Arkansas Childcare Providers Seek Solutions Before Funding Cuts

LITTLE ROCK, Ark. (KATV) — Arkansas childcare providers are at a critical juncture as funding cuts loom. Many centers fear closures with new reimbursement rates kicking in on November 1st. In response, a task force, primarily composed of childcare providers, convened in Little Rock on Tuesday to devise a funding strategy for the Department of Education.

Shahid Sheikh, President and CEO of Little Martians Learning Center, emphasized the urgency of the situation. “By November 1, we anticipate a 40% chance of centers closing,” he stated, reflecting the deep concern many providers share.

The task force’s plan aims to address the issue of high co-payments for families. Dawn Colyer, owner and director of Lil’ Sprouts Academy, explained, “We plan to cap co-pays at 7% of household income for families with multiple children. This ensures that a mother with four kids won’t pay $200 a week, but rather between $50-60.”

Another proposal involves adjusting reimbursement rates, based on center size and quality. Providers suggested combining levels three and four into a new tier, with rates set between levels two and five. This change would reduce costs while trying to preserve care quality.

The task force now prepares to present the proposal to the Early Childhood Commission and the Department of Education. Sheikh remains hopeful about their response. “There’s no reason for them not to approve it,” he noted, adding that the proposal fits within the budget and doesn’t require legislative action.

Despite the potential relief the proposal offers, Sheikh acknowledged the financial strain remains. “Our proposal minimizes the extent of our losses, but we are still losing money,” he admitted. This is crucial for stabilizing the ongoing childcare crisis affecting numerous families in Arkansas.

Currently, over 1,000 families have already lost access to local childcare services. Both Sheikh and Colyer are eager to hear the Commission’s decision by Thursday, just days ahead of the deadline. The task force continues to advocate for a solution that ensures ongoing support for Arkansas’s childcare providers.