Arizona opinion: Funding childcare makes sense and ‘cents’

Arizona’s childcare field is at an inflection point. If lawmakers invest in early learning in the state budget, working parents will maintain the quality childcare they need to participate in the workforce. If not, thousands of qualifying Arizona families could lose childcare access, resulting in an indefinite waitlist. How will working parents work without childcare?

For strong families and a successful economy, it is essential to invest public dollars in quality childcare. In fact, national economists found every $1 invested in quality early care and education yields a return on investment (ROI) of $9.

Research shows children’s earliest experiences build healthy brains and lifelong skills, setting them on a positive trajectory throughout their lifetime. Quality childcare access also helps parents get to work and improves their economic well-being.

Despite the solid research foundation on long-term outcomes and astounding economic benefits, the state has not provided ongoing state general fund appropriations to childcare since 2008, even when many other states have increased investments for young learners. Lack of sustained investment paired with the challenges of the pandemic have resulted in increased tuition pricing out parents in lower-income households, closed classrooms without qualified educators, longer waitlists for services, and fewer children being served whose parents rely on care to work. What’s more, a recent analysis reveals Arizona experiences a massive economic loss of nearly $4.7 billion each year due to the lack of availability of childcare for children birth to age five.

Some lawmakers might say parents should stay home with their child if care is unaffordable. Yet, Arizona’s working families know that is not a viable option. They may rely on multiple incomes for their economic well-being and overall success. Data show that paying for quality childcare for one infant is upwards of $13,000 on average per year, just as expensive as tuition for Arizona’s public universities.

During the pandemic, Congress made bold investments for our nation’s children and childcare providers through stabilization grants. These grants boosted an already struggling field and provided the necessary resources to keep their doors open and retain qualified early childhood educators to care for and teach Arizona’s youngest citizens.

However, these federal relief funds ran out September 30, 2023. Remaining COVID-19 childcare funding sunsets in September 2024. This will result in a fiscal cliff, without both federal and state funding. While the impact may not be immediately felt by Arizonans, a fiscal cliff will lead to increased gaps in quality childcare access, unaffordability, and further childcare workforce shortages over the next year.

Lawmakers can solve this. Facing a budget deficit this year, tough decisions will need to be made. But it’s clear we need to prioritize our state’s youngest learners. Advocates, parents, and community champions are calling on the legislature to act in three ways.

Invest $100 million to maintain access to quality, affordable childcare for eligible families, helping eliminate an impending indefinite waitlist. This is already included in the Governor’s proposed FY2025 budget.

Invest $50 million to create a childcare facilities infrastructure grant to build supply and increase the number of slots.

Expand childcare assistance program eligibility from 165% of federal poverty level to 85% of state median income so more families can access quality early learning.

While these priorities are necessary short-term solutions, ongoing state funding for preschool and childcare is needed. Quality childcare is a public good — helping Arizona’s children learn, supporting parents to thrive, and ensuring businesses have the employees they need to operate successfully.

Funding quality childcare for Arizonans makes sense developmentally for young learners and makes ‘cents’ for the state’s economic growth. When Arizona’s childcare works, Arizona works.