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Bill creates child-care cost sharing program
KEITH ARNOLD
Special to the Legal News
Published: July 19, 2024
A Chillicothe state lawmaker said he was inspired by the efforts of the local Goodwill Industries to establish a child-care center when devising legislation meant to help Ohio families with child-care costs.
Rep. Mark Johnson, a Republican, said just as Goodwill works to reduce barriers to employment for individuals with limited employability, the General Assembly should do its part to eliminate barriers for families.
“On average, child care for an infant and a 4-year-old costs a family $18,277 annually,” Johnson said during a recent Finance Committee hearing at the Ohio House of Representatives. “This financial strain has forced many parents, especially mothers, to reduce their working hours, or leave their jobs entirely to manage child-care responsibilities. If we want to remain known as a business-friendly state we need to address the child-care crisis.”
Johnson has proposed House Bill 610, the Child Care Credit Program, to allow the costs of child care to be shared equally by participating employees, their employers and the Department of Children and Youth.
HB 610 would authorize participating employers to select one or more employees to participate in the program and participants to choose a state-licensed or county-certified child-care provider, according to analysis of the bill by the Ohio Legislative Service Commission.
“I feel this is a step in the right direction,” Johnson said. “This program is not mandatory. Both the employer and the employee have to apply and be approved. The employer also must have more than one employee in order to participate.”
The bill would appropriate $10 million in fiscal year 2025 from the General Revenue Fund for the program.
Johnson said the funds are to be distributed on a “first-come, first-served basis” through the program.
The Department of Children and Youth would be responsible for coordinating and performing all administrative activities associated with the sharing of child-care costs and making payments to child-care providers, analysis provided.
“While Ohio provides publicly funded child-care to families earning up to 130 percent of the federal poverty level, current state support for child care is inadequate,” Johnson said. “Additionally, low reimbursement rates for publicly funded care have made it difficult for child-care providers to sustain their businesses and pay competitive wages to their staff.”
The lawmaker said his interest in the subject was first piqued by an Ohio Chamber of Commerce presentation about the need for more child-care resources several years ago.
“I believe this is a solution that works, is business friendly and helps solve the problem,” Johnson said. “I’ll be the first to admit this isn’t a silver bullet to fix all child-care issues, but HB 610 will help stabilize the child-care providers who are struggling right now.”
He noted that a companion bill––Senate Bill 273, sponsored by Republican Sen. Michele Reynolds of Columbus––has advanced to committee consideration in the upper chamber.
“I hope we can move forward with this legislation to build a strong partnership between our families and businesses,” Johnson said.
HB 610 awaits further consideration by the committee.
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