New child care program will improve outcomes, Ohio economists say
In a survey, a majority of economists say a new child care assistance program will help Ohio kids later in life.
In September, Gov. Mike DeWine announced the start of the $10 million Child Care Cred Program.
It’s available to families making between 200% and 400% of federal poverty guidelines. For a family of three, that’s $53,300 to $106,600 a year.
Under it, employees cover 40% of child care costs, employers cover 40% and the state covers the remainder.
“The new Child Care Cred Program is designed to help Ohio’s families get access to child care,” DeWine said in a written statement announcing the program. “And, when parents have quality childc are, Ohio’s employers have productive employees who are not worried about their kids during work. It is a win for Ohio’s working families and for businesses.”
Most economists surveyed about the program said it would be good for kids specifically.
Asked if the program would improve educational outcomes in Ohio, 13 said it would, three said it wouldn’t and three were uncertain, according to the survey, conducted by Scioto Analysis.
Many who agreed cited the quality of professional child care.
“There is pretty strong evidence that attending a quality daycare causes increased school performance, especially initially, and wages later in life,” David Brasington of the University of Cincinnati wrote in the comment section of the survey.
Meanwhile, his colleague, Michael Jones of the same university, made a counterargument.
“A growing body of research shows that mothers who spend more time at home with their young children, rather than rushing back to work, see better outcomes for both themselves and their children,” he wrote, later adding, “Ohio shouldn’t be creating incentives that encourage parents to spend less time with their children.”
An economist who was uncertain whether the program will benefit kids cited the small amount the state budgeted for it — $10 million. Compare that to the $600 million the legislature is giving the billionaire Haslam family to move the hapless Browns out of Cleveland.
“I think that quality child care would improve educational outcomes but I am skeptical of this particular program,” wrote Curtis Reynolds of Kent State University. “It is a low amount of funding, it is not clear how many firms will participate and it does not last long. Could be an interesting ‘pilot’ but would need to be expanded to see effects.”
The economists were highly skeptical that work requirements for publicly funded child care would reduce unemployment rates. Just three said they would, nine said they wouldn’t, and seven were uncertain.
President Donald Trump’s One Big Beautiful Bill Act seeks to cut nearly $1 trillion in Medicaid spending over 10 years, including through such work requirements. But research has shown that state-level programs cost people their benefits without having any impact on employment.
In terms of work requirements for Ohio’s child care benefit, Charles Kroncke of Mt. St. Joseph University said hassling families away from using it would undermine the program.
“Work requirements are a bureaucratic hurdle that will make child care less accessible to the people that need it most,” he wrote.
And Kevin Egan of the University of Toledo seemed to say the requirement was nonsensical.
“Why would you need work requirements for child care?” he wrote. “Parents only pay for child care when they are working.”
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