Montana committee hears broad support for bill to boost childcare worker pay through $59 million program

HELENA — The House Health and Human Services Committee heard more than an hour of testimony Wednesday on House Bill 360, legislation sponsored by Representative Melissa Romano that would create a Child Care Workforce Recruitment and Retention Program to provide ongoing payments to licensed and registered child care facilities with the stated goal of raising wages and benefits for early childhood workers.

Romano, the bill sponsor, told the committee the program is intended to address a workforce crisis in Montana child care by supplementing provider revenue so programs can pay higher wages without pricing families out of care. "This bill proposes a program to distribute payments to licensed and registered childcare facilities in order to improve wages and benefits for childcare workers," Romano said, citing state figures showing provider shortages and turnover.

Why it matters: Multiple providers and parent witnesses said low pay and high turnover are forcing programs to close classrooms or operate below licensed capacity and are limiting families’ ability to work. Witnesses gave consistent examples: tuition for full-time care often ranges between $9,100 and $11,700 per year per child, many centers reported turnover near 34%, and the median childcare wage in Montana in 2023 was about $14 an hour.

Dozens of proponents, including child care owners, nonprofit advocates, labor groups and parents, urged the committee to advance HB360. Operators said one-time ARPA stabilization dollars had temporarily allowed centers to offer paid time off and modest wage increases and that the end of those funds has resumed financial pressure. "We have students who want to marry her," said Melissa Whithorn of a longtime teacher on low pay, illustrating providers’ reliance on personal sacrifice to stay open.

Fiscal approach: Committee members pressed witnesses on the bill's $59 million annual appropriation. Zanna Berg of the Montana Budget and Policy Center explained the estimate: using a state living-wage target of roughly $20 an hour (per MIT’s living wage calculator) and a midpoint increase from current median wages, the sponsors estimated a per-FTE support amount (roughly a $10.50 monthly base on the calculation described in testimony) multiplied by an estimated just-under-5,000 child care employees and 12 months of payments resulted in the $59 million annual figure. Berg cited Minnesota and Illinois as examples of similar models that have shown early signs of improving retention.

Implementation and eligibility questions: Tracy Moseman, administrator for Early Childhood and Family Support at the Department of Public Health and Human Services (DPHHS), appeared as an informational witness. She told the committee the department would need at least one dedicated FTE as a program manager to review invoices and process reimbursements and that some monitoring and invoicing procedures would be necessary to ensure funds are used for allowable expenses. On eligibility, the sponsor and Moseman said family day care homes that are licensed/registered would generally be eligible; Moseman noted tribal licensing is separate in some cases and that some tribal facilities are dually licensed while others are licensed only by tribes, which could require statutory clarification.

No organized opposition appeared in the room or online; supporters argued the program would improve retention and expand access, while witnesses representing employers, survivors’ services and unions stressed broader workforce and public-safety benefits. Advocates also noted that many families who pay privately for care earn too much to qualify for the Best Beginnings subsidy (currently set at 185% of federal poverty level) and still cannot afford higher tuition.

Next steps: Representative Romano urged the committee to pass the bill; Chair Marshall closed the hearing and reminded members of related procedural meetings scheduled for the following day. The committee did not take a vote on HB360 at the hearing.

Sources: Sponsor testimony and multiple providers, parent and advocacy witnesses; informational testimony from Tracy Moseman of DPHHS and policy analysis from Zanna Berg (Montana Budget and Policy Center).