[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] SOLVING AMERICA'S CHILD CARE CRISIS: SUPPORTING PARENTS, CHILDREN, AND THE ECONOMY ======================================================================= HEARING before the SUBCOMMITTEE EARLY CHILDHOOD, ELEMENTARY, AND SECONDARY EDUCATION COMMITTEE ON EDUCATION AND LABOR U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS SECOND SESSION __________ HEARING HELD IN WASHINGTON, DC, FEBRUARY 6, 2020 __________ Serial No. 116-52 __________ Printed for the use of the Committee on Education and Labor [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: www.govinfo.gov or Committee address: https://edlabor.house.gov ______ U.S. GOVERNMENT PUBLISHING OFFICE 39-732 PDF WASHINGTON : 2021 COMMITTEE ON EDUCATION AND LABOR ROBERT C. ``BOBBY'' SCOTT, Virginia, Chairman Susan A. Davis, California Virginia Foxx, North Carolina, Raul M. Grijalva, Arizona Ranking Member Joe Courtney, Connecticut David P. Roe, Tennessee Marcia L. Fudge, Ohio Glenn Thompson, Pennsylvania Gregorio Kilili Camacho Sablan, Tim Walberg, Michigan Northern Mariana Islands Brett Guthrie, Kentucky Frederica S. Wilson, Florida Bradley Byrne, Alabama Suzanne Bonamici, Oregon Glenn Grothman, Wisconsin Mark Takano, California Elise M. Stefanik, New York Alma S. Adams, North Carolina Rick W. Allen, Georgia Mark DeSaulnier, California Lloyd Smucker, Pennsylvania Donald Norcross, New Jersey Jim Banks, Indiana Pramila Jayapal, Washington Mark Walker, North Carolina Joseph D. Morelle, New York James Comer, Kentucky Susan Wild, Pennsylvania Ben Cline, Virginia Josh Harder, California Russ Fulcher, Idaho Lucy McBath, Georgia Steve Watkins, Kansas Kim Schrier, Washington Ron Wright, Texas Lauren Underwood, Illinois Daniel Meuser, Pennsylvania Jahana Hayes, Connecticut Dusty Johnson, South Dakota Donna E. Shalala, Florida Fred Keller, Pennsylvania Andy Levin, Michigan* Gregory F. Murphy, North Carolina Ilhan Omar, Minnesota Jefferson Van Drew, New Jersey David J. Trone, Maryland Haley M. Stevens, Michigan Susie Lee, Nevada Lori Trahan, Massachusetts Joaquin Castro, Texas * Vice-Chair Veronique Pluviose, Staff Director Brandon Renz, Minority Staff Director ------ SUBCOMMITTEE EARLY CHILDHOOD, ELEMENTARY, AND SECONDARY EDUCATION GREGORIO KILILI CAMACHO SABLAN, Northern Mariana Islands, Chairman Kim Schrier, Washington Rick W. Allen, Georgia, Jahana Hayes, Connecticut Ranking Member Donna E. Shalala, Florida Glenn ``GT'' Thompson, Susan A. Davis, California Pennsylvania Frederica S. Wilson, Florida Glenn Grothman, Wisconsin Mark DeSaulnier, California Fred Keller, Pennsylvania Joseph D. Morelle, New York C O N T E N T S ---------- Page Hearing held on February 6, 2020................................. 1 Statement of Members: Allen, Hon. Rick W., Ranking Member, Subcommittee Early Childhood, Elementary, and Secondary Education............. 3 Prepared statement of.................................... 4 Sablan, Hon. Gregorio Kilili Camacho, Chairman, Subcommittee Early Childhood, Elementary, and Secondary Education....... 1 Prepared statement of.................................... 3 Statement of Witnesses: Gonzalez, Ms. Angelica M., Parent/Law Clerk Momsrising/Lane Powell..................................................... 33 Prepared statement of.................................... 35 Harvey, Ms. Nancy, Child Care Provider, Lil Nancy's Primary Schoolhouse................................................ 20 Prepared statement of.................................... 22 Morrissey, Ms. Taryn, Ph.D., Dean's Scholar Associate Professor, School of Public Affairs, American University... 7 Prepared statement of.................................... 9 Smith, Ms. Linda, Director, Early Childhood Initiative, Bipartisan Policy Center................................... 24 Prepared statement of.................................... 27 Additional Submissions: Foxx, Hon. Virginia, a Representative in Congress from the State of North Carolina:................................... Report: Child Care and Early Education................... 76 LINK: United States Government Accountability Office (GAO) Report September 2019............................ 121 DeSaulnier, Hon. Mark, a Representative in Congress from the State of California:....................................... Prepared statement from Early Care and Education Organizing Network..................................... 70 Prepared statement from The Century Foundation 100....... 72 Chairman Sablan:............................................. Prepared statement from Zero To Three.................... 122 Report: Working Families Are Spending Big Money On Child Care................................................... 128 Letter dated February 15, 2019 from U.S. Government Accountability Office (GAO)............................ 138 Report: Wanting To Grow The Economy?..................... 171 Is America Under-Investing In Its Young Children?........ 179 Why Child Care Is So Ridiculously Expensive?............. 187 Prepared statement from ChildCare Aware.................. 192 Link: Early Childhood Workforce Index 2018............... 195 Schrier, Hon. Kim, a Representative in Congress from the State of Washington:....................................... Prepared statement from United States Government Accountability Office (GAO)............................ 196 Shalala, Hon. Donna E., a Representative in Congress from the State of Florida:.......................................... The Grand Plan Hear From Grandparents Who Provide Child Care................................................... 215 Questions submitted for the record by: Morelle, Hon. Joseph D., a Representative in Congress from the State of New York Ms. Schrier Scott, Hon. Robert C. ``Bobby'' , a Representative in Congress from the State of Virginia Responses submitted for the record by: Ms. Harvey............................................... 246 Ms Morrissey............................................. 249 Ms. Smith................................................ 260 SOLVING AMERICA'S CHILD CARE CRISIS: SUPPORTING PARENTS, CHILDREN, AND THE ECONOMY ---------- Thursday, February 6, 2020 House of Representatives, Subcommittee on Early Childhood, Elementary, and Secondary Education Committee on Education and Labor Washington, D.C. ---------- The subcommittee met, pursuant to call, at 10:30 a.m., in Room 2175, Rayburn House Office Building, Hon. Gregorio Kilili Sablan (Chairman of the subcommittee) presiding. Present: Representatives Sablan, Schrier, Hayes, Shalala, Davis, DeSaulnier, Allen, Grothman, and Keller. Also Present: Representatives Foxx, and Scott. Staff Present: Paula Daneri, Professional Staff; Emma Eatman, Press Assistant; Christian Haines, General Counsel; Ariel Jona, Staff Assistant; Stephanie Lalle, Deputy Communications Director; Jaria Martin, Clerk/Special Assistant to the Staff Director; Max Moore, Staff Assistant; Veronique Pluviose, Staff Director; Banyon Vassar, Deputy Director of Information Technology; Joshua Weisz, Communications Director; Cyrus Artz, Minority Parliamentarian; Courtney Butcher, Minority Director of Member Services and Coalitions; Amy Raaf Jones, Minority Director of Education and Human Resources Policy; Hannah Matesic, Minority Director of Operations; Audra McGeorge, Minority Communications Director; Jake Middlebrooks, Minority Professional Staff Member; Carlton Norwood, Minority Press Secretary; Chance Russell, Minority Legislative Assistant; and Mandy Schaumburg, Minority Chief Counsel and Deputy Director of Education. Chairman Sablan. Thank you. The Subcommittee on Early Childhood, Elementary, and Secondary Education will come to order. Good morning, and welcome everyone. I note that a quorum is present. So, the Subcommittee on Early Childhood, Elementary, and Secondary Education is meeting today in a legislative hearing to hear testimony on solving America's child care crisis, supporting parents, children, and of course the economy. Pursuant to Committee Rule 7(c) opening statements are limited to the Chair and the Ranking Member, and this allows us to hear from our witnesses sooner and provides all members with adequate time to ask questions. I recognize myself now for the purpose of making an opening statement. Good Morning. Thank you for taking the time to join us in today's hearing. The cost of child care in America has gone up 2,000 percent in the last 40 years--2,000 percent. The average cost of full- time child care is now $16,000 per year and that is about half the median income for a single parent, almost the same as the average annual cost of in-state tuition at a public university. Across America, working parents are struggling to make sure their young children have decent, high-quality child care and at an affordable price. So, this morning, we are here to find out how the Federal Government can better support families around the country find and afford high-quality child care. It is also important to remember that this is not just a problem for young families raising children. There is a larger social and economic impact on all of us when our youngest children do not get the care they need. It is now well- established the first 5 years of life are critical for cognitive and intellectual development, particularly the development of language. More than that, the first 5 years are when socio-emotional skills develop. I wish I had good child care when I was 5-years-old. Self-control, persistence, and the ability to cooperate with others begin to develop in early childhood. If we fail to invest in those early years, we all pay the price later in higher incarceration rates, poor health, and reduced performance in school and the workplace. On the other hand, educating our children in their earliest years is recognized as having among the highest return on investment of public funds. Every dollar spent on early childhood education results in eight dollars of social benefits, according to a 2015 report from the President's Council of Economic Advisers. That benefit is mostly in the form of increased earnings when those children we invest in, go to work. But we should also see the benefit today: Our economy loses $57 billion each year because American workers miss time at work or leave the workforce when they cannot find or afford child care. We can avoid that present cost and see economic benefits in the future if we are willing to go to work in this subcommittee to address the need for early childhood education and face the crisis in child care. Boy this is harder than I thought. Okay. So, I look forward to hearing the ideas of our witnesses-- we do have a proposal on the table it is called the Child Care for Working Families Act. It supports families by capping how much they pay for child care and invests in the child care workforce, so the people who care for our children are finally also recognized as the teachers they truly are. And I am sure there is more we could do. So, I look forward to hearing the ideas of our witnesses today and I now recognize the Ranking Member, Mr. Allen, for his opening statement. [The statement of Chairman Sablan follows:] Prepared Statement of Hon. Gregorio Kilili Camacho Sablan, Chairman, Subcommittee Early Childhood, Elementary, and Secondary Education Good Morning! The cost of child care in America has gone up 2,000 percent in the last 40 years. 2,000 percent! The average cost of full- time child care is now $16,000 per year. That is about half the median income for a single parent. Almost the same as the average annual cost of in-state tuition at a public university. Across America, working parents are struggling to make sure their young children have decent, high-quality child care--at an affordable price. So, this morning, we are here to find out how the federal government can better support families around the country find and afford high-quality child care. It is also important to remember that this is not just a problem for young families raising children. There is a larger social and economic impact on all of us, when our youngest children do not get the care they need. It is now well- established the first five years of life are critical for cognitive and intellectual development-- particularly, the development of language. More than that, the first five years are when socio-emotional skills develop. I wish I had early child care when I was 5 years old. Self-control, persistence, and the ability to cooperate with others begin to develop in early childhood. If we fail to invest in those early years, we all pay the price later in higher incarceration rates, poor health, and reduced performance in school and the workplace. On the other hand, educating our children in their earliest years is recognized as having among the highest returns on investment of public funds. Every dollar spent on early childhood education results in eight dollars of social benefits, according to a 2015 report from the President's Council of Economic Advisers. That benefit is mostly in the form of increased earnings, when those children we invest in, go to work. But we would also see the benefit today: Our economy loses $57 billion each year because American workers miss time at work or leave the workforce when they cannot find or afford child care. We can avoid that present cost and see economic benefits in the future, if we are willing to go to work in this subcommittee to address the need for early childhood education and face the crisis in child care. We do have a proposal on the table: It is called the Child Care for Working Families Act. It supports families by capping how much they pay for child care and invests in the child care workforce; so, the people who care for our children are finally recognized as the teachers they truly are. And I am sure there is more we could do. So, I look forward to hearing the ideas of our witnesses today. I now recognize the Ranking Member, Mr. Allen, for his opening statement. ______ Mr. Allen. Thank you, Mr. Chairman, and we are glad to be here today. Thank you for being here and taking time to share with us about these and other important issues. Parents are the ultimate decider of their child's care and education no matter the child's age. In fact, the Federal Government funds several early childhood care programs to achieve this end and it is the job of Congress to make sure these Federally funded program provide parents options that will offer a strong foundation for the future success of their children. Not only do these programs provide stability for children, but then also support parents who want to continue pursuing an education or a career. Lack of affordable child care can result in employee absences and turnover, which in turn imposes significant costs to employers and impacts the overall economic development. Several states have estimated losses between $1 and $2 billion annually due to child care related absence and turnover. Federal funding for child care dates back to the 1930s, showcasing the Government's extensive commitment to this important initiative. This funding totals over $15 billion a year, and that number doesn't include individual state or local funding. I am proud to say that Georgia, my home state, has long been an innovator and is home to the oldest universal pre- kindergarten program in the country. However, the current piecemeal approach the Federal Government has taken in funding early childhood care and education programs is shortsighted and has resulted in costly, fragmented, and overlapping programs. This needs to be addressed in order to provide better options for parents. In contrast to what the landscape of early care and education looked like when these Federal programs were created, states are now leading the way in offering early childhood services for vulnerable youth and working families. Local programs are more responsive to the diverse needs of different families and communities, and their recent growth makes a review of the federal Government's role in operating these programs all the more necessary. It is encouraging news to see how states' role in the child care programs has changed significantly over the past 90 years, fundamentally changing how programs are funded and serving specific groups of vulnerable, at risk children. In fact, every state now reports some type of early childhood care or education program. The majority of these programs are funded with multiple sources of State, Federal, and local funds, which broadens the reach of services provided to children and families, but also presents challenges such as reconciling different eligibility and reporting requirements. While states' roles in funding of early childhood programs has helped create high-quality options for families, the Federal Government's involvement in this space has grown into an overly burdensome, costly, and confusing network of programs. The bottom line is we all agree that supporting children's development in the early years is critical as it builds a strong foundation for future success. We don't want to lose one child. And we agree that high-quality child care is a critical support for working families. But overlap, duplication, and fragmentation among programs remains an issue and demands a thoughtful and complete examination from Congress rather than the piecemeal approach taken in years past or simply throwing more money at a convoluted system without addressing the underlying issues. I look forward to hearing from our witnesses today on how we can best reform and improve the Federal Government's role in early childhood programs. Thank you and I yield back. [The statement of Mr. Allen follows:] Prepared Statement of Hon. Rick W. Allen, Ranking Member, Subcommittee Early Childhood, Elementary, and Secondary Education Thank you, Mr. Chairman. Parents are the ultimate decider of their child's care and education, no matter the child's age. In fact, the federal government funds several early childhood care and education programs to achieve this end, and it is the job of Congress to make sure these federally funded programs provide parents' options that will offer a strong foundation for the future success of their children. Not only do these programs provide stability for children, but they also support parents who want to continue pursuing an education or a career. Lack of affordable child care can result in employee absences and turnover, which, in turn, imposes significant costs to employers and impacts overall economic development. Several states have estimated losses between $1-$2 billion annually due to child care-related absence and turnover. Federal funding for child care dates back to the 1930s, showcasing the government's extensive commitment to this important initiative. This funding totals over $15 billion dollars a year--and that number doesn't include individual state or local funding. I am proud to say that Georgia has long been an innovator and is home to the oldest universal prekindergarten program in the country. However, the current piecemeal approach the federal government has taken in funding early childhood care and education programs is shortsighted and has resulted in costly, fragmented, and overlapping programs. This needs to be addressed in order to provide better options for parents. In contrast to what the landscape of early care and education looked like when these federal programs were created, states are now leading the way in offering early childhood services for vulnerable youth and working families. Local programs are more responsive to the diverse needs of different families and communities, and their recent growth makes a review of the federal government's role in operating these programs all the more necessary. It's encouraging news to see how states' role in child care programs has changed significantly over the past 90 years, fundamentally changing how programs are funded and serving specific groups of vulnerable, at-risk children. In fact, every state now reports some type of early childhood care or education program. The majority of these programs are funded with multiple sources of state, federal, and local funds, which broadens the reach of services provided to children and families, but also presents challenges such as reconciling different eligibility and reporting requirements. While states' role in funding early childhood programs has helped create high-quality options for families, the federal government's involvement in this space has grown into an overly burdensome, costly, and confusing network of programs. The bottom line is, we all agree that supporting children's development in the early years is critical as it builds a strong foundation for future success. And we agree that high-quality child care is a critical support for working families. But overlap, duplication, and fragmentation among programs remains an issue and demands a thoughtful and complete examination from Congress, rather than the piecemeal approach taken in years past or simply throwing more money at a convoluted system without addressing the underlying issues. I look forward to hearing from our witnesses today on how we can best reform and improve the federal governments' role in early childhood programs. ______ Chairman Sablan. Thank you very much, Mr. Allen, Ranking Member. Without objection, all other witnesses who wish to insert written statements into the record may do so by submitting them to the Committee Clerk electronically in Microsoft Word format by 5:00 p.m. on or by February 20. I will now introduce our witnesses. Let me try this, Dr. Taryn Morrissey. Did I get that right? Dr. Morrissey is a School of Public Affairs Dean Scholar Associate Professor of Public Policy at American University. I told my daughter that you were a witness because she went to your university. Her work focuses on examining and improving public policies for children, including early care and education, nutrition assistance, and public health policies. She is co-author of ``Cradle to Kindergarten: A New Plan to Combat Inequality''. And her research has been published in numerous academic journals. Dr. Morrissey received a Ph.D. in developmental psychology from Cornell University and a Bachelor of Science from Tufts University. Welcome, Dr. Morrissey. Ms. Nancy Harvey is a family child care provider and child care advocate from West Oakland, California. Ms. Harvey left a career as an elementary school teacher after noticing that black and brown children were starting behind their white peers and she opened a family child care focused on children's crucial zero to three years more than fifteen years ago. She walked the talk--is that how they say it? Ms. Harvey has been a leader in efforts to raise local revenue to expand child care access and raise pay for early educators like herself. Ms. Linda Smith is the director of the Bipartisan Policy Center's Early Childhood Development Initiative. She most recently served as the deputy assistant secretary for Early Childhood Development in the Administration for Children and Families at the U.S. Department of Health and Human Services. Ms. Smith began her career in early childhood education on the Northern Cheyenne Reservation in her native state of Montana. Please, I would like to come visit one day. I have been there. And she is a graduate of the University of Montana. Welcome, Madam Secretary. Ms. Angelica Maria Gonzalez is a mother of three children living in Seattle who has long struggled to find and maintain reliable quality affordable child care. The lack of availability, unaffordable, and affordability in the child care sector prevented Ms. Gonzalez from working to her fullest potential and has played a primary role in her struggle to remain stably housed and employed. Despite having difficulty meeting her fullest potential, Ms. Gonzalez advocates for greater investments in child care which are key to helping families, communities, and the economy. And in addition, moreover, she holds a BA from the University of Washington and recently graduated with her JD from Seattle University School of Law. Wow, you have been busy, Ms. Gonzalez. And welcome. Welcome to all of you. And we appreciate all the witnesses for being here today and look forward to your testimony. Let me remind the witnesses that we have read your written statements and they will appear in full in the hearing record. Pursuant to Committee Rule 7(d) and committee practice, each of you is asked to limit your oral presentation to a 5- minute summary of your written statement. Let me remind the witnesses that pursuant to Title 18 of the U.S. Code, Section 1001, it is illegal to knowingly and willfully falsify any statement, representation, writing, document, or material fact presented to Congress, or otherwise conceal or cover up a material fact. Before you begin your testimony please remember to press the button on the microphone in front of you so that it will turn on and the members can hear you. As you begin to speak the light in front of you will turn green. After 4 minutes the light will turn yellow to signal that you have 1 minute remaining. When the light turns red, your 5 minutes have expired and we ask that you please wrap up. We will let the entire panel make their presentations before we move to member questions. When answering a question, please remember to once again turn your microphone on. I will first recognize Dr. Morrissey. Dr. Morrissey, you have 5 minutes. TESTIMONY OF TARYN MORRISSEY, Ph .D., DEAN'S SCHOLAR ASSOCIATE PROFESSOR, SCHOOL OF PUBLIC AFFAIRS, AMERICAN UNIVERSITY Ms. Morrissey. Chairman Sablan, Ranking Member Allen, and distinguished members of the subcommittee, thank you for the opportunity to testify today. My name is Taryn Morrissey and I am an associate professor in the School of Public Affairs at American University in Washington, D.C. Today I will focus on two points, one, high- quality early care and education is hard to find and unaffordable for many American families across the income spectrum, two, public under investment in early care and education perpetuates and widens economic inequality among children, parents, and early care and education workers. The bottom line is that the lack of affordable high-quality reliable early care and education is a lost opportunity for supporting children's development, for supporting parents' employment, for supporting economic growth, and narrowing inequality. Most young children in the United States live in homes in which all parents are employed. In turn, 61 percent of children under age 5 attend child care each week. But high-quality early care and education, or any licensed arrangement, is hard to find. We know from a wealth of research that high-quality care and education during the early years, a rapid time of brain development, promotes children's learning and holds promise in narrowing the socioeconomic, racial, and ethnic inequalities that emerge early, well before kindergarten or even pre-k. Licensed child care arrangements that meet regulations are more likely to provide high-quality stable care than less formal arrangements, but about half of people in the United States live in child care deserts. Child care is also expensive. The U.S. Department of Health and Human Services recommends that families' out-of-pocket child care costs not exceed 7 percent of income. But families below the poverty line spend roughly 30 percent of their incomes on child care. Even higher income families spend between 8 and 18 percent of their incomes, about $9,000 a year, on child care. Regulated settings and center care cost even more than informal arrangements. It is not surprising then that children from high income families are much more likely to attend preschool and center care than their middle or low-income peers. In 2011 only 2/3s of 4-year olds in moderate income families attended center based early care and education programs, compared to more than 80 percent of those from higher income families. Why is child care, especially high-quality child care, so sparse and expensive--because the quality of early care and education depends on the warmth and responsiveness of caregivers and on the strength of adult-child relationships. Economies of scale simply don't apply to the child care sector in the same way as other economic sectors and most child care costs are directed toward labor. Despite its expense, child care would actually cost more if child care workers were paid adequate wages. In 2018 the median hourly wage for child care workers was $11.17, 33 percent less than that for bus drivers. More than half of child care workers live in families that participate in one or more public assistance programs. Low pay and few benefits present barriers in attracting and retaining a skilled workforce and high teacher turnover affects care quality and a range of children's outcomes. As a result, too many children spend their days in mediocre or low-quality care or across a patchwork of arrangements. A missed opportunity for promoting their school readiness and their long-term educational, economic, and health outcomes. The lack of child care also negatively affects parents' work, family income and economic growth. Just like affordable, reliable transportation, affordable, reliable child care is an economic infrastructure component essential for many parents, including myself, to get to work. Nearly 9 in 10 parents report that problems with child care hurt their efforts at work. Some parents drop out of the workforce altogether at a high cost to themselves and their families. The U.S. loses an estimated $57 billion each year from the lack of affordable, reliable child care. There are effective policy solutions that make a big difference to the families who participate in them. Child care subsidies, state pre-K programs, and Head Start increase children's enrollment at center care, and when high-quality, support children's development. Programs that reduce parents' child care costs increase parents' labor force participation. Studies also show that investments in child care have multiplier effects, meaning that each dollar invested generates local economic activity. Researchers estimate that increasing enrollment in early childhood education would yield economic benefits and reduce inequality. The 2014 Reauthorization of the Child Care and Development Block Grant was an important step toward improving child care quality and expanding access to subsidies. Several states, such as Washington, Oregon, and California are investing more in early childhood, building on the Federal- State partnership of CCDBG. But our public programs still reach only a fraction of children who might benefit. For example, in 2015 only 1 in 6 eligible children received childcare subsidies. More public investment is needed to help ease the cost burden for families across the income spectrum and ensure that a trained stable workforce has adequate compensation. In closing, increased access to affordable, high-quality, reliable early care and education can promote children's development, support parents' employment, increase economic growth, and narrow inequality. Thank you for the opportunity to testify here today. [The statement of Ms. Morrissey follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Sablan. Thank you very much, Dr. Morrissey. And now I will recognize Ms. Harvey for 5 minutes please. TESTIMONY OF NANCY HARVEY, CHILD CARE PROVIDER, LIL NANCY'S PRIMARY SCHOOLHOUSE Ms. Harvey. Ranking Member Allen and members of the Committee, thank you for the opportunity to testify today. My name is Nancy Harvey. I am child care provider and the owner of Lil Nancy's Primary Schoolhouse, a home-based child care program in Oakland, California. I am honored to speak with you today about our country's child care crisis and share my thoughts on how working parents, child care providers, and elected leaders can work together to address these issues. I am truly passionate about early childhood education. Over 17 years ago I left a career as an elementary school educator in Oakland so that I could focus on ensuring that more children have a head start in learning in their crucial early years. Over the years, I have seen the joys of helping prepare beautiful little people for the world and the challenges parents face in providing for them. My family child care program focuses on children ages 0 to 4 years. A hallmark of Lil Nancy's Primary Schoolhouse is a low staff-to-child ratio, which promotes increased learning and prevents education gaps. Legally, I am only required to have one assistant, but currently I have four. We teach children early, language arts, math, science, and social skills and take them on educational field trips. I am also proud that my program is a place that nurtures future educators. I make a point of hiring interns from local high schools who want to pursue a degree in education. But Lil Nancy's Primary Schoolhouse is also an important resource for a diverse set of families, from single mothers accessing state assistance while in school and in entry level jobs, to business executives. The parents I serve consider me a friend and a counselor. Although my work is very fulfilling, it comes with its share of challenges. Too often, child care providers struggle to keep our doors open and are not paid enough to provide for our own families. The cost for utilities, educational resources, healthy food, and other operating expenses are rising, but I can't raise tuition because many parents simply can't afford it. This revenue gap leaves me often coming up short. In the past I have had to make catch-up payments to Pacific Gas & Electric and juggle other major bills. I have seen other family child care programs either close or relocate as costs rise and the revenue needed to keep our businesses solvent is harder to find. This impacts children, parents, and our communities. How are we supposed to teach children to grow up with dignity and respect when all too often it is so hard to feel this ourselves because we struggle to pay bills, plan for a financially secure future, and have our critically important jobs overlooked by so many of those in power. In spite of all of this, I am committed to remaining in this industry and making it better. Years ago, I joined together with thousands of other family child care providers to fight for changes to our system. After more than a decade we won our right to form a union last fall when Governor Gavin Newsom signed into law a bill giving 40,000 family child care providers this right, and now we have begun our election process. For us, having a union means that we can raise up our profession and advocate for our communities and our children. To build that best in the world child care system we will need the commitment and leadership of parents, providers, and elected officials from every part of the country. We need, number one, to expand the child care program to make early education more accessible and affordable so that every child has what they need to succeed, two, giving child care providers a voice in the system--we are expert at how children develop and should have a seat at the table--and increasing child care subsidies reimbursement rates so that they truly cover the cost of providing high-quality care. Whether you are an educator, parent, or grandparent or voter, we all owe it to the next generation to stand together and show them we can lead the way to a better future. Lets not forget, child care providers keep America working. Thank you, and I look forward to your questions. [The statement of Ms. Harvey follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Sablan. Thank you very much, Ms. Harvey. I would now like to recognize Ms. Smith, Secretary Smith. You have 5 minutes. TESTIMONY OF LINDA SMITH, DIRECTOR, EARLY CHILDHOOD INITIATIVE, BIPARTISAN POLICY CENTER Ms. Smith. Thank you. Chairman Sablan, Ranking Member Allen, and members of the committee, I want to thank you for convening this very important hearing today. As was said, my name is Linda Smith and I am the director of the Early Childhood Initiative at the Bipartisan Policy Center. In addition to serving in the Department of Health and Human Services, I also spent 25 years working with the Department of Defense implementing the military's child care program, which is a model still today. I want to go back and look at child care in terms of what is going on in this country right now. I believe it is time to reconsider a new re-imagined system rooted in principles, with clear goals in mind, and a recognition that parents are front and center. By thinking big and bold we can ensure tomorrow's workforce can grow and our families can prosper. It is time to take a look at the system that we have and think about some principles that we can use as we move forward to build a better system for all of our children. Parents rely on a market--based system of child care that includes a diverse set of options. Demand for child care is higher than ever before, particularly for infants and toddlers. Sadly, the market is reaching a breaking point. With a supply that does not meet the demand, the cost to produce service exceeding what parents can pay, and more and more child care businesses unable to operate successfully. The government's involvement in child care was established decades ago when our society was dramatically different and the neuroscience had yet to evolve. Now it is time to rethink child care in America. The entire system needs to be re-imagined and our traditional ways of thinking about things need to be reevaluated. We cannot talk about child care without considering the multitude of programs and funding streams that support working families and contribute--sometimes even create--the problems that we see in the marketplace today. To evolve we must look beyond this system and think about how we can get around piecemeal approaches to one program or another. At the end of the day, are we really supporting parents in this country? I would suggest we are not. Families have changed. Today, women participate in the workforce in record numbers. In fact, in December the number of women in the workplace exceeded men for only the second time in our history. But the child care system has not kept up. Layering on programs and funding streams has resulted in a maze of programs that both parents and providers have difficulty navigating. To meet the growing needs of America's workers and our children, we need to think about what works and when. So how do we make reform a reality? I recommend six principles that I believe everybody can agree to. First, identify what parents want and need and take them seriously. Any change must start with parents and what they need. Broadly speaking, the government has a role in holding Federally funded child care programs accountable to parents and tax payers while providing enough flexibility to parents to make their own decisions about what is best for their children. At the same time, parents deserve to know that their children are in safe healthy environments that meet their developmental needs. Second, provide flexibility with accountability and focus limited Federal resources on those most in need. Child care is not a luxury but a need of everyday Americans. Congress should consider the responsibilities at all levels of government, Federal, state, and local, in funding child care and prioritize families and communities with the greatest need, especially families with low incomes, those raising infants and toddlers, living in rural areas or working nontraditional hours. Third, encourage greater participation from state and local governments and business and the philanthropic community. States generally have a wide latitude in the way they organize and manage and fund child care programs. Better program alignment at the state level is important, not only because it promotes the efficient use of public funds, but it also impacts families' abilities to access the care they need. Locally, communities are coming together to support child care and should be seen by both sides of the aisle as success stories. For example, companies such as My Village are working to improve the supply of in-home child care in rural and underserved areas. The shared services model, like the one Early Learning Ventures provides, allows small providers to come together and deliver services more efficiently. In Missoula, Montana, public and private partners have agreed to renovate a vacant school to serve more than 200 infants and toddlers, something the community needs tremendously. Incentivizing communities to tackle these issues, especially facility needs, should be a priority for our child care system. Fourth, learn from what works in existing programs. There are lessons to be learned from what is already working. The Preschool Development Grants and the Early Head Start-Child Care Partnerships provide many great examples of how to involve all sectors in our country, both public and private, in reforming child care. The military child care program also has 30 years of providing quality care for military families and we should learn lessons from them. Chairman Sablan. I hate to do this, but it is my unfortunate duty to tell you that you have exceeded your 5 minutes. Please, another sentence and close it out. Ms. Smith. Okay. The final two things I would say is that we need to support our workforce, which has already been said, and then we really need to get serious about looking how we put our funding streams together to create one well-rounded system of early care and education in this country. Thank you. [The statement of Ms. Smith follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Sablan. Thank you very much, Ms. Smith. And I now recognize Ms. Gonzalez, who has probably got a great story to tell. TESTIMONY OF ANGELICA MARIA GONZALEZ, PARENT/ LAW CLERK MOMSRISING/ LANE POWELL Ms. Gonzalez. Good morning Chairman Sablan, Ranking Member Allen, and members of the subcommittee. My name is Angelica Maria Gonzalez. Thank you for the opportunity to testify today. I am a single mom, a recent law school graduate, a Seattle, Washington resident, and a proud member of MomsRising, and a law clerk for Lane Powell. My children are 14, 8, and 4. As a single mother, who is the sole provider for my family with no extended family, finding quality, affordable, reliable child care falls to me. But throughout my 14 years of parenting, that has never been easy and often impossible. I have struggled to find and maintain child care at every turn. My story is not unique. It reflects a struggle of many of the American people. And the child care crisis that is happening right now has had a profoundly harmful impact on my family. I had my first child at 17 and needed child care so I could graduate high school and the community college. But no provider would accept an infant. I had no money to pay for the wildly expensive care. In community college, the wait list was a year and a half to get a spot on the campus. In the end I relied on intermittent unlicensed care while I got my degree. It was a huge source of stress as it continued to be an issue while I went on to obtain my BA. I struggled with the issue again when I had a career I loved, the care I needed, and a stable paying job. Why? Because I received an unexpected $200 child support payment it caused me to lose my child care subsidy. Overnight, I went from paying $15 month to about $800 a month. That $200 payment was just a one-time payment and wouldn't cover the cost of child care. They told me that I had to wait 3 months with no child support in order to reapply for a subsidy. That meant instead of paying $15 a month I had to pay $800 every month for 3 months. I got a second job to pay for child care so I could keep the first job, but it was unsustainable. Like many desperate families, I was forced to rely on unregulated care. The woman who watched my children was watching many more children than one person can handle. My three-year-old daughter nearly got hit by a car in her care and I pulled them out. The lack of access to child care led to a loss in employment and created instability in our lives. I searched for higher paying work so that I could afford licensed care. To attend interviews, I needed child care, but without a job I couldn't afford it. Finally, I was offered a well-paying job that would have changed our situation, but to take it I would need care for my infant son. I contacted every licensed center in three counties, not a single provider had a spot. I was forced to turn down the job. Then we lost our housing. Living in a shelter with three children, I applied and was accepted to law school. Again, child care was an issue. To qualify for a subsidy, I had to work full-time and attend school full-time--law school. So, I worked to have child care, often getting three hours of sleep. My last year of law school I had issues accessing and paying for law school and child care, which meant I would have had to drop out. Luckily for me, people in my community gathered around and made sure that did not happen. I have since graduated and now, finally, I am making higher wages than ever before. But, unbelievably, with student loans, child care costs being at an all-time high, high housing costs, and more, I still struggle, like so many of our families. I work weekends and evenings, leaving work around 3:00 p.m. to pick up my kids, take them to another babysitter, and drive back to work because of the inaccessibility to nonstandard hours. Fourteen years of experience, and nothing has changed. This is not the 1930s, staying at home is often not an option, even for two-parent households. I need to have the ability to provide our most basic needs. And how can we do that as an economy and survive and thrive when parents can't work? This isn't an individual problem that needs individual solutions. I have worked hard to have a career and independence. If I had access to quality and affordable child care from the start, my career and kids' lives would have looked very different. This same is true for so many families. Remember my story and support bold solutions. Now is the time. Thank you. [The statement of Ms. Gonzalez follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Sablan. Thank you, Ms. Gonzalez. Thank you, everyone. Under Committee Rule 8(a), we will now question the witnesses under the 5-minute rule. As the chair I will start and will be followed by the Ranking Member. We will then alternate between parties. So, I now recognize myself for 5 minutes. Let me start with Dr. Morrissey. A recent article from The Atlantic, that I would like to introduce into the record without objection, suggests that child care quality around the country varies widely. So, what does quality child care look like? How would a parent go into a child care setting and identify whether it is high-quality? Ms. Morrissey. Sure. Child care quality is really about the relationship between a child and the adults caring for that child. And so, parents would want to look for adult engagement, they would want to look for warmth and responsiveness to a child who is having a tough day. They could also look for developmentally appropriate toys and curricula, but it is really--the key ingredient to quality is that caregiver-child relationship. Parents, as proxies, could look for licensure. It doesn't guarantee quality, but it means that the program is adhering to health and safety standards, which is incredibly important. Beyond that, what I did and what I would recommend, is asking about worker wages and compensation, because we know that higher paid workers provide higher quality care. Those with sick time, paid vacation, they are able to stay in their positions and we know that consistent, stable care is very important. Chairman Sablan. Happy care givers, happy children I would suppose. So, what effects does the lack of high-quality child care have for children, communities, and our country? Ms. Morrissey. It is a lost opportunity on multiple levels. But when children are in settings that aren't safe, that is obviously problematic. But when they are in settings without these warm responsive caregivers--maybe a caregiver has too many children in her or his care, there is not developmentally enriching experiences, the interactions--language rich environments are very important--that child--we know that the brain development in the first 3 years in particular is very, very important, and children's brain develops from the experiences in his or her environment. And enriching experience is key. And so, without that, there is harm. That child does not live up to his or her potential in terms of developing language and cognitive skills. And we know that disparities by income, race, and ethnicity emerge very, very early. Chairman Sablan. Thank you. I will have questions submitted for the record and ask that some of you who I don't ask your questions to, or other members, we would like to please receive a response to those questions. Thank you, Dr. Morrissey. Ms. Gonzalez, thank you so much for sharing your experience with us. There must have been moments where it would have been great to be a fly on the wall in your home. I find it deeply frustrating that we are asking parents like you to persevere through so much and for so long, all because policy makers have not yet solved the child care access and affordability problems that continue to hold so many parents back. Well, I have limited time and I have other questions, so can you please tell us what, if anything, you have seen change in terms of the availability and quality of child care between when you had your oldest child, who is 14, to when you had your youngest? Ms. Gonzalez. Honestly, I have not seen anything change. And that is very disappointing. I have gone back to the community colleges and let me tell you what I have seen, I see more mothers going to school, trying to seek an education, and I see the gap growing, the issue growing. Chairman Sablan. So how does that compare to what you recall the challenges your mother faced finding reliable care when you were a child? Ms. Gonzalez. Yeah, my mom faced the same thing and she also had to rely on unregulated unlicensed care. And so, like some of the witnesses today were testifying is that we have a bunch of gaps. And even the subsidy only cover very few individuals. And it is just growing. Parents are in the workforce. Two parent households can't make it only one parent working. Two parents have to work nowadays with the costs. Chairman Sablan. Yeah, thank you. My time is up. I will submit--like I said, I will have questions for some of you, so please respond to those in writing. I now recognize the ranking member for the purpose of questioning the witnesses. Mr. Allen, please. Mr. Allen. Thank you, Mr. Chairman. Again, thank all of you for being here. And, you know, I will tell you, I had four kids and I took my wife and I both, and she didn't work, so I--well, I say she didn't work, she worked. She taught piano in the home, which worked out great, and directed choirs at church. But still I don't know how in the world you are doing what you are doing. I just don't know how you do it. But, anyway, Ms. Smith, thank you for being here today. And I just want to ask about the Preschool Development Grants. We significantly reformed that program when we passed Every Student Succeeds Act to help states assess their early childhood care needs. We are a few years into this now and I am hoping you can give me an idea on how that reformed program is working, what have states learned, and whether we have seen any changes in addressing the child care needs in the states as a result of these grants and this investment. Ms. Smith. I think this is one of the most important investments that Congress has made recently in early childhood. It has really spurred the states on to look objectively at what is going on in their states. All of the reports to date suggest that states have a much better understanding of the need in their states, in their communities. And they are out talking to parents a lot more. I think in most states I have heard they have had many initiatives to really begin the conversation of what parents really want and need. So, I think that the Preschool Development Grants have done amazing things to help states look at their systems and bring these funding streams together in a meaningful way. Mr. Allen. And you discussed one pillar of reform needs to be to identify parent needs and preferences, to take them seriously. What do you mean when you add ``and take them seriously''? In other words, why is it important to listen to the parents and to their needs and that feedback to go to the funding sources to say, hey, we need to fix this? Ms. Smith. Well, I think that the first thing that I would say is that, you know, parents know their children best. And they know what kind of setting their children should be in. And when I said in my testimony that what works well for home and when, I think younger children sometimes are better off in, for example, the setting described by Miss Harvey, in a home-based setting where it is smaller in its group size. And as children get older, they tend to want more--the parents want more socialization. I think it is important that we think about what parents know about their children and listen to them and design a system that meets those needs, not just the needs that are perceived out there by others, you know, when they look down and think about whether it is center based or home based. I think there is a big emphasis in this country on center-based care to the detriment of family child care these days. And we are losing family child care providers. That is an important component and it is one that parents-- Mr. Allen. Is that because of regulations? Ms. Smith. Some of it is--I don't think it is regulations, I think it is really a couple of things going on out there that older people are aging out of our system and it is not an attractive thing for younger people. Mr. Allen. Gotcha. Ms. Smith. I do think that getting back to the issue of cost, how many children can you take care of reasonably and still make any money. And I think that was to Ms. Harvey's points that she was making. So, I think we really need to look at the system and how we support all of the components. There is a place for a number of options for parents. And if we don't start listening to them, I think we are headed down the wrong path. Mr. Allen. Mm-hmm. You made reference that families should spend no more than 7 percent of their total income on child care. Where do you get those numbers and how did you--how accurate is that? Ms. Smith. Well, I don't think that was in my testimony, so I-- Mr. Allen. Oh, okay. Ms. Smith. Seven percent I do think is being misinterpreted in this country. Mr. Allen. Yeah. Ms. Smith. Seven percent, when the child care regulations were written, the seven percent was set at the benchmark for the child care for states in setting their co-pays for the child care subsidy program. And I think over time it has grown into seeming to be just a guidance on how much parents should pay. So, it really was not intended to be that. I think if we are going to look at what parents can afford to pay; we need to dig deeper into some of these issues of both cost and affordability. And I don't think it is as simple as a flat percentage. Mr. Allen. Okay. Thank you. And I am out of time and I yield back. Thank you very much. Chairman Sablan. Thank you very much, Mr. Allen. And I now recognize Ms. Schrier, the distinguished lady from Washington State, for 5 minutes. Ms. Schrier. Thank you, Mr. Chairman. Ms. Gonzalez, first of all, welcome. Thank you to all of our witnesses. Your story was so incredibly impactful, and I think will stay with all of us as we consider child care going forward. I want to congratulate you on getting your associates, your BA, your JD, and then I just also wanted to just do a shout out for Green River College. That happens to be in my district. I know you were on a very long wait list to get child care on campus. I am glad that it did at least provide some of the care. And I think you drive home why I partnered with Representative Clark to continue to advocate for increases to CCAMPUS, which funds child care on campus. So, thank you. I wanted to just ask you first, the 7 percent number which is batted around. We have been talking about that, presidential candidates have been talking about that. What difference would it have made in your life if your child care costs, provided you could find a place--I know those were also struggles--if your costs were capped at 7 percent of your income? Ms. Gonzalez. It would have made child care more affordable. But right now, what is going on in America is child care is more expensive than rent, it is more expensive than college education. And people are struggling to even afford college, so how can we afford child care? Ms. Schrier. I also have a question--maybe Ms. Smith, this would be a good one for you--we are trying to balance how much the government spends for child care and also what private businesses could do. Like Starbucks, for example, in Washington State provides some child care. How do you strike the right balance and incentivize businesses to invest in child care for their workers? Ms. Smith. Well, I think that depends on the size of the business. One of the things that we are coming to understand, bigger business can do more than small and medium-sized businesses. And I think we can't paint businesses with the same brush as we try to do families. I think we need different incentives for smaller and medium businesses than larger. In the case of small and medium-sized businesses, in the conversations that we have been having with them, there are things like co-ops that they can come together and create a child care program that meets several businesses' needs. We have heard that. There are things that we can learn from businesses. And that is why I say in my testimony that we do need to engage businesses, but in a meaningful conversation about how to meet need. Ms. Schrier. Speaking of a co-op--I am going a little off script here--when my child was young, we did a co-op preschool. I just thought it was a nice way for parents to be involved and children to be involved. It was not full day; it was just part of the day. So, I did it on my day off from work. But I wonder, as you talk about a co-op with businesses, if anybody has thought about a possible situation where you could have women-- because it mostly affects women--working a four day week and the fifth day is spent at the, you know, kind of co-op child care center. They spend the whole day there; their child gets a break on the cost. And if the parent's kind of rotate, you get consistent people in the day care system. They can get trained on the job, like an apprenticeship program. Has anybody kind of imagined a system like that? Ms. Smith. I don't think that I have heard of that. Although, just to the point, I was visiting the Flathead Indian Reservation, where I am from actually, a few weeks ago and the Tribe has actually gone to exactly what you describe, 4 10 hour days with the child care program that I visited being open on the fifth day. And there was more parent participation in that program. So, it is kind of an interesting theory, but I don't know of anything on a grand scale anywhere that is being looked at. Ms. Schrier. And then I had another question. Just from any of you, biggest misconceptions around the child care crisis in this country that we should be addressing from Congress? Ms. Harvey. I think what is important that I want to emphasize here as an in-home child care provider is the fact that many of our staff workers they themselves are in poverty. And that just really does not seem like a fair system. We are actually keeping America working, but yet ourselves we fall short and are struggling to pay our own bills. So, I would like to leave Congress with that, that we must pull together collectively and find a solution to solve that. Ms. Schrier. Let me ask you another question about that. More and more early childhood education systems--and I am almost out of time--are requiring a BA, for example, in early childhood education when we just heard that sometimes what you really need is a loving play-based place to be. It is unreasonable and then does it put upward price pressure? Ms. Harvey. Yes, it does, absolutely. I was fortunate that my union provided an 18-month co-op where 30 child care providers in Alameda County, we all pulled together and we were able to take classes. And this was, like I said, under the umbrella of our union. And we were taught by college professors. This just happened several months ago, and we ended up with the child care permit that was really, you know-- Chairman Sablan. I hate to do this, but her time is up and-- Ms. Schrier. I apologize for that. Chairman Sablan. I need to be fair to everyone. Ms. Harvey, thank you. Thank you, Ms. Schrier. Mr. Keller, you are recognized for 5 minutes, sir. Mr. Keller. Thank you, Mr. Chairman. And I want to thank the panel for being here today to discuss our children and early childhood care and supporting the parents and the entire family, and how it affects our economy. Ms. Smith, a couple of things I guess I would just like to ask. In your testimony you referenced the Federal Government and how we cannot dictate how a family should choose to care for their children. What makes you say that? Are there proposals that have been offered that could lead to this? And if so, what are some of the important factors we should avoid? And what should we consider to avoid limiting parents, you know, in their options they have for their kids? Ms. Smith. Well, I think that as I said earlier, I think that parents know their children best and that all children don't fit in any one particular setting. And I go back to my own experience. When my children were young, I was running a child care center at the time for the Air Force and my own child was in a family child care home because I knew my child and she fit better in--her temperament fit better in that family child care home. So I think that what I am concerned about--and I think in part to answer the question that was asked just now, what is the biggest misconception about our child care system right now, is that it is pretty much built around a 9:00 to 5:00 schedule in this country and most of our workforce doesn't work that way anymore. So, I think what we have got to rethink is giving parents the flexibility to have multiple options that meet their work schedules and that do not assume that everything has to be in a child care center. And I think a lot of our policies, while they are not directly--a lot of the proposals are not directly saying child care centers, they lean heavily towards that type of a setting. And I would suggest that we need to keep our options open and we need to especially look at home-based care. Rural America, you know, in certain parts of this country, it is the only option. Mr. Keller. Yeah, I am familiar with that. Personal experience, when my children were young, my wife and I both worked and, you know, we started at 6:00 o'clock in the morning so we had to make sure options were available. And I think it is very important to make sure that families--as each child is individual. You know, you can have two children raised in the same house and, you know, people will say well we raised them in the same house, raised them in the same way, but they are not the same. Everybody is an individual and I think--so you think that more options allowing for an individual tailor plan for a family because all families are not the same, would be our best option? Ms. Smith. I do. I absolutely do. The other thing I think that, you know, we need to think about in a system--if we re-imagine a system, that we have a lot of programs that run part day, part year in our country right now and they don't meet the needs of working families. And so, you know, parents who want to put their child in say a state pre-K program don't have the option if they don't have transportation while they are working. And so, I think we need to think seriously about how we build a system that looks at our families and goes--again, going back to what parents in this country need right now. Mr. Keller. Okay. Thank you. I appreciate that. And I yield back. Chairman Sablan. The gentleman yields back. Thank you. I now recognize Ms. Hayes for 5 minutes. Ms. Hayes. Thank you, Mr. Chair. Ms. Gonzales, we all heard your testimony. I want you to know that your story is my story. And the only difference is that I had my grandmother, who was a saving grace. But everything that you described has been my experience. And, unfortunately, the research shows that unlicensed care is often the only affordable care or available option for many low- income families. I have to ask you, what was the longest waiting list that you were on while you waited for child care? Ms. Gonzalez. In my whole 14 years of child care experience, the longest waiting list was 2 1/2 years. Ms. Hayes. That is what I anticipated you would say. And generally, 2 1/2 years later is 2 1/2 years too late. My staff conducted a survey last year and the longest wait list for child care in my district is 3 years, so about the same. Forty-four percent of the people in my state live in child care deserts and communities that lacked any child care providers, and in child care deserts or communities that lacked any providers or providers with openings. While these deserts exist all across my district, what we found was that communities of color and low-income communities were the spots where it was the most difficult to find child care. And the average cost of care for a family with two children was about $27,000 a year. Dr. Morrissey, I would like to turn my attention to you. As an educator, I am interested in discussing how these child care deserts, high costs, and lack of availability can further entrench the achievement gaps, many of which we heard Ms. Harvey talk about. Does your research show about the emergence of racial and income achievement gaps? And at which stage do these gaps generally happen? Ms. Morrissey. We certainly know that the achievement gap emerges early, well before kindergarten. And there is some research showing that there are differences in children's cognitive scores as early as 9 months, by their family income and by their parents' educational attainment. So, kindergarten is much too late I think for--it is not too late, I shouldn't say that--in terms of intervening, but we think more effective solutions would be to promote children's development much early. We know that low-income children are much less likely to attend preschool, we know that higher income families are spending more and more money very early in their child's lives. They are choosing to enroll children in center-based care at earlier and younger ages, whereas low-income families don't have that choice, often the options aren't there. We know there are differences in preschool participation across rural and urban communities as well. And so, the lack of availability kind of cascade and lead to gaps in achievement which are present at kindergarten and are very hard to narrow at that point, certainly not impossible, but it is quite hard. Ms. Hayes. This is completely not research based, but my own personal experiences. I was a high school teacher for 14 years and you could tell which students, even at the high school level, were enrolled in early childhood education programs. Whether it was their reading skills, their language skills, their social skills, you could always tell which children had access to early childhood education, even sometimes 14 or 15 years later. Do you think that our current childcare system, in which access to quality care is largely predicated on a parent's income, lends itself to narrowing or closing the achievement gap? Ms. Morrissey. I think our current system, which we rely on parents to pay their own way, exacerbates inequality and the achievement gap. We have parents who can afford it, investing in their young children's education, and parents who can't, simply not having that option. Ms. Hayes. Thank you. I just want to close by noting that under the Child Care for Working Families Act, 89,000 children in my district will be eligible for child care assistance, and the typical family in Connecticut's fifth district would pay about $44 a week for child care. That assistance, that difference is life changing. Ms. Gonzalez, I don't know if this is your story, but I was the first in my family to graduate from college. And now, in the space of 7 years, I am a second-generation college educated family, because I passed that on to my daughter. So, when we are talking about closing these gaps, if we have the ability to show our children at a very young age that this is possible and what it looks like, it reduces the likelihood that our children will experience those same things. Ms. Gonzalez. I agree. Chairman Sablan. Thank you. Ms. Hayes. Mr. Chair, I yield back. Chairman Sablan. Thank you, Ms. Hayes. I would now like to recognize Dr. Shalala for 5 minutes please. Ms. Shalala. Thank you very much, Mr. Chairman. Mr. Allen, I don't disagree with you about the fragmentation of the child care system. Mr. Chairman, I would like to submit for the record a report. ``It is About Time: Parents Who Work Nonstandard Hours Face Child Care Challenges''. And also ``The Grand Plan'' to hear from grandparents who provide child care. In my district, which is-- Chairman Sablan. Without objection. Ms. Shalala. Thank you. In my district, which is over 70 percent Hispanic, grandparents play a significant role in providing child care, or another family member. And, therefore, I have always, for years, been interested in better support services for family child care. But Ms. Henry made a very important point, and that is the people that work in family child care are getting minimum wage for the most part. And in my district, a lot of the family child care people have complained to me that too much of the money goes to administrative costs in sending them the money as opposed--and even when there are increases, those workers don't get those increases. So listening to Mr. Allen, I have a much more fundamental question to ask each of you, and that is we spent decades--and I was responsible for the early Head Start program, as Ms. Smith knows--we spent decades filling in the gaps. And, in fact, the military taught us something very important, and that is they didn't fill in the gaps. They fundamentally rethought their child care system and invested whatever money was necessary, facilities, the quality of the workers. My long-term interest is in quality child care. I am very flexible about where we provide it because I do think that parents, they work different hours but more importantly, they live in different places, they have different ethnic backgrounds. Should we continue to fill in the gaps or should we rethink the entire system given the resources that we are now spending on child care? Let me start with Dr. Morrissey. Ms. Morrissey. Sure. I-- Ms. Shalala. And by the way, you should speak to the chairman of the committee, Mr. Scott, who is sitting over here, because both he and the chairman of this committee have an opportunity to answer your question--my question for you. Ms. Morrissey. I think we are at a moment where families are struggling so much to pay for child care. And they have for decades. But we have--we can think more about bold solutions, about investing more. Our programs right now, Head Start and CCDBG being the largest ones, are the most funded and still reach only fractions of people eligible. And CCDBG subsidies do provide choice for parents if parents want to use home-based care. Particularly for infants and toddlers many families do choose that, and others choose center and preschool. Ms. Shalala. But it has had a mixed record in terms of quality. Ms. Morrissey. Right. Ms. Shalala. Depending on what state you are in. Ms. Morrissey. So, I think it has two problems. One, it doesn't serve enough families and, second, the reimbursement rates are too low to provide quality. Child care providers are operating on a shoe string budget and they simply can't with the reimbursement rates pay staff adequately. They can't buy clothes and food and supplies. Ms. Shalala. Ms. Harvey? Ms. Harvey. Yes, to answer your question, yes, we need to revamp the system. It is a crisis. What we are currently doing clearly is not working. And so, as an in-home child care provider, as I stated in my testimony, I am only required to have one additional assistant, I have four. Now, I have four because I want my quality to be a high-quality child care, meaning that children get the appropriate time and opportunity to have a good adult-child interaction every day so that we can meet all the needs that the children bring to us. Ms. Shalala. Thank you. Dr. Smith? Ms. Smith. I do think it is time to rethink the system. And I want to go back and just quickly say that one of the reasons that we were successful in the military was is that we decided early on we had to fix it all, that putting a band aid on one piece of it was not going to get us anywhere. And I think right now in this country that is where we are. Are we going to band aid this again or are we going to take this on and figure out how to do this system in a way that makes sense to parents? Ms. Shalala. To every parent. Ms. Smith. Every parent, yes. I-- Ms. Shalala. Thank you. Miss Gonzalez? Ms. Gonzalez. Yes, I agree, we need bold solutions and to rethink the system, not just filling in gaps. Ms. Shalala. Thank you. My point, Mr. Chairman, for my last 4 seconds, is we have talked about who gets the child care, whether they should have flexibility, but we should not separate the finance issue from the quality issue. Chairman Sablan. Yes. Ms. Shalala. That in the process of rethinking, what all of our people who have testified--have talked about quality as well. Chairman Sablan. Right. And in preparing for this hearing also I mean I just was--I have my own thoughts, profound thoughts about how important this matter is. I mean there are other equally important matters before the committee, but this in itself is one of the best investments we could do for our people, for our future actually and our economy. And that is why I mention--at this point I would like to recognize the ranking member of the full committee, Dr. Foxx, for 5 minutes. Mrs. Foxx. Thank you, Mr. Sablan. I thank the witnesses for being here today. Ms. Smith, you have a lot of experience in the child care field and we are grateful you are here. And you have been talking about bold reform in the system. When I think about bold reforms I think about looking at all the evidence, determining what is still needed versus what is no longer needed, and as you all have just been saying, rebuilding a new system that provides solutions to the current problems that exist. Within the child care field we must first understand what role the Federal Government plays in the space now, how the states have stepped up to do more, and the market of options available to help us rebuild the system. Can we do all that if we simply take each program in isolation rather than looking at the Federal involvement in early childhood care in total? Ms. Smith. Excuse me, I think the answer to that is absolutely not. I don't think that we can get anywhere with just taking one program and looking at it. I think we have spent a lot of time in this country layering programs one on another. Sometimes they continue on beyond their usefulness in this country. And I think it is really time to think seriously about the big ones. I think Dr. Morrissey said something about child care and Head Start being the big funding streams. I would say that TANF--there are a lot of TANF dollars going into child care, there is CACFP, the Child and Adult Care Food Program, dollars going in. There are a number of programs that if we were to look at these and be more efficient, we could build a system that would work for our families in a much better way. Mrs. Foxx. Thank you. And I know this was discussed a little, Ms. Smith, but I would like to ask more about business involvement. You discussed the need for business and philanthropic involvement. So, what more can or should the business community be doing? How can state, local, and even Federal Government help make it easier for the business community to get involved and help provide or support the high-quality child care parents are looking for? Ms. Smith. Well, I do think that the number one thing we need to do is start talking to business, like we need to talk to parents; what is it that businesses need and want. We have been going out and doing business roundtables around the country. And I think, as I said earlier, the needs of small and medium-sized businesses are different than large ones. The other piece that I would suggest is a real issue is that we too frequently go to them and ask them to do it. And child care is not most companies' line of work. So how do we bring businesses together to support child care and get us where we need to go, and give them incentives to do more, but not ask them to do it. Because I think that is a struggle for a lot of businesses, especially small ones. Mrs. Foxx. Well, I would be remiss if I didn't talk about the GAO report that highlights significant fraud risk in the Head Start program. I have asked Chairman Scott to hold a hearing on those findings, but until that happens I am going to use this opportunity to discuss those concerns. A large part of the potential fraud noted by GAO was due to a lack of proper quality control measures, such as better monitoring and fraud risk assessment. In the undercover test it was a worker who doctored an application to exclude income, and in another two cases the Head Start staffer purposely ignored eligibility documentation of an applicant. I think this is just another example of why we need to take a comprehensive look at how we are using hard working taxpayer funds to support the programs. My colleagues tend to dig in to protect each program, but this report and this hearing give us a chance to highlight the need for comprehensive reform that includes careful attention to prevent fraud, to avoid programs that encourage fraud, and to support programs that help American families go to work knowing their children are in the best care environment for them. With that I ask to submit the GAO report ``Head Start: Action Needed to Enhance Program Oversight and Mitigate Significant Fraud and Improper Payment Risk'' into the hearing record. I also would like to submit another GAO report that looks at support for child care, ``Child Care and Early Education: Most States Offer Preschool Programs and Rely on Multiple Funding Sources'', Mr. Chairman. I will make one more quick comment about the last comment you made, Ms. Smith. What we are seeing in the field of education I think is what we are going to see in the field of child care too. Finally, business and industry is beginning to understand it has a vested interest in what happens in education. And if they don't step up to help design what is going on in education, they are going to continue to get crappy results from the education system. If they don't do the same thing with child care, they will see that it is affecting them and their bottom line. So, it is in their vested interest to do something about it. Thank you, Mr. Chairman. I yield back. Mrs.Foxx. Chairman Sablan. Thank you. Thank you, Dr. Foxx. I would like to now recognize the chairman of the full committee, Mr. Scott, for 5 minutes. Mr. Scott. Thank you. Ms. Smith, in December of 2017 you authored a brief highlighting the government's under investment in children, and your conclusion was that while states and localities are directing substantial resources to education, and while the Federal Government makes important contributions to healthcare and nutrition assistance to low-income families, a large resource gap remains, particularly with respect to child care and early learning for young children. Is that still the case? And, if so, exactly what resource gaps do we need to fill? Ms. Smith. I am blanking on the article that you are referring to, but I would say that yes, it does. I think everyone here on this panel has suggested that early childhood is under-resourced. But I think before we move forward in terms of resourcing these programs, we need to rethink how they are being delivered right now. And is the money that we are putting into programs enough and aligned well enough that we are getting the most bang for the buck. Whether it is Federal, state, or local, I think we have got to take a look at these things. When we have programs, part day programs, full day programs, programs here and there, the efficiency is just not there. And I think to be, you know, totally honest, before we would move forward, we need to figure this out about what are we getting for our current investments. Mr. Scott. Are you suggesting more uniformity on how the services are provided? That is, everybody ought to get access to full-time care and not the kind of hodgepodge of some half day and some education, some not education? Ms. Smith. Well, I think that for some half day care works. I mean there are families who use, for example, state part day pre-K programs and work their schedules around that. But for the bulk of American families, that does not work. And so, I think as we think forward, that is why I keep saying we need to think about what works for whom and when, because some families can make part day programs work, some families need 24-hour care in this country. And I think before we move too far forward, we need to recognize the needs as they exist in the current workforce and to support our businesses. Mr. Scott. For those that need full day, 8 hour or so care, is it possible to provide that so that the parents can pay the fee--is it reasonable to expect parents to be able to afford that kind of service? Ms. Smith. Well, I think you have heard today that it depends. And I think, as I said in my testimony, we need to start with the families who need it the most and make sure that they have access and work our way up on the system. I think that, you know, there are families that can afford it, there are a lot of families who can't. And I would suggest that most of the working parents in this country are going to need some type of support. Mr. Scott. What is the normal ratio between staff and children in these programs, Ms. Smith? Ms. Smith. Depends on the age of the child, but for infants and toddlers in this country, it is generally one to four, one adult for every four children. That is extremely labor intensive and expensive to produce, I am sure, as Ms. Harvey can attest to better than I can. So, I think the ratios change as the children get older and it is definitely easier to care for. Mr. Scott. And at one to four, that would mean each parent would have to cover about 25 percent of the cost. And so, if the parent is median income and you expect to pay staff median income, you would be talking not 7 percent but 25 percent of the income just to cover the cost of the staff expense. What level of salary should day care workers be getting? Should it be half or a third of median wage, median wage? Where should we be aiming to get quality services? Anybody want to answer? Dr. Morrissey? Ms. Morrissey. I think child care workers should be paid commensurate with their educational attainment and their skills and experience. And we know that is certainly not the case, that kindergarten and K through 12 educators are paid much more relative to child care providers, yet they are doing the same work in educating our youngest, most impressionable children. Mr. Scott. So, I think we can conclude that this thing won't work without significant Federal--some kind of subsidies. And that is what we have to figure out how to--as Ms. Smith has suggested--how to get the best bang for our buck. But we are not going to be able to do this without significant Federal support. Thank you, Mr. Chairman. Chairman Sablan. The gentleman's time is expired. Now I would like to recognize the gentleman from Wisconsin, Mr. Grothman, for 5 minutes please. Mr. Grothman. This question is for Ms. Smith. According to a 2019 report from Child Care Aware of America, Winnebago County, which is largely located in my district, is one of the least affordable counties in Wisconsin for center based infant child care for children under the age of 4. So unaffordable that for a two parent household they would have to spend 14 percent of their income for just 1 child. And for a single parent it would be even more burdensome. Why is the cost of infant child care so high? Is there anything we can do to address the cost? Ms. Smith. Well, I think back to the issue of ratios that we were just talking about, that is the cost driver in infant care. So, if you have a ratio of one to four children, that is going to be more expensive than children older with a ratio of say one to ten or twelve. I think that is where we need to focus our attention. Infant and toddler care in this country is a crisis for almost every American family. And so, it gets back to where do we put our resources, especially when they are scarce. And I think we are going to have to think this thing through as we talk about a more systematic approach to this issue. Mr. Grothman. Okay. Is there a difference you see overall between rural and urban areas? If we want to generalize. Ms. Smith. Absolutely. And I do think that--I come from a rural area of Montana and I do understand the challenges in rural America. And I do think we need to, again, getting back to thinking about options for families, think about family child care and other options in small rural parts of our country. Mr. Grothman. Could you elaborate on family child care a little bit? Ms. Smith. I am sorry, what? Mr. Grothman. Elaborate on family child care. Ms. Smith. Family child care is essentially home-based care. It is in the care of a provider and the ratios are smaller, not smaller in terms of the numbers of children, but just group size is smaller in a home. For infants and toddlers, a lot of families prefer that. When we go out and talk to parents around the country, the first thing they are looking for--and I think both of these women on either side of me would say the same thing--they are looking for a home like environment for their children where they trust the provider and the provider is loving and cares for their children. Mr. Grothman. Is that a more reasonable cost? Ms. Smith. I don't know that it is a cost issue as much as it is an availability issue. And we have lost family child care providers across this country in significant numbers recently. Somewhat as we said earlier because people are aging out of family child care. Mr. Grothman. Wow. I am just making an assumption. Maybe I am wrong here. You can tell me if I am wrong. I would say if I am providing child care in my house I don't have to rent a brick and mortar place to provide the child care. So, one would assume that it might be easier, you could charge less for these not charge more if I am going to be offering child care out of my house? Is that true? Ms. Smith. Well, I think there are offsets because there are some things that are less expensive, and certainly brick and mortar is one of them. But I would also say that the length of the day in family child care homes is longer, that family child care providers generally--and I would defer to Ms. Harvey on this one--work 10 or 12 hours a day. So, I think that there are pros and cons when it comes to the cost issue. Mr. Grothman. Is there any reason why we can't do it? Is it regulatory? A problem in doing more home center child care? Ms. Smith. I don't--I have not heard that it is regulatory in terms of the loss. I think it is more the economy is hot right now and pretty much you can get a job making a lot more money at McDonalds than you can-- Mr. Grothman. Yeah, when we say we want to bring back home- based child care is there any reason why we can't do that? Ms. Smith. No. I think there isn't a reason. I think we just needed to focus on how do we support them, what do we offer them in terms of support systems, backup care for families, how do we support them in terms of their professional development. When they are working 12 hours a day, they cannot get out to get that. So, I think that there are a number of things that we can do. As I said, there is My Village out in Montana and Colorado that are working to support family child care providers in rural parts of our country and helping them with their business model, helping them be more efficient, et cetera. So, there are a lot of things that we can do if we think about how we focus on these options. Mr. Grothman. Thank you. Chairman Sablan. Thank you. Thank you, everyone. At this time I would like to remind my colleagues that pursuant to committee practice, materials for submission for the hearing record must be submitted to the committee clerk within 14 days following the last day of the hearing, preferably in Microsoft Word format. The materials submitted must address the subject matter of the hearing and only a member of the committee or an invited witness may submit materials for inclusion in the hearing record. Documents are limited to 50 pages each. Documents longer than 50 pages will be incorporated into the record via an internet link that you must provide to the committee clerk within the required timeframe. But please recognize that years from now that link may no longer work. And now, without objection, I would like to enter into the record a letter from Child Care Aware of America in support the Child Care for Working Families Act as a comprehensive solution to the Nation's child care crisis, a report from the Center for American Progress showing that working families spend on average almost 10 percent of their income on child care, and a report from the U.S. Government Accountability Office showing that in fiscal year 2015, the last year for which data from the GAO are available, only one out of six Federally eligible children received a child care subsidy, a report from the Center for the Study of Child Care Employment at the University of California Berkeley showing that child care providers earn a median of $10.72 an hour and more than half of child care workers participate in Federal income support programs, a report from the Bipartisan Council for a Strong America showing that the child care crisis has a cost of $57 a year on the American economy--this must mean $57 billion a year on the American economy, and a brief written by today's witness, Ms. Smith, Linda Smith, showing that our country is under-investing in young children, particularly when it comes to child care and early learning. That is your brief, right, Ms. Smith? Ms. Smith. Yes, sir. Chairman Sablan. Okay. Again, I want to thank all of you, the witnesses, for your participation today. And what we have heard is very valuable. Members of the committee may have some additional questions for you, and we ask the witnesses to please respond to those questions in writing. The hearing record will be held open for 14 days in order to receive those responses. I remind my colleagues that pursuant to committee practice, witness questions for the hearing record must be submitted to the majority committee staff or committee clerk within 7 days and the questions, again, I repeat, must address the subject matter of the hearing. And I now recognize the distinguished ranking member for his closing statement. Mr. Allen. Thank you, Mr. Chairman. And I would like to thank each of the witnesses again for testifying today and sharing your invaluable perspectives and stories on this growing challenge we have in the workplace. All of us here agree that it is vital to address the problem in our child care system. First and foremost, we need high quality options for parents and families that meet their unique needs and support children's development in the critical years, those early years of their life. The problem is how do we pay for it. This not only strengthens families, but it offers the opportunity to strengthen our economy and to grow our workforce, which, you know, we have more jobs in this country than we have people looking for jobs, which is great, but we have got to figure out how to deal with these challenges. In order to make this a reality, we can't continue down the same path we are currently on in this system that is confusing and is nearly impossible to navigate for both parents and providers by simply spending more money to solve the problem. We need to take a fresh look is what I am hearing here today, top down--or bottom up solution, talking to our providers, talking to our parents and their needs. And we need to look at empowering state and local leaders who better know the needs of their communities and encouraging employers in local philanthropies who are looking to help and focus on what works for those most in need. For example, Ms. Gonzalez, I think you said that there were members of your community that stepped up and helped you. And, you know, that is the American way to do things. And their needs out there. And I think if people know those needs, they will respond to those needs. The American people for the most part are very generous people. And if they know there are needs there, particularly, Ms. Gonzalez, in your situation, certainly I would think the American people would respond. But I am glad that we have been able to continue this important conversation and to seek the solutions. And I want to thank you again and thank our chairman for holding this hearing. And hopefully this body can move in a direction that will be appropriate to deal with this, what I see as a bit of a crisis out there in the workplace. Thank you very much. Chairman Sablan. Thank you, Mr. Allen. And, again, thank you to our distinguished witnesses for being with us and sharing their thoughts with the committee. Today the committee certainly heard compelling testimony that our country's child care is in crisis. In preparing for this I went back and recalled some of my own growing years and I couldn't figure out how my mother was able to raise seven children. Mr. Allen. You turned out okay. Chairman Sablan. Yes. I like to think so. It wasn't perfect, but I think she did her best. And as our witnesses confirmed, skyrocketing costs are keeping parents across the country from securing the quality affordable child care they need for their children and families to thrive. Ms. Gonzalez, now a lawyer, can testify to that herself. Meanwhile, early childhood educators and child care workers themselves have been left with chronically low wages and little support for professional growth. Together, these challenges are dragging down our economy to the tune of $57 billion a year. And despite these issues, Federal investment in affordable and quality child care continues to fall woefully short and where states and local governments try to help where they can, as much as they can. And, as a result, we have a system in which only the wealthy have access to quality child care options, while the underserved families are left with few or often simply no affordable options for quality child care. The alternative that Ms. Gonzalez had or the alternative that I had personally, to get a relative to watch our child when I went out to dinner, is no longer available today as they were. So regardless of party affiliation, I think this is an American problem, not a Republican or Democratic problem. We should all agree that no parent should have to choose between keeping their job and paying for child care and no child should be denied the opportunity to learn and grow in a quality early learning environment because of their family income. We can and we must significantly increase Federal investments to improve the accessibility and quality of care so that all children and families have the support they need during their critical early years of life. And just as it is a critical early piece of life, I hope that today's hearing is a start also in getting Congress to--this committee and getting the House and the other body of Congress to start move forward legislation to provide some relief to this crisis that we have. So, I look forward to working with my colleagues to ensure that our country sets all families on a path to a healthy and thriving future. And if there is--I guess there is no further business. Without objection, the Subcommittee on Early Childhood, Elementary, and Secondary Education stands adjourned. Thank you. [Additional submissions by Mr. DeSaulnier follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Additional submissions by Mrs. Foxx follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] United States Government Accountability Office (GAO) Report September 2019: https://www.govinfo.gov/content/pkg/CPRT- 116HPRT43751/pdf/CPRT-116HPRT43751.pdf [Additional submissions by Chairman Sablan follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Early Childhood Workforce Index 2018: https:// www.govinfo.gov/app/details/CPRT-116HPRT43752/CPRT-116HPRT43752 [Additional submission by Ms. Schrier follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Additional submissions by Ms. Shalala follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Questions submitted for the record and their responses follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Ms. Harvey response to questions submitted for the record follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Ms. Morrisey response to questions submitted for the record follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Ms. Smith response to questions submitted for the record follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Whereupon, at 12:04 p.m., the subcommittee was adjourned.]