Tax decrease placing child care centers in danger

SPRINGFIELD (AP) — A decrease in income tax could mean less child care available in some communities.

When Illinois’s income tax decreased from 5 percent to 3.75 percent on January 1st, it put more money in the pockets of those who live in Illinois, but it created a $2 billion deficit for the state for the rest of the fiscal year.

State funded agencies such as schools and universities have already been warned of potential cuts.

Now a lot of day care centers are in jeopardy since the state ran out of money on December 31st, and is facing an estimated $300 million deficit.

That means while parents will still have no child care payments or lower fees, their day cares will not be getting reimbursed.

The federal government will chip in, but it can only meet 45 percent of the total payments.

While some day cares might be able to make cuts and stay afloat for a while, a couple of missed payments could mean the end for smaller, stand-alone facilities.

And state officials say right now, there are no approved strategies to find that extra money.