CARSON CITY -- The state announced this week that 220 low-income families will lose their child care subsidy and those seeking the assistance will face a longer waiting list.
More than 200 families that receive the subsidy will be moved to the waiting list after their benefits expire. The average state grant, which is approved in six-month increments, is about $350 a month.
New applicant families with income at or below 130 percent of the federal poverty level — a monthly gross $2,421 income for a family of four — will be placed on the waiting list.
Diane Comeaux, administrator of the state Division of Welfare and Support Services, said during the summer the state made “limited reductions to eligibility” to avoid cuts to the program but “unfortunately we did not realize the anticipated savings.”
Limiting access to child care payments for low income people increases the likelihood of unemployment and adds to the stress on other public programs including Temporary Assistance for Needy Families, officials said.
Comeaux said administrative costs have been cut by 20 percent in the child care and development program. And Head Start and after school programs have been trimmed by 10 percent.
She said the division hopes to reduce spending by several million dollars over the next six months and might restore some of the child care subsidies if it succeeds.
Comeaux said the shortfall was created by a reduction in state and federal funds and a growth in the caseload during the recession.
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