COBRA, Unemployment, and First Time Home Buyers Benefits Extended

COBRA and Other Benefits Extended

12/28/2009

As part of the Defense Appropriations bill signed into law on December 19, Recovery Act funds will continue to subsidize 65 percent of COBRA health insurance premiums for certain unemployed individuals. The subsidy program, which originally covered the period between February 17 and November 30, 2009, now runs through February 2010 for people who lost their jobs through no fault of their own between September 1, 2008, and February 28, 2010. 
The Department of Labor website has more details.
Also, with enactment  on November 6 of the Worker, Homeownership and Business Assistance Act of 2009, three other key provisions of the Recovery Act were either extended or expanded.
Emergency Unemployment Compensation
This legislation added another 14 weeks of unemployment benefits. In states exceeding an 8.5 percent unemployment rate (currently 26 states), an additional six weeks of benefits are available, for a total of 20 weeks. In all cases, the $25 in Recovery funds added to each regular benefit payment also continues.

Contact your state unemployment office for details.

First Time Homebuyer Credit
The original provision – a tax deduction of up to $8,000 – applied only to people buying their first homes between April 8, 2008, and December 1, 2009. The cut-off date has now been extended to April 30, 2010. Also, a similar credit – up to $6,500 – is now available to current homeowners who buy new principal residences in the same time frame. However, those homeowners must have lived in their previous homes for a five-year consecutive period in the previous eight years before the date they buy the new home.

For either credit:
• New home can cost no more than $800,000
• Individual buyers must have income of $125,000 or less
• Joint tax-filers must have combined income of $225,000 or less
The IRS has more information here

Trends in US Education: 4-day school week

The four-day school week is a growing trend during this recession. This controversial format is something to keep an eye on.

Hawaii is one of the most recent states to change to a four-day school week due to budget woes.  Children are now off every Friday. Hawaii is already at the bottom when it comes to state test scores, according to an ABC news report.  At least 17 other states have districts that have 4-day school weeks, according to an MSNBC report.

Proponents of this format site the ability to salvage more extra curricular and academic programs, avoiding teacher and staff layoffs, and the ability to save on transportation and energy bills.

However, many parents face challenges with this new format including concerns about maintaining academic excellence, additional child care costs, adjusting work schedules, and paying for Friday meals that might have otherwise been covered under free or reduced lunch programs.

It will be interesting to see how this affects the children long-term and how many other cash-strapped states will follow suit.  It will also be interesting to see how this affects parents with special needs children who will have a harder time finding adequate child care for one-day a week. 

Another related trend to keep an eye out for is the 4-day government work week. Utah, Iowa, Hawaii and many other states have been toying with this concept.  How will the four-day government work week affect the welfare of children? The workers in the state departments of education, health and human services, children and families, etc., will have to get everything done with 20 percent less time to do it in. Source: http://www.stateline.org/live/details/story?contentId=446862

Comprehensive studies needs to be done.  If you aware of any such study, please inform the Parentspotlight blog.

What do you think? Feel free to post a comment to this blog posting.

sources:
http://abcnews.go.com/WN/hawaii-day-school-week-ease-recession-woes/story?id=8894574
http://www.msnbc.msn.com/id/29664981/
http://www.ncsl.org/IssuesResearch/Education/SchoolCalendarExtendedDayYearFourDaySchoo/tabid/12934/Default.aspx
http://www.radioiowa.com/2009/12/25/a-four-day-work-week-for-state-government/
http://www.stateline.org/live/details/story?contentId=446862

NACCRRA State of Care Study (child care and senior care) available

The National Association for Child Care Resource and Referral Agencies (NACCRRA) recently released the second edition of the State of Care Index- this study outlines the annual cost of child care and senior care,
details families' efforts to save money on care arrangements, and reports on the tie between employment and caregiving. This study can be dowloaded for free and takes a closer look at the pressures facing parents caring for children in the current recession. 

State of Care Index - Cost of Child Care and Senior Care on Families -
http://www.naccrra.org/publications/naccrra-publications/parents-and-the-high-price-of-child-care-2009

Thank you to Care.com for informing Parentspotlight of this study. Care.com is a fee-based service that helps families to find child care and senior care. Search listings of child care centers, special needs care, babysitters and nannies.

Parents and the High Price of Child Care: 2009 Update

Parents and the High Price of Child Care: 2009 Update presents 2008 data on child care costs collected through a January 2009 survey of Child Care Resource and Referral (CCR&R) State Networks, which asked for the average prices charged for child care for infants, 4-year-olds, and school-age children in centers and family child care homes in every state. This year's report reveals that child care costs continue to rise with costs often times exceeding monthly food and other household expenses.
According to the report, in 2008, the average price of full-time care for an infant in a center was as high as $15,895 a year. For a 4-year-old in a center, parents paid up to $11,680 a year for full-time care. Parents of school-age children paid up to $10,720 a year for part-time care in a center. Average prices for full-time care in a family child care home were as much as $10,324 for infants, $9,805 for a 4-year-old, and $7,124 for a school-age child. Additionally, the report found that average monthly child care fees for an infant were higher than the amount that families spent on food each month. In every state, monthly child care fees for two children at any age exceeded the median rent cost, and were nearly as high, or even higher than, the average monthly mortgage payment.
To improve access to affordable, high-quality child care for all families, NACCRRA is calling on Congress to reauthorize the Child Care and Development Block Grant (CCDBG), the primary public source of child care funds to states to help pay for child care and improve the quality of care. Additionally, NACCRRA recommends providing resources for planning and developing child care capacity to increase
the availability of child care options for working families; reducing barriers in the subsidy administration process that prevent families from accessing assistance; ensuring that public pre-kindergarten programs are designed to meet the child care needs of working families, and improving federal and state tax codes to help families at all income levels pay for care.