West Virginia’s state government is grappling with a child care crisis, including an acute shortage of daycare spaces, parents struggling to afford child care, and a potential state funding shortfall that could lead to more facility closures.
Governor Jim Justice has said He will call lawmakers into a special session starting Monday, but no details have been finalized as negotiations between the governor and lawmakers are ongoing. The governor canceled his weekly press conference on Wednesday.
Judiciary, legislators and others are putting forward ideas to address the convoluted problems Problems in child care, including the bills that the legislature not recorded beginning of the year.
Brian Dayton, Vice President of Policy and Advocacy for the West Virginia Chamber of Commerce, hopes Justice will draft the special session notice to include two bills that would provide incentives for businesses to offer child care to their employees.
“We are working with the legislative leadership to see what is feasible,” Dayton said. “The challenge we face now is that [Justice] can formulate the call very precisely or loosely.”
If Justice made the call on child care in general, lawmakers could debate any bills that could address the state’s child care problems.
A recent Opinion poll The survey, conducted by the West Virginia Chamber of Commerce, found that nearly 75% of members view child care as a problem for their businesses because the state has chronically low labor force participation. rateThe State Needs more than 20,000 childcare places for working families.
“With a shrinking population due to low birth rates and emigration, the lack of affordable child care is increasingly becoming an obstacle to family planning decisions,” the survey says.
While both Republicans and Democrats emphasized that childcare needs to be addressed, Your concerns about the state budget paused legislative activity on bills related to childcare during the session.
An invoice, Bill 5052would extend a 50% tax credit for businesses that develop on-site child care, created in 2022 legislationThe legislation proposed increasing that amount to 100% and would cost $10,000, according to the bill’s budget note.
“In order for West Virginia to remain attractive and bring more jobs to the state, child care is strategically absolutely necessary,” said Del. Bob Fehrenbacher, R-Wood, lead sponsor of the bill.
HB5051also supported by Fehrenbacher, would Provide tax credits for existing child care facilities, including those operated by employers. Nonprofit businesses, such as church-operated daycare centers, would be eligible for a transferable tax credit that would allow owners to recoup some of those funds.
Fehrenbacher explained that this is an attempt to aid stabilize the child care industry, which has seen a wave of closures due to financial problems exacerbated by staff shortages resulting from the COVID-19 pandemic. Dozens of state-run daycare centers have had to close this year, eliminating an estimated 700 places for children.
Dayton said lawmakers are aware that something needs to be done about child care — and sooner rather than later. “It’s something everyone is paying attention to now … Everyone knows it’s a problem. That’s a good thing,” he said.
Justice will advocate for child care tax credits and a novel grant program
Justice, who is running for the U.S. Senate, said he will introduce draft laws during the special session to create a tax allowance for children and those in need of care, This would create a state tax credit equal to 50% of the allowable federal child and dependent care tax credit. He said many families pay $600 to $700 a month for child care.
He also plans to implement some sort of child care subsidy program, but has not provided details other than to suggest that it will be done in partnership with Workforce West Virginia and will be performance-based.
“You have to wait and see what it is about,” said Richter said September 11 during a press conference. “We have a dilemma in this country when it comes to child care, and we need to find a way to help our working families if we can.”
Other lawmakers called on the Attorney General during the special session to fund the state’s child care subsidy program.
The Ministry of Human Services used Temporary assistance for needy families to fund the program after a recent change in federal funding rules gave the state at least a deficit of 34 million dollars for the program. About 15,000 children participated in the program last year, which requires parents to work or participate in some form of education.
TANF dollars are not a constant solutionand health ministry officials said the funds could run out before the end of 2024. Child care providers also said the level of subsidies had not kept pace with operating costs during inflation.
“The governor has mentioned that child care is one of the issues he would include in a special session, but what are those aspects and how might he address it?” Fehrenbacher asked.
“For me it would be ideal for all [the bills] on the agenda. I don’t know if it will include all of those aspects of child care,” he continued. “If it is anything, it is a step forward from where we are now. Let’s just go ahead and start now so that these child care providers can benefit from this.”
