What have legislators done on child care issue this session?
Few legislators would dispute Wisconsin has a child care problem. Throughout this legislative session, there have been a few points heard over and over: Child care is expensive. It can be nearly impossible to find. And these struggles pose a threat to Wisconsin’s workforce.
What should be done, though, remains up for debate.
Legislators have put forth a plethora of proposals, including funneling state dollars directly to the industry and harnessing the power of employers to take action. But whether any of these ideas come to fruition rests with lawmakers and the governor.
With just an estimated few weeks left in the session, here’s where prospective child care legislation stands:
Renovations loan program heads to governor
The first of six GOP child care bills introduced in early September is now headed to Gov. Tony Evers’ office.
The bill would create a revolving loan fund for child care businesses. Originally, these loans were reserved for just licensed child care providers, but an amendment broadens this so licensed and certified providers are also eligible — as well as those who plan to be licensed or certified within one year of receiving the loan.
Amendments also create stipulations to ensure loans will be repaid, and decrease the maximum loan amount a provider who is not in-home, such as a child care center, could receive from $100,000 to $95,000. As originally specified, in-home providers can receive a maximum of $30,000, and 60% of loans awarded must be to in-home providers while 40% must be awarded to child care facilities not run out of a provider’s
home.
But child care providers, who usually survive on thin profit margins, may see taking on a loan as too much of a gamble. Providers said in previous public hearings said they would prefer grants.
“We don’t make much money to begin with; I don’t want to go into debt that much further,” Diane Reynolds, owner and operator of a licensed family child care in Shell Lake, previously said in an interview.
As of Feb. 14, the other five bills in the package await a vote in their respective Senate committees and full Senate.
Child and dependent care credit expansion clears Assembly
Republicans’ $2.1 billion tax package, which includes a proposal to expand the state’s child and dependent care tax credit, passed the Assembly on Feb. 13 and now heads to the Senate.
Wisconsinites can claim both a federal and state tax credit for the expenses they incur for the care of their child or other qualifying dependent so they can earn income.
Republicans’ proposal would make it so Wisconsin filers could receive a maximum of $2,000 to $3,500 state child and dependent care credit for one qualifying dependent, depending on their income. For two or more qualifying dependents, they could receive a maximum credit of $4,000 to $7,000, also depending on their income.
Currently, the maximum state child and dependent care credit one can receive is $300 to $525 for one qualifying dependent and $600 to $1,050 for two or more qualifying dependents.
“We are directly putting money in the pockets of parents who are paying a lot of money right now for child care,” bill author Sen. Romaine Quinn, R-Cameron, said during a public hearing for the bill.
Democrats raised concerns about the tax credit being nonrefundable, and questioned how much it would help low-income families. Quinn said lowincome families can find relief through Wisconsin Shares, the state’s child care subsidy program.
While the bill garnered bipartisan support in the Assembly, with all but four of voting Democrats voting for it, some said their support comes with a caveat.
Rep. Alex Joers, D-Madison, voted for the bill, but said floor tax cuts will only go so far if there are no child care slots to be found, a statement similar to what Evers told WISN-TV’s “Upfront” Feb.11, even though Evers indicated he may still support the tax credit expansion.
A proven solution, Joers said, is Child Care Counts, a program that provides stabilization payments to providers. But putting more money in the program is off the table for Republicans.
Encouraging employers’ involvement
Another Republican-led bill relating to child care was passed in the Assembly on Feb. 13.
As amended, the bill alters the business development tax credit program and enterprise zone tax credit program in a numerous ways. For example, it creates a new credit under the business development tax credit program for up to 15% of investments made in establishing a child care program for employees.
Now, the bill is waiting to be taken up in the Senate.
Another bill, which could be scheduled for an Assembly vote soon and has yet to be voted on in its Senate committee, would give employers state tax credits for helping employees access and afford child care.
While it garnered praise from the business community, Democratic Sen. Kelda Roys of Madison and child care providers made a familiar argument against the bill: It does not tackle wage issues and their related staffing shortages, which they call the heart of the child care industry’s woes.
4K changes await committee votes
Republicans are also spearheading another bill they claim will help child care providers, which received two public hearings earlier this month.
The bill would require school districts to contract with eligible early childhood education providers, including child care programs, to provide public 4-year-old kindergarten in those settings. It also would set a more uniform baseline for how much a school district must pay child care programs to offer public 4K.
Currently, school districts have the choice to contract with child care providers to provide 4K, and do not have stipulations on how much funding they must provide child care providers to offer 4K.
Because public 4K is free in Wisconsin, families who don’t receive public 4K through their child care provider may opt to withdraw their child from care and enroll the child in public 4K to save money. This threatens the revenue of child care businesses.
But those who oppose the bill say these changes will come at the expense of public schools.
Madison Lammert covers child care and early education across Wisconsin as a Report for America corps member based at The Appleton Post-Crescent. To contact her, email mlammert@gannett.com or call 920-993-7108. Please consider supporting journalism that informs our democracy with a tax-deductible gift to Report for America by visiting postcrescent.com/RFA.