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2022-051 Affordable Child Care UpdateDate: August 19, 2022 Report No. 2022-051       INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: The City of Denton’s Involvement in Affordable Child Care Activities BACKGROUND: During the August 2 Council Meeting, Council Member Watts requested an Informal Staff Report on any current task force that is addressing the crisis of affordable childcare and what role the City of Denton is involved in said groups. Denton County Child Care Data1 from Children At Risk (linked):  From March 2020 to September 2021, Texas lost 21% of childcare providers, and Denton County lost approximately 24.5% of childcare providers.  There are 645 childcare providers in Denton county  420 Providers Serve Infants and/or Toddlers.  151 Providers Serve Infants and/or Toddlers on subsidies.  311 EC Providers received Child Care Relief Funds.  There are 48,441 childcare seats in Denton County, and 2,965 (6.1%) of those seats are considered ‘Subsidy Seats’ (Parents working or in an educational/vocational training program part-time for single-parent households and 50 hours for two-parent households.)  The below table highlights Denton zip codes that are considered Child Care Deserts (Zip codes (US Census ZCTAs) with at least 30 children, ages 0-5, where the demand for childcare is three times greater or more than the supply of childcare.)  From 2020 to 2021, the number of childcare seats per 100 children of working parents decreased from 125.1 to 86.7. The number of subsidized childcare seats per 100 children of working parents 200% below poverty decreased from 42.4 to 35.7.  Denton Zip Codes considered childcare deserts: Zip Code # of Child Care Seats # of Children of Working Parents Childcare seats per 100 working parents 76205 201 677 30 76209 268 1374 20 76208 191 1776 11 DISCUSSION: Included below is a summary of the ways in which the City of Denton currently contributes to or engages in childcare-related activities and discussions.  City of Denton Human Services Funding: The City of Denton’s Community Development Grant Program makes federal and local funding available annually for human services programs serving moderate and low-income City of Denton residents. The City of Denton   1 Only county‐level data available.   Date: August 19, 2022 Report No. 2022-051       receives two to three applications annually from affordable childcare facilities. In FY 21/22, the City allocated $150,000 to provide childcare assistance to low-income families.  Texas Workforce Commission Local Childcare Match: Since November 2000, the City of Denton provides matching funds annually to assist the North Central Texas Workforce Development Board (NCTWDB) of the Texas Workforce Commission (TWC) in securing federal funds that are used to provide childcare vouchers for low-income working households. This requires a certification of match that NCTWDB includes in its request for these federal funds. All funds certified by the City benefit children from low to moderate-income families who meet the NCTWDB income eligibility limits and reside within Denton city limits. In FY 21/22, $91,300 of the City of Denton’s Human Services grant funding was reported by NCTWDB’s toward their annual match requirements.  City of Denton Summer Programs: The City of Denton’s Parks and Recreation Department (PARD) submits applications annually for the Community Development Grant Program to provide full scholarships for a summer day camp program to income-eligible kids in need of quality care, mentoring, development of life skills, leadership, respect for others and respect for self. In FY 21/22, PARD received $45,000 to provide fifty-six (56) full-day camp scholarships to income-eligible households.  Denton County Workforce Success Leadership Team (linked): The Denton County Workforce Success Leadership Team (DCWSLT) is a collective impact initiative with backbone support from the United Way of Denton County (UWDC). The vision of the DCWSLT is that every individual in Denton County achieves financial independence, self- sufficiency, and stability. Appointees to the DCWSLT come from local government, local employers/businesses, higher education institutions, chambers of commerce, financial institutions and social/transportation agencies. The Texas Workforce Commission is also represented. Council Member Watts and Economic Development Director Wayne Emerson are appointed to the DCWSLT as representatives of the City of Denton. Community Services staff also attend these meetings regularly as guests. o Family Child Care Network (linked): The Family Child Care Network (FCCN) is a working group of the DCWSLT. The FCCN attempts to meet the growing need for affordable childcare in Denton County by providing the tools needed for individuals in the community to start their own in-home childcare centers. This workgroup collaborates closely with the Texas Workforce Commission and engages in regular conversation and analyses regarding the accessibility of affordable childcare in Denton County. This group has identified opportunities for increased advocacy at the state level to increase funding for and reduce barriers for childcare providers to accept subsidy funding. For example, they are working with the Texas Workforce Commission to identify potential recipients of start-up funding to establish new childcare centers in the area. Additionally, the group has researched solutions in neighboring communities, such as Tarrant County, where their Commissioners Court allocated $45M of American Rescue Plan Act (ARPA) funding (approximately 10% of their total ARPA funding) to support child care businesses and expand infant and toddler child care. Date: August 19, 2022 Report No. 2022-051       CONCLUSION: The City of Denton is actively engaged in providing funding and seeking additional solutions for affordable childcare. Future opportunities include continued engagement in the DCWSLT and increased advocacy and collaboration at the county and state levels to address funding needs and barriers to access. STAFF CONTACT: Courtney Douangdara, Community Services REQUESTOR: Council Member Watts PARTICIPATING DEPARTMENTS: Community Services STAFF TIME TO COMPLETE REPORT: 3 hours