Report: Mass. parents could save money, work more with early child care subsidies

BOSTON — Legislation that would offer families financial assistance with the cost of early education and child care and address the stability of the industry would lead to huge increases in the percentage of young children in such programs and would dramatically reduce the cost burden for families, a new report from the University of Massachusetts Boston found.

Having child care be more accessible and affordable would also allow more people, particularly women, to work, or to work more. But it would come at a cost to taxpayers, the researchers noted.

The legislative proposal studied in depth would "shift the cost burden for childcare and early education from the families that receive financial assistance onto the state" — to the tune of $1.7 billion, the report said.

"Quality child care and early education matters for children's development. But it is expensive for families, despite the relatively low compensation rates for early childhood and out-of-school time educators," the research brief from the UMass Boston Early Ed Cost and Usage Simulator Project team indicated. "The estimates presented in this brief suggest that financial assistance would effectively enable more children access to licensed care as well as substantially reduce the cost burden on families. Additionally, because parents would be able to afford reliable care, a portion of them, especially mothers of young children, would be able to engage in more employment opportunities. The additional earnings will provide more resources for their families, and it will lift some families, especially single-parent families, out of poverty."

The researchers looked at Beacon Hill legislation that would provide operational grants to help stabilize the system through increased compensation and improved training, and so child care providers can enhance the quality of care. The legislation would also offer financial assistance aimed at families earning at or below 85% of the state's median income.

Hearing on Senate, House child care subsidy bills scheduled for Tuesday

Filed in January by Sens. Susan Moran, D-Falmouth, and Jason Lewis, D-Winchester, and Reps. Adrian Madaro, D-East Boston, and Ken Gordon, D-Bedford, the bills will get a hearing before the Joint Committee on Education at 11 a.m. Tuesday in the Gardner Auditorium at the State House.

UMass report found about half of families with children would qualify for subsidy

The report found that almost half of all Massachusetts families with children under 14 (or under 17 for children with special needs) would be eligible for the legislation's proposed financial assistance, saving the average eligible family $13,260 per year and reducing the percentage of their family income going to child care from an average of 17.2% to an average of 4.3%.

And more kids would be enrolled in licensed child care and early education programs because of the availability of financial aid: up from 55% to 75% of infants, from 66% to 82% of toddlers, and from 64% to 76% of preschool children, the report said.

With more children enrolled in child care, an estimated 10,400 mothers would enter or re-enter the workforce, and 21,000 currently employed parents would increase the number of hours they work, the report found. The overall family poverty rate would fall from 15.5% to 14.1%.

"This report confirms that solving the child care crisis in Massachusetts is both achievable and necessary," said Deb Fastino, director of the Common Start Coalition, referring to a 2022 report from the Mass. Taxpayers Foundation. "Previous research has found that Massachusetts loses $2.7 billion each year due to inadequate access to child care; we can't afford not to act."

The Common Start Coalition said the legislation is co-sponsored by a majority of legislators in both branches — 102 representatives and 28 senators.

Child care a focus of state leaders

The importance and vulnerabilities of the early education and care field came into sharp focus when the pandemic closed schools and child care centers, upending the work routines of many parents. Early education and child care began this legislative session looking primed to be a major focus of investment and attention with Gov. Maura Healey, House Speaker Ronald Mariano and Senate President Karen Spilka all on board.

Healey singled out the issue as a priority in her inaugural speech, calling for state government to "pledge to be the first state to solve the child care crisis" and referencing a version of the Common Start proposal that she endorsed during her campaign, which would eliminate child care costs for the lowest-income families, limit those costs to no more than 7% of income for other families, and increase early educator pay.

"Let's finally pass legislation in line with Common Start to make sure every family pays what they can afford and that care workers are paid what they deserve," she said. "This is something our families, workers and businesses all agree on."

Mariano said during his own session-opening speech that "the full attention of the House will be directed at examining ways to further support our vital early education and care workforce" during this session.

And Spilka, whose chamber unanimously approved a bill in July (which went unfinished by the end of the session) seeking a years-long expansion of subsidies, increased pay and benefits for workers, and permanent grants to stabilize providers, also pointed to early childhood care as one of her priorities this session.

"Simply put, it is past time to update the way we imagine and support this crucial sector," the Senate president said.

A report released last year by the Special Legislative Early Education and Care Economic Review Commission estimated that $1.5 billion in investments are needed to stabilize the early education and care system and help it meet the needs of families.

The new state budget signed in July made significant investments in early education and child care. Spilka has indicated she plans to revisit the omnibus early care bill, but Democrats in the first nine months of this two-year session have yet to put a bill up for debate in either branch.

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This article originally appeared on Cape Cod Times: UMass study finds parents could save, work more with child care subsidy