Local Non-Profit Director Says Childcare Assistance Higher Than Ever

A screenshot from the powerpoint slides at the event.

The executive director of Humboldt County’s largest non-profit family services organization says the number of families getting help with childcare and other services is at a peak.

Kerry Venegas, executive director of Changing Tides Family Services, described numerous programs for families and the state of local childcare in a May 27 online presentation to the Community Economic Resilience Consortium.

Changing Tides operates a wide range of child care and family-oriented services, including referral, parenting support and nutrition programs.

Affordability is key to accessing child care and Venegas said in fiscal year 2024 to 2025, there was over $11 million in child care subsidy payments.

Changing Tides assisted more than 1,000 families and more than 500 child care providers.

That’s a significant increase. Venegas said it’s “higher than it’s ever been.”

California’s income threshold for subsidized child care is also higher than ever, at $9,000 a month or $108,000 a year for a family of four.

“That’s a very high threshold – it’s the highest it’s ever been,” said Venegas. “And there’s a lot of families who don’t know that so we appreciate getting this word out.”

Eighty percent of Humboldt’s child care providers are “license exempt” and they include after school programs and boys and girls clubs programs.

“They can be compensated, they don’t have to necessarily be licensed, they fall under other jurisdictional oversight,” said Venegas.

“Childcare has made a really excellent comeback” since the COVID era, she continued, but the future’s uncertain as “we have an aging workforce who are the childcare business owners who want to retire and there’s not a lot of people who are waiting in the wings.”

On a more immediate level, federal policies taking effect July 1 will impact childcare.

A cap on family copayment fees is being eliminated and childcare businesses will be impacted by elimination of an enrollment-based payment structure.

On the state level, Venegas said the recently-revised version of the state budget includes higher-than-expected revenue projections and less deficit.

She said Governor Gavin Newsom’s goal is to support services like Medi-Cal, food assistance and “core safety net programs” as much as possible.

Venegas said there are no significant cuts to childcare in the state budget but efforts to support it won’t be enough to make up for federal cuts.

It’s part of a broad concern about future federal actions, which the state wants to prepare for.

“There’s an intent stated to build a larger rainy day reserve because we honestly don’t know as a state exactly what will come down from the federal government,” Venegas said. “Will there be FEMA? Will there be food support? Will there be Medi-Cal anymore? It’s really hard to predict.”

Military operations are affecting federal budget priorities.

“The proposed budget by the Trump Administration right now has massive shifting of funds and that includes childcare,” said Venegas. “A lot of it appears to be going to the Department of War and things that are related to that in the military.”

Gregg Foster, the executive director of the Redwood Region Economic Development Commission and the meeting’s host, asked about the degree to which Humboldt’s demand for child care is being met.

The age of children and location of services affect the supply/demand issue.

“When we’re talking about the gap in care, we’re really talking about the youngest ages, so we’re talking about infants and toddlers, which are much harder to serve,” Venegas said. “And for a child care business, the break-even ratios are smaller and the reimbursement doesn’t offset the fact that you have to take fewer children in your business.”

Because of that, “a lot of parents report not being able to find the care that they need where they need it.”

But she added, “at the same time, we actually have unfilled spaces in the community.”

County birth rates are “definitely declining” she said, which is “a concern for schools as well as child care.”

Foster closed the online meeting by highlighting the relationship between things like childcare services and housing to the economy, saying they “are the foundations upon which the economy is built and survives.”