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News Every Day |

2 counties voted to make childcare more affordable. Taxpayers will owe more, but it takes a cost burden off parents.

  • 2 counties voted on property and sales tax hikes to fund childcare in their communities.
  • Other localities have similar laws, with Alaska taxing marijuana sales to fund early childhood programs.
  • We want to hear your thoughts on paying higher taxes to help fund childcare in your community.

Cities and counties across the US are coming up with ways to make childcare more affordable — and many are turning to taxes.

Three localities voted on November 5 to increase taxes to boost childcare funding for low-income and middle-class families.

Voters in Sonoma County, California, imposed a quarter-cent sales tax to pay for childcare and early childhood education, as well as resources for children experiencing homelessness or abuse.

Residents of Travis County, Texas — which includes Austin — voted to increase property taxes by 2.5-cents to broaden access to childcare for low-income families.

Travis County Judge Andy Brown said in a press statement that the property tax hike "will make a world of difference for thousands of families in our community struggling under the massive weight of childcare costs or waiting on an ever-growing waitlist for state subsidies."

A similar measure in St. Paul, Minnesota, which would have increased property taxes to fund citywide childcare initiatives for low-income families, failed.

We want to hear from you. Would you — or do you already — pay higher taxes to make childcare cheaper in your community? Fill out this quick form.

Using tax revenue to fund childcare isn't a new idea. Local taxes already fund K-12 education in most states — a solution that works for public schools, but can leave early childhood education programs underfunded. Here's what some cities, counties, and states are already taxing to fund childcare.

Cities are looking at tax solutions to fund childcare

Some cities have already tried allocating tax revenue to care for infants, toddlers, and preschoolers. In 2022, New Orleans voters backed a property tax increase to fund more than 1,000 childcare seats for low-income families. Because of the referendum, New Orleans' childcare budget increased to $21 million from $3 million annually for 20 years.

Whatcom County, Washington also approved a property tax increase in 2022, which boosted funding by $10 million for childcare and young families' mental health in the county's annual budget. Other areas have taken the sales tax approach, similar to Sonoma County's ballot measure: Anchorage, Alaska approved in 2023 a marijuana sales tax to fund early childhood programs.

Colorado has a policy that allows taxpayers who donate to qualifying child care facilities and programs to claim an income tax credit equal to 50% of their contribution.

To be sure, local tax revenue cannot replace funding for America's whole childcare system. Anne Hedgepeth, the senior vice president of policy and research at the advocacy organization Child Care Aware of America, told BI in a email statement that local policies are a complement larger state-level and federal funding pools.

"Additional funding is paramount to building a strong child care system," she said. "And it is positive to see localities interested in supporting their child care systems and taking action."

And, despite the failure of St. Paul's measure, Council Member Rebecca Noecker told BI on November 5 that the policy had voters "talking about childcare in a way that they never were before."

Read the original article on Business Insider
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