Lower child care reimbursement rates advance

Nebraska child care reimbursement rates would be lowered under a bill given first-round approval April 18.

Under LB464, introduced by Lincoln Sen. Kathy Campbell at the request of the governor, the state Department of Health and Human Services would no longer be required to set rates at a level between the 60th and 75th percentile of a market survey.

The bill as introduced would have repealed the requirement that rates be set according to the survey.

An Appropriations Committee amendment, adopted 42-0, instead would lower to the 50th percentile the minimum rate that HHS could pay for the next two years, beginning July 1, 2011. In addition, the rate paid to child care providers could be no lower than the rate paid in the preceding fiscal year.

Elk Creek Sen. Lavon Heidemann, chairperson of the committee, said the amendment would result in a savings of $3.6 million during the current budget cycle as opposed to $5.6 million under the bill as introduced.

“We won’t save quite as much,” Heidemann said, “but the savings are still there.”

Campbell supported the amendment and said the Legislature will continue to examine the provision of early childhood care in Nebraska.

“It isn’t enough just to look at the subsidy,” she said. “We also need to look at the quality of care.”

Lawmakers advanced the bill to select file on a 40-0 vote.