraints; 3 - little flexibility; 8- no flexibility at all)flexibility; 8- no flexibility at all)

66

QuestionsQuestions

How equitable is a devolved system for poor How equitable is a devolved system for poor children across Texas? (and across U.S.?)children across Texas? (and across U.S.?)

Given restrictions of TANF priority, state Given restrictions of TANF priority, state performance measures and limited funding, performance measures and limited funding, how much authority do local boards really how much authority do local boards really have?have?

Do local policy differences translate into Do local policy differences translate into differential outcomes for families and differential outcomes for families and markets? (Working on this now; see project markets? (Working on this now; see project posters.)posters.)

77

II. Child Care Subsidies II. Child Care Subsidies for for

TANF Families:TANF Families:The Nexus of Systems and The Nexus of Systems and

PoliciesPoliciesPresenter: Gina Adams, The Urban InstitutePresenter: Gina Adams, The Urban Institute

Authors: Gina Adams, Pamela Holcomb, Authors: Gina Adams, Pamela Holcomb, Kathleen Snyder, Robin Koralek, Kathleen Snyder, Robin Koralek,

Jeffrey Capizzano, Patti Banghart, Sara BernsteinJeffrey Capizzano, Patti Banghart, Sara Bernstein

Funded by The Child Care Bureau and the John T. and Catherine D. Funded by The Child Care Bureau and the John T. and Catherine D. MacArthur FoundationMacArthur Foundation

88

Research DesignResearch DesignResearch Questions Research Questions

Understanding the administrative intersections between TANF Understanding the administrative intersections between TANF welfare-to-work and child care welfare-to-work and child care

Examining what parents and agencies have to do for TANF clients Examining what parents and agencies have to do for TANF clients to get and keep subsidies as they move from welfare to workto get and keep subsidies as they move from welfare to work

Identifying coordination issues and strategiesIdentifying coordination issues and strategies Exploring implications for agencies and clientsExploring implications for agencies and clients

Research DesignResearch Design Interdisciplinary team of researchers (child care/welfare-to-work) Interdisciplinary team of researchers (child care/welfare-to-work) Built upon child care and welfare-to-work ANF case studies (1999)Built upon child care and welfare-to-work ANF case studies (1999) Selected 11 sites, conducted phone interviews with child care/ Selected 11 sites, conducted phone interviews with child care/

welfare-to-work caseworkers and administrators 2001-2002welfare-to-work caseworkers and administrators 2001-2002 Phase I of three-part studyPhase I of three-part study

99

FindingsFindings Linking child care and welfare-to-work involves connecting Linking child care and welfare-to-work involves connecting

multiple devolved systems to serve to clients going through multiple devolved systems to serve to clients going through variable and dynamic trajectories from welfare to workvariable and dynamic trajectories from welfare to work

Sites varied widely in their administrative approachSites varied widely in their administrative approach

No clear “best approach” – client burden/administrative No clear “best approach” – client burden/administrative coordination issues appear more related to infrastructure, coordination issues appear more related to infrastructure, policies, & practicespolicies, & practices

TANF/welfare-to-work staff often had responsibility for at least TANF/welfare-to-work staff often had responsibility for at least some (sometimes many) child care subsidy functions some (sometimes many) child care subsidy functions

Ease of process for clients/agencies depends upon the Ease of process for clients/agencies depends upon the cumulative impact of requirements for authorization, cumulative impact of requirements for authorization, recertification, and adjustment of subsidies for interim changes, recertification, and adjustment of subsidies for interim changes, andand their frequency their frequency

1010

FindingsFindings Sites employed various coordination/communication Sites employed various coordination/communication

strategies to link agencies/services – generally satisfiedstrategies to link agencies/services – generally satisfied

Sites varied in how tightly they tied eligibility for child care Sites varied in how tightly they tied eligibility for child care subsidies to participation in work-related activitiessubsidies to participation in work-related activities

Agencies reported most parents knew what providers they Agencies reported most parents knew what providers they wanted – though indication from some workers and (some wanted – though indication from some workers and (some parents) that not always true parents) that not always true

Several sites required parents to start work-related activities Several sites required parents to start work-related activities less than 2 weeks after meeting with welfare-to-work case less than 2 weeks after meeting with welfare-to-work case managermanager

Several sites provided relatively little information/counseling Several sites provided relatively little information/counseling around finding child care unless parents reported a problemaround finding child care unless parents reported a problem

1111

Questions and ChallengesQuestions and Challenges What are the implications of welfare-to-work workers taking What are the implications of welfare-to-work workers taking

on child care subsidy management responsibilities? on child care subsidy management responsibilities?

How can policy best support the ability of TANF parents to How can policy best support the ability of TANF parents to choose high quality stable child care arrangements given:choose high quality stable child care arrangements given:

the short time frame parents have to find care the short time frame parents have to find care

the dynamic trajectory and short-term nature of many welfare-to-work the dynamic trajectory and short-term nature of many welfare-to-work activitiesactivities

the tight link between parental participation in work activities and the tight link between parental participation in work activities and subsidy receiptsubsidy receipt

the mismatch between the formal child care market and these realitiesthe mismatch between the formal child care market and these realities

How to assess “best practice” when service involves three How to assess “best practice” when service involves three highly complex, very different, and very devolved systems?highly complex, very different, and very devolved systems?

1212

III. How Policies III. How Policies Toward Low Income Families Toward Low Income Families

Shape Child Care UseShape Child Care Use

Presenter: Lisa Gennetian, MDRC

Collaborators: Aletha Huston, Danielle Crosby, and Young Fun Chang,

University of Texas at Austin; Edward D. Lowe and Tom Weisner, University of California at Los

Angeles; Charles Michalopoulos and Cynthia Miller, MDRC

1313

The AnalysesThe Analyses• Data from random assignment studies testing 21 welfare Data from random assignment studies testing 21 welfare

and employment programsand employment programs Earnings supplementsEarnings supplements Mandatory employment servicesMandatory employment services Time LimitsTime Limits Expanded child care assistanceExpanded child care assistance

20,000 welfare and low-income families20,000 welfare and low-income families

• Child care outcomes from follow-up surveys Child care outcomes from follow-up surveys family-level child care decisions and costsfamily-level child care decisions and costs type of care used for children aged 1 to 9type of care used for children aged 1 to 9

• Ethnographic StudiesEthnographic Studies New Hope: 38 families in MilwaukeeNew Hope: 38 families in Milwaukee Project on Devolution and Urban Change: 116 families in Project on Devolution and Urban Change: 116 families in

Cleveland and PhiladelphiaCleveland and Philadelphia

1414

Findings: Employment, use of Findings: Employment, use of care care

and subsidiesand subsidies Programs increased employment and increased families’ Programs increased employment and increased families’

use of paid child care, but had little effect on useuse of paid child care, but had little effect on use of child of child care subsidies.care subsidies.

Programs that offered expanded child care assistance Programs that offered expanded child care assistance increased parents’ subsidy use; lowered out-of-pocket increased parents’ subsidy use; lowered out-of-pocket costs; and reduced employment-related problems with child costs; and reduced employment-related problems with child care. care.

Many welfare recipients who leave welfare for employment Many welfare recipients who leave welfare for employment do not report using a child care subsidy. Subsidy use does do not report using a child care subsidy. Subsidy use does appear to decrease transition time to employment appear to decrease transition time to employment especially for very low earners.especially for very low earners.

From parents’ perspective, flexibility is a crucial component From parents’ perspective, flexibility is a crucial component of the child care subsidy system.of the child care subsidy system.

1515

Findings: Type of care Findings: Type of care arrangementsarrangements

• From parent’s perspective, using:From parent’s perspective, using:• siblings and relatives, because centers are not open siblings and relatives, because centers are not open

latelate• only close relatives, because of distrust of only close relatives, because of distrust of

nonrelativesnonrelatives• only center care, because of convenienceonly center care, because of convenience• a patchwork of care, where unregulated or minimally a patchwork of care, where unregulated or minimally

regulated care plays a central roleregulated care plays a central role

• Programs with expanded child care assistance increased Programs with expanded child care assistance increased use of center care more than home-based care; whereas use of center care more than home-based care; whereas programs without expanded assistance increased use of programs without expanded assistance increased use of home-based care more than center care. home-based care more than center care.

• Programs had no effect on use of Head Start.Programs had no effect on use of Head Start.

1616

Challenges and open questionsChallenges and open questions• What are the direct effects of child care subsidy policies What are the direct effects of child care subsidy policies

on child care and employment? on child care and employment?

• How do these policies affect quality and stability of care? How do these policies affect quality and stability of care?

• Do and how do child care subsidy policies affect Do and how do child care subsidy policies affect children’s cognitive and socio-emotional development?children’s cognitive and socio-emotional development?

• How can child care subsidy policies and welfare and How can child care subsidy policies and welfare and employment policies be optimally designed to match employment policies be optimally designed to match family values and routines, as well as unpredictable and family values and routines, as well as unpredictable and nontraditional work schedules?nontraditional work schedules?

1717

IV. Child Care Subsidies & IV. Child Care Subsidies & Entry to Employment Entry to Employment Following ChildbirthFollowing Childbirth

Lucy P. JordanLucy P. Jordan& Marcia K. Meyers& Marcia K. Meyers

University of WashingtonUniversity of WashingtonSchool of Social WorkSchool of Social Work

1818

Study DesignStudy Design Secondary data analysis of Fragile Families and Secondary data analysis of Fragile Families and

Child-Well Being StudyChild-Well Being Study 3 waves, 20 cities, 15 states3 waves, 20 cities, 15 states

Combined with measures of child care subsidy Combined with measures of child care subsidy generosity and availabilitygenerosity and availability Expenditures, subsidy priority systems, income eligibility Expenditures, subsidy priority systems, income eligibility

limits, parent copayment, provider reimbursement ratelimits, parent copayment, provider reimbursement rate

Two separate questionsTwo separate questions Timing of entry to employmentTiming of entry to employment Child care stress, job stabilityChild care stress, job stability

1919

FindingsFindings

TANF subsidy priority (increase TANF subsidy priority (increase likelihood)likelihood)

+ income eligibility limits (increase + income eligibility limits (increase likelihood)likelihood)

+ reimbursement rates (decrease + reimbursement rates (decrease likelihood)likelihood)

+ CCDF/TANF funding (decrease + CCDF/TANF funding (decrease likelihood)likelihood)

2020

FindingsFindings

0.0

5.1

.15

0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12

No Yes

Months since birthGraphs by TANF Status , ongoing since before birth of focal child and new cases

0.0

5.1

.15

0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12

0 1

Delta

_H

(t)

Months since birthGraphs by mom_lastyr_work1

0.0

5.1

Delta

_H

(t)

0 1 2 3 4 5 6 7 8 9 10 11 12 13Months since birth

2121

QuestionsQuestions How well do current measures of child How well do current measures of child

care policy match the policy goals? How care policy match the policy goals? How reconcile child development and reconcile child development and employment related goals?employment related goals?

How can subsidy systems best support How can subsidy systems best support work for moms with young children? work for moms with young children?

How should priorities for who get who gets How should priorities for who get who gets subsidies and for how long be determined?subsidies and for how long be determined?

How can we best measure & record these How can we best measure & record these things across multiple locations?things across multiple locations?