CORONAVIRUS (COVID-19) RESOURCE CENTER Read More
Add To Favorites

With eye on state's budget shortfall, senators advance bill keeping child care subsidies flat

Star-Herald - 3/23/2017

LINCOLN - In an effort to help close a projected budget shortfall, Nebraska lawmakers on Wednesday advanced a proposal that would hold the line on child care subsidies that help low-income parents.

Legislative Bill 335 cleared first-round consideration on a 31-10 vote. The measure was introduced for Gov. Pete Ricketts by State Sen. Merv Riepe of Ralston, chairman of the Health and Human Services Committee.

As introduced, the proposal would reduce projected state spending by an estimated $9 million over the two-year budget period ending June 30, 2019.

Riepe called the bill critical in addressing the state's fiscal situation. "We don't have a lot of other options," he said.

LB 335 would keep child care subsidy rates flat for the first 15 months of the two-year budget period.

While current state law requires subsidy rates to increase as rates on the private market increase, the bill would suspend that requirement for the upcoming budget period.

It's unclear how much would be saved under an amendment lawmakers adopted Tuesday. The amendment by Sen. Bob Krist of Omaha would prevent state officials from lowering the subsidy rates below current levels.

Second-round debate won't begin until the results of a child care market rate survey are available later this month, Riepe said.

Sen. Lynne Walz of Fremont called the proposal troubling because lawmakers ask young women to make the decision to protect life, yet turn their backs on working families who need help once a child is born.

To qualify for the subsidy program, a family's income cannot be higher than about $25,500 for a family of three.

Sen. Anna Wishart of Lincoln urged lawmakers to consider the people who would be affected, including the young mother of a child Wishart and her husband had fostered.

"I just really hope that people will think about the impacts of the decisions we're making on the most vulnerable people in our community," she said.

emily.nohr@owh.com, 402-473-9581