Far too many laws are passed today that might make us feel good, but really miss the mark in making significant and lasting change. Over the past eight years, we’ve lost more than 35% of our family childcare providers, costs have risen dramatically, reimbursement rates remain below the cost of care, and childcare remains unaffordable to many families.

We don’t believe anyone intentionally tries to make matters worse, but the solution to complex issues like childcare demands a thoughtful and long-term approach. We refuse to accept that the only answer is another tax increase or shifting the burden onto someone else.

Thank you for the work you do every day to build a love of learning and a strong foundation for children. We especially appreciate you taking the time to visit with us on Childcare Day at the Capitol. We’re committed to listening and engaging with families and providers to develop sustainable options that support a childcare business model that’s focused on developing a childcare system that leads the nation for quality, reliability, and sustainability.

After months of working with providers, teachers, parents, and industry experts, the Suburban Solutions Caucus has started putting together the Building Blocks for Learning Initiative. These building blocks are the foundation of an expanded childcare system that will increase affordability, attract new providers, stabilize costs, and provide more options for families and providers.

House File 4349 expands the dependent tax credit to 50% and up to $24,000 for two or more dependents for families with an adjusted gross income (AGI) up to $150,000. The credit rate phases down to zero at $200,000 AGI.

House File 4776 increases the amount employers may contribute to employee FSA accounts for dependent care. Employers are allowed a credit above and beyond exclusions under current law and a family may deduct up to $10,000. These expanded amounts that employers can contribute to employee FSA accounts would inject additional resources into a dependent care system that will address pay and workforce challenges for providers.

We also need to do all we can to eliminate regulatory burdens, expand who legal non-licensed providers can care for, and provide a framework and training for childcare cooperatives that have shown promise in other regions. We believe we can do this safely and affordably. We will continue working with teachers, parents, providers, and industry professionals to create the framework for this solution before we drop a bill and make it a reality.

Proposals that only address the amount a family pays for care based on their household income are only shifting the burden to others. These types of proposals kick-the-can on affordability and will make waiting lists even longer. Besides, with the entire $18 billion surplus spent last year, the money isn’t there at the moment to consider this as a serious solution.

We hope you can support the Building Blocks for Learning Initiative. We know it’s not a headline grabber, but it is a common-sense solution that we can implement now. It will decrease waiting lists and increase flexible options for families and providers. It will stabilize costs for childcare and increase access for families. It will inject more resources from businesses and families to build capacity with less government red tape and increase wages for providers and
caregivers. 

Please continue to share your thoughts, ideas, or questions, as your expertise helps us create better solutions to the priorities of Minnesotans.

Danny Nadeau | [email protected]

Patti Anderson | [email protected]

Ben Bakeberg | [email protected]

Jeff Witte | [email protected]

Shane Hudella | [email protected]

Andrew Myers | [email protected]

Mark Wiens | [email protected]