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Indiana budget cuts threaten On My Way Pre-K
Indiana budget cuts threaten On My Way Pre-K

Chicago Tribune

time6 days ago

  • Business
  • Chicago Tribune

Indiana budget cuts threaten On My Way Pre-K

Indiana is slashing statewide funding for its pre-kindergarten program and advocates say it could reverse years of growth in supporting its most vulnerable children prepare for school. On My Way Pre-K provides state vouchers for quality, free preschool for 4-year-olds from income-eligible families. Earlier this month, the Family and Social Services Administration announced it trimmed back the program because of a state budget shortfall. Former Gov. Mike Pence signed legislation establishing the program as a pilot in 2014 and heralded its enrollment. Pence later flip-flopped back and forth on his willingness to take federal dollars saying he didn't like the 'strings attached.' Under former Gov. Eric Holcomb, the program expanded statewide in 2019. With a voucher, children can attend participating private and public preschools authorized by the state. Last year, the FSSA said On My Way Pre-K increased enrollment to about 6,200 students, with federal funding assistance. By June, the FSSA said it would limit available seats in the program to 2,500 in the wake of a 10% budget cut. Since 2017, the FSSA's Child Care and Development Fund has been a funding stream for On My Way to Pre-K, but recently it saw a funding decrease and now has a waitlist of 18,000 children waiting for an available subsidy. GOP lawmakers pushed through early education cuts when a $2 billion budget deficit loomed because of a lowered revenue growth outlook, under President Donald Trump. When the session began in January, Gov. Mike Braun sought $369 million for the Child Care and Development Fund and the doubling of funding for On My Way Pre-K. He also wanted to eliminate the CCDF waitlist. The cuts worried early education providers and rankled one local House member. 'It's going to be impactful to a lot of children who won't have access,' said Karen Carradine, Head Start Geminus Vice President of Early Childhood Services. Carradine said the state cuts won't impact Head Start but will make a big dent in state provider funding. 'It will tremendously reduce state vouchers and the funding to pay for the vouchers. In On My Way Pre-K, they've changed the rules,' she said explaining providers will have to pay 5%, possibly out-of-pocket. 'That's a big hurdle and children will get 46 weeks, instead of 52 they have to attend. 'I feel providers will be looking at how many they can serve. And at the end of the day, it comes down to dollars and cents,' she said. The Gary Community School Corp. offers an On My Way Pre-K program at its Bethune Early Childhood Development Center. Superintendent Yvonne Stokes said the district still isn't sure of the impact. 'We are committed to supporting any affected families by identifying other resources and means to help fill the gaps of any shortages,' she said. Meanwhile, state Rep. Carolyn Jackson, D-Hammond, voiced concern Monday about the impact of the On My Way to Pre-K cuts. 'Over 85% of 4-year-olds in Indiana do not have access to preschool. On My Way Pre-K is already an extremely limited program to help the most vulnerable afford to send their children to pre-K. 'Now, 3,500 fewer Hoosier children will likely not be able to enroll in pre-K because their families cannot afford it without the voucher.' Jackson, a member of the House Family, Children and Human Affairs Committee, said the financial incentive for providers to accept On My Way Pre-K vouchers decreased up to 46% in Lake County. 'Reducing this incentive will reduce class sizes even more. Families who desperately want to give their child a leg up with early childhood education are being left high and dry,' said Jackson who added Indiana was one of six states that don't fund universal Pre-K. 'If pre-K is a luxury that only wealthy families in well-off suburbs can afford, children living in underserved communities will be hurt the most,' said Jackson. She criticized Republican lawmakers for cuts to early childhood education, but still green-lighting $1.2 billion to expand private school vouchers. 'This is not about fiscal responsibility. This does not help working Hoosiers. This policy is harmful for children, families and our economy,' Jackson said.

Indianapolis Public Schools adding fee for pre-K
Indianapolis Public Schools adding fee for pre-K

Axios

time04-06-2025

  • Business
  • Axios

Indianapolis Public Schools adding fee for pre-K

Indianapolis Public Schools' pre-kindergarten program will no longer be free for all participating families. Why it matters: Studies show that 4-year-olds who attend a high-quality pre-kindergarten program are more ready for school, have better language and literacy skills in kindergarten — and those results hold true as kids progress through school. Without a free, universal public program, quality can vary greatly and access can be a challenge, particularly for low-income families. Driving the news: Starting this fall, IPS is instituting a sliding fee scale based on income for its pre-K program. The district blames funding cuts and changes to On My Way Pre-K, the state grant program. What they're saying:"With a more than 50% reduction in the amount of funding we will now get through On My Way Pre-K, in addition to the other financial impacts of our recent legislative session, IPS is now faced with a difficult decision," per a district statement. Catch up quick: The state budget passed in April cut the amount of property tax dollars going to local districts statewide and funneled more public education dollars into the state's private school voucher program. It also reduced eligibility for On My Way Pre-K and Child Care Development Fund vouchers. There's currently a waitlist for the programs. How it will work: Starting with the upcoming school year, there will be three cost tiers for IPS pre-K. Families who qualify for federal food or financial aid or Medicaid and make less than 130% of the federal poverty level can still send their children to pre-K for free. They would need to complete an On My Way Pre-K application or have a child care voucher. Families who qualify for Medicaid and make between 130% and 185% of the federal poverty level will receive discounted pre-K at $100 per week. Everyone else will pay $150 per week.

IPS: Some families must pay for pre-K after budget cuts
IPS: Some families must pay for pre-K after budget cuts

Yahoo

time04-06-2025

  • Business
  • Yahoo

IPS: Some families must pay for pre-K after budget cuts

This story will be updated. Some Indianapolis Public Schools families will start having to pay for pre-K for the 2025-26 school year after this latest state budget didn't include increases to childcare grant funding and the district's pandemic relief funding is now gone. The district alerted families to the change on June 3 and said it came 'after much consideration of the financial impact on IPS' caused by alterations in the state budget this legislative session and loss of COVID money. In this latest state budget passed in April, lawmakers did not include an increase in funding for Indiana's popular child care subsidy programs, known as On My Way Pre-K, which helps give low-income families vouchers to use for child care. IPS had been heavily relying on those vouchers, as well as COVID-19 relief money sent to districts in the past few years, to fund its pre-K program, making it free for every family in the district for at least the past two school years. However, school districts had to spend those pandemic relief dollars by the end of 2024, and the state announced in December that it would have to bring back its waitlist for the On My Way Pre-K program due to significant growth and not enough funding. More on the waitlists: Indiana lawmakers expanded access to child care aid. Now there's not enough money This latest state budget passed by lawmakers did not address those waitlists and instead funded them just enough so families currently using the vouchers wouldn't be affected. Starting with the upcoming school year, IPS is implementing an income-based sliding scale to help ensure the program can remain funded. If families qualify and apply for the On My Way Pre-K program, they could still access a pre-K seat in IPS for free, if the voucher program has enough funding. Some families may find themselves on the waitlist for this upcoming school year. Here is the sliding scale that IPS is implementing for the next school year: Income-Based Sliding Scale Cost (Per week) Free (Qualifies for SNAP, TANF, and Medicaid Free — below 130% of Federal Poverty Level) $0 (MUST complete On My Way Pre-K application to be eligible or have a CCDF voucher) Reduced (Qualifies for Medicaid Free at 130% to 185% of Federal Poverty Level) $100/week Full Pay (Does not qualify for any of the above) $150/week To qualify for a voucher, a family's household income must be below 150% of the federal poverty level, or for a family of two, earn below $2,644 per month before taxes. More on IPS using the vouchers: A new requirement for IPS families seeking pre-K seats is coming next school year For a family of four, the household's monthly income before tax must be less than $4,019 to qualify for the pre-K voucher. The child's guardian must also be working, going to school, attending job training or looking for a job. The child must also be four years old by Aug. 1 and plan to start kindergarten next school year. For families who need help filing out an On My Way Pre-K application, they can email reach out by emailing earlylearningdept@ or call 317-391-1897 or 317-391-7643. For families needing Spanish-speaking assistance, they should call 317-619-4279. The district will also be holding an application assistance event from 2-4 p.m. on June 10-11 at the IPS Education Center located at 120 E. Walnut St., Indianapolis, IN 46204. Contact IndyStar K-12 education reporter Caroline Beck at 317-618-5807 or CBeck@ Follow her on Twitter (X): @CarolineB_Indy. This article originally appeared on Indianapolis Star: Indianapolis schools ends free pre-k for all families after budget cuts

IPS: Some families must pay for pre-K after budget cuts
IPS: Some families must pay for pre-K after budget cuts

Indianapolis Star

time04-06-2025

  • Business
  • Indianapolis Star

IPS: Some families must pay for pre-K after budget cuts

This story will be updated. Some Indianapolis Public Schools families will start having to pay for pre-K for the 2025-26 school year after this latest state budget didn't include increases to childcare grant funding and the district's pandemic relief funding is now gone. The district alerted families to the change on June 3 and said it came 'after much consideration of the financial impact on IPS' caused by alterations in the state budget this legislative session and loss of COVID money. In this latest state budget passed in April, lawmakers did not include an increase in funding for Indiana's popular child care subsidy programs, known as On My Way Pre-K, which helps give low-income families vouchers to use for child care. IPS had been heavily relying on those vouchers, as well as COVID-19 relief money sent to districts in the past few years, to fund its pre-K program, making it free for every family in the district for at least the past two school years. However, school districts had to spend those pandemic relief dollars by the end of 2024, and the state announced in December that it would have to bring back its waitlist for the On My Way Pre-K program due to significant growth and not enough funding. More on the waitlists: Indiana lawmakers expanded access to child care aid. Now there's not enough money This latest state budget passed by lawmakers did not address those waitlists and instead funded them just enough so families currently using the vouchers wouldn't be affected. Starting with the upcoming school year, IPS is implementing an income-based sliding scale to help ensure the program can remain funded. If families qualify and apply for the On My Way Pre-K program, they could still access a pre-K seat in IPS for free, if the voucher program has enough funding. Some families may find themselves on the waitlist for this upcoming school year. Here is the sliding scale that IPS is implementing for the next school year: To qualify for a voucher, a family's household income must be below 150% of the federal poverty level, or for a family of two, earn below $2,644 per month before taxes. More on IPS using the vouchers: A new requirement for IPS families seeking pre-K seats is coming next school year For a family of four, the household's monthly income before tax must be less than $4,019 to qualify for the pre-K voucher. The child's guardian must also be working, going to school, attending job training or looking for a job. The child must also be four years old by Aug. 1 and plan to start kindergarten next school year. For families who need help filing out an On My Way Pre-K application, they can email reach out by emailing earlylearningdept@ or call 317-391-1897 or 317-391-7643. For families needing Spanish-speaking assistance, they should call 317-619-4279. The district will also be holding an application assistance event from 2-4 p.m. on June 10-11 at the IPS Education Center located at 120 E. Walnut St., Indianapolis, IN 46204.

Indiana updated budget proposal includes $2 increase to cigarette tax
Indiana updated budget proposal includes $2 increase to cigarette tax

Chicago Tribune

time24-04-2025

  • Business
  • Chicago Tribune

Indiana updated budget proposal includes $2 increase to cigarette tax

Republican leaders in the Senate and House and Gov. Mike Braun reached a decision on a final budget, which includes raising the cigarette tax by $2 a pack to help address a $2.4 billion deficit. Last week, legislators received a forecast that projected a $2 billion shortfall for the next budget cycle and an additional $400 million less available in the current budget cycle. After the forecast, budget architects Sen. Ryan Mishler, R-Mishawaka, and Rep. Jeff Thompson said 'everything is on the table' when it comes to budget cuts. Thompson, R-Lizton, said increasing 'sin taxes' — cigarette, alcohol and gaming — could be considered. In the updated budget report released Wednesday evening, it increases the cigarette tax by $2 per pack, which will bump up the overall cigarette tax to just under $3 per pack. The budget also increases the tax on closed system cartridges or pre-filled e-cigarettes, open system or refillable electronic cigarettes, moist snuff, alternative tobacco products and cigars. In regards to the cigar tax, the tax can't exceed $3 per cigar. Senate Democrats, who proposed amendments to the state budget to increase the cigarette tax by $2 a pack, said the increase would generate nearly $800 million in additional revenue. Approximately 61% of the tax revenues will go into the state general funds and approximately 39% will go toward Medicaid obligations. The updated budget included cuts to public health programs, higher education and economic development while total reserves decreased by three percentage points to 10%, according to the Indiana Capital Chronicle. Legislators don't get a pay increase, under the updated budget, and it requires a caseload study for the Indiana Department of Child Services as opposed to ending caps. The updated budget also reduced the 'Freedom and Opportunity' budget item that funds dropout prevention and other K-12 programming and the eligibility for On My Way Pre-K and subsidized child care, according to the Indiana Capital Chronicle. In Northwest Indiana, the updated budget terminates the compact of the Chicago-Gary Regional Airport Authority. 'Government is doing exactly what Hoosier families have to do. We're living within our means and tightening our belts. This budget reduces government spending while funding our most critical priorities and providing continued income tax relief for Hoosiers,' said House Speaker Todd Huston, R-Fishers, in a statement. The Indiana Senate Democrats released a statement after the updated budget was released stating that the state's $2.4 billion shortfall 'is the direct result of economic fallout tied to Washington's tariffs and trade instability that began in January.' The updated budget maintains the 2% increase in public school funding while expanding to universal vouchers in the second year of the budget, according to the statement, while public health is funded at $40 million while Braun promised $100 million for public health under the 'Make Indiana Healthy Again' plan. 'We all agree — we must balance the budget,' according to the statement. 'But we can't balance it on the backs of school kids, working families and aging parents and grandparents while the politically connected continue to benefit.' Indiana Senate Democrats offered three options for increasing revenue: Generating sustainable revenue, like regulating and taxing marijuana; controlling government spending, like reining in inflated administrative costs like six-figure cabinet salaries; and enacting no-cost reforms, like fully restoring public health funding and establishing a summer commission on tariff impacts. 'This is a defining moment for Indiana,' the caucus said. 'We can play politics with talking points – or we can face the truth and build a budget that actually works for the Hoosiers who sent us here.' The legislature is expected to vote on the budget Thursday. As of press time, the legislature had not discussed the budget.

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