Child care providers say governor’s budget lacks workforce investment

by Kate Lisa

Gov. Kathy Hochul included new tax credits and investments in her executive budget proposal aimed at helping the state’s deteriorating child care system, but business leaders and providers in the industry say they’re not the best ways the state can address the crisis.

The governor’s spending plan commits investing $7.6 billion in child care over the next four years, which Hochul says will expand access to care for 500,000 New York children.

“To help the affordability crisis for parents, we’re going to continue our investments in child care,” Hochul said during Wednesday’s budget address delivered in the state Capitol. “As the first mother to lead this state, I know how real this is. I know how important it is.”

About 10% of families eligible for child care assistance are enrolled to receive it, Hochul said.

The state is increasing the income threshold for families eligible for assistance to 85% of the state’s median income for a family of four, or $93,200 annually. The child care application process will also be streamlined, and families who receive other government support will be automatically eligible for the program.

The governor’s proposal includes $389 million in grants for child care programs, but Peter Nabozny, policy director with The Children’s Agenda in Western New York, says the temporary reimbursement won’t help families long-term.

“While that may help a provider offer a hiring bonus or a retention bonus and things like that, they need to be able to offer sustained, higher wages, and a six-month-long grant program does not do that,” he said.

The state has suffered steep reductions in the number of child care providers since the start of the COVID-19 pandemic. Providers say Hochul’s ideas are promising, but that they’ll increase the number of families who can access care without addressing the child care program and staffing crisis.

Providers part of the Empire State Campaign for Child Care say the final state budget must invest $1 billion to increase wages for the child care workforce — especially with the governor’s commitment to tie annual increases in the minimum wage to inflation.

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