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ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE RESOLUTION 412
Introduced by Spivey, 13.
PURPOSE: The purpose of this resolution is to propose an interim study to
examine the ways in which the Legislature can take a more coordinated,
proactive, and intentional policy role in understanding the impact of child
care financing models that create or expand state-funded subsidies and federal
child care subsidies to increase access, affordability, and expand coverage for
working families in Nebraska.
The objective of this study is to evaluate the Step Up to Quality Child
Care Act's tiered funding model, financial eligibility thresholds, provider
reimbursement systems, and educational outcomes related to supplementing
federal child care subsidies with state resources, and to develop findings and
recommendations to guide future legislation on early childhood education and
child care.
The study shall include, but not be limited to:
(1) Reviewing the current funding allocations supporting child care
assistance in Nebraska, including state General Fund contributions administered
by the Department of Health and Human Services;
(2) Quantifying the impact of quality affordable child care availability
on Nebraska businesses relative to other states, including compensation,
productivity, operational costs, competitiveness, and reimbursement rates;
(3) Evaluating current eligibility requirements for child care subsidies,
including income thresholds, copayment structures, phase-out cliffs, and the
effect on participation rates among eligible working families;
(4) Analyzing other state models that provide supplemental child care
subsidies, not including federal eligibility limits such as sliding-scale
systems, tiered eligibility expansions, and service cliff smoothing policies
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designed to reduce benefit loss as income increases;
(5) Examining reimbursement rate structures for child care providers,
including rate setting methodologies, alignment with market rates, and the
impact of the Step Up to Quality Child Care Act tiered subsidy levels on
provider participation, workforce stability, and child care supply;
(6) Reviewing federal and state funding streams that support child care
assistance, including Title XX Social Services Block Grant Program funding, and
opportunities to maximize federal matching funds, draw down additional federal
resources, and structure state investments to increase total system capacity;
(7) Evaluating the fiscal impact of expanding state-funded child care
subsidies, including cost projections under various eligibility expansion
scenarios, anticipated economic impacts on workforce participation, and
potential long-term return on investment;
(8) Identifying best practices from other states that have implemented
expanded child care subsidy models, including states that have extended
eligibility above federal thresholds; and
(9) Examining administrative structures, data systems, and interagency
coordination necessary to effectively implement expanded child care subsidy
programs, including oversight, accountability, and reporting mechanisms.
In conducting this interim study, the Executive Board of the Legislative
Council may confer with the Department of Health and Human Services, the
Department of Labor, the Department of Economic Development, child care
providers, early childhood education experts, business and workforce
stakeholders, labor economists, advocates, working families, and other relevant
stakeholders.
NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE ONE HUNDRED NINTH
LEGISLATURE OF NEBRASKA, SECOND SESSION:
1. That the Executive Board of the Legislative Council shall be designated
to conduct an interim study to carry out the purposes of this resolution.
2. That the committee shall upon the conclusion of its study make a report
of its findings, together with its recommendations, to the Legislative Council
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or Legislature.
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