Minnesota Reformer: The state of early child care: ‘A Band-Aid on a gaping wound’

A group of DFL lawmakers in Minnesota is gearing up to introduce legislation aimed at alleviating the burden of child care costs on families. The proposed bill seeks to limit child care expenses at 7% of household income for families earning less than 150% of the state median income. For instance, a family of four with an annual income below $176,000 would not exceed $12,320 in child care costs annually. Currently, Minnesota faces one of the highest child care cost scenarios in the nation, with families spending approximately 20% of their income on child care, and infant care alone averaging over $16,000 per year.

The legislation, inspired by recommendations from the Great Start for All Minnesota Children Task Force, draws from federal benchmarks established in the 2014 reauthorization of the Child Care and Development Block Grant program. Lawmakers, led by state Rep. Carlie Kotyza-Witthuhn and state Sen. Grant Hauschild, envision a system where families contribute a portion of their child care expenses, while the state reimburses child care providers for the remainder. Although the draft of the legislation is still in progress, its anticipated completion by the start of the 2024 session suggests a timely response to the urgent need for affordable child care. The legislators, however, have yet to provide a comprehensive cost estimate or specify funding sources, hinting at the possibility of tapping into the state's revenue surplus. Despite the details still being fine-tuned, the proposal aims to not only ease financial strains on families but also address workforce shortages in the child care sector, potentially stimulating the expansion of child care providers and enhancing the overall quality of child care services.

Read the full article from the Minnesota Reformer.