PIERRE, S.D. (SDBA) — The Senate Appropriations Committee voted 5-3 Thursday to move a childcare assistance bill to the 41st day, effectively killing the measure for this session.
Senate Bill 126 would have increased childcare assistance rates from 75 to 90 percent of the market rate for eligible families below 209 percent of the federal poverty level.
“Over the past year, I led a task force of stakeholders that included the business community and providers to create a report on sustainable solutions for transforming childcare in South Dakota,” Sen. Tim Reed, R-Brookings, said.
Reed testified that 39 percent of childcare programs operate below licensed enrollment due to staffing shortages driven by low wages. Four out of 10 childcare workers leave their jobs annually.
Kerri Tietgen, CEO of EmBe in Sioux Falls, described how current assistance rates affect families.
“Recently, we served a family with four children who worked tirelessly to provide for their family. This family qualified for childcare assistance. However, their award amount did not cover full tuition,” Tietgen said.
Department of Social Services Chief Financial Officer Jason Simmons opposed the bill, citing funding concerns.
“South Dakota has offered a childcare program since Congress appropriated the funds in 1991, and those funds come to us through a federal block grant. It is capped every year,” Simmons said.
The state receives $32 million in federal funds and contributes $800,000 in general funds to maintain the program. Simmons noted South Dakota ranks among the 17 states with the highest reimbursement rates at 75 percent.
The measure would have cost approximately $8.25 million to implement.
Business leaders testified about local efforts to address childcare needs.
Brooke Rollag, executive director for the Lake Area Improvement Corporation in Madison, said.
“In the past 12 months, within a city of 7,000 people, we’ve secured over $3.3 million just from local businesses, all in support of childcare,” she said.
Sen. Taffy Howard, R-Rapid City, moved to defer the bill to the 41st day.
