New report analyzes economic impacts of child care pilot program

A report released Tuesday by the Iowa Women’s Foundation and Common Sense Institute Iowa (CSI Iowa) analyzed the results of a new child care pilot program and projected the program’s future economic impacts if expanded statewide.

The Childcare Solutions Funds pilot program raised $5.3 million in combined public-private funding, which was used to improve wages and benefits for local child care workers.

The program was launched in 10 Iowa communities, of which seven reported data for the report. The 10 communities are Allamakee County, Cerro Gordo County, city of Dubuque, Hamilton County, Howard County, Johnson County, city of Knoxville, city of Lisbon, city of Mount Vernon and Mitchell County.

In the seven reporting communities, the report found the pilot program added 275 child care slots and hired or retained 223 child care workers from 105 child care providers.

“This program allowed us to incentivize the workers to stay with child care providers and also keep costs low for our families, which then allows them to work for our companies,” said Jason Passmore, director of Howard County Business and Tourism, in a prepared statement. “It allowed participating communities to open more quality affordable child care slots, allowing more parents to enter the workforce.”

The program received contributions from 373 local businesses in the seven communities, which were matched 2-to-1 with public funding, according to a news release.

“These public-private partnerships are proving to be the crucial collaboration that stabilizes childcare for communities, childcare providers, employers and, most of all, Iowa’s women and families,” Iowa Women’s Foundation President Deann Cook said in a prepared statement.

The analysis by CSI Iowa, a nonpartisan research organization, said the expansion of the Childcare Solutions Funds program could have statewide economic impacts.

Potential impacts include:

• Creating 8,000 new jobs, including 5,000 women who could enter the workforce.
• Adding 11,000 new child care slots.
• Adding $13 billion to the state’s gross domestic product over 10 years.

The full report is available on CSI’s website.
Related: Fearless Focus on child care: No solutions are simple, and persistence is necessary to continue progress