Child care providers say budget provisions fall far short of what they need

Child care provider Corrine Hendrickson addresses a rally in front of the state Capitol Friday demanding a re-do on the state budget to increase child care funding. (Photo by Erik Gunn/Wisconsin Examiner)
While Gov. Tony Evers has touted the new state budget’s child care funds as a compromise victory, some providers say they’re deeply disappointed.
“This was not a win,” said Bloomer child care provider Caitlin Mitchell at a rally outside the Capitol Friday morning organized by Wisconsin Early Childhood Action Needed (WECAN). “It was a temporary fix with long-term consequences.”
A press release from Evers’ office after he signed the budget early on July 3 said the document contains “Over $360 million to support Wisconsin’s child care industry and help lower child care costs for working families, a third of which is in direct payments to providers.”
A majority of Democratic lawmakers voted against the budget, citing shortcomings in funding for public schools as well as for child care. Assembly and Senate Democrats who voted in favor of the plan described it as a compromise.
“I really really wish that the governor and the Democrats had just admitted that this was the best that they could do and that it’s still not good,” Corrine Hendrickson, a child care provider and WECAN co-founder, told reporters at the Friday morning rally.
“Everything we’re being told about the budget absolutely does not help children in our state at all,” said WECAN’s other co-founder, Brooke Legler. “The only compromise was the children’s safety. And this isn’t OK.”
WECAN members say that the budget’s child care funding is well short of what they need, and that regulatory changes are bad for providers, families and children.
A pilot program increases Wisconsin Shares payments by up to $200 a month if providers agree to higher ratios of four children to one teacher for children 18 months or younger, and seven children to one teacher for children 18 months to 2½ years old. Wisconsin Shares subsidizes child care for low-income families.
According to Hendrickson, the ratio increase lowers the quality of care, and tying it to the subsidy program treats the poorer children differently than the rest of the children in care.
“Those children deserve to have more time and attention,” she said in her address to the rally. “Their parents are loving, their parents are caring, but their parents are stressed because they’re in poverty and that affects those kids.”
Child care providers should refuse to participate in that pilot, she said.
Another provision lowers the minimum age for an assistant child care teacher to 16 from 18, while retaining the education requirements for the position.
“Sixteen-year-olds are wonderful human beings but they are not teachers of young children,” said Hendrickson.
“Those exact same policies were presented two years ago through the normal process of creating a bill. And we as a state overwhelmingly said no,” said Legler. “It did not even make it out of committee.”
In addition to $110 million in direct payments to providers, the child care total’s other big ticket items include $123 million to increase reimbursements that providers get for children in the Wisconsin Shares subsidy program and $65 million for providers who participate in a new “school readiness” program similar to 4-year-old kindergarten.
The $110 million direct payments, which would end after the budget’s first year, amount to about one-fourth of the $480 million that Evers originally sought. His budget proposal aimed to continue the state’s Child Care Counts program, funded by federal pandemic relief money.
At its height, Child Care Counts paid out $20 million a month and was credited with helping providers boost wages for child care teachers without raising tuition for parents. Two years ago the Evers administration dialed the program back to $10 million a month to stretch out its payments. The federal funds have now run out.
So, no, tuition prices will not be lowering; in fact, they will be going up next month to cover this loss, or providers will be closing their doors, especially in rural areas.
– Letter from child care providers group WECAN to Gov. Tony Evers, criticizing the state budget's child care funding.
In a survey of child care providers earlier this year the University of Wisconsin Institute for Research on Poverty reported that about one in four said they could close without continued payments. Evers cited the survey during the spring while campaigning for his original $480 million child care proposal.
WECAN leaders sent Evers a statement Friday, calling on him to order a special session of the Legislature and seek the full amount of child care support that he originally submitted for the 2025-27 state budget.
“We’re asking Gov. Evers to finish what’s been started,” Mitchell said in her rally speech. “Temporary funding and weakened standards are not enough. We need a comprehensive long-term investment in child care.”
After the 2023-25 budget was enacted without the child care investment that Evers sought, the governor called a special session and introduced a bill that included funding for child care, education and other priorities. The Legislature’s Republican majority rewrote the bill, replacing his provisions with tax cut measures that Evers vetoed.
Hendrickson acknowledged the outcome of the special session call two years ago, but said in an interview that Evers should pursue effort anyway.
“This is the only thing that we can do to keep this in front of everybody, to keep it top of mind,” she said.
“The $110 million over the next 11 months is around 20% less than we are currently receiving,” WECAN’s letter to the governor states. “So, no, tuition prices will not be lowering; in fact, they will be going up next month to cover this loss, or providers will be closing their doors, especially in rural areas.”
The WECAN statement tells Evers that his public assertion that the child care provisions will lower costs “creates confusion and parents will blame us; disrupting our important relationship due to the distrust your words have sown.”
Legler told the Wisconsin Examiner later Friday that when the WECAN group delivered the letter and spoke with Evers’ communications director, Britt Cudaback, the conversation didn’t go well from her perspective.
“We felt very minimized, unheard and condescended to,” Legler said.
Evers’ office has not responded to requests for comment.
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