Child care subsidy changes advanced

Lawmakers advanced a bill from general file Jan. 15 that would create an income disregard for determining continued eligibility for the state’s child care subsidy program.

LB359, sponsored by Omaha Sen. Tanya Cook, would increase the percentage of a household’s gross earned income that must be disregarded when determining continued eligibility for the subsidy.

As introduced, the bill would have created a graduated income disregard that increased with each year of eligibility. After 12 months in the program, 7 percent would be disregarded. The percentage would increase to 15 percent after 24 months and, after 36 months, a household’s gross income would be treated the same as at initial eligibility for the program.

An amendment offered by Cook, adopted 35-0, eliminated those provisions. Instead, the bill would set the income disregard at 10 percent upon redetermination.

Cook said the change reflects how the child care subsidy works in practice. The average family utilizes the subsidy for seven months, she said. As a result, many families who qualify for the program would not benefit from a gradual annual income disregard.

Cook said the amended bill would allow the approximately 750 families in Nebraska who receive the subsidy to earn modest raises and promotions at work without losing access to needed child care.

Scottsbluff Sen. John Harms agreed, saying the current system sets working poor families up for failure by penalizing their success.

“This (bill) will provide our families with the necessary assistance and with hope,” Harms said.

Lawmakers advanced LB359 to select file 37-0.