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BUSINESS
Des Moines Register
A state grant program has awarded $14 million to a total of 13 different recipients to create 874 new child care slots around the state.
The grants were announced Monday by Gov. Kim Reynolds and ranged from as much as $2.1 million in Dubuque to $79,200 in New Albin.
The Child Care Business Incentive Grant provides financial support for projects by employers that require new infrastructure for child care centers in their communities, either on site or in partnership with other local providers, according to a news release from Iowa Workforce Development.
“Our strategy for retaining the best workers must include creative ways to meet their childcare needs,” Reynolds said in the news release. “Today’s awards represent Iowa’s commitment to that strategy, and I’m excited to see what these organizations do to provide solutions for their individual communities.”Child care has long been recognized as a significant need in Iowa. Data from the Iowa Department of Health and Human Services show that 75% of families with children under the age of 6 have all parents working.
While the creation of more than 800 slots is a welcome development, Iowa still has a significant deficit in available day care. HHS statistics it has a shortage of nearly 48,000 slots beyond the 115,535 available — a more than 40% gap.
The HHS data also shows that only four of Iowa’s 99 counties — Winnebago, Lyon, Harrison and Montgomery — have a surplus of available day care.
Projects that were prioritized include those that are located in high-demand areas for child care, those planning to increase capacity with additional slots across multiple age groups, or those building on-site child care centers, according to the news release.
Colfax gets funding to care for more than 100 children
One of the recipients in the recent round of grants was the Colfax Economic Development Corp., which will receive over $1.7 million to build a new day care on the local elementary school campus and provide care for more than 100 children from there and surrounding counties.
Jasper County, where Colfax is located, has demand for more than 1,800 daycare slots but only 646 available, according to HHS data.
Lack of affordable and accessible child care has an estimated $1.1 billion impact on Iowa’s economy through lost earnings and tax revenue, according to a 2023 Kids Count Report released by the Annie E. Casey Foundation.
Data from IWD in 2023 indicated that an estimated 53,000 women had left the workforce since 2020, in large part because of the lack of child care options.
“This childcare grant is an outstanding example of how strong partnerships between employers and communities lead to innovative ideas to solving local childcare issues,” Beth Townsend, executive director of Iowa Workforce Development, said in the news release. “We hope these awards inspire other employers to seek out new collaborations in their community as well as to think outside the box in developing workable childcare solutions for their employees.”
In an interview with the Register, Joe Murphy, president of the Iowa Business Council, an organization representing Iowa’s largest employers, said expanding child care options is a critical issue among his members, who already are experiencing a tight workforce supply.
“We continue to see that as a as a need, particularly in rural parts of the state. We have done a really great job in this state under the governor’s leadership on creating a lot of slots based on brick and mortar," Murphy said. "We invested in the infrastructure. Now we need to really focus on the workforce side of the child care equation.”
He said it is important to get more people into child care work so that capacity can be expanded and the proper caregivers-to-children ratios can be maintained.
IWD had 308 openings listed under the child care category on Monday.
Kevin Baskins covers jobs and the economy for the Des Moines Register. Reach him at [email protected].