The Senate will soon be considering their own amendments to House Bill 1001, the state budget. The Governor’s original budget proposal included some meaningful funding for child care, with roughly $362 million for the Child Care Development Fund (CCDF), with the goal of eliminating the CCDF wait list, and just over $50 million annually for the On My Way Pre-K (OMWPK) program, a significant increase from the current funding level of $27 million. It also suggested $4 million for the local childcare assistance grant fund, which would be a newly created program to allow local governments to partner with local providers to expand child care capacity. The House version of the budget included some significant reductions from the Governor’s initial levels. It includes $155 million in ‘hold harmless’ funding for CCDF, allowing the families who are currently receiving CCDF to stay on the program, but not addressing the waitlist for CCDF, which has now grown to over 10,000 children awaiting vouchers. The House version also holds On My Way Pre-K funding flat at the previous allocation of $27 million and does not include the $4 million for local childcare assistance funds.
Between now and April 15th, when the Senate must adopt their own version of the budget, we encourage advocates to reach out to their Senate members and emphasize the importance of including robust support for early care and learning in the budget, especially given the growing waitlist for key programs. We would also encourage the Senate to maintain the existing line item for Visually Impaired Preschool Services, which provides critical early intervention services to families of young children with blindness or low vision, and which is currently funded at $600,000 per year. Legislators need to hear from their constituents about what really matters to Hoosier families, particularly as it comes to funding decisions in a year when the revenue picture is still uncertain, and many important programs require funding.
If you are willing to contact your Senator, here are some data points and other messages you might consider:
- Indiana's families often lack access to affordable care options, with the state's child care providers having the capacity to serve less than 2/3 of all young children who need care. This means the families of over 100,000 children across Indiana need child care and cannot access it.
- There are currently over 10,000 children on the waitlist for CCDF since the Family and Social Services Administration implemented a waitlist in December.
- In 2024, the average cost of child care in Indiana was just under $9,000 per child, with the average family spending 11.2% of household income on child care.
- Indiana's child care and pre-K programs emphasize quality learning environments for kids and choice of the learning environment for parents, ensuring that children have opportunities to receive a safe, educational experience in an environment that works for the family.
- According to recent data from Early Learning Indiana and the Indiana Chamber of Commerce, insufficient child care availability costs Indiana $4.22 billion in economic activity each year, from lost business productivity, employee turnover and absenteeism, and missed tax revenue.
- According to research from Indiana University, investment in early care and learning provides a $4 return for every $1 spent.