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House sponsor outlines childcare CRED program: $10 million appropriation, tri-share split and 400% income limit
Summary
Representative Johnson presented sponsor testimony for substitute House Bill 2, which would create a childcare CRED program with a $10 million appropriation, administered by the Department of Children and Youth, using a state/employer/employee tri-share model and a 400%-of-poverty income cap.
Representative Johnson, sponsor of substitute House Bill 2, told the House Finance Committee that the bill would establish a “childcare CRED program” intended as a public–private approach to Ohio’s childcare challenges. He told the committee the bill “established a childcare credit program and it’ll be administered by the Department of Children and Youth” and that the legislation allocates $10,000,000 to the program.
Johnson described the program as voluntary for employers and employees: both employer and employee must apply and be approved, and the employer must have more than one employee to participate. He emphasized an income eligibility cap in the amended substitute: the program requires family income not to exceed 400% of the federal poverty level.
On financing, Johnson said the program is a tri-share model and described the split in the amended substitute that is in the current budget language: “the state puts in 20%, the employer 40%, and the employee 40%.” During committee questions Representative Sweeney asked why the state’s share was reduced from an earlier one-third model; Johnson replied that with $10 million appropriated “the 20% makes the program serve more families” and that adding the 400% income limit targets assistance to families most in need.
A committee member asked how many families $10,000,000 would serve; Johnson said he did not have an exact estimate but expected the program to be popular and likely to reach its funding cap in the first year. The sponsor noted that the program is part of the budget language and a companion bill was introduced in the Senate.
The committee concluded the bill’s first hearing with the sponsor’s testimony and no formal committee vote or amendment action recorded at this hearing. Committee members asked clarifying questions about the finance split, participation requirements, and likely demand; the sponsor urged the committee to move the program forward as “a step in the right direction.”
