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Committee hears proposal to create a dedicated California Affordable Child Care Fund
Summary
Assembly Bill 1428, proposing a 0.5% levy on corporations with revenue above $10 million to finance a dedicated child care fund, was presented and referred to the committee's suspense file after testimony from provider advocates and business opponents.
Assemblymember Marcucci presented AB 1428 to establish a dedicated California Affordable Child Care Fund funded by a proposed 0.5% tax on income above $10 million for corporations, with revenues deposited into a dedicated fund to support licensed child-care providers and reduce costs for families.
Marcucci said the bill aims to improve affordability and access by supporting providers' pay, expanding slots and improving program quality. "We know we have over 2,400,000 California parents that are unable to afford child care and hundreds of thousands of children without access to care," Marcucci said.
Terry Brennan of SEIU California introduced provider witnesses. Veronica Reillano, an early childhood professional who testified in her personal capacity, described layoffs at Head Start and urged sustained funding to avoid program cuts. "Early education is not a privilege. It's a human right," Reillano said.
A speaker for the California Taxpayers Association opposed the bill on competitiveness grounds, arguing higher corporate taxes would deter investment and jobs. "California is competing globally to attract and retain investment and employers," the association's representative told the committee.
Committee members discussed the need to balance revenue and long-term funding; Member McKenna urged collaborative negotiation among labor and business to find solutions. Marcucci said he would work on technical amendments and acknowledged the bill is tailored to exclude small businesses and to prioritize employers that already provide child care supports.
Chair Gibson announced AB 1428 is a suspense candidate and will be referred to the suspense file for further committee deliberation. No committee vote on the bill's merits was taken at this hearing.
