As West Virginia lawmakers prepare to return to Charleston next week, a critical subsidy program supporting thousands of families is on the brink of running out of funds. The program, crucial for affordable child care, requires $23 million to continue operating through the remainder of the budget year without service reductions.
Governor Jim Justice is urging lawmakers to address this issue and plans to revisit his proposal for income tax credits. This proposal aims to provide about 16,000 West Virginians with an estimated $4.2 million in tax relief. However, the governor has yet to clarify whether he will propose a budget amendment to secure the necessary funding for the subsidy program.
Even if the legislature passes both the governor’s tax credit proposal and secures funding for the subsidy program during their special session from August 25-27, these measures may fall short of addressing the full scope of the state’s child care needs. According to a recent report from the West Virginia Center on Budget and Policy, the state faces a significant shortfall.
Currently, there are over 60,000 children under six with working parents in West Virginia, but only 39,000 licensed child care slots are available. This gap leaves an estimated 20,000 children without adequate care.
The report highlights the need for millions more in state assistance for both families and child care providers to ensure that workers can contribute to the economy while their children are cared for during the day.
Amy Jo Hutchinson, West Virginia campaign director at MomsRising, a national nonprofit focusing on women and family issues, noted, “While tax credits would benefit families, they won’t keep child care centers open or stabilize the industry.”
The child care subsidy program, recently expanded under the Biden administration, provides direct payments to facilities, helping them stay operational, hire, train, and retain staff. This program supports low-income families and served approximately 15,000 West Virginia families in 2023. Without additional funding, up to 2,000 families could face cuts, according to state officials.
A spokesperson from the Department of Human Services mentioned that the agency is preparing a “contingency plan” in case lawmakers do not provide additional funding.
Earlier this year, Governor Justice proposed a child care tax credit bill designed to benefit 16,000 families by offering a state tax credit equal to half of a family’s federal child care tax credit. However, this credit would not have been available to the lowest-income families.
Despite attempts by lawmakers like Del. Amy Summers, R-Taylor, to fund the program, and House Speaker Roger Hanshaw, R-Clay, emphasizing child care as a priority, the proposed legislation stalled. Both versions of the governor’s bill failed to pass in the Senate and House, and some lawmakers argue that providing child care access is not a government responsibility. Since January 1, over 60 child care providers have closed across the state, resulting in a loss of 725 child care slots, according to Melissa Colagrosso, director of A Place to Grow in Oak Hill.
Colagrosso commented, “What good is a tax credit if you can’t even get your child enrolled in the center or a home provider?”
As the special session approaches, the West Virginia Center on Budget and Policy has released a new report highlighting the gaps in the state’s child care system and calling for increased funding. The group recommends either providing additional subsidies, raising reimbursement rates, or increasing funds for enrollment-based reimbursements. Together, these measures could require up to $100 million in state investment.
Kelly Allen, executive director of the center, emphasized the long-term benefits of early childhood education. “Investing in children’s learning and growth sets the foundation for a better future,” she said.