Tax credits are the weapon of choice for Georgia lawmakers looking for ways to make child care more accessible and affordable.
A state Senate study committee wrapped up its work Dec. 12 by recommending a series of new and expanded tax credits aimed both at families with young children and the child-care providers who serve them.
A new Georgia Child Tax Credit would help families with the youngest children offset the costs of child care as their children reach school age.
Expanding eligibility for the state's existing tax credit for employer-sponsored child care and increasing the amount of that credit would help companies retain their workforce.
And a refundable tax credit for early childhood educators would help child-care providers offset their costs of doing business.
"We won't solve this problem as a state government," Sen. Brian Strickland, R-McDonough, chairman of the Senate Study Committee on Access to Affordable Child Care, said shortly before the panel unanimously approved a list of recommendations. "(But) there are things we can do to make child care more accessible and more affordable."
Affordable child-care options that already were limited in Georgia became even less so during the pandemic, which forced many child-care centers to close. Many have failed to reopen or opened back up with limited staff.
Ideisha Bellamy, CEO of the Georgia Child Care Association, told members of the study committee early this month that a survey of member child-care providers found 86% were having problems finding enough employees and retaining the workers they have. Nearly 70% said they are operating at less than capacity because of staffing shortages or funding gaps.
"What this lends itself to is an instability for centers and a lack of child-care access for families," Bellamy said.
Added to the shortage of child-care options is affordability.
Strickland said the average cost of child care in Georgia is $11,000 per year, while 35% of Georgians spend one-third or more of their incomes on child care.
Bellamy said the shortage of accessible and affordable child care is being felt throughout the state's economy.
"(Child-care) providers are the backbone of Georgia's economy, ensuring parents can work and businesses can thrive," she said.
The Senate is expected to take the lead on the tax credits. Lt. Gov. Burt Jones, who presides over the Senate, has endorsed several of the study committee's tax credit recommendations.
The panel also is suggesting that the state create a dedicated trust fund to support child care, a step that would require amending Georgia's Constitution.
Ife Finch Floyd, director of economic justice at the Georgia Budget and Policy Institute, told committee members this month that child care trust funds are succeeding in other states. New Mexico, for example, set up a trust fund in 2020 with $300 million in seed money, Floyd said.
"This trust fund has really contributed to the increase in resources for child care in New Mexico," she said. "It's helping the state continue a lot of the improvements they were able to make during the pandemic."
The study committee also recommended increased funding of Georgia's CAPS (Childcare and Parent Services) program, which assists low-income families with the cost of child care. After operating at about the same level of state funding since 2005, the CAPS program received a $9.2 million increase this year.
"It's the biggest increase we've seen in a generation," Floyd said.
The study committee's recommendations will be forwarded to the full Senate for consideration during the 2025 legislative session starting next month.