Arkansas delays part of child care assistance changes, raises copays

Arkansas families receiving child care assistance will start paying higher copays this week, although state officials are delaying new reimbursement rates for providers for one month after concerns from parents and early childhood centers.

The Arkansas Department of Education announced in September that it would update its School Readiness Assistance program, effective October 1. The program, which serves more than 16,000 children, helps low-income families pay for child care while parents are working or attending school.

Secretary of Education Jacob Oliva told lawmakers Monday the changes were necessary after an $8 million reduction in federal funding and warnings of a possible government shutdown.

“We can’t keep funding at that level unless the state or somebody else makes a significant contribution,” Oliva said.

Under the new rules, only families making less than 40% of the state median income — about $23,000 for a family of three — qualify for zero copays. Previously, families earning up to 75% of the state median income, roughly $44,000, were exempt from payments. Copays will be scaled by income and the age of the child, up to $12 per day.

Oliva confirmed copay adjustments are in effect Oct. 1, but reimbursement rates to providers will not change until Nov. 1. He said the delay is meant to give child care centers more time to adjust.

Providers say the quick rollout left families unprepared. Lensa Odima-Warden, owner of Apple Tree Academy in Springdale, told KUAR public radio in Little Rock that parents — including some of her own staff — could not afford the new costs. “We’re doing this intentionally because a lot of the parents in our community are struggling,” she said.

Advocates also raised concerns about enforcement. Nicole Carey of Arkansas Advocates for Children and Families told KUAR it’s unclear what will happen to families unable to pay.

More than 1,100 children are on the program’s waitlist, which began in February.

Oliva said the department will work with providers during the 30-day delay, but warned that without changes the state could run out of funds for the program.

“If we don’t do something, this pot of money will not have any money in it,” he said.