Common Sense Institute Iowa (CSI), in partnership with the Iowa Women’s Foundation (IWF), has released a new report on the Child Care Solutions Fund (CSF) initiative.
The report, released at the Iowa Solutions Summit Nov. 19, analyzes the success of the child care initiative and highlights the economic impact that expanding the program could have across the state.
According to a release from CSI Iowa, by addressing Iowa’s pressing child care shortage, the CSF initiative demonstrates how targeted investments can boost workforce participation and economic growth, especially among women.
Among the report’s key findings:
- The pilot increased 22 new child care slots per 1,000 children, demonstrating the potential of the program to address Iowa’s child care needs on a larger scale.
- Expanding the Child Care Solutions Fund across Iowa could support 8,000 new jobs, add $13 billion to the state’s GDP, and increase personal income by $6.1 billion over the next decade.
- If cost and access to child care were not an obstacle, the state would need between 118,000 and 242,000 more child care slots to meet demand.
- For a typical Iowa household with three young children, where the mother earns $40,000 and the spouse earns $45,000, child care costs consume 113% of the mother’s after-tax income, resulting in a $4,000 net income loss annually if she enters the workforce.
“Common Sense Institute’s analysis found the CSF pilot program had its intended effect,” said Ben Murrey, director of policy and research at CSI Iowa. “The program allowed participating communities to open more quality affordable child care slots, allowing more parents to enter the workforce. If expanded across the state, this program could have a substantial impact on Iowa’s economy.”
“IWF is proud to play a key role in facilitating child care solutions at the county level,” said Deann Cook, president and CEO of the Iowa Women’s Foundation. “These public-private partnerships are proving to be the crucial collaboration that stabilizes childcare for communities, child care providers, employers and, most of all, Iowa’s women and families.”
“The data shows us that our efforts are making a positive impact, helping more women access the childcare they need to stay in the workforce and improve their lives economically,” added Sheri Penny, employment engagement director at the Iowa Women’s Foundation. “This research reinforces the importance of expanding these solutions statewide to continue driving real change for women and families across Iowa.”
“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. “Common Sense Institute’s analysis found the CSF pilot program clearly had its intended effect. The program allowed participating communities to open more quality affordable childcare slots, allowing more parents to enter the workforce.”
To read the full report, click here.
