The struggle over money for childcare assistance continues in New Mexico

Sep 29, 2010

Albuquerque, NM – Governor Bill Richardson announced Wednesday he would use 2 million dollars of federal stimulus money to lessen the impact of his cuts to childcare provider reimbursement rates across the state.

Still, childcare providers are deeply concerned.

Maria Sanchez is assistant director of Parkside Child Development in Albuquerque. She says 33 of Parkside's clients will still see their state assistance reduced. And Sanchez says, the organization has no choice but to cut salaries and raise rates for other parents.

That's 8 percent instead of the 10 percent cuts in reimbursement rates the Governor announced last week in an effort to avoid cutting kids from the services which are provided for low-income families in New Mexico.

The state legislature mandated cuts earlier this year and New Mexico is losing 24 million dollars in federal funds, all of which have led to the need to reduce state spending on childcare.

A group called Working Parents Association plans a rally at the state capitol today after a Legislative Finance Committee hearing. They plan to call on lawmakers to close a corporate tax loophole to help cover the childcare funding shortfall.