Nicole Hsu
Policy Analyst, Early & Elementary Education
California, Michigan, Minnesota, and Vermont are all on the brink of expanding access to high-quality ECE.
The prospects for passage of meaningful federal legislation over the next two years aren鈥檛 exactly bright due to the new reality of divided government. While there鈥檚 always a chance of an unexpected bipartisan compromise becoming law, most experts expect the next two years to be marked more by than legislative breakthroughs.
However, early childhood remains a hot topic in many states, with several of the governors鈥 including proposals benefitting children and families. Below, we highlight four states that are particularly worth watching over the next two years.
California
Governor Gavin Newsom was after facing a special recall election in 2021. His for the 2023-24 fiscal year builds on prior investments in early childhood, calling for a total of $855 million to be set aside for the second year of expanding (TK), the first of a two-year kindergarten experience for children born after the September 1 cut-off for kindergarten eligibility. Of the $855 million, $690 million is designated for rolling out TK to (those born between September 2 and April 2) and $165 million is allocated for hiring an additional staff member for TK classrooms to maintain a low student-to-adult ratio.
A total of $116.3 million has been allocated for the to reflect additional costs associated with serving children with disabilities, dual language learners, and three-year-olds enrolled in the California State Preschool Program (CSPP). The 2023-24 fiscal year also marks the second year of a three-year process to increase CSPP enrollment of students with disabilities. This year, pre-K providers are required to have at least 7.5 percent of students with disabilities represented in their student population.
Newsom has until the 2024-25 budget cycle due to previous spots remaining unfilled. However, without system-wide improvements, such as higher wages and reimbursement rates, the early childhood system will , further impacting the supply of high-quality child care. Newsom has also committed to developing a single reimbursement rate structure and working with Child Care Providers United, the union that represents in the state, to negotiate a new agreement.
Michigan
Democrats now have full control of the state government for the first time since 1984 after the Michigan Senate and House of Representatives flipped and Governor Gretchen Whitmer was re-elected for a second term. In Whitmer鈥檚 , she called for expanding the state-funded (GSRP) to all four-year-olds as part of a plan to lower costs for Michigan residents. GSRP currently serves of the state鈥檚 four-year-olds, all of whom meet at least one of seven . Whitmer鈥檚 proposal, which she plans to implement , would eventually make .
Whitmer estimates that expanding GSRP to all 110,000 four-year-olds will save families around $10,000 a year. Whitmer has pushed free pre-K for all since she first ran for governor in 2018, and now with a Democratic trifecta, the proposal could finally become a reality. In the plan, it will be important to consider the impact of expanding public pre-K on the affordability and availability of the rest of the early care and education system, particularly infant and toddler care. Already, by child care providers about the impact of losing revenue if four-year-olds enroll in the state-funded program.
Minnesota
After eight years of divided government, the midterm elections resulted in Democrats flipping the state Senate and Governor Tim Walz winning a second term. Democrats now hold a trifecta in Minnesota government for the first time . Walz, a former teacher, made education a dominant theme of his reelection campaign.
Walz鈥檚 proposed budget includes for child care and per-child tax credits. Walz has stated that Minnesota鈥檚 projected record high budget surplus of presents 鈥済olden opportunities鈥 to address a wide range of issues. Specifically, his budget calls for creating a child tax credit of $1,000 per child with a maximum credit of $3,000 for families earning $50,000 or less. Walz has also advocated for expanding access to child care subsidies to reduce costs for families, as well as making available to a greater number of families.
Minnesota currently has one of the in the country, setting a maximum rate of the market rate for infants and toddlers and the 30th percentile for slightly older children. These low rates mean that fewer providers enroll children who qualify for subsidized care and fail to receive the funds necessary to provide the highest quality of care.
To address this problem, Walz鈥檚 budget proposes increasing rates for providers in the state鈥檚 Child Care Assistance Program to of the 75th percentile of the current market rate. Already, has been making its way through committee that would do just that while mandating that the rate be automatically adjusted every three years.
Vermont
Vermont is once again a state with divided government after moderate Republican Governor Phil Scott easily won reelection and Democrats expanded their majorities in both chambers of the state legislature. In his , Scott called for investing $12 million into the state鈥檚 to expand access to affordable child care and reduce the cost of missed days on providers and parents. He has also called for increasing child care spending in order to increase child care subsidies and expand eligibility to an additional 4,700 families. A recently set the price of expanding child care subsidies and improving the wages of child care workers at between $179 million and $279 million, revenue that could be raised by increasing payroll, sales, or service taxes. Scott has repeatedly said that he refuses to raise taxes to pay for child care, so any large-scale overhaul would require the two-thirds majority support necessary to override a veto.
Democratic lawmakers are wasting no time in attempting to expand access to child care and pre-K throughout the state. They have already that would expand child care subsidy eligibility to families making up to 450 percent of the federal poverty level and increase provider reimbursement rates to allow for higher wages for child care workers. The bill would also do away with the state鈥檚 current voucher system that pays for 10 hours a week of pre-K and would instead require every school district to offer free, full day pre-K to all of the state鈥檚 four-year-olds. Currently, of four-year-olds are enrolled in the state鈥檚 pre-K program.
Ultimately, quality early childhood education is something that benefits all states and families of all political persuasions. The infant-toddler child care crisis, for example, costs the country in lost earnings, productivity, and revenue each year. 2023 could be the year when more states take positive steps to put early education within reach for all families.
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