This blog introduces a new report, Funding Our Future: Generating State and Local Tax Revenue for Quality Early Care and Education. The report catalogues successful examples of how state and local tax revenue have been used to support early care and education and introduces potential “next generation” tax policy ideas to bridge the funding gap.
Policymakers increasingly understand the importance of expanding the availability of quality early care and education for young children. But far too often, the lack of funding stands in the way. A new report, Funding Our Future: Generating State and Local Tax Revenue for Quality Early Care and Education, catalogues successful examples of how state and local tax revenue have been used to support early care and education. The report also introduces potential “next generation” tax policy ideas to bridge the funding gap.
Expert Guidance on Funding Strategies
In 2019, tax experts and seasoned early childhood leaders came together to help identify a range of potential tax policy areas to introduce to state and local leaders with a focus on expanding high-quality early care and education, especially for infants and toddlers. The Child Care Revenue Work Group identified seven tax areas that state and local early childhood leaders can consider. For example, some states are using sales taxes, taxes on large corporations, and set-asides of property tax revenue to help bridge the funding gap.
Guiding Questions for Identifying Funding Streams
Although tax policy varies across the country, the Child Care Revenue Work Group identified nine Guiding Questions to support conversations among leaders when evaluating potential sources of funding for child care. The questions are designed to test the legal, administrative, and political feasibility of these tax policies within state and local contexts. These essential questions can reveal whether a revenue generation policy may be appropriate for a particular community and may contribute to improved access to high-quality early care and education.
Resources to Evaluate Potential Funding in Your Local Context
This report provides early care and education leaders with tools and insights to examine the facets of taxes and tax policy that can generate funding strategies for quality early care and education. Working in cooperation with others who bring different perspectives and expertise to the work will make it possible to determine whether the tax areas covered in the paper are relevant within particular state and local contexts. Early childhood leaders can take away practical lessons from examples of how other states and localities have used dedicated tax revenue to support the accomplishment of long-term early care and education goals.
Slide Deck May 11, 2022
This slide deck is from the third part of the Home-Based Child Care Webinar Series.
Report April 28, 2022
The BUILD Initiative is a national effort that advances state work on behalf of young children (prenatal through five), their families, and communities. BUILD staff partner with early childhood state leaders focused on early learning, health and nutrition, mental health, child welfare, and family support and engagement to create the policies, infrastructure, and cross-sector connections necessary for quality and equity. BUILD provides consultation, planning, and tailored implementation assistance, learning opportunities, resources, and cross-state peer exchanges. These efforts help state leaders improve and expand access to quality and promote equitable outcomes for our youngest children.
Blog April 27, 2022
This blog, written in collaboration with Kathy Szenda Wilson, highlights the work that is being done in Michigan to lift up the voices and needs of the child care workforce.