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LINCOLN — Income eligibility for Nebraska’s child care subsidy program would remain at the higher caps the state set in 2021 under a legislative proposal advanced Thursday by two committees, including in the state budget.
The Legislature’s Health and Human Services Committee voted 5-1 to advance Legislative Bill 304, from State Sen. Wendy DeBoer of Omaha. It would permanently maintain income eligibility caps at 185% of the federal poverty level rather than lowering them back to 130% this Oct. 1. DeBoer led the 2021 bill to increase the eligibility levels for two years, which was extended again in 2023.
The Appropriations Committee separately voted 7-0 to approve a motion that included incorporating the provisions of LB 304 into the state budget, which heads to the full Legislature next week.
For a family of four, the difference is eligibility extended to $61,050 in annual household income compared to the previous cap of $42,900.
DeBoer said she was happy the full Legislature could soon weigh in.
“One step closer to ensuring more families in Nebraska continue to have the child care they need,” she said in a Thursday text.
Both committees funded the increase using the state’s Health Care Cash Fund rather than general fund tax dollars, which are primarily collected from income and sales taxes.
According to figures from the Appropriations Committee, the change would cost $10.71 million this budget cycle.
State Sens. Brian Hardin of Gering, Beau Ballard of Lincoln, Glen Meyer of Pender and Dan Quick of Grand Island voted for the bill and associated amendment in HHS.
State Sen. Ben Hansen of Blair did not vote on advancing the bill and said he would likely bring an amendment to extend the income eligibility caps for two years, rather than in perpetuity.
State Sen. John Fredrickson of Omaha, HHS Committee vice chair, said the eligibility changes were needed but did not vote to use the Health Care Cash Fund over long-term concerns, though he said he understood the reason for DeBoer’s suggestion, given the state’s budget deficit.
The health care fund is one of many cash funds Gov. Jim Pillen has proposed to be fully or partially swept to help balance the state budget.
DeBoer has designed LB 304 as her personal priority for the year, increasing chances of it reaching floor debate before lawmakers adjourn next month.
But the Appropriations Committee adding the contents of LB 304 into the state budget bills would eliminate the need for the legislation to pass, if the Legislature approves a committee amendment to fold it into the budget.
With 17 days left in the 60-day legislative session, some Appropriations members expressed concern that there wouldn’t be enough time to pass LB 304 as a standalone bill. But State Sen. Machaela Cavanaugh of Omaha said the committee’s method was cutting corners.
She said she would ask to divide the committee amendment in the next round of floor debate to get a separate vote on the measure. Cavanaugh asked her colleagues whether the committee could just do things the “right way.”
Cavanaugh and State Sen. Ashlei Spivey of Omaha did not vote for the LB 304-related motion in Appropriations.
State Sen. Merv Riepe of Ralston, in HHS, opposed advancing the bill and opposed the amendment. He said businesses should bear the increased cost and expressed concern about the government getting more involved in child care. Riepe said he also had concerns about using the Health Care Cash Fund for non-health-related purposes.
Former State Sen. Matt Williams, the interim president of the Nebraska Chamber of Commerce & Industry, said the group was “thrilled” LB 304 is moving forward.
“Our Foundation’s research has identified child care costs as a major inhibitor of economic growth and prosperity for communities around Nebraska,” Williams said in a statement. “It’s a proven measure that will help thousands of parents remain in the workforce and support their families.”
Chris Triebsch of First Five Nebraska, a child care advocacy nonprofit, thanked both legislative committees.
“This important next step will help make sure child care remains within reach of more Nebraska families,” Triebsch said. “We once again thank Senator DeBoer for her leadership, and we now ask the Nebraska Legislature to get this across the finish line.”
A bipartisan group of 17 other lawmakers has signed on as cosponsors to LB 304. More lawmakers attended a news conference in support of DeBoer and her bill in January.
Current cosponsors of DeBoer’s bill are State Sens. Tom Brandt, John Cavanaugh, Stan Clouse, Danielle Conrad, Barry DeKay, George Dungan, John Fredrickson, Dunixi Guereca, Bob Hallstrom, Megan Hunt, Margo Juarez, Dan Quick, Jane Raybould, Victor Rountree, Ashlei Spivey, Paul Strommen and Dave Wordekemper.
Speaker John Arch of La Vista said he expects second-round debate on the mainline budget bills, LB 1071 and LB 1072, in the middle of next week.
Nebraska Examiner reporter Erin Bamer contributed to this report.
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