Child care provider assistance proposed

The Health and Human Services Committee heard testimony Jan. 26 on a bill that would create a new category of eligibility for Nebraska child care providers under the Child Care Subsidy program.

LB856, introduced by Omaha Sen. John Fredrickson, would exclude all earned and unearned income from eligibility determinations for the program for households with at least one individual who holds employment in a qualifying child care setting.

Under the bill, individuals who pass a criminal background check and are employed at least 20 hours a week at an in-home or licensed child care facility would be eligible for the child care subsidy for their own children under the program.

Fredrickson said LB856 is modeled after a successful initiative in Kentucky that resulted in more than 3,200 additional parents qualifying for subsidized child care for over 5,600 children. When adjusting these figures proportionally to Nebraska’s population, Fredrickson estimated the bill would result in an additional 2,175 parent providers in the workforce, offering stable child care to more than 16,000 Nebraska children.

“The LB856 concept is simple and measurable,” he said. “More workers recruited and retained in our child care workforce means more children served and more workers into our overall economy.”

Fredrickson said the state Department of Health and Human Services has estimated a cost of $21 million to carry out the bill’s provisions, but he noted that similar legislation enacted in Iowa was estimated to cost only $6.8 million.

“Even at $21 million, this is an investment that will pay dividends,” he said. “It is not possible to address the child care crisis in a truly meaningful way without investment.”

Testifying on behalf of Voices for Children in Nebraska in support of L856, Anahi Salazar said many parents have had to reduce their hours or quit jobs due to a lack of accessible and affordable child care. Ninety one percent of Nebraska counties cannot meet local child care demands, she said, and 11 are considered “child care deserts” — having no licensed providers.

“These deserts have a negative impact not only on parents and children, but also the economy,” Salazar said. “In order to keep and attract families in Nebraska, there needs to be affordable and accessible high-quality child care for every child.”

Anne Brandt, executive director of Lincoln Littles, also testified in support of the measure. A survey conducted by Lincoln Littles and the Nebraska Public Policy Center found that nearly 60% of local child care facilities are experiencing shortages, she said.

Many child care facilities have started offering discounted rates for employees’ children in order to recruit staff, she said, but the resulting revenue loss is negatively impacting their long-term profitability.

“Passing LB856 into law would not only recruit and retain more individuals to the child care field, but also put money back into businesses’ pockets,” Brandt said.

Also testifying in support of the bill, Platte Institute representative Nicole Fox said employment in the child care industry has yet to return to pre-pandemic levels. Between January and April of 2020, employment in the child care sector declined by 33%, she said.

“Child care workers were forced to search for work in other industries, leading to child care staffing shortages and limited child care availability,” Fox said. “LB856 provides a solution to a piece of Nebraska’s critical workforce shortage puzzle by helping to increase child care options for working families while supporting those doing this important work.”

No one testified in opposition to LB856 and the committee took no immediate action.