By MATT LINDSEY

Gov. Andrew Cuomo’s plan to reduce taxes for families paying for childcare is receiving praise, but the average increase in savings for eligible families amounts to just $2.85 cents per week.

Although childcare costs are a burden on many St. Lawrence County families, Cuomo’s plan would likely do little to significantly relieve the costs, which can be higher than a full-time minimum wage salary.

“Childcare is expensive…it can cost up to $400 per week for multi-child families,” said Kinder Academy Director Christine Neault.

Under Gov. Cuomo’s proposal, 200,000 families earning between $50,000 and $150,000 would see their Child and Dependent Care Tax Credit benefit double, from $169 to $376 on average, a press release from the governor says.

The total program cost would be $42 million. Families making less than $50,000 already receive a considerable benefit.

The plan would increase average savings for families from $4.51 to $7.36 per week. For a family making between $50,000 and $54,999, the credit would increase from $518 to $605, an $87 increase.

The highest increase would be for people who make between $60,000 and $64,999. Those households would see $260 in additional funding from $196 to $456. A total of 201,857 taxpayers will be affected.

Under the proposal families making $60,000-$64,999, would see their tax credits increase from $3.76 to about $8.76 per week.

Despite the limited impact of relief, St. Lawrence County officials are supporting the governor’s call, which they say can be a boon for families with children.

“The assistance with childcare can make the difference between working and not,” Department of Social Services Commissioner Chris Rediehs said.

Norfolk County Legislator John Burke praised Gov. Cuomo’s call to provide additional childcare tax credits to working families.

Daycare Centers Weigh In

At Kinder Academy in Potsdam, Director Christine Neault says most of the families who send their children there receive subsidies from the Department of Social Services.

“I don't think many will meet the criteria,” she said. “Maybe in cities where income levels are higher.”

Neault said subsidies can cover all of the cost of childcare, or it could pay just a few dollars toward the expense, with the parents responsible for the remaining cost.

Neault said she doesn't believe the proposed tax credit will have much financial impact for local families. “It’s a band aid on an axe wound.”

She said she thinks the governor should alter his plan to include lower income families as well.

Meanwhile, Potsdam’s Bright Beginnings daycare owner Kim Damon says, “yeah I think it will help.” “Anything they do would be a benefit.”

Damon said there are a couple of ways to recoup childcare expenses.

Some employers, like SUNY Potsdam, can exclude up to $5,000 from taxable wages toward childcare costs. For those with only one child in daycare it is potentially more beneficial financially to go this route. A person could receive $5,000 (the maximum allowed) instead of $3,000 toward childcare expenses through the tax credit.

“Childcare isn’t taxable,” Damon said.

Employer deduction cannot be combined with the current child and dependent care tax credit.

Damon and Neault did not expect to see an increase at their daycares relating to the tax credit, noting they are full most of the time already.

Low-Income Assistance Available

Childcare assistance is provided by the New York State Child Care Block Grant. Reimbursement may be available for the cost of childcare while a parent or caretaker is working or attending school or college.

Family income must be less than 200 percent of the federal poverty level to qualify, according to St. Lawrence County social welfare examiner Lori O’Donnell.

For example, a family of three must make less than $40,320 annually or $3,360 monthly to be eligible for assistance.

“The assistance with childcare can make the difference between working and not,” Rediehs.

The financial criteria changes each June and is set by the federal government.

Parents or caretakers are mandated to be working and childcare providers must be registered or enrolled prior to reimbursement.

O’Donnell says DSS sees an increase of families seeking help in summer months as children are out of school for a couple of months.

According to DSS, in 2015 440 families with 977 children were involved in the program. In 2016, the total number of families using the program was 629 with 1,304 children. That is an increase of 31 percent more families in the program.

“When employment is possible we want to help families and make it possible for them to work,” he said.

Legislator Praises Proposal

Burke praised Cuomo’s call to provide additional childcare tax credits to working families.

“Governor Cuomo’s plan to make child care more affordable for middle class families is commendable, and highlights his commitment to working families in our county and around the state. As outlined, the new Enhanced Middle Class Child Tax Credit will significantly increase childcare benefits for over 200,000 families statewide,” Burke said in a prepared statement.

For many families, limited access to these programs can force parents to choose between providing safe, quality childcare arrangements and work, Cuomo says.

“Far too many parents have to sacrifice working to build their family's financial future because affordable, high quality day care is financially out of reach," Cuomo said. "This newly enhanced credit will make it easier for more New Yorkers to be able to secure day care for their children and able to enter or stay in the work force with peace of mind.”

“Easing the financial burden of working families is an important initiative for our community,” Burke said.