The almost immediate impact Act 76 has had on Vermont’s childcare industry is not only hopeful but demonstrates how a targeted government program can help solve a problem in the marketplace.
Prior to Act 76’s passage in 2023, childcare centers in Addison County and throughout the state were struggling. Just three years ago, the Independent reported Middlebury’s Sunshine Children’s Center was forced to close, eliminating 20 childcare slots. Meanwhile, other childcare centers throughout the county pared back on hours because of a shortage of staffing — partly a function of low pay. Addison County wasn’t alone, as the availability of affordable childcare statewide was cited as one of the biggest obstacles to accommodating young families who wanted to call Vermont home.
The new money pumped into childcare services with the passage of Act 76 has reversed that decline and helped create 1,000 new childcare slots statewide in the past year. Locally, the legislation has helped spur the recent launch of the Red Clover Childcare Center in the Congregational Church in Middlebury with 20 slots, helped create 77 new childcare slots at Middlebury’s Otter Creek Child Care Center for a total of 139 (plus 28 related new jobs), and has helped expand offerings at Mary Johnson Childcare Center with a new toddler program with 10 new slots as well as creating a new classroom for infant care — the most sought-after childcare service. More progress is on the way to fill the unmet demand.
It’s all possible because of an infusion of funds. The legislation imposed a 0.44% payroll tax, largely paid for by the business community, that has pumped $125 million into the childcare industry. That allows them to expand enrollment, upgrade facilities and increase compensation for childcare workers. The legislation also broadened the number of Vermont households eligible for assistance.
“We are turning a corner, said Aly Richards, CEO of Let’s Grow Kids, a nonprofit childcare advocacy group based in Burlington. “Public investment in childcare is working."
Why the marketplace didn’t work is no doubt a complex matter, but suffice it to say there was not enough money among those young families having children to afford the few childcare slots available. It was a broken system. And just like subsidizing dairy farming, and much of the nation’s agricultural sector, the childcare sector needed a little help to make the math work.
In a capitalistic system, we are all reluctant to use state funds to prop up any business sector — let alone dedicate a new tax to the effort. But the lesson here is clear: When the marketplace isn’t working and the need is critical (providing childcare is critical if Vermont is going to be able to keep and attract young families), the question shouldn’t be “should we act” but “how can we resolve the issue in a sustainable way as quickly as possible?” Solutions, including on housing, are there. The real question is whether we have the political will to act. When we do, good things happen.
This article was originally published in the Addison Independent on August 22, 2024. It was submitted by Angelo Lynn.