Arizona: Governor Katie Hobbs Invests $1 Million to Reduce Child Care Licensing Fees

Phoenix, AZ ~ Phoenix, AZ - In an effort to make child care more affordable and accessible for Arizona families, Governor Katie Hobbs has announced a $1 million investment to support child care providers and encourage the creation of new child care programs. This initiative is part of her Bright Futures AZ program, which aims to improve access to child care for families in the state.

Governor Hobbs stated, "Access to child care is a pillar of the Arizona Promise. Many child care providers are small businesses or nonprofit organizations who are experiencing higher costs across the board. This funding unlocks opportunity and security for more Arizona families by offering relief to current providers and supporting new providers who create child care programs."

The decision to allocate $1 million towards this cause comes after Governor Hobbs heard from child care providers about the rising expenses they face. Increased costs for supplies, insurance, and staffing have made it difficult for many providers to maintain operations. Additionally, there is a shortage of child care options in the state, making it challenging for families to find suitable care for their children.

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To address these issues, Governor Hobbs is using ARPA funds to reduce the cost of annual licensing fees for existing child care providers by 20% and for new providers by 50%. This discount will be automatically applied through the ADHS licensing portal when providers submit their application.

Currently, there are over 2,500 licensed child care providers in Arizona, with annual licensing fees costing up to $2,575 depending on the size of the program. These savings will impact all licensed Arizona child care providers, including in-home, center-based, small business, nonprofit or faith-based providers. The goal is to help these programs reduce their operating costs and keep their doors open.

Earlier this year, Governor Hobbs also announced an increase in available child care spots for 900 more Arizona children. This was made possible through her Arizona Promise Budget which allocated over $125 million in state and federal funds for child care. This is the largest investment of general funds for child care since the Great Recession.

Margaret Bernal, Chief of Child Care Licensing at ADHS, expressed her support for this initiative, stating, "As a former Child Care Director, I am especially aware of how hard Providers work to provide quality care for children, while still trying to stay within their financial means. This is a great opportunity to support providers with fee off-sets, enabling them to continue providing more services for the children and community."

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Barbie Prinster, Executive Director of the Arizona Early Childhood Education Association, also praised the decision, saying, "This 20% discount on licensing fees provides much-needed relief for child care providers. It is a meaningful step towards easing financial pressure so they can focus on what matters most - providing safe, nurturing and high-quality care for our youngest learners."

Kelley Murphy, Director of the Arizona Early Childhood Alliance, added that this investment comes at a crucial time for families and child care providers in Arizona. She believes it will help reduce the cost of doing business for high-quality programs and allow them to continue serving hard-working families.

Information on how to secure a fee reduction can be found on the ADHS website. With this investment from Governor Hobbs' Bright Futures AZ initiative, child care in Arizona is set to become more affordable and accessible for families across the state.

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