PCCY appreciates the article about the potential loss to the city if the 2011 House budget is allowed to stand. But the situation is even worse than implied.

In addition to the $150 million cited, the city stands to lose millions in funds block-granted to the state and distributed to local communities, creating both short and long-term economic benefits. Child care funding for low-income working families is a case in point: this money currently assists parents of 30,000 young children and another 16,000 school-age children in Philadelphia, enabling them to enter the workforce and retain jobs while their children develop school-readiness skills.

For every federal dollar invested in this program, $2.17 circulates through the city economy in increased wages, tax revenue and consumer spending. But the House budget would deny child-care subsidy to the parents of more than 7,000 children here.

Other federal grants routed through the state that help pay for homeless assistance, mental health services, education, child nutrition and child health in communities throughout the city would also suffer.

When calculating the true cost to Philadelphia of the proposed cuts, the impact of losses on residents, service providers and local businesses must also be taken into account.

Christie Balka is Director of Child Care & Budget Policy for PCCY

Philly.com – March 7, 2011 – Read article online