Child care providers and parents attend a Wisconsin State Capitol rally on Wednesday, April 16, 2025. Advocates have mixed opinions about child care provisions in the new state budget released Tuesday. (Photo by Erik Gunn/Wisconsin Examiner)

The proposed Wisconsin state budget announced Tuesday offers child care advocates less than what they sought, and while some reacted with limited optimism, for others it adds up to little better than nothing.

The final deal will spend $110 million to extend direct payments to providers for another year. Starting in mid-2026 It will direct $65 million to providers who join a proposed “School Readiness Program” — similar to 4-year-old kindergarten (4K) but distinct from current 4K programs.

The deal also will add $123 million to increase the reimbursement for child care costs for low-income families under the Wisconsin Shares program. 

The agreement was reached Monday in negotiations involving Gov. Tony Evers, Senate Majority Leader Devin LeMahieu (R-Oostburg), Assembly Speaker Robin Vos (R-Rochester) and Senate Minority Leader Dianne Hesselbein (D-Middleton).

Kids Forward labeled the child care provisions “significant, but not sufficient, wins for Wisconsin’s working families.” Kids Forward is a policy and advocacy organization for low-income families and families of color.

“This deal doesn’t address the long-term needs of families and providers, but we look forward to working with legislators and the Governor to ensure sustained investment,” said Daithi Wolfe, senior policy analyst for Kids Forward, in a statement Tuesday.

‘Bridge’ payment program

The $110 million in direct payments to providers over the next 12 months will serve as a “bridge” after the end of Child Care Counts, the subsidy program funded with federal pandemic relief money that runs out this month.

Originally paying out $20 million a month, Child Care Counts helped stabilize the child care sector according to research reviewing the program, helping providers increase wages without having to charge parents more.

The money was cut in half two years ago, and since then providers have reported having to raise fees and, in some cases, reduce their capacity because they lacked enough child care workers. A survey report earlier this year found that 25% of providers said they might close if state payments stop.

The new payment program is intended to enable providers to plan and budget between now and July 2026 for the loss of Child Care Counts. It will be funded with interest income on the American Rescue Plan Act (ARPA) funds the Evers administration received starting in early 2021.

“The disappointing part is it’s not permanent,” said Ruth Schmidt, executive director of the Wisconsin Early Childhood Association (WECA). WECA has campaigned all year for Gov. Tony Evers’ original proposal, which sought $480 million including for continuing monthly provider subsidies.

“This is not going to be the sort of panacea for child care,” Schmidt said. “We will still see child care programs needing to raise rates. We will likely still see closures throughout the year. But I think we will see them at much lower rates, and I think that’s a really good thing for child care.”

Schmidt praised Evers as a “champion for children” and also credited GOP leaders for being “willing to sit down” and negotiate. “I think bipartisanship has been at play in this,” she said.

A 4K-style program

The new Early School Readiness Program for 4-year-olds is a response to the impact that 4K expansion has had on child care providers. As 4K programs expanded in Wisconsin elementary schools, “that pulled a lot of 4-year-olds out of child care,” Schmidt said.

The new School Readiness Program will set curriculum standards and require child care workers who teach in it to have at least an associate degree. Schmidt said that for child care providers who participate, it will “ensure that child care has more opportunities to continue to serve 4-year-olds.”

Child care providers who take part will for the first time receive direct payments from state funds.

“Child care as an industry has long been very interested in finding out how to continue to do the services that they know are so important for 4-year-olds in their programs, and I think this is a mechanism that will allow for that,” Schmidt said.  “This is a net gain of $65 million in state general purpose revenue into child care. That’s a big thing.”

Providers view deal skeptically 

For some child care providers, however, the details of the budget deal fall short of what they contend their sector needs.

The $110 million bridge program “is less than we’re getting right now, and we can’t keep teachers and we can’t keep prices down the way it is,” said Corrine Hendrickson, a New Glarus child care provider. She doesn’t expect it to achieve its stated goal of increasing the number of teachers along with accessibility and affordability in child care.

Brooke Legler, another New Glarus provider, said the $480 million that Evers had originally sought translated to keeping child care workers’ wages at $13 an hour on average. “This doesn’t even do that,” she said of the bridge program.

Hendrickson and Legler are cofounders of Wisconsin Early Childhood Action Needed (WECAN), a coalition of parents and providers that also campaigned actively for the original Evers proposal.

Hendrickson said she’s concerned that the School Readiness Program will be perceived by parents as “less academic, less school, less quality than the free option at the public school.”

Legler questions whether the new program as structured will succeed in drawing more families of 4-year-olds who would otherwise send their children to 4K. School districts have expanded their 4K programs to all day schedules in part because of a lack of child care, she said.

“I think that’s such a disservice that we have … closed door negotiations and that we’re not including the people at the table that need to be at the table, especially if we want to have effective and efficient policies that work for Wisconsin,” Legler said.

Both Legler and Hendrickson said they’re also concerned about a provision creating a “large family center” category with up to 12 children. Currently there are family centers with up to eight children and group centers with nine or more children.

Another provision would lower the minimum age for entry-level child care workers to 16. Both the age change and the large family provision were in bills that Republicans introduced in the 2023-24 legislative session and that providers mostly opposed.

“That’s not an answer. That doesn’t do anything financially” to help providers, Legler said.

“We have people making life-altering decisions for many people in Wisconsin, yet they have no experience or expertise on the matter,” she said. “This method does not work.”

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