Iowa ranks among the top states in which both parents work. As we look at ways to strengthen Iowa’s middle class, it makes sense that families have access to safe, affordable childcare that allows them to work, train and advance with peace of mind.
We’re fortunate to live in a state with a relatively strong economy and low cost of living. However, more families are struggling to make ends meet as poverty grows in Iowa. Today, one in four Iowa families does not earn enough cover their basic needs.
According to a recent report from the Iowa Policy Project, a single parent raising two children in Iowa needs to make between $45,000 and $48,000 just to afford basic needs. That works out to an hourly wage of about $23 to $24 for a full-time employee.
For a person making $9 per hour with a young child, more than 41 percent of their paycheck would go to childcare. The cost of childcare ends up being one of the biggest barriers to self-sufficiency and career advancement.
Fortunately, Iowa’s Child Care Assistance Program helps many low-income working parents pursue training or career advancement by providing help paying for childcare. Representatives of the United Way and other organizations talked with legislators about how we can improve the program and help more Iowans help themselves. They say the key is to gradually reduce benefits as income increases to ensure that families have sufficient resources to continue paying for high-quality childcare.
Under the current program, a family is no longer eligible for childcare assistance once the household income reaches a certain threshold. Because childcare is expensive, people do the math and sometimes find themselves having to turn down a raise or higher-paying job because they’ll end up losing money when their childcare assistance is abruptly cut off.