Child care centers are struggling to make ends meet, and a new voter-approved tax credit is a first step toward boosting the flagging system, advocates say.
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The exemption, known as Proposition 2, has also passed in El Paso County, the City of Denton, Hays County, and Aransas County. But its impact is limited to just a few thousand child care centers, even if all the locals participate. Only about 17% of the estimated 15,000 child care centers in Texas meet the requirements of the new law, and that total doesn’t include home-based child cares that are also not eligible.
Most of them came back with far fewer children in their care, which meant less money at a time when inflation was increasing costs and families were unable to pay higher tuition. Today, there are some 30% fewer centers than there were before the pandemic. “I would like to see more cities and counties taking action on Prop 2, particularly rural areas,” he said via email. “Our Capitol office has had a number of calls from people in rural areas asking how they can also get this enacted locally.
“The tax break in its current format will only impact a very small number of providers,” Kaminski said. “Most voters thought they were voting on property tax relief for all child care centers.” Reza has two centers in El Paso, but the tax break will only help one of them because her newest center has been open less than a year — too short a time to qualify for the Texas Rising Star program.
Adoption by smaller counties and less populated areas is key to helping counteract so-called “child care deserts” by encouraging providers to open centers in those areas. Kofron said that in some areas, locals are not accustomed to being called upon to support child care. Last year business leaders from several industry sectors formed the Employers for Childcare Task Force to start pushing for reforms that would support child care services for their employees.
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