1st Quarter 2021 Update on Childcare Challenges and Collaborations Copyrig hted
March 1, 2021
City of Dubuque Consent Items # 9.
City Council Meeting
ITEM TITLE: 2021 - 1st Quarter Update on Childcare Challenges and Collaborations
SUMMARY: City Managertransmitting a quarterly update on the status of
collaboration efforts among partners in Dubuque to address a need for
sufficient quality, affordable childcare options in the community and
recommends that Dubuque's State Legislative Delegation be
encouraged to continue their support of funding and policy changes that
improve childcare availability and affordability.
SUGGESTED Suggested Disposition: Receive and File
DISPOSITION:
ATTACHMENTS:
Description Type
Update on Childcare Challenges and Collaborations- City Manager Memo
MVM Memo
Staff Memo Staff Memo
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 2021 - Q1 Update on Childcare Challenges and Collaborations
DATE: February 19, 2021
Economic Development Director Jill Connors is transmitting a quarterly update on the
status of collaboration efforts among partners in Dubuque to address a need for
sufficient quality, affordable childcare options in the community and recommends that
Dubuque's State Legislative Delegation be encouraged to continue their support of
funding and policy changes that improve childcare availability and affordability.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
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Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
Dubuque Economic Development
Department
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: 2021 — Q1 Update on Childcare Challenges and Collaborations
DATE: February 18, 2021
INTRODUCTION
This memorandum provides a quarterly update on the status of collaboration efforts
among partners in Dubuque to address a need for sufficient quality, affordable childcare
options in the community.
BACKGROUND
Through the work of multiple partners over several years, the lack of access to quality,
affordable childcare has been identified as a barrier to employment and economic
prosperity in Dubuque.
In FY2019 the City Council committed $80,000 to Greater Dubuque Development to
support a pilot program developed to provide free childcare to Opportunity Dubuque
students and graduates at Northeast lowa Community College. Then in FY2020 a small
group including City staff, as well as staff from Greater Dubuque Development, Northeast
lowa Community College, and the Community Foundation of Greater Dubuque,
participated in a National League of Cities program (Cities of Opportunity), using that
opportunity to discuss our local childcare challenges. The program is designed to provide
a framework for how to address community-wide issues in order to achieve
desired/needed outcomes.
During its annual goal setting, the Dubuque City Council identified "Childcare Initiative:
Outcomes, CityRole, Partners, Direction and CityActions" as a 2020-2022 High Priority.
Stemming from and in tandem with this work with the National League of Cities, the small
group began to have a larger conversation with organizations better suited to be leading
the charge on childcare issues: namely, Dubuque County Early Childhood and Childcare
Resource & Referral. This local coalition is collaborating to address current challenges,
and identify next steps in this work for a community-wide approach to providing sufficient
affordable, quality childcare in Dubuque.
DISCUSSION
Since our December 2020 work session presentation to the City Council, the local
coalition of partners has continued to make good progress. The focus of this update will
be the legislative session underway and the policy initiatives. In 2019 Greater Dubuque
Development and Northeast lowa Community College presented an update on childcare
training and support activities underway in Dubuque and recommended a series of
funding and policy changes. In 2020, the collaboration partners in Dubuque continued
their advocacy work in Des Moines. While the COVID-19 pandemic cut the 2020 session
short, important gains were made with the passage of legislation ranging from creating a
childcare challenge fund to providing childcare providers with greater regulatory flexibility
during emergencies.
The Dubuque area collaboration partners kept the advocacy efforts going over the 2020
interim and continue to see positive results. With the 2021 legislative session nearing its
mid-point, childcare supportive bills continue to move forward, including:
House File 302 (passed House 94-0). Would remove the "cliff effect". Rather than
families immediately losing childcare if their incomes exceed the ceiling, the bill would
provide a state-funded off-ramp to gradually increase a family's share of child care costs
as household income rises. This allows parents to accept pay raises or better-paying
jobs that some would otherwise pass up for fear they would completely lose state
assistance to pay for childcare.
House File 292 (passed House 90-4). Would increase state reimbursement rates for
providers who accept DHS childcare assistance and provide increases/bonuses to quality
childcare programs. This could have the effect of more childcare providers being willing
to accept children supported by State assistance. Some childcare providers currently do
not accept these children, as they are not paid full rates.
House File 370 (passed House 88-6). Would create a childcare tax credit equal to the
amount of the federal employer-provided childcare tax credit for businesses that provide
childcare benefits to their employees. The federal employer-provided childcare tax credit
relates to the acquisition, construction, rehabilitation, or expansion of property used as
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part of a childcare facility. This bill addresses both the workforce shortage and childcare
shortage. It should help employers recruit and retain employees.
House File 230 (passed House 93-1). Would extend the phase out of the Child and
Dependent Care Tax Credit and the Early Childhood Tax Credit, effectively making it a
state tax credit of 30 percent of the federal credit for any taxpayer with a net income of
$90,000 instead of the current cap of$45,000.
House File 260 (passed House 70-24). Would increase the number of children that may
be in a childcare home from a maximum of five to a maximum of six if at least one of the
children is school-aged.
House File 301 (passed House 92-2). Would establish a matching grant program to be
awarded to communities that provide funding for the lowa Association for the Education
of Young Children's WAGE$ program, T.E.A.C.H. program, or other childcare workforce
strategies. These programs provide education-based salary supplements for childcare
providers. This matching grant would help provide the early childhood workforce access
to educational opportunities and establish a well-qualified, better compensated, and
stable workforce for our children.
RECOMMENDATION/ ACTION STEP
Dubuque's State Legislative Delegation should be encouraged to continue their support
of funding and policy changes that improve childcare availability and affordability.
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