Major child care bill lands on governor’s desk with strong support from WV senators

The Legislature’s flagship child care measure is heading to the governor’s desk after receiving strong support in the Senate. Republican members noted the role it could play in reversing the state’s very low labor force participation rate.

“One thing has become very clear over the last few years… If we are serious about workforce development, we have to be serious about child care having to be part of the conversation,” said Sen. Ben Queen, R-Harrison. “If we want people to work in this state, we need to make sure they have a safe and reliable place for their children to go during the day.”

More than 26,000 children in West Virginia currently lack access to child care because providers do not have enough spaces. according to government estimateswhich leads to long waiting lists of months or even years for some parents.

Childcare providers for years have asked lawmakers for aid dealing with financial challenges and have been a constant presence at the Capitol in recent years to raise awareness of myriad issues.

Lots of them financial instability was tied to state subsidies to care for thousands of children; the government reimbursement method for providers has fallen compact about the costs of child care. The funding program is available to low-income parents who work or go to school.

The senators agreed House Bill 4191 with a voice from 31-3 on Friday, a measure aimed at stabilizing the finances of day care centers. It also expands a tax credit for employers who provide childcare to their employees.

“Let me be clear, this is an economic development bill. This is a workforce development bill,” said Sen. Robbie Morris, R-Randolph. “As my colleagues have suggested, there is still much work to be done. This is a great first step and part of the puzzle.”

The House consolidated several child care bills it had debated this year into the measure and passed it last week. Years followed in which some members of the Republican Party and the Democratic House of Representatives tried to push through a child care law that was never voted on.

Sen. Joey Garcia, D-Marion, praised child care providers and parents who have reached out to the Legislature for several years to advocate for lawmakers to address the state’s child care shortage.

“Many of these child care providers have fought, not just this year but every year, to keep this type of legislation, this type of kitchen table issue front and center,” Garcia said. “There is more work to be done, but it can happen when the average citizen comes to the Legislature and speaks about issues that matter to them.”

Changes to federal child care subsidies for low-income working families

Among the bill’s requirements is that the Department of Human Services reimburse child care providers who care for children using the state’s child care subsidy based on total enrollment, not daily attendance.

The State recently changed From enrollment to attendance policy, it’s about how centers that serve children reimburse child care subsidies, meaning they were only paid for the number of children who showed up that day. Childcare attendance may be sporadic due to adolescent children’s ill days.

This reimbursement change was a challenge for the providerswho said they lost significant monthly revenue because many operating costs remained the same regardless of the number of children in attendance on a given day.

The bill also calls on the Department of Health and Human Services to address the so-called “child care subsidy cliff,” where a parent’s raise in income abruptly ends their support.

According to a study by the West Virginia Chamber of Commerce, the average cost of child care in West Virginia is about $800 per month for a child.

“The Legislature finds that a sudden loss of child care support due to modest increases in family income creates a benefit cliff that impedes wage growth, limits labor force participation, and destabilizes child care arrangements for children and families,” the measure states.

Under the bill, DoHS would have several options to address the issues, including setting higher exit eligibility thresholds.

The bill will also change the state’s tax credits for businesses that provide child care for their employees by including employer-sponsored child care facilities. This may be a third-party licensed childcare facility whose operating costs are financially supported by one or more employers through direct payments, contracts or grants.

“This will help us. This is a first step in increasing participation in our workforce and giving small businesses the opportunity to offer child care to their employers,” said Sen. Charles Clements, R-Wetzel.

The measure will cost the state Treasury Department an estimated $22,000 this year to implement the tax credit.

“What I appreciate about this bill is that it allows employers to be part of the solution,” Queen said. “Companies across West Virginia want to help their employees succeed, and this gives them the opportunity to invest in the families that power their businesses.”

The Senate failed to advance a measure This year there would have been grants for child care workers to exploit to care for their own children, sponsored by Sen. Mike Oliverio, R-Monongalia.

He said it would be a good “next step” for the Senate.

“I think it is in the best interest of the state to provide an incentive for workers to return to the workforce and provide care for their child so that they can care for nine other children,” Oliverio said.