The measure expands subsidies for families, and creates a child care tax credit program for businesses.
Alaska child care advocates hope that a new state law and $7.5 million in subsidies will help stabilize a sector in crisis.broadly passed the Legislature on the final day of the legislative session in May. The measure expands the income threshold for families who can receive child care assistance, and it allows corporations to claim tax credits for investing in child care.
SB 189, which reflects the task force’s work, quietly became law this past Monday without the governor’s signature. The governor’s office did not respond to a request for comment why Dunleavy did not sign the bill.Dunleavy spokesperson Jeff Turner said Coulombe had worked closely with the governor’s office on child care policy. Dunleavy has appreciated Coulombe’s work on the task force, and he was pleased to see the Legislature pass the child care provisions, Turner said.
Advocates say the COVID-19 pandemic strained Alaska’s child care system to a breaking point and exposed the frailties of the sector. Since then,Kati Capozzi, president and CEO of the Alaska Chamber of Commerce, said member companies have repeatedly complained in recent years about child care affordability and access.that found 19% of Alaska child care centers have closed since 2019. Anchorage saw a 45% decline in child care workers between 2018 and 2022, the report said.
SB 189 also expanded the income threshold for families who can receive subsidies for child care costs, which can exceed annual tuition at the University of Alaska.Rep. Zack Fields, D-Anchorage, said the tax credit piece of the bill is the “most interesting,” but he said the expanded assistance for families would be impactful.found the median wage for an Alaska child care worker in 2022 was $15.14 per hour. Alaska providers reported an average annual staff turnover of between 42% and 55%.
“We need those funds, and we’re super, super grateful that the Legislature has seen that need, and so has the governor,” she said. Providers operate on razor-thin margins and rely almost entirely on tuition costs. Wages increase, and so does tuition, which further burdens families.Echoing other advocates, Barr said he hoped the Legislature consistently funds $7.5 million in child care subsidies each year. He said the “one-time nature of it” as part of the budget “makes it hard for people to plan.”
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