Todd Prichard stops by TLC to discuss child care legislation

By Kelly Terpstra, kterpstra@charlescitypress.com

Todd Prichard knows how quality child care can shape young lives and affect all facets of a community, and how donations and grants are vital to facilities like TLC: The Learning Center.

That’s why the Iowa House minority leader stopped by the non-profit child care provider in Charles City on Friday afternoon.

Prichard, D-Charles City, is working with House lawmakers on legislation that could provide tax credits and grants to help day cares flourish and not always struggle to make ends meet.

“Over the last several years, the cost of child care has continued to rise while the number of child care slots available to parents has dropped dramatically,” said Prichard.

“There are too many communities that don’t have enough child care slots available or don’t have access to child care at all, especially in rural areas. We need to work together to make sure child care is a top priority this session,” he said.

According to the non-profit Iowa Women’s Foundation, Iowa is short 359,000 child care slots for kids under 12.

The timing couldn’t be any better for Iowa to attempt to pass laws that could help TLC with its planned move into the 500 North Grand building.

“It was good timing because in the fall when we were preparing for the legislative session, child care had been talked about as an issue the Legislature wanted to address,” said Prichard. “The one that I think really kind of was inspired by TLC was the grant opportunity package – particularly in rural areas that have facility issues and infrastructure issues.”

TLC is planning to use rooms 130B through 134, in the northeast part of what used to be the middle school. The cost of the project will be between $850,000 and $1 million.

TLC Director Pam Ost said the decision to lease or purchase the 1970s portion of the 500 N. Grand building will be made later this month. She said her day care center is looking to raise $500,000.

“If you look at Iowa, they talk about the child care deserts. We’re lucky enough as a community not to be one of those exemplary deserts, but we still have children on waiting lists that they can’t get in here because I don’t have the space,” said Ost.

Iowa census data shows that 23 percent of Iowans live in an area without child care, and that figure rises to 35 percent in rural areas.

Ost, who has been director at TLC for four years, said when she took over the center 60 kids were cared for. Now that total stands at 85, with a capacity of 93 children. Toddlers on up to as old as fifth grade can receive care from TLC. TLC’s infant wing has a limit of 11 babies.

“Most in-homes do not take newborns babies right away as early as we do,” said Ost.

Ost said the classrooms at their current location are too small for the activities that they want to provide. The move to 500 N. Grand would allow 120 to 130 kids could be accommodated.

“It would actually double the square footage of this particular location,” said Ost. “That doesn’t mean we’re going to double the population because when you have those larger rooms you’re able to give the children different kinds of opportunities as far as sectioning and the modules you can set up.”

Ost has a staff of around 30 employees and 12 are full time.

“We’ve been very lucky to get some high school students who are looking at early childhood education and this partnership we’re developing with the school district, it’s allowed us to tap into different groups of students that are very beneficial to us,” she said.

The four bills Prichard and his colleagues are working on focus on providing direct financial assistance to start or expand licensed child care facilities like TLC.

Prichard said he was on the TLC parent advisory board about five years ago and his children went to the day care center.

“What I saw on the board is we have to keep prices affordable for your families to place children here and because you’re so sensitive to your affordability, your revenue isn’t high,” Prichard said to Ost. “To pay workers enough to keep them retained is always an issue.”

The Iowa House is currently discussing ways to fund a $2 million grant program and increase the Child Care Assistance program by another 7,300 children.

“If you do $2 million divided by $50,000, you have an impact around the state,” said Prichard.

A $50,000 grant would help offset the costs of running the child care center and would be able to impact a broader need for the facility. Ost said many personal grants that the center receives are written for very specific needs.

“None of it goes back to the expenses of running a child care. That’s where the parent fees play into it. If they can’t afford it then we can’t afford the business portion of day-to-day,” Ost added.

Child Care Assistance is available to families with income less than 145% of the federal poverty level, which is $30,132 for a family of three in Iowa.

Prichard is also talking with fellow lawmakers to rework the dependent care tax credit so more families can be eligible.

Currently, the credit is only available for families with an income under $45,000 and Prichard says that falls well short of the actual cost of child care. The plan would double the tax credit for low-income families and expand it to more families who still struggle to pay for child care.

One key area Prichard is focused on is partnering with small businesses so they could provide child care benefits and tax credits to their employees. The benefits include building or fixing an existing structure at or near the small business or operating or leasing a building to operate a child care center for their employees.

That proposed legislation would directly affect TLC in its desire to move across town.

“Business leaders and large employers around the state are trying to say we need to address child care to help improve the workforce shortage,” said Prichard. “That’s kind of what’s been driving this the last few months.”

Ost said 16 to 20 percent of some family’s budget is dedicated to child care. According to information provided by the Iowa House Democrats, the average cost of child care for two kids under 5 years of age ranges from $859 to $1,315 per month and can top $15,000 annually.

Prichard said Pat Grassley, Republican speaker of the Iowa House, stated child care assistance and funding is a priority for him.

“For a lot of families, child care is more than a mortgage,” said Prichard. “If we can do things to alleviate the cost – the family budget impact – that frees up money for other things. If we can improve child care and access and affordability then we’ve done something good.”

Ost said taking the steps to allow children the best chance to succeed is critical in every community.

“One of the most important things for us is that Charles City has kind of broadened their vision and we’re looking at birth through graduation,” said Ost.

“That includes in-home providers, too – those that are state certified. We want to make sure that these children that are in a day care situation or a child care situation are equipped when they walk through that front door at that elementary school – that they’re ready to go.”