WAITSFIELD, Vt. (WCAX) – Vermont’s child care legislation was a top priority of the last session it is said to be one of the most expansive in the nation. Now it is taking shape.
Meanwhile, physical childcare buildings are expanding too which state leaders say is one way to ease the high demand and long wait lists.
The state increased the amount of funding they’re paying on behalf of childcare financial assistance. Earlier January the first round of payments went out with a rate increase of 35%.
DCF Deputy Commissioner Janet McLaughlin says since September, $17M has been committed to 755 childcare programs across the state. That cash is to help prepare them for the increased amount of students that will be receiving financial assistance.
McLaughlin says right now there are around 7-thousand children in the state who are eligible for financial assistance. The eligibility threshold will increase again in April, and then another time in October.
“That is when we expect to see more children and more families enrolled in the program. And you know, we anticipate we will double the number of children benefiting from talk or financial assistance. Once all of the eligibility increases go into place,” said McLaughlin.
Act 76 created a new payroll tax with an increase of 0.11% from employees, and 0.33% from the employer that goes into the child care contribution special fund. Taxes will begin to be collected on July 1, 2024
Neck of the Woods is a childcare center here in Waitsfield. Currently, they accommodate 50 children but are expanding to create space for 125 children.
Neck of the Woods hit the ground running opening nearly four years ago. It helped fill an immediate need but the team is looking to add more space to ease the childcare crunch on the community. “We have a waitlist as well of 75 children. And that’s just adding every day more and more and more because of the demand. So people are calling us who aren’t pregnant, pregnant yet people are calling us who just got pregnant,” said Moie Moulton with Neck of the Wood
Moie Moulton and Betsy Jondro of Neck of the Woods say the Mad River Valley doesn’t have a ton of child care options, especially with two recently closing. And they have some families commuting over 40 minutes away. “We all are trying to be there for each other and toss you know families to each other saying can you help this family,” said Moulton.
Neck of the Woods isn’t the only childcare center looking to expand their horizons and their walls.
Statewide, DCF Deputy Commissioner Jane McLaughlin says more than $1M in grants have been awarded to 47 childcare programs in 13 counties to support 1,000 new childcare spots.
“Programs are feeling like there is potential for, for growth and for that growth to be sustainable, given the investments and early childhood education that after school that came in through Act 76,” said McLaughlin.
McLaughlin says the child care licensing team is reporting an uptick of inquiries and applications for people interested in starting and expanding programs, too. Right now, she says the majority of the funds supporting building and program expansions comes from the American Rescue Plan Act.
But as funding from Act 76, which has only been implemented for 6 months, comes into play the plan is to continue capacity-building work as well. “We expect that with all the new programs coming on. We’re actually we’re also going to see an increase in the licensed capacity for all,” said McLaughlin.
But despite more funding expected to trickle down for expansion, McLaughlin says some hurdles for adding more spots include finding the appropriate space to fit the need of students and hiring the adequate number of staff to support the larger programming.
The project here is to be done in 2026. And McLaughlin notes it will probably take two to three years to see how well the state is making progress when it comes to increasing the number of affordable childcare spaces and staffing under Act 76.
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The Childcare and Early Childhood Education Law, or Act 76, now in effect