For Utah's poorest parents, getting a raise at work can seem like a punishment. If they make a dollar beyond a certain income, the state revokes their entire child-care subsidy, the dollars that made going to work feasible.

"It seems like a battle," said Amber Izarraraz, 30, a West Jordan single mom with three children, who worries that her new job - and higher salary - might endanger her subsidy.

"The more I work, the more I pay in child care," she said.

To help parents, state officials want $500,000 to create a tiered system, moving parents off subsidies more gradually. What exists now is described as a cliff effect.

"I think there will be women who won't take the opportunity to earn more money if they're going to be shut off at this particular dollar amount," said Sen. Jon Greiner, R-Ogden, a member of the Commerce and Workforce Services Joint Appropriations Subcommittee. "I would rather see a diminishing amount of money than just a flat cutoff."

The committee has ranked the proposal among its top 10 funding priorities.

Izarraraz, an accountant, recently switched to a new job at a sign-making company, and wonders if she will still qualify for her roughly $600 per month child-care subsidy. She's looking for a new provider for her children.

"I was really afraid of coming over to Fast Signs because it increased my salary by almost $4 per hour," Izarraraz said.

Her finances are tight each month even with the help of the subsidy. She has money for gas and food left after paying her bills. "As for new clothes for the kids, shoes or coats or any of that? No."

Lynette Rasmussen, director of the office of work and family life, recognizes the disconnect.

"Our system is a disincentive to any parent wanting to improve their circumstances financially. What kind of system that promotes self-sufficiency is set up with that kind of consequence?"

Families with subsidies typically pay a portion of their child-care bill, plus a co-payment to the provider, based on household size and income. Except in extreme low-income situations, co-payments are required by federal law in order for families to be responsible for a portion of the cost of child care. The co-payment is deducted from the subsidy amount.

By the numbers

*7,696 Utah families were receiving child care subsidies, as of January.
* $363 is the average monthly subsidy per child.
* Qualifying salary limits for parents would go up under a new proposal. For example, the limit would rise from $29,748 per year for a family of three to $34,104.
* 492 children about to lose eligibility would keep their subsidies under the proposal.

Full article available at The Salt Lake Tribune.