The Chamber is backing a proposal to create a “tri-share” program in the state and is supporting an idea to create a new tax credit for businesses that provide child care.

A tri-share program splits the cost of child care three ways among the state, employers and employees.

Michigan launched its MI Tri-Share Program in 2021. The workforce development initiative allows participating employers to offer child care as an additional employee benefit to help with recruitment and retention.

Michigan currently has more than 272 participating employers, providing more than $10 million in savings annually to families, according to the United Way of Northwest Michigan.

Since the launch of Michigan’s program, similar initiatives have been started in Kentucky, North Carolina and Noble County, Indiana.

Brian Dayton, vice president of policy and advocacy for the Chamber, said a program modeled on Michigan’s could be an important tool for addressing West Virginia’s longstanding labor force participation issues.

“On average in West Virginia right now a child care slot is about $800 a month per child,” Dayton said. “We’ve proposed a model that we think would really benefit West Virginia, where, based on certain income level, you would be eligible for a third, your employer would pay a third and the state would pay a third.”

The child care company Wonderschool is currently operating a tri-share program for businesses located in Boone, Jackson, Kanawha, Lincoln, Mason, Putnam, Roane and Wirt counties.

“Wonderschool got funding from an Appalachian Regional Commission grant and so they have tri-share on a limited basis in eight counties,” Dayton said. “We’re trying to make sure that they are as successful as possible to demonstrate that this is a good model and then take it statewide.”

The idea for a statewide tri-share program has been “warmly received” by members of the state’s business community and the West Virginia Legislature, Dayton said.

Additionally, the Chamber hopes lawmakers will enact a new tax credit to make it easier to operate child care businesses, Dayton said.

In 2022, lawmakers passed Senate Bill 656, which provides a 50% tax credit to employers who open a new child care business.

“We would like to introduce a different credit … an annual operating cost credit, to encourage employers to step in and do this,” Dayton said. “Right now we have a serious lack of availability, in addition to the affordability problem.”