Texas Employers Urge Lawmakers to Expand Access to Child Care, Reduce Costs

Texas employers are urging state lawmakers to invest funds in more programs to expand access to and reduce costs of child care, the lack of which has created challenges in attracting and hold back workers, they told lawmakers at a Senate committee hearing.

At the Texas Senate Committee on Natural Resources and Economic Development meeting Thursday, lawmakers noted how expensive child care has become for families and expressed a desire to do something to ease the burden. financial burden on working families.

“We spend money on highways to keep our citizens coming and going,” said Sen. Borris Miles, Democrat of Houston. “We are spending this money to develop the economy. We’re not spending money to keep people on these highways because they need to stay home to take care of these kids.

The committee’s discussion follows Wednesday’s release of a list of priorities for the upcoming legislative session by the Child Care Employer Task Force, a group of statewide businesses and industry associations whose employees are struggling with child care issues.

Access to child care has become a very important issue in businesses where workers cannot do their jobs from an office, such as in healthcare or in the hospitality and restaurant sectors. or construction, said Wendy Uptain, executive director of Early Matters, a Texas company. coalition working for more accessible child care.

“This becomes a problem for employers who are thinking about their employees and their retention,” Uptain said. “Childcare is essential.”

The task force suggested the state should provide grants to existing child care centers so they can expand into areas or times of high need, such as after 5 p.m. He also suggested the state provide employers with matching grants to help their employees cover child care costs. or provide tax credits to businesses that provide child care services.

The task force advocated for more streamlined processes and clearer regulations between the Texas Workforce Commission and the Texas Health and Human Services Commission, both of which oversee different parts of the child care industry.

Business owners, such as those who run restaurants, may want to offer child care options to their employees but need clearer access to information, said Kelsey Erickson Streufert, director of public affairs for the Texas Restaurant Association.

“They are experts in restaurant management,” Erickson Streufert said. “They are not experts in daycare management. »

Some day care owners also reported Thursday that they are struggling to keep their doors open as more public school districts offer full-day prekindergarten for 3- and 4-year-olds. Preschool care is not as expensive as infant care, which requires more staff per child and is therefore the most expensive part of running a daycare.

“At some point there is going to be a massive crash,” said Sen. Brian Birdwell, R-Granbury, who chairs the committee. “This is my perception of the battlefield.”

The committee plans to release a report in December on its mission to make recommendations to improve access to child care, Birdwell said.

Supporting Child Care in Texas

Last legislative session, lawmakers proposed a constitutional amendment to give city and county governments the option to waive all or part of child care property taxes in hopes of reducing the costs of these facilities and making them more affordable. encourage people to stay open. On November 7, 2023, Texas voters approved Proposition 2. If a local government chooses to grant an exemption, it could waive, at a minimum, half of the appraised property value of the facility.

Two days after the proposal passed, the Austin City Council passed a resolution directing the city manager to draft an ordinance establishing a 100 percent exemption from city property taxes for eligible child care centers. In January, the council adopted the ordinance, which took effect January 29.

Separately, on Nov. 5, Travis County voters approved a 2.5-cent increase in the property tax rate to help cover the cost of early childhood care, after-school and summer activities for more of 9,000 local children from low-income families.