As Brigham Young University-Idaho prepares to welcome a new school year in September, local child care provider Kearis Ochs is bracing for a surge in parent enrollments. However, recent budget cuts to Idaho’s child care subsidy program are causing her significant concern.
Ochs, who operates Whole Child Early Education centers, anticipates a substantial decrease in business and fears many parents will struggle to find affordable child care. Approximately 40% of the children in her centers benefit from the Idaho Child Care Program, which provides subsidies to help cover child care costs.
The Idaho Department of Health and Welfare’s recent budget reductions are intended to address a projected budget shortfall. However, these cuts are raising alarms among child care providers and low-income families. Ochs expressed her worries in a letter, stating that these changes could force many child care centers to shut down after enduring years of financial strain.
The budget cuts, announced last week, have led to widespread anxiety among Idaho child care providers. Robert Sanchez, Executive Director of the Idaho Association for the Education of Young Children, told the Idaho Capital Sun that the reductions have intensified existing concerns within the industry.
Idaho Department of Health and Welfare Adjusts Child Care Program
In response to budget constraints, the Idaho Department of Health and Welfare has suspended new enrollments in the child care program and delayed anticipated benefit increases. Director Alex Adams explained that the department is focusing on providing reduced benefits to more families while exempting vulnerable groups from the enrollment freeze.
Currently, about 7,800 children are enrolled in the program, which largely relies on federal funding. Officials estimate that enrollment could grow to 8,100 by July 2025. The health department is committed to operating within its budget to ensure the program’s future, according to spokesperson AJ McWhorter.
Emily Allen, policy associate at Idaho Voices for Children, criticized the cuts, stating that they were made without consulting providers or families. She fears that these changes will lead to further closures of child care centers, reducing options for parents.
Financial Struggles for Child Care Providers
Child care providers in Idaho often operate on tight budgets, and many are small businesses with minimal profit margins. Allen noted that providers are motivated by a passion for early childhood education rather than financial gain. The industry faces high turnover rates, with over 2,400 workers leaving their jobs in 2023 due to low wages and challenging working conditions.
Idaho is one of the few states that does not invest public dollars into child care, leaving many areas classified as “child care deserts.” The state has made some efforts to increase child care availability, such as waiving certain rules to allow providers to expand.
Impact of the Cuts on Families
The health department’s changes will affect families differently. While new enrollments are frozen, existing program participants can still make adjustments, such as adding a new baby to their plan. Once the pause is lifted, the income eligibility cutoff will be reduced from 175% to 130% of the federal poverty level, affecting about 1,000 families.
Child care costs in Idaho are already high, with average annual expenses exceeding $8,000. Many providers charge more than the program’s voucher amount, leaving parents to cover the difference. The health department plans to adjust reimbursement rates in July 2025 to address rising local costs.
Budget Deficit and Future Prospects
The child care program, funded mainly by a $65 million federal grant, has a $52 million budget for subsidies this year. However, the health department projects a potential shortfall of up to $15 million, though this figure could be as low as $5 million. The department is exploring options, including the possibility of requesting additional funding from the Legislature.
Adams acknowledged that the budget projections are influenced by increased costs and changes in program parameters. He also hinted at the possibility of seeking a supplemental budget if needed.
As Idaho grapples with these challenges, child care providers and families continue to face uncertainty about the future of the program and its impact on their lives.