Lake Houston - Humble - Kingwood | December 2023

BY WESLEY GARDNER

A closer look

Looking ahead

Nationwide child care costs

$1,470 lost in tax revenue per working parent due to decreased income tax revenue and decreased sales tax revenue from reduced spending, totaling roughly $21 billion annually $1,640 lost by businesses per working parent in reduced revenue and in extra hiring costs, totaling roughly $23 billion annually $5,520 lost by families per working parent in reduced earnings due to insufficient child care access and time spent looking for work if they’re fired as a result, totaling roughly $78 billion annually 12% reduction in the Texas child care workforce from January 2020 to March 2023

While Kofron said she was disappointed the state Legislature failed to approve an additional $2.29 billion for early child care that was originally included in the state’s budget, she pointed to a handful of bills that were approved aimed at assisting child care providers in Texas. Child care bills approved in 2023 Senate Bill 1145 Allows local tax authorities to give property tax relief to some child care programs House Bill 2729 Addresses teacher shortages for pre-K partnership classrooms by lowering the qualifications for pre-K teachers House Bill 1615 Helps child care providers gain eligibility to partner with local school districts to care for pre-K aged children.

Kofron said the industry could take an additional hit with the loss of federal relief funds. According to the nonprofit’s report, the relief funds helped support more than 80% of the existing child care centers in Texas. “Really, what that extra money provided was a bedrock of funding that allowed centers to pay their staff more—to be able to keep tuition lower for families,” Kofron said. “That money is gone now.” Matt Evers—co-owner of several Primrose School locations in the Greater Houston area, including Primrose School at Balmoral in Humble—said his businesses used a portion of the relief funds to help cover the cost of tuition for some staff members. Evers noted the loss of federal funding shouldn’t affect his staff’s compensation and benefits, but he said he believed low-cost providers might take a harder hit. Kofron said the loss of federal funding coupled with the rising cost of inflation could lead child care providers to raise tuition rates that are already too

SOURCE: COUNCIL FOR A STRONG AMERICA/COMMUNITY IMPACT

high for many families, which she said could have adverse effects on other sectors of the economy. According to a March economic impact analysis by nonprofit Council for a Strong America, the nation’s child care crisis now costs an estimated $122 billion in lost earnings, productivity and revenue from parents, businesses and taxpayers every year.

SOURCE: TEXAS LEGISLATURE/COMMUNITY IMPACT

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LAKE HOUSTON - HUMBLE - KINGWOOD EDITION

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