Democrats in control of the Minnesota House want to spend a big chunk of the state’s $1.3 billion budget surplus to help families afford preschool and child care.
Democratic-Farmer-Labor Party leaders outlined at a news conference Thursday $500 million in spending on public prekindergarten programs, preschool scholarships and the Child Care Assistance Program. Much of it is one-time spending that would expire unless lawmakers continued it in the next two-year budget they draft in 2021.
“We believe that all of our children deserve a great start in life,” said House Speaker Melissa Hortman, DFL-Brooklyn Park, who noted most of the spending was targeted at kids from birth to age three. “We know this is the most critical time in the development of a child’s brain. We can have an incredible impact on a child’s whole life if we invest in quality early learning opportunities.”
Hortman added affordable, high-quality day care was essential to giving children a good start and helping families.
TACKLING DAYCARE’S HIGH COSTS
Minnesota ranks fourth in the nation for daycare costs, according to the Economic Policy Institute. The average cost for an infant in a private facility is $1,341 per month.
Here’s how the House DFL spending plan breaks down:
- $190 million into the Child Care Assistance Program, or CCAP, with $170 million going toward increasing the reimbursement rates paid to providers.
- $190 million increase in Early Learning Scholarships targeted at children three and younger. These scholarships would reach about 25,000 children and could be used at public and private programs.
- $60 million toward 4,000 existing public prekindergarten spots that are set to expire.
- $30 million for home visiting to help new parents.
- $22 million to support day care and preschool providers.
- $7.5 million to evaluate existing systems to provide preschool and childcare.
LONG ROAD TO PASSAGE
Hortman acknowledged she’s got a lot of convincing to do if such a large spending proposal is to win approval. Democratic Gov. Tim Walz is a supporter of investing in early childhood programs, but is currently focused on winning bipartisan support for a $2 billion state construction bill.
The House bill currently does not have Republican sponsors and just last year Senate Republicans sought to freeze spending on childcare assistance amid complaints. This year, the GOP-led Senate wants to spend a chunk of the surplus to eliminate taxes on social security.
Republicans in both chambers have pushed to reduce rules and regulations to help more private day care and preschool providers start and stay in business. There’s also been broad bipartisan support for early learning scholarships.
House Democrats defended using one-time money from the surplus to boost child care and early education programs. They signaled a hope future legislatures would continue the spending.
“It certainly does a lot more than not spending the money,” said Rep. Dave Pinto, DFL-St. Paul, noting that state reimbursement rates are too low for providers to survive.
“We know we have this money now, the kids are this age now and the families have this need now,” said Pinto, the chair of the House early childhood committee.
LOW PAY FUELS ‘CRISIS’
Karin Swenson, executive director of Meadow Park Preschool and Childcare in Rochester, spoke in favor of the proposal, but repeatedly drew attention to what she called a “crisis” in the early childhood workforce.
Providers struggle to recruit and keep early childhood educators because the pay is so low, Swenson said. Nearly 20 percent of teachers live in poverty.
“Low teacher pay is supporting this system,” Swenson said, noting that nearly 20 percent of early childhood educators live in poverty. “It really is an injustice.”