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Bill > SF434

IA SF434

A bill for an act relating to the creation of a child care solutions fund, and making an appropriation.

summary

Introduced
02/25/2025
In Committee
02/25/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to the creation of a child care solutions fund (fund) under the control of the department of health and human services (HHS). The bill defines “child care worker” as a person employed by a child care provider and whose primary duties involve the provision of child care to children in this state. The bill defines “community” as a geographic area designated by HHS. The bill also defines “fund”. The fund consists of moneys appropriated by the general assembly for the purposes detailed in the bill; interest attributable to the investment of moneys in the fund; and moneys from gifts, devises, donations, and grants that are intended to be used for the fund’s purposes. Moneys in the fund are appropriated to HHS for distributions to communities. Distributions must be used to provide a state match of $2 for every $1 of private investment a community obtains to increase the wages of child care workers. The bill requires HHS to establish eligibility requirements for a geographic area to be designated as a community, and for the geographic area to maintain the community designation. HHS must continue to designate communities until the entire geographic area of the state is within a community. The bill requires HHS, on or before January 1 of each year, to submit a report, as detailed in the bill, for the immediately preceding fiscal year to the general assembly relating to the fund, and the impact on communities who received money from the fund. The bill requires HHS to adopt rules to administer the fund. The bill requires HHS to use the moneys in the fund to continue to provide state matching moneys to communities that received funds due to the community’s participation in HHS’s child care wage enhancement project during FY 2024-2025. The bill appropriates $6 million to HHS for FY 2025-2026 for deposit in the fund.

AI Summary

This bill establishes a child care solutions fund within the state treasury, managed by the Department of Health and Human Services (HHS), aimed at supporting child care workers and providers. The fund will match private investments in child care worker wages at a rate of $2 for every $1 invested privately, with the goal of increasing wages and retaining child care workers. The bill defines key terms such as "child care worker" as a person primarily employed in providing child care, and "community" as a geographic area designated by HHS. The fund will be comprised of state appropriations, investment interest, and private donations. HHS is required to designate communities across the state and will continue doing so until the entire state is covered. Each year, HHS must submit a detailed report to the general assembly, including information about fund distributions, wage increases, worker retention, new hires, and additional child care slots created. The bill specifically appropriates $6 million for fiscal year 2025-2026 to support the fund and continue the child care wage enhancement project initiated in the previous fiscal year. The ultimate aim is to stabilize and improve the child care workforce by providing financial incentives for communities to invest in their child care workers.

Committee Categories

Health and Social Services

Sponsors (13)

Last Action

Subcommittee: Klimesh, Costello, and Zimmer. S.J. 393. (on 03/03/2025)

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