Budget Impasse Delays School for 233 Poor Children
Allentown, PA – As a result of the state failing to pass the early education portion of its 2009-2010 budget, Jane Ervin, CEO/President of Community Services for Children (CSC), announced today that the organization must delay the opening of 12 of its 39 classrooms for a month or more. They serve 233 preschoolers from poor families in Lehigh and Northampton Counties. More than 85% of the children live in Allentown. Delayed opening also affects Easton, Slatington and the Schnecksville area. Additional children in Bethlehem will have reduced classroom hours.
With delayed classroom opening, CSC is forced to furlough 42 employees. An additional 88 employees will incur 10% to 20% wage losses resulting through decreased hours between mid August and September 18th. About 46% of CSC’s 280-person workforce is affected. These steps will save about $250,000. If the budget impasse remains unchanged by early September, the organization will reassess options for further changes.
CSC’s Head Start program is funded both through federal and state funds for a total of 1159 children who live at or below the federal poverty line. These are the Lehigh Valley’s most vulnerable children. The average family income is $12,000. The state funds 178 Head Start children and state-funded PreK Counts represents 140 children.
In addition, the state has not reimbursed CSC for services already rendered in two other programs it operates: Child Care Information Services of Lehigh County and Northeast Pennsylvania Regional Keystone STARS program. The lack of payment has forced CSC to secure a $5 million line of credit at a high rate of interest.
The unresolved state early education budget creates huge economic ripples in the Lehigh Valley and across the state, affecting children, families, and businesses. State sources indicate that there is an immediate 2-for-1 multiplier effect with public investment in the local economy through the child care-related industry. Major economic impact studies have also shown repeatedly that investment in early childhood has the highest rates of return for community development.
Community Services for Children operates Head Start/Early Head Start of the Lehigh Valley, PreK Counts preschool, Child Care Information Services of Lehigh County subsidized childcare, and the Northeast Regional Key/Keystone STARS program.