The studies are clear: Every public dollar spent on high-quality early childhood education and child care, provides a $4-$9 return, in the form of increased tax revenue and decreased government spending on social support programs. When reliable childcare becomes affordable, family incomes increase, as parents decide to get an education or work full-time jobs; kids need fewer social services (or justice services) later in life, according to the Center of High Impact Philanthropy at the University of Pennsylvania; and more families feel encouraged to have kids -- a reversal of the dwindling birthrate that threatens the future of Social Security.

“What are the returns to the economy?” said economist Kathryn Anne Edwards, in testimony Friday before the Senate banking committee. “Right now, a lot of families are outgunned and outmatched by the child care market. They want to have more children, and they’re citing expensive child care as the reason they’re not having the number of children they want to have. They want to work, but they’re citing too expensive child care of why they can’t work.”

Edwards believes at some point the federal government will be forced to address the child care crisis. Until then, states across the country -- led by both Democratic and Republican governors -- are tackling the problem, dedicating millions of dollars for creative programs that help parents work and businesses flourish. That’s even more important when the country this week will fall off a $24 billion child care cliff.

Here are some of the states’ big ideas:

  • Colorado: Voters in 2020 increased a nicotine and tobacco tax to pay for universal preschool, with 15 free hours a week for every 4-year-old. In November, voters will decide whether to increase the funding.
  • Kentucky: The Employee Child Care Assistance Partnership Program uses $15 million to match employers’ contributions to child care costs, based on families’ household incomes. A quarter of the fund is set aside for small businesses.
  • Michigan: In the state’s Tri-Share program, which began in 2021 with $2.5 million from the state, the cost of child care is shared equally by parents, their participating employers and the state of Michigan. Said Gov. Gretchen Whitmer: “Our state’s economic vibrancy depends on removing barriers to employment so that every person who wants to work can afford to work and every employer who needs current and future employees to grow their business has a talent pool to draw from.”

Read the full article about how states are investing in childcare by Laura Johnston at Cleveland.com.