The Senate Family and Children Services House Education Committee members unanimously approved Senate Bill 375, authored by Sen. Linda Rogers (R-Granger), on a 7-0 vote last week. It’s one of several measures championed by the Indiana Chamber this session aimed at addressing the statewide shortage of high-quality early learning and childcare opportunities that have placed an added strain on Indiana’s workforce.
Senate Bill 375 would raise the eligibility threshold for the state’s On My Way Pre-K program from 127% to 260% of the federal poverty line. The bill, which also attempts to ensure greater funding parity for childcare providers across the state, particularly in rural communities and other under-served areas, now moves to the Senate Appropriations Committee.
Additionally, Senate Bill 186, authored by Sen. Kyle Walker (R-Indianapolis), was heard last week by the Senate Appropriations Committee. This bill would establish an employer tax credit for businesses that subsidize/support childcare opportunities for employees in their communities. The Chamber joined several advocates in testifying in support for the measure as part of a larger strategy aimed at leveraging public dollars to spur additional private sector investment that addresses childcare accessibility and affordability gaps. We’re also backing a related financial incentive in the form of matching grants, potentially targeted at small- and mid-sized businesses, for employers that increase local childcare capacity and affordability. In committee discussion, SB 186 enjoyed broad support from Senate Appropriations members, with questions and suggestions posed by lawmakers limited to the technicalities of the proposed tax credit rather than questioning the merits of the credit itself. Senate Appropriations Chairman Ryan Mishler (R-Mishawaka) noted that an amendment was in the works that was intended to address these nuances, and the committee would be asked to vote on an amended version of SB 186 next week.
Taken together, SB 375 and SB 186 represent meaningful steps forward in addressing childcare barriers that present significant implications for both education preparation and workforce development in Indiana. From student learning data, we know that kindergarteners who start school without the benefit of a strong early learning foundation often arrive behind their peers and are more likely to struggle throughout their education. And, from labor participation data, we know that parents who can’t find or afford adequate childcare face substantial barriers to full employment and upward mobility. We’re encouraged that the General Assembly, with strong urging from the Chamber, is considering multiple measures this session that could begin to close these opportunity gaps.
