Daycare providers from across the state testified today that it is increasingly difficult to stay in business.
They complain while their costs are soaring, their compensation is painfully flat.
The state subsidizes child care for low and moderate income parents.
And providers reminded lawmakers that reimbursement rates haven't gone up since 2000.
New Hampshire Public Radio's Dan Gorenstein has more.
Here's the dilemma facing Dover Children's Center Executive Director Mary-Lou Beaver:
For a baby under three the state's reimbursement rate falls anywhere from $100-120 dollars short every week.
About 60% of the families she serves are low and very low income.
And she says if she raises her prices, she believes many parents won't be able to afford the service.
So to make up the difference, Beaver exercises a few options.
She constantly fundraises, she writes grants, and she keeps her employees' wages low, and she worries.
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1:52 what it means is somebody is going to be suffering. It's my staff, or parents are going to have to make up that difference. Or I am not going to be able to buy all the construction paper I need in the classrooms, or get in the things the kids needs, asking people to supplement me with the basics, the paper, pencils, the paint. And when that happens, quality is affected.
Beaver was just one of about a half dozen childcare providers to tell the Senate Health and Human Services Committee the same thing: money is unbelievably tight.
The state hasn't increased its reimbursement rate since 2000.
The Committee is considering a proposal to boost that daily rate $2-4 dollars per child for families that earn up to $24 thousand dollars a year.
Marylou Beaver says that might cover their costs today.
TAPE: Ideally we would like to meet all our expenses, and put a little aside. We are not asking for that. We are asking just to get up to 2005 and have cost of living increases. And to give a little bit of an easement to the parents who can least afford it.
Many of the providers serve low-income parents who are either searching for jobs, training for jobs, or in low-wage jobs.
In the words of one person who spoke at the hearing theses are not people at home watching Jerry Springer and eating bonbons.
24 year old parent Christen Moddy drove that point home.
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:18 I am here to tell you my story. It's not a sappy story, it's not my way of making you feel sorry for people who have been in my situation.
Moody became a single parent when her son was 9 months old.
She returned to school, going nights.
During the day she earned $10 dollars an hour, doing clerical work.
With the help of state aid she put her son in Little Frogs and Polliwogs daycare.
Then, she got a 20 cent raise.
And Moody got kicked off state assistance.
She told the senators, at that point, she had to figure out her priorities...housing, childcare or food.
She elected to skimp on the day care.
3:12 in the end, my son was not getting the best child care he could have been getting. He was placed in front of a television all day long. And if you ever watch cartoons for kids our age, it's violence, and it's a negative impact. I wanted more for him, and there was nothing I could do.
In response to the financial squeeze, Moody took in a roommate to split costs and started working Saturdays in addition to school and her full-time job.
After two years, she finally graduated, received a raise, and got her son back into Little Frogs and Polliwogs.
5:26 language, social, emotional and physical development, that's what we want for our children. Our children our our future. What else can we ask for? I want to give them the best care. And today I ask you to do that. Thank you.
No one testified against the bill.
As drafted, the legislation projects it would cost 6.4 million dollars a year to increase reimbursement rates.
The money would come from the state's welfare program, managed by the Department of Health and Human Services.
The department is not taking a position on the bill.
But supporters are optimistic HHS will see this measure as a way to achieve a goal shared by all: improve child care services.
Republican Senator Joseph Kenney, who chaired the hearing, said it's clear the state's childcare reimbursement rates are out of touch with other increases.
His chief concern is whether siphoning nearly six and a half million dollars annually would hurt the state's welfare program.
1:05 it would be a domino effect to affect other services. That dollar amount probably has to be dropped, but they came in with a very aggressive plan, and we can probably work with them to get something done.
Even while there is some reluctance to allot the full 6.4 million, providers say that number would not do much more than be a place holder.
The Senate Health and Human Services Committee is expected to vote on the proposal next week.
For NHPR News, I'm DG.
