STRATEGIC PRIORITY: Workforce, Education & Equity
AGENDA DATE: December 11, 2024
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Community Care and Empowerment
EXECUTIVE: M. Elizabeth Cedillo-Pereira
______________________________________________________________________
SUBJECT
Title
Authorize (1) the implementation of the Drivers of Poverty Program (Childcare) that targets residents of the City of Dallas who are low-to-moderate income needing childcare assistance and meets two of the nine Drivers of Poverty, as outlined in the Mayor’s Taskforce on Poverty, approved in the City’s FY2024-FY2029 Five-Year Consolidated Plan Budget, and as described in Exhibit A; and (2) the execution of contracts with fully-licensed childcare providers selected by eligible parents (that meet the eligibility criteria outlined in Exhibit A), and any and all documents required by the contract and to provide subsidy payments to these fully-licensed childcare providers for the period of January 1, 2025 through September 30, 2025 - Not to exceed $618,565.00 - Financing: 2024-25 Community Development Block Grant Fund
Body
BACKGROUND
The Texas Legislative Study Group posted on August 13, 2024, the following statical data regarding the need for affordable childcare for working families in Texas.
“Childcare programs provide children safe, nurturing environments to learn and grow, enabling parents to work to support their families and the state’s economy.
Recent reports show Texas is home to about 2.3 million children under six, with 68% having two parents working.”
“The shortage of affordable childcare is not just a family issue, it’s a statewide economic problem. Working parents who struggle to find quality, affordable care may arrive late, leave early, miss promotions, delay professional development, or even leave the workforce altogether. A United States Chamber of Commerce Foundation report estimated that Texas loses $9.39 billion annually from its economy due to insufficient childcare.”
“For many working parents, the critical need for childcare comes with a significant financial burden. Approximately 85% of the childcare industry is privately funded, with some federal support available for eligible families. On average, American families with a child under five spends about $10,000.00 annually on childcare, which is about 13% of their income. In Texas, the average annual cost of infant care is $9,324.00 which is higher than the average in-state college tuition, according to the latest data from the Economy Policy Institute. The financial strain is a stark reality for many families, making quality childcare a luxury rather than a necessity.”
In conclusion, “Childcare is essential for economic productivity and child development, but the current system fails to meet the needs of families and provides. Public funding and policy changes are crucial to addressing these issues to create a more sustainable childcare system that benefits children, families, and the state.”
On June 12, 2024, the City Council authorized final adoption of the FY 2024-25 HUD Consolidated Plan Budget for U.S. Department of Housing and Urban Development Grant Funds. The grant funds are available beginning October 1, 2024, contingent upon approval of the City’s FY 2024-25 Action Plan and execution of grant agreements with HUD. The FY 2024-25 HUD Consolidated Plan Budget includes a budget line item for the Drivers of Poverty Program, in an amount not to exceed $618,565.00. The funds will be distributed as follows:
•$618,565.00 - Childcare assistance and one full-time employee
The Drivers of Poverty Program (Childcare) will be administered by the Office of Community Care and Empowerment. The program will target two of the nine drivers of poverty, as outlined in the Mayor’s Taskforce on Poverty.
Nine Drivers of Poverty:
1. Sharp decline in median income and the declining share of middle-income
households/Increasing Numbers of “Have” and “Have-Nots” Neighborhoods
2. Lack of affordable transportation
3. Lack of Home Ownership/High Rental Percentage/Single Family Rentals
4. Neighborhoods of Concentrated Poverty (which are increasing)
5. High Number of Households with Children Living in Poverty
6. Lack of educational attainment
7. High percentage of limited English-proficiency residents
8. High teen birth rates
9. High Poverty Rates for Single Women Heads of Households with Children
Two Drivers Chosen for the Childcare Program:
• High Poverty Rates for Single Women Heads of Households with Children
• Neighborhoods of Concentrated Poverty
Census Data:
According to the 2022 U.S. Census Bureau, 5-year-estimate census tables. The total Female Head of Households in the City of Dallas is 84,657. The following 20 zip codes listed in the chart below, represent the top neighborhoods of concentrated poverty in the City of Dallas and will be the targeted for this program. The chart also shows the number of children living in those zip codes, by age groups.
|
Targeted Zip Codes |
Female Head of Household |
Children under 3 years |
Children 3 and 4 years old |
Children 5 years old |
Children 6 to 11 years old |
|
75203 |
1,768 |
262 |
122 |
80 |
689 |
|
75210 |
816 |
110 |
225 |
29 |
264 |
|
75211 |
5,978 |
592 |
674 |
461 |
1,610 |
|
75212 |
1,068 |
389 |
485 |
463 |
681 |
|
75215 |
1,967 |
236 |
126 |
73 |
695 |
|
75216 |
6,758 |
802 |
719 |
341 |
1,605 |
|
75217 |
7,250 |
523 |
747 |
361 |
2,904 |
|
75220 |
2,998 |
505 |
182 |
238 |
1,075 |
|
75226 |
88 |
0 |
0 |
0 |
22 |
|
75228 |
4,983 |
946 |
676 |
420 |
1,829 |
|
75232 |
1,877 |
281 |
123 |
167 |
618 |
|
75233 |
2,142 |
311 |
134 |
75 |
673 |
|
75236 |
2,582 |
503 |
9 |
170 |
907 |
|
75237 |
3,572 |
316 |
503 |
265 |
1,165 |
|
75240 |
2,037 |
284 |
324 |
68 |
564 |
|
75241 |
3,930 |
452 |
145 |
101 |
1,659 |
|
75243 |
3,876 |
725 |
602 |
261 |
1,066 |
|
75246 |
113 |
46 |
0 |
0 |
67 |
|
75247 |
0 |
0 |
0 |
0 |
0 |
|
75253 |
2,154 |
202 |
209 |
132 |
991 |
This program will provide subsidy payments to childcare providers chosen by the eligible parents for childcare assistance. The above two Drivers of Poverty were chosen based on community feedback and the need to bridge disparities among the most vulnerable residents and advancing equity. The goal is to reducing/eliminating barriers to work and provide access to affordable childcare.
The subsidy pay per week per child directly to contracted childcare providers for childcare services for working parents whose income falls in the low-to-moderate-income range of the U.S. Department of Housing and Urban Development Area Median Income (AMI) eligibility, (see subsidy amount below).
|
SUBSIDY AMOUNT BY AGE GROUP |
|
Age |
Weekly Payment |
|
0-18 months |
$175.00 |
|
18 months - 36 months |
$150.00 |
|
3 years - 5 years |
$125.00 |
|
6 years - 12 years |
$100.00 |
The following chart illustrates the income range which is 30-80% of AMI, as of April 2024.
Extremely Low Low Income Moderate Income
Family Size (30%) (50%) (80%)
1 $23,200.00 $38,650.00 $61,800.00
2 $26,500.00 $44,150.00 $70,600.00
3 $29,800.00 $49,650.00 $79,450.00
4 $33,100.00 $55,150.00 $88,250.00
5 $36,580.00 $59,600.00 $95,350.00
6 $41,960.00 $64,000.00 $102,400.00
7 $47,340.00 $68,400.00 $109,450.00
8 $52,720.00 $72,800.00 $116,500.00
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 12, 2024, the City Council authorized (1) final adoption of the FY 2024-25 HUD Consolidated Plan Budget for U.S. Department of Housing and Urban Development Grant Funds in an estimated amount of $30,949,109 for the following programs and estimated amounts: (a) Community Development Block Grant (CDBG) in the amount of $13,023,068; (b) HOME Investment Partnerships Program (HOME) in the amount of $5,078,453; (c) Emergency Solutions Grant in the amount of $1,213,719; (d) Housing Opportunities for Persons with AIDS in the amount of $9,864,583; (e) estimated CDBG and HOME Program Income in the amount of $700,000; and (f) FY 2023-24 Reprogramming Funds in the amount of $1,069,286; and (2) the new Five-Year Consolidated Plan, covering the period of FY 2024-25 through FY 2028-29, by Resolution No. 24-0873.
The Workforce, Education and Equity Committee was briefed on the “Overview of Out of School Time Landscape and Early Childhood Care Landscape and Update on Related Projects” on November 5, 2024.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Community Development Block Grant Fund |
$618,565.00 |
$0.00 |
$0.00 |