Lawmakers, Childcare Providers Look At Solutions For Rising Childcare Costs

State lawmakers and childcare providers are digging into solutions for rising childcare costs.

This comes after the Department of Human Services (DHS) proposed funding cuts and eliminating subsidies for families.

DHS says it can no longer sustain current spending levels since pandemic-related financial support has dried up. One of the proposals under consideration would eliminate childcare subsidies for 15% of Oklahoma families.

The interim study led by Rep. Mark Vancurren (R-Owasso) studied the Increasing Costs of Childcare in Oklahoma. “What can we do here in Oklahoma to really deliver quick solutions,” questioned Rep. Suzanne Schreiber, (D- Tulsa).

Providers say here in Oklahoma County the average family spends $21,000 annually towards childcare for two kids, while the state's median income is $83,000 for a family of four.

In Oklahoma, subsidized child care is 96% federally funded, while the state only provides 4%. Schreiber says currently the state is providing about $20 million annually, which she says is the minimum requirement. “It is a huge piece, and we don't really invest much in it now. So I think that number bears looking at too, to see what our share should be as a state,” said Schreiber. She says childcare is the foundation of the workforce in the state.

“Everyone needs child care because everyone needs to go to work and provide for their families,” said Stephanie Day. “It is important work that I don't think people understand.” Joan Day and her daughter Stephanie run four childcare centers taking care of 57,000 kids using the subsidy in the OKC metro. Day says the extra COVID-19 relief funding they received for the center during the pandemic, and over the last three years, was life-changing. “For the first time in 33 years, I started to feel like my foundation was secure until 3 weeks ago,” said Joan Day.

That's when DHS proposed funding cuts and eliminating childcare subsidies for 15% of Oklahoma families. Until now, 85% of families in the state would qualify for these subsidies, but under the new proposal, the number drops to 70%. “I think we can all agree that the children of low-income families deserve the same quality care, as someone living in gaillardia or in a higher income area,” said Stephanie Day.

Now these providers are asking lawmakers to fill the funding gap. “We're asking for the state to finally invest in our families and our children,” said Day. They say without action, they’re worried their childcare workers will be forced to move into other sectors. “Our staff, they’re faced with a tough decision. Do I stay in childcare, a career that I think is beneficial, that I get fulfillment out of or do I go down the road to Target or to Mazzios that pay dollars an hour more than we can provide,” said Day. 

For the third year in a row, Schreiber plans to run a bill that she is hoping will ease the financial burden on working parents. The legislation would provide a tax credit to employers who share in the cost of childcare with their employees. She says it would give some flexibility, allowing each employer to decide how they want to design it. She gave some suggestions such as pre-purchasing slots in a local childcare center or providing a specific benefit on paycheck for childcare. “It's a very controlled effort to bring in our employers who I think are eager to help solve this problem but I think it's appropriate that the state gives them that tax credit. So that's one approach we have brought in,” said Schreiber.

Vancurren says it was a productive conversation that he is hoping leads to some change in the 2025 legislative session. “When we look at the workforce this is an issue that could very well keep us at the status quo or catapult us into a top 10 situation,” said Vancurren.