Libby bill to increase access to child care for working parents moves forward

A bill introduced by Sen. Nate Libby, D-Lewiston, to increase payments to child care providers that serve working parents was endorsed by a bipartisan 8-4 vote in the Legislature’s Health and Human Services Committee.

The state reimburses child care providers for services provided to working parents receiving limited child care assistance through the Temporary Assistance for Needy Families program. The two year state budget enacted in 2011 reduced the reimbursement rate from the 75 percentile of a county’s local market rate to the 50th percentile, where it has remained flat for the last seven years.

The amended version of LD 166, “An Act To Increase Reimbursement for Child Care Services” directs the Department of Health and Human Services (DHHS) to increase childcare reimbursement rates as soon as new federal Child Care and Development Block Grant (CCDBG) funds are made available. The two year federal budget passed in Congress earlier this month doubled the CCDBG funds available in both of the next two years.

Submarket rates for child care reimbursements discourage providers from accepting children from families who are receiving state child care subsidy.

“Submarket rates make it nearly impossible for childcare providers to stay in business, and make it nearly impossible for working parents to access quality child care regardless of their ability to pay,” said Sen. Libby. “Child care providers just want to take care of kids, but they’re being put in a position where they need to either accept a significant financial loss or turn these families away. Putting child care providers in this untenable position only hurts families who can neither afford to stay home from work nor to pay full price for child care.”

Child care providers operate at tight margins, even though they provide a vital service to Maine’s families. If Maine continues shortchanging providers, struggling families will increasingly be left without options for child care as providers turn to families who pay full price. Without access to child care, it is difficult for parents to hold down a job and move out of poverty.

LD 166 moves next to face votes in the House and Senate.