Childcare sector remains in crisis

State budget gives legislature an opportunity

Ohio’s childcare crisis has worsened in the past year, according to Policy Matters Ohio’s update to its 2024 report on the sector. At current rates, a family of four with an infant and a toddler would need to make $352,000 annually for childcare to be considered affordable, an increase of more than $100,000 since last year’s report.

“Costs have increased for every age group,” said report co-author Heather Smith. “While last year, families needed to make 800% of the federal poverty line to afford childcare, now they need to make 1,100%.”

The prohibitive cost of childcare is not the only issue. “In too many communities around the state, high-quality childcare just isn’t accessible,” Smith said. “Ohio families have fewer and fewer options; there are 16 fewer providers in the state than last year. Families need providers to stay open, but to stay open, providers need support.”

The Ohio Department of Children and Youth (DCY) is best situated to provide that support, and in the previous budget cycle requested funding that would have allowed them to do so. The legislature rejected that request, leading to a collapse of Ohio’s quality rating system—Step Up to Quality—from five tiers down to three, harming high-quality providers in the process.

“The legislature made the mistake of not investing in DCY in the last budget, allowing trouble in the childcare sector to become a full-blown crisis,” Smith said. “Gov. DeWine funded DCY’s request in his budget proposal this year, but the House removed it. The Senate should fully fund DCY’s request, and fight for it to remain in the final version.”

The 2024 report included recommendations to address Ohio’s childcare crisis. State leaders have taken some small steps in the right direction, but have failed to make the necessary policy changes and investments. This inaction has only made the crisis worse.

“When the state Senate returns from recess to begin budget negotiations, they have an opportunity to materially improve our childcare sector, to the benefit of Ohio parents, providers, and employers,” Smith said. “The Senate should pass Free Childcare for Childcare Workers, ensure there are no further cuts to PFCC and TANF funding so DCY can implement federally required improvements, and restore Gov. DeWine’s recommendation to increase PFCC to 160% FPL, which was removed by the House. Ohio’s childcare crisis is a result of policy choices. The solution has to come through policy as well.”