House Bill 41: supporters say grants to convert underused space will expand childcare capacity

Supporters of House Bill 41 told the House Committee on Children and Human Services that the bill’s proposed grants would encourage public‑private partnerships to convert underused commercial and public properties into licensed childcare classrooms, increasing capacity quickly and lowering operating costs for providers.

Rick Carfagna, senior vice president for government affairs at the Ohio Chamber of Commerce, told the committee that Ohio has “a considerable volume of dormant or underutilized commercial properties that are ripe for conversion into childcare spaces” and pointed to high office vacancy rates in several Ohio cities as potential opportunities. He described projects where libraries and donated land were repurposed for childcare and the Ashland County “Women’s Fund Child Care Initiative,” which raised roughly $4.5 million and built a 12,400‑square‑foot facility to serve 150 children.

Ron Holbrook, representing Sugar Creek Packaging Company, described his company’s multi‑site experience establishing on‑site and near‑site childcare. He said Sugar Creek provides the space, maintains the building and supplies non‑consumable materials while licensed providers operate the centers and hire staff. “Because of our arrangement, the cost of care is generally less than others in the area,” Holbrook said, and he added that his company’s Washington Courthouse center has operated for 25 years and enrolls 53 children.

Local nonprofit leaders described employer‑partner models already in use. Robin Lightcap, executive director of Preschool Promise in the Dayton region, said her group has met with more than 30 businesses to form partnerships and stressed the need for simple administration, capital flexibility and support for existing resource‑and‑referral systems. “We need the state to take on the administration costs. We can't be asking businesses to administer a complicated tri‑share dependent care FSA,” Lightcap said.

Elizabeth Hibbs, director of the Early Childhood Education Alliance (ECCA) in Alliance, described the Alliance Employment Promise, a local program that pays up to $200 per child per month and has, she said, helped participating businesses retain employees. “Quality early education and care serve as effective workforce development solutions that positively impact both the workforce and the community now and in the future,” Hibbs told the committee.

Groundwork Ohio’s Troy Hunter summarized statewide supply and workforce challenges, citing that 39% of Ohioans and 60% of rural residents live in a childcare desert and that 58% of providers report staffing shortages. Hunter said targeted grants for employer‑based and community initiatives can help expand access in hard‑to‑serve areas.

Witnesses and committee members discussed workforce challenges for childcare providers, wage pressure, and the need for flexibility in funding to address capital, operational and inclusion needs (for example, retrofitting playgrounds or ramps for children with disabilities). No formal votes or final actions were taken on House Bill 41 during the hearing. Proponents urged lawmakers to design grants that allow retrofitting, capital expenses, and technical assistance so existing providers and family childcare homes can participate.