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Lawmakers hear proposal to raise child‑care subsidy rates; agency warns of major cost
Summary
A task-force-backed bill would raise child-care assistance from 75% to 90% of market rate to help stabilize providers and workforce; Department of Social Services opposed on funding grounds, warning of large general-fund needs or reduced enrollment.
Senate Bill 126, supported by a stakeholder task force, would increase the state’s child-care assistance reimbursement rate for eligible families from 75% of market to 90% of market (sponsor proposed a 90% target, with amendments discussed). Proponents said higher rates are needed to keep providers solvent, boost teacher wages and prevent families from leaving the workforce.
Why it matters: Child-care availability is a workforce and economic-development issue. Low subsidy reimbursement is a common factor providers cite when closing programs or failing to hire enough staff to serve existing capacity.
Sponsor Rep./Sen. Tim Reid (task…
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