Oregon lawmakers consider bill to boost child care provider support

PORTLAND, Ore. (KATU) — Oregon lawmakers are considering a proposed bill establishing a Child Care Provider Incentive Program.

The initiative seeks to bolster child care providers by addressing the challenges of accessibility and affordability in the state. The bill's primary objective is to attract new child care providers while sustaining existing ones by reducing financial barriers. Proposed incentives include loan repayment assistance, housing support stipends, and scholarships for students in early childhood development.

"60% of childcare providers are operating below their licensed capacity due to workforce shortages," said Senator Dick Anderson (R), a chief sponsor of this bill.

These measures are designed to alleviate economic burdens and make operating child care centers more viable. Sen. Anderson said that childcare workers all over the state are dealing with low wages in a high-stress work environment.

"I have seen firsthand the implications of this strain of low income to lead to high turnover and low retention in this field," said Sen. Anderson. "We need to recognize that childcare providers need financial support and resources to stay in business, improve the quality of care, and ultimately meet the growing demand for childcare in our state."

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The median wage for a teacher in a private childcare center is $16 to $22 per hour. According to Dana Hepper of the Children's Insitute, these low wages sometimes lead to a mental strain on childcare workers.

"Low wages impact childcare providers' mental health, which impacts kids, and they impact childcare providers' business sustainability. 26% of childcare providers screen positive for clinical anxiety. This is five times the rate of the general population," said Hepper.

A key component of the bill is the creation of the Child Care Provider Incentive Fund, which would be separate from the General Fund. This fund would provide financial assistance to child care providers, supported by legislative appropriations and grants from public or private sources. Interest earned on the fund would remain within it to further support the program.

"We are investing in the well-being of our children and working families and our overall economy," said Sen. Anderson.

The Early Learning Council would establish the program's rules and guidelines, determine eligibility criteria, and establish participation requirements. The council has stated that a minimum 12-month service commitment is necessary to receive funds. Additionally, the council would assess the financial needs of individual programs and could penalize providers who fail to meet commitments. If resources are insufficient, funds would be allocated based on priority needs.

The Department of Early Learning and Care (DELC) would administer the program, distributing financial assistance according to the council's rules. The DELC would also monitor compliance and have the authority to revoke incentives or impose penalties on non-compliant providers. The Secretary of State may also conduct audits to ensure proper fund usage.

The DELC would determine scholarship fund allocations for the following academic year by September 1 each year. For those who would like to submit written testimony, you may do so until 1 p.m. on Saturday.