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As the child care funding cliff approaches, North Carolina needs bipartisan cooperation to keep opportunity on the table for the state’s youngest learners
By Fawn Pattison and Micere Keels
Governor Cooper presented his FY24-25 budget priorities for the state to legislators and the public on April 24 – kicking off an annual negotiation cycle that will determine funding levels for all of North Carolina’s programs and departments for the coming year.
While the state budget may seem abstract, the impact on families is tremendous. Funding levels in the state budget determine teacher pay, child care subsidy, Pre-K availability, and myriad other programs that can determine whether or not families find suitable child care, get the early intervention services their child needs, and much more.
Here’s a look at the Governor’s FY 24-25 funding requests for early childhood programs:
Child Care Stabilization Funds
The budget stakes couldn’t be higher for early childhood education, because Congress has failed to renew the child care stabilization funds that kept the sector open for business during the pandemic. While North Carolina and many other states face a coming wave of classroom closures and rising tuition, other states have taken the reins and allocated funding to sustain child care and early education programs.
Governor’s recommendation: $200M to continue child care stabilization grants for another year.
NC Pre-K
The funding allocated by the state to pay for public pre-K spots only covers a fraction of the actual cost – leaving local governments and school districts to make up the difference. Despite the waiting lists, Pre-K classrooms around the state are actually beginning to close, as disappearing federal dollars put the squeeze on counties and local school districts. NCDHHS Secretary Kody Kinsley warned in a recent letter of more NC Pre-K closures to come, unless the state legislature acts quickly to increase NC Pre-K rates.
Governor’s recommendation: $197M to increase Pre-K rates
Child Care Subsidy
Child care subsidy is a critical program to ensure that low-income families can work and provide for their children. Unfortunately, the rate that child care providers receive in compensation for subsidized child care slots is far less than what it actually costs to provide care. Early childhood advocates have been asking the state legislature to update this rate and make it more equitable for families in rural counties in particular.
Governor’s recommendation: $128.5M to fund a statewide child care subsidy rate floor
Additional Early Education Priorities
The Governor’s budget proposal also includes a $10M increase for Smart Start, and $26M to take the pilot child care WAGE$ program statewide.
Dive into more analysis of the Governor’s FY 24-25 budget proposal here:
- Analysis of proposed public education funding (including early education) from EdNC
- Analysis of proposed health-related funding (including child care) from NC Health News
- Read the Governor’s full FY 24-25 budget proposal
Budget Negotiations & Next Steps
Next the state legislature will take up the budget spreadsheets. The House and Senate will each get a chance to put their priorities on the table. Negotiations need to wrap up in June in order to meet the state’s fiscal year start date on June 30. Because Republican legislators control both the NC House and Senate, we expect to see a significantly different set of priorities from those recommended by the state’s Democratic Governor.
What is most important is how the state’s budget will impact children and their families. Want to make your voice heard? Our colleagues at the NC Early Education Coalition have a quick and easy action form to send your message of support for child care stabilization funding.