Arizona's Governor Katie Hobbs has allocated $1 million from ARPA funds towards reducing the financial strain on child care providers throughout the state, as part of her Bright Futures AZ initiative. The announcement, made on the governor's official website, introduces a reduction in annual licensing fees; existing providers will see a 20% decrease while new providers will get a 50% cut.
The intent behind the investment is to foster the creation of new child care programs and aid current ones grappling with increased costs for essential items like supplies, alongside insurance and staffing challenges Governor Hobbs, having met with providers across Arizona, recognized that these financial pressures have rendered it tough for some to keep running, especially with the state facing a shortage in child care availability. Providers need only to apply through the ADHS licensing portal to see the revised rates in effect, a relief intended for a wide range of licensed providers, including in-home and nonprofit.
There are over 2,500 licensed child care facilities in Arizona, facing costs that could climb as high as $2,575 depending on program size; these savings could be significant for those entities. In response to Governor Hobbs' funding injection, Margaret Bernal, ADHS's Chief of Child Care Licensing, told the Governor's office, "This is a great opportunity to support providers with fee offsets, enabling them to continue providing more services for the children, and community." Further reactions have been positive, with Barbie Prinster, Executive Director of the Arizona Early Childhood Education Association, stating that the licensing fee discount is "much needed relief for child care providers."
Earlier in the year, the Hobbs administration had already signaled its commitment to child care, having expanded child care spots for an additional 900 Arizona children with the Arizona Promise Budget, which constituted the largest general funds investment into child care since the Great Recession, amounting to over $125 million from state and federal sources. Kelley Murphy, Director of the Arizona Early Childhood Alliance echoed the sentiment of support for Hobbs' recent move saying, "It will help reduce the cost of doing business for high-quality programs and allow them to continue serving hard working families, in the end, our children benefit from the investment," as her conviction in the positive impact this decision will carry for children crystallizes the overarching aim of the investment.
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