Report: Less regulations will solve Wisconsin child care issues
(The Center Square) – Government red tape is contributing to the crisis in Wisconsin child care affordability and staffing, a new report finds.
The report, written by Wisconsin Institute for Law & Liberty in partnership with Archbridge Institute, claims strict regulations can place unnecessary burdens on providers, limit workforce participation by parents and drive up prices for families.
Wisconsin ranks as the 10th most restrictive state for child care regulations overall, the report reveals.
“Wisconsin families are facing a crisis of affordability and access when it comes to child care,” WILL policy associate Miranda Spindt said in a statement. “This report demonstrates that unnecessary regulations are a significant contributing factor. While ensuring the health and safety of children is paramount, the current regulatory framework is simply outdated and places a significant financial burden on hardworking families.”
The report comes shortly after legislative Democrats introduced a $480 million child care bill in response to Republicans cutting child care funding from Wisconsin Gov. Tony Evers’ budget proposal.
The $480 million plan would fund Child Care Counts, a program that only supports regulated child care providers.
However, expanding regulations and funding only regulated child care providers could become a burden to Wisconsinites, according to the report.
In Wisconsin’s current child care system, families pay an average monthly child care cost of $915 per child. This comes to an average cost of $10,980 for a single child per year, which is 17% of the median household income for families with young children.
The financial burden places Wisconsin families at a disadvantage compared to neighboring states, where child care consumes 3-7% less of household income.
Further research suggests allowing the infant-to-staff ratio to increase by one infant could reduce child care costs by 9-20%, while regulations requiring lead teachers to have a high school degree is linked to a 25-46% cost increase.
Therefore, the best solution moving forward is to prioritize regulatory reform, the report argues.
“Wisconsin has an opportunity to become a leader in child care access and affordability by embracing targeted regulatory reforms,” said Edward Timmons, senior fellow at the Archbridge Institute. “Our research, in partnership with WILL, underscores the need for a balanced approach that prioritizes the well-being of children while removing unnecessary barriers that limit child care options and drive up costs for families.”
