Financing Child Care in the United States - Ewing Marion Kauffman ...

families could be made affordable. Creating a
dedicated fund for quality improvement has the
long–term potential to affect the price of child care
paid by consumers.
• The “Invest in Children” license plate has primarily
served as a positive public relations and public
education strategy.
• The fee charged by the registry for all specialty plates
was increased, which might have initially discouraged
participation. However, at this point there are about
300 additional sales each month, and the “Invest in
Children” license plates are becoming more widely
recognized and increasing in popularity.
OTHER SITES WITH SIMILAR STRATEGIES
Nine other states have some kind of specialty license
plate relating to children’s issues: Alabama (for
education), California (for child health and safety),
Connecticut (Keep Kids Safe), Florida (one for education,
one for an early intervention trust fund and one for
juvenile delinquency prevention), Indiana (Kids First),
Louisiana (for child safety), Missouri (Children’s Trust
Fund), Oregon (child abuse prevention) and Tennessee
(Helping Schools). This is the first license plate
specifically supporting child care, and it can be viewed
at www.state.ma.us/rmv/express/kids.htm
CONTACT
Jeffrey Hayward, Vice President
United Way of Massachusetts Bay/Success By 6
245 Summer Street #1401
Boston, MA 02210
Phone (617) 624 8150
Fax (617) 624 9114
MOTOR VEHICLE REGISTRATION
CHILD CARE ASSISTANCE
ACCOUNT (KENTUCKY)
DESCRIPTION
The Motor Vehicle Registration Child Care Assistance
Account (Child Care Assistance Account) gives any
person requesting a certificate of registration or renewal
of registration for any type of motor vehicle the opportunity
to donate one dollar or more to the account. The account
was established to assist families whose income exceeds
the state income eligibility limits for public child care
subsidies to pay for their child care expenses.
WHEN ESTABLISHED
The Child Care Assistance Account was established in
statute by the Kentucky General Assembly in 1998.
ANNUAL AMOUNT
In 1999, the fund generated $7,000 in donations.
Donations to the state fund were authorized to be
collected beginning July 1, 1998. However, county motor
vehicles offices did not begin to collect donations until
April 1999.
SERVICES FUNDED
Funds collected by the Child Care Assistance Account
can be used toward the cost of any type of regulated
child care as long as the children are in care so their
parent(s) can work. This includes child care centers,
family child care homes and school–age child care
programs.
HOW FUNDS DISTRIBUTED
The funds are collected by the county Department of
Motor Vehicles Offices and sent to the state Department
of Transportation, which forwards them to the state
Division of Child Care Services. The funds are then
redistributed to the counties through five regional service
agents who administer the program.
POPULATION SERVED
The funds can be used by working families whose income
exceeds the state income eligibility limits for child care
assistance, that is, above 160 percent of the federal
poverty income guidelines.
STRATEGIC CONSIDERATIONS
• The Child Care Assistance Account was originally
proposed for target families with incomes from 133 to
150 percent of the federal poverty income guidelines,
but was changed to target families with incomes above
the state child care subsidy level, which is 160 percent
of the federal poverty income guideline. Advocates
noted that this change would allow the funds to be
used more flexibly by counties. The fund automatically
responds to subsequent changes in eligibility levels for
state subsidy.
46