Here's what Wisconsin lawmakers did — and didn't do — regarding child care this year
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From the late rescue of a program many child care businesses rely on to a flurry of bills that propose other supports for the industry, 2023 has been an eventful year for child care in state politics.
Whether you’ve been watching these happenings closely or are just now jumping in, here’s a recap of what the Legislature did — and didn’t do — about child care in 2023. Plus, there's a peek at what's to come in 2024, including a potential study committee devoted to child care.
Child Care Counts was set to end, until Gov. Tony Evers found another source. But, he said, it's 'not enough.'
With the pandemic-era funds that supported it running out, Child Care Counts, the state’s stabilization payment program that’s credited with keeping thousands of child care businesses afloat, was set to end in early 2024.
Advocates warned the end of the program would mean child care would become even more unaffordable and difficult to find. Some providers already started substantially raising their tuition in the spring when the program’s funds were cut in half, and planned further increases for when the program ended.
Democrats made multiple attempts to continue Child Care Counts in the new year and beyond — Gov. Tony Evers even called a special session on the matter — while Republicans had their own ideas on how to support the industry. For awhile, it seemed like Child Care Counts would end early next year after all.
But in October, Evers announced plans to direct $170 million — mostly unspent pandemic-related funding originally directed to other areas — to continuing the program at the current reduced funding levels through June 2025. He called it a “stopgap measure,” and said the one-time funding is “not enough.”
Child care providers told USA TODAY NETWORK-Wisconsin they were relieved by Evers' action. But, knowing the $170 million is half of what advocates and Democrats had asked for, they also know it won’t be enough to keep all providers from sinking.
More: Gov. Tony Evers announces $170M in 'emergency funding' to extend Child Care Counts
Wisconsin Shares, the state's child care subsidy program, had changes. More will come.
While Child Care Counts wasn't included in the 2023-25 state budget, the budget did increase the amount allocated to the Department of Children and Families by roughly $127 million for the biennium — the majority of which is federal funding. Much of this was to alter aspects of Wisconsin Shares, which assists qualifying families by paying a monthly portion of their child care costs.
This includes funding to support changing the way families’ subsidies are calculated to consider full-time or part-time enrollment. This provides some families with higher subsidy amounts, and therefore potentially less out-of-pocket costs. The change began Oct. 1 when participants could also start requesting Wisconsin Shares' help with registration fees, provided they meet specific criteria.
More: Wisconsin is altering its child care subsidy program. Here’s what families need to know.
Come July 1, 2024, more changes that were approved by the Legislature this year will roll out. To qualify for Wisconsin Shares now, a family’s gross monthly income can't exceed 185% of the federal poverty level. In the summer, this will switch to 200% of the federal poverty level, increasing the number of families that can receive the subsidy.
Currently, when participants make above the income phaseout threshold (200% of the federal poverty level, which will remain unchanged) their copayment increases by $1 for every $3 they make over the threshold. As part of the state budget passed this year, beginning in July participants will owe $1 for every $5 they make over the threshold.
The budget bill allocated $15 million for a fund for child care providers, to be administered by the Wisconsin Economic Development Corp. It’s unclear how this will be spent.
Republican child care bills passed the Assembly
This year, Republicans advanced a series of bills they hope would help the child care industry and families that rely on it. The bills, which passed in the Assembly along party lines and are awaiting Senate action, would change regulations and create a revolving loan fund for child care providers.
Another bill would allow Wisconsinites to set up a reimbursement account, which the bill’s authors liken to a health care flexible spending account, to help pay for child care expenses without having their contributions taxed by the state.
Proposed regulation changes that solicited concern during public hearings included allowing 16-year-olds to work in child care centers, increasing group sizes and the number of children per teacher for some age groups in centers, and allowing centers to alter staff-to-child ratios to reflect those in the local school district. Opponents said these threaten children’s safety; others appreciated the flexibility the changes would provide.
Rep. Joy Goeben, R-Hobart, an author of the bills, previously said the bills weren't meant to solve all child care problems, but to support “administrators, owners-operators as the ultimate decision-maker.”
Multiple providers told USA TODAY NETWORK-Wisconsin that, with the slim profit margins child care businesses make, they’d be wary of taking on loans from the revolving fund.
Authors of the bill that would create a child care reimbursement account wrote in a memo it would make child care more affordable for families by “lowering their state tax liability.” But if parents can't find child care in the first place, such programs won’t be useful, Appleton parent Carolyn Desrosiers told USA TODAY NETWORK-Wisconsin.
More: What's the status of child care, workforce proposals? Here are five things to know.
Another GOP bill hopes to incentivize employers to help with child care
In November, Republicans introduced another bill related to child care that authors say will help Wisconsin’s workforce. The bill would establish refundable state tax credits for businesses that help their employees access child care.
Under the bill, employers could receive up to $100,000 in state tax credit for costs involved with creating a child care program for its employees or making a contribution to a nonprofit to operate the program.
They could also receive a state tax credit of up to $3,000 per child of an employee for costs associated with subsidizing their child care, and certain operating and administrative costs associated with keeping that child in care. To receive the latter credit, the employer would have to pay at least half of the employees’ child care costs.
Nobody testified against the bill at its public hearing. Rep. Sue Conley, D-Janesville, said she asked employers in her district for their thoughts on the bill and “nothing negative came back.” However, a few small businesses told her they doubted they would take advantage of the new credits.
Republicans introduced another bill, also discussed in the Assembly Committee on Ways and Means, that would alter the business development tax credit, which is awarded by Wisconsin Economic Development Corp. to businesses it contracts with, to allow a business owner to claim tax benefits up to 15% of its investment for establishing a child care program for its employees, as well as up to 15% of its investment for workforce housing for eligible employees.
More: Republican bill would offer tax credits to businesses that help with employees' child care
Related: Ariens built a center in Brillion to provide subsidized daycare to employees. It's working.
Instead of Child Care Counts, Republicans opted for tax cuts. Their plan was vetoed.
Before Evers' allotment of $170 million to fund Child Care Counts, he called for a special session in September for lawmakers to consider his $1 billion workforce plan — which included $365 million for child care, including Child Care Counts.
Republicans passed an amended plan in both the Senate and Assembly. It scrapped Child Care Counts and opted for a $2 billion income-tax cut for a broad swath of middle-class earners that they said could help families pay for child care and other expenses.
The Republicans’ plan also would have expanded a tax credit that people with children could have used to pay for child care, among other initiatives. Evers vetoed it in November, calling it a “completely unserious” bill that “fails to meaningfully and sensibly address” workforce issues.
More: Republicans pass workforce plan with middle-class tax cut that Evers previously vetoed
What's in store for 2024?
Senate Majority Leader Devin LeMahieu, R-Oostburg, signaled the Senate would vote on the Republicans' package of six child care bills, but the chamber isn’t expected to reconvene until 2024.
“They went really fast through the Assembly, and we’re taking a good look at them," LeMahieu said in a Dec. 17 WKOW Cap City Sunday interview.”I think there’s some really good things in those bills. We just need to make sure that they’re clean and make sense.”
Even if the bills were to pass in the Senate, based on earlier comments from Evers spokesperson Britt Cudaback, it’s likely Evers will veto them.
“Legislation that could reduce the quality of care for our kids fails to keep child care center doors open tomorrow, and provides no immediate help to make child care more affordable for working families simply will not cut it,” Cudaback previously said.
The two Republican bills relating to tax credits for businesses supporting employees’ child care have to be taken up in the Senate committee and passed in both Senate and Assembly committees before they would head to both full chambers for votes.
The DCF also hopes to work with legislators and other stakeholders to achieve its goals for the new year, said communications director Gina Paige. She said these include:
Making Wisconsin Shares more user friendly so more families use the program
Reviewing and possibly altering YoungStar, the state’s child care quality rating system, to help increase access to high-quality care
Phasing out any initiatives funded through federal COVID relief supports that don’t have state funding
Pushing bipartisan support of long-term funding
If bipartisan legislation on child care isn't introduced and moved forward, Rep. Jill Billings, D-La Crosse, plans to ask that a bipartisan committee be created to study and introduce potential solutions to child care issues. Billings previously asked for such a committee in 2020 and 2022, along with Rep. Patrick Snyder, R-Schofield.
“Clearly it is an issue on the minds of legislators from both sides of the aisle and across the state,” Billings told USA TODAY NETWORK-Wisconsin in a statement. “The study committee would bring together not only legislators, but also child-care providers, workforce-development experts, business leaders and other relevant parties to find some common ground and common solutions on working towards addressing this issue.”
Snyder said he regrets that his and Billings' proposal didn't go through last session. He has yet to talk with her about submitting another proposal, and said for now he is focusing on "a productive spring legislative session."
Hope Karnopp and Jessie Opoien of the Milwaukee Journal Sentinel contributed to this report.
Madison Lammert covers child care and early education across Wisconsin as a Report for America corps member based at The Appleton Post-Crescent. To contact her, email mlammert@gannett.com or call 920-993-7108. Please consider supporting journalism that informs our democracy with a tax-deductible gift to Report for America.
This article originally appeared on Appleton Post-Crescent: Here's what Wisconsin lawmakers did — and didn't do — regarding child care this year
