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Legislation would cut child care costs for Nebraska child care workers

by Aaron Sanderford, Nebraska Examiner
January 3, 2024

LINCOLN — Nebraska could address part of its need for child care workers by replicating a Kentucky program that pays child care costs for child care workers. Kids Can, an early childhood education and day care, recently expanded into a new Omaha headquarters. (Cindy Gonzalez/Nebraska Examiner)

State Sen. John Fredrickson of Omaha on Wednesday introduced Legislative Bill 856, which would make all child care workers eligible for child care aid, regardless of their income. 

Nebraska day care workers passing a criminal background check would be eligible for aid if they work at least 20 hours a week at a licensed day care facility or in-home day care.

Kentucky model  

Fredrickson modeled his proposal after Kentucky’s, which used pandemic relief funds to make child care cheaper for child care workers, many of whom earn too little to pay for day care. Jodi-Renee Giron, grassroots and outreach adviser for First Five Nebraska, addresses the leadership group gathered in Ogallala, Nebraska. (Courtesy of First Five Nebraska)

The program attracted thousands more child care workers to the industry, and it opened up more slots in parts of the state without them, including rural Kentucky, researchers found.

It helped fund child care costs for an additional 3,200 child care workers, according to research by Kentucky Youth Advocates. Each new parent who entered the child care workforce helped another eight to 13 kids secure stable opportunities for care. 

Kentucky is exploring how to maintain the expanded aid using state funds as pandemic-related federal funds run low. Iowa adopted its own pilot version of the aid program last year. Health officials in both states had no immediate comment, nor did the Nebraska Department of Health and Human Services.

Child care a priority this session

Fredrickson’s push is one of several legislative proposals aimed at improving child care that state senators have said they would propose this year. Gov. Jim Pillen has made improved access to quality child care one of his priorities this session. Pillen had no immediate comment on LB 856. Nebraska Gov. Jim Pillen. Dec. 27, 2023. (Zach Wendling/Nebraska Examiner)

The idea may have bipartisan support. Jim Vokal, chief executive officer of the free market think tank the Platte Institute, which leans conservative, said his organization is reviewing the bill and “hopes to support” it “down the road.”

Early childhood advocates First Five Nebraska estimated that adopting LB 856 would provide child care benefits to another 2,200 providers, who would then care for other children.

Shortage of workers 

Nebraska, like Iowa and Kentucky, faces shortages of child care workers. More than 1 in 10 Nebraska counties lack a licensed child care provider, according to local research from Voices for Children.  Dimensions Education Programs in Lincoln, Neb., provides a hands-on, experiential approach to learning that is based on the needs and curiosity of young children. The We Care for Kids campaign is raising awareness of the importance of quality early childhood education in Nebraska. (Courtesy of We Care for Kids)

First Five Nebraska says more than a fourth of Nebraskans live in child care “deserts.” The state saw its total child care workforce fall by 11% from 2018 to 2022, First Five found.

Katie Bass, data and policy research adviser for First Five, said LB 856 could help stabilize the state’s child care workforce that today turns over at about a 30% rate.

Surveys show that Nebraska child care workers often leave for jobs in retail and fast food because of higher pay, she said.

“The Kentucky folks have said it is a recruitment and retention strategy,” Bass said. “This would be a benefit, a way to compete with those industries when you’re struggling to compete.”

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