The Impending Childcare Crisis in West Virginia

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The talk of tax breaks and rebates for childcare services in West Virginia has been prevalent, but there's a notable lack of action from Governor Jim Justice and human services officials regarding the impending funding cliff for childcare subsidies. While officials wait to decide if approximately $23 million will be reallocated to the state’s Child Care Assistance program, childcare providers across the state are closing their doors, uncertain if the necessary funds will be available by the looming September 1 deadline.

A Funding Cliff with Devastating Consequences

The expiration of federal COVID-19 funding for childcare stabilization has left many West Virginia childcare centers facing closure. New federal rules, which take effect in September, require states to provide funds to childcare providers based on enrollment rather than attendance. This change places an additional strain on an already struggling system. Without the $23 million needed to adapt to the new enrollment-based reimbursement model, as many as 2,000 childcare slots could disappear. The uncertainty has already claimed its first victims, such as the Owlet Childcare Center in Fairmont, which closed in June after serving more than 30 children up to age 5.

Legislative Inaction and Missed Opportunities

Despite being aware of the impending crisis for over a year, West Virginia lawmakers failed to take necessary action during the 2024 legislative session. Several bills aimed at addressing the availability and affordability of childcare were introduced but never advanced. Proposals included tax credits for childcare facilities, employer-provided childcare, and a cost-sharing pilot program. However, these initiatives stalled due to budget concerns and competing priorities. The Legislature could have mandated the use of existing funds to address the shortfall, but instead, the burden now falls on the governor and the Department of Human Services (DoHS) to act without legislative mandate.

The Broader Impact on Families and the Workforce

The lack of available and affordable childcare in West Virginia has far-reaching consequences, not just for families but for the state's economy as a whole. The West Virginia Chamber of Commerce reports that licensed early childhood education capacity for children under age 5 is critically low in most counties. With the average cost of childcare exceeding that of a monthly mortgage payment, many families are left with few options. This situation is contributing to a decrease in workforce participation, as parents are forced to stay home or delay having children. The ripple effects of this crisis could further depress the state's economy, as young families leave the state or choose not to enter the workforce.

Conclusion: A Call to Immediate Action

As West Virginia teeters on the edge of a childcare crisis, the need for immediate action is clear. Governor Jim Justice and the Department of Human Services have the power to prevent this crisis by reallocating the necessary funds to support childcare providers. The failure to act now will only exacerbate the challenges facing West Virginia's families and workforce, potentially leading to long-term economic consequences. It is imperative that state officials prioritize the needs of working families and ensure that the childcare infrastructure remains strong and accessible.