By Troy Hunter, Senior Policy Director, Groundwork Ohio
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This week, Groundwork Ohio presented testimony supporting Senate Bill 273 (SB 273) to the Senate Workforce and Higher Education Committee. This bill, if passed, would create new avenues for public-private partnerships to address Ohio's child care needs. You can read Groundwork's full testimony here.
Child Care in Ohio
Why does child care remain unaffordable for so many, while child care workers are often underpaid? The answer lies in chronic underinvestment. Lack of funding limits the availability of child care providers, creating a supply and demand gap that raises costs for parents. Many child care centers are financially stretched thin, and some are forced to close, worsening the issue.
This shortage of quality child care leads many families, especially mothers, to reduce their work hours or leave the workforce entirely, limiting both their income and career progression. Employers also feel the effects, as the lack of accessible, affordable child care shrinks their potential workforce.
Senate Bill 273 & House Bill 610
Senator Michele Reynolds (R-Canal Winchester) introduced SB 273 to launch the Child Care Cred Program. In addition, a companion bill, House Bill 610 (HB 610) that would also establish the program has been introduced by Representative Mark Johnson (R-Chillicothe). This program would create a cost-sharing structure between the employee, employer, and the Ohio Department of Children and Youth, with each covering one-third of eligible employees' child care costs. Here’s how the program would work:
Ohio-resident employees who don’t qualify for Publicly Funded Child Care and are selected by participating employers can apply. Employers must have a presence in Ohio to participate.
Child care costs are divided equally between the employee, employer, and the state. Employers can choose to cover more than one-third if they wish.
Participating child care providers must be licensed or certified.
The Ohio Department of Children and Youth will oversee the program, with an allocated $10 million from the General Revenue Fund for fiscal years 2024 and 2025.
How Public-Private Partnerships Can Help
While public-private partnerships alone can’t overhaul the entire child care system, they can make a significant difference by helping families afford quality care and supporting employers in attracting and retaining talent. These partnerships increase business engagement in the needs of working parents.
SB 273 and HB 610 would establish a model of public-private partnership through a program called the Child Care Cred Program. This initiative builds on models in other states, like Michigan’s Tri-Share Program, which has been successful in reducing child care costs by dividing them equally among employers, employees, and the state.
Lessons from Other States
Other states have implemented similar programs with positive results. For example:
Michigan’s Tri-Share Program splits child care costs among employers, employees, and the state, with each paying one-third. Regional facilitator hubs manage funds, coordinate the program, and ensure timely payments to child care providers. Initially funded at $1.1 million, Tri-Share has grown with added state and philanthropic funds and now has recurring support in the Michigan Department of Labor and Economic Opportunity’s budget.
Noble County, Indiana’s program uses a three-way split funded by local tax revenue, making child care more affordable. This supports working parents and provides financial stability to child care providers, laying the groundwork for further early childhood education improvements.
Kentucky’s Employee Child Care Assistance Partnership requires Kentucky employers to participate alongside Kentucky’s Cabinet for Health and Family Services (CHFS), which contributes funds based on family size and income. Employees, employers, and the state each cover part of child care costs, helping families reduce their expenses.
What Role Do You Play?
Child care is essential for Ohio’s workforce and economy, but it remains out of reach for many families. While no single approach can solve all the issues in our child care system, public-private partnerships like the Child Care Cred Program offer a viable step forward.
If you’re concerned about Ohio’s workforce stability and want to support policies that make a difference, consider engaging with Groundwork Ohio by:
Exploring our Business Case for Support to understand the broader impact and potential of programs like the one introduced in SB 273 and HB 610, or;
Joining our Business Coalition to connect with other leaders advocating for meaningful solutions.
SB 273 and HB 610’s Child Care Cred Program has the potential to alleviate the child care cost burden for families, boost workforce stability, and support child care providers across Ohio. By enabling public-private partnerships, the bill will help support the child care system in Ohio, encouraging businesses to invest in child care solutions that benefit both employees and employers.
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