In response to the elimination of child care statewide for children whose parents have
successfully moved off welfare, the First 5 Sacramento Commission approved a $2 million loan
to restore a CalWORKs child care program for Sacramento County's youngest children.

The Commission acted to avert a local child care crisis that was triggered by Gov. Arnold
Schwarzenegger's veto when he signed the State Budget and eliminated CalWORKs Stage 3,
a program that provides subsidies for low income working families. Now these families in this
program face the dilemma of having to leave their jobs or place their children in unsafe child
care situations.

"Without reliable child care, many hard-working parents in low-income households may lose
their jobs altogether, and their children will be deprived of quality care, preschool and other key
early learning opportunities,” said Roger Dickinson, First 5 Sacramento and County Board of
Supervisors Chair. “It is crucial that First 5 Sacramento respond to the many families facing
this child care crisis.”

There are three child care stages each with different qualification requirements in the
CalWORKs program available for parents as they transition back to work. In Sacramento
County the Stage 3 Child Care Program is administered by Child Action, Inc. Pending the
outcome of a court case repealing the Governor’s veto, effective November 5, 937 children
ages zero to five will lose child care service. In addition, over 400 providers will lose payment
for their services.

This $2 million loan from First 5 Sacramento is for a three month period beginning in
November and it will assist families in maintaining continuity of child care services, allow them
to make other child care arrangements, and most importantly, not force the threat of losing
their job. Even with assistance from First 5 Sacramento, the CalWORKs Stage 3 Child Care
program will lack sufficient statewide funding to cover child care costs of children age 6 to 13
beginning Nov. 5 unless additional resources are found.

"We felt it was critical to help these families and child care providers by providing this three-
month safety net loan,” said Bruce Wagstaff, First 5 Sacramento Commissioner and County
Wide Services Agency Administrator. “Making sure these families have adequate time to find
alternative care and remain working is most important.”

About First 5 Sacramento
Research shows that a child’s brain develops most dramatically in the first five years and
what parents and caregivers do during these years to support their child’s growth will have
a meaningful impact throughout life. Based on this research, California voters passed
Proposition 10 in 1998, adding a 50 cents-per-pack tax on tobacco products to support

First 5 Sacramento’s Child Care Loan

programs for expectant parents and children ages zero to five. In the last year, First 5
Sacramento distributed approximately $16 million a year in Prop 10 revenues to programs and
services that meet local needs. Each county has a First 5 Children and Families Commission
providing unique local services for that county. Surrounding First 5’s include: First 5 Yolo: 530-
669-2475; First 5 Placer: 530-745-1304; and First 5 El Dorado: 530-672-8298.