Manufacturers concerned about childcare gap in West Virginia
December 12, 2023
Charleston, W.Va. – A major manufacturer in West Virginia raised concerns Tuesday that a lack of affordable and available childcare could be a hindrance in recruiting new workers to the state, but lawmakers were largely dismissive of a need for government involvement.
The Joint Committee in Children and Families heard from a representative from Toyota Motor Manufacturing in Buffalo Tuesday morning on the second day of December legislative interim meetings at the Capitol.
Kim Menke, the regional director for government affairs for Toyota, said a lack of childcare access is a problem for large manufacturers that rely on a dependable workforce to meet production quotas.
“Childcare is important to manufacturing because it supports our team members, our local and state economies and our children and our families.” Menke said. “Childcare matters across all businesses, not just manufacturing, but in particular manufacturing. It’s important because we operate from a production-line standpoint where everybody has to be on the line at the same time ready to work to be able to produce that product for the next customer.”
Menke, who also chairs the State Workforce Board in Kentucky, said access to affordable childcare allows employees to focus on their jobs, move up in rank and salaries and learn skills that could help them as they move on to another career path.
“Childcare is a business issue that can influence employee retention, productivity satisfaction and future wage and career growth,” Menke said. “Childcare benefits can help employers attract, retain, reduce absenteeism and turnover and improve employee morale and loyalty. Childcare is not only critical for the development of our young children, but also essential for the livelihood of over 14 million working parents with young children across the nation.”
According to the Center for American Progress, West Virginia is a childcare desert, defined as any U.S. Census tract with more than 50 children under the age of 5 with either few or no childcare options. Maps show inadequate access to childcare even in the state’s larger metro areas.
“Manufacturing team members at work may face stigma or peer pressure or even discrimination in some cases, for requesting a more flexible work schedule than their neighboring partner on the line to balance their unique work and family responsibilities,” Menke said. “That becomes an issue. Manufacturers may not offer sufficient benefits or support for childcare, such as subsidies, vouchers, on-site daycare centers or referrals, to be able to help their team members.”
West Virginia now offers a credit for operating costs of childcare facilities. Senate Bill 656, passed in 2022, provides the credit for employers who provide childcare facilities to employees, covering the costs of capital investments and operating costs at 50% of the employer’s capital investment at a rate of 20% each year over a five-year period, and 50% of the operating costs.
The West Virginia Chamber of Commerce plans to push during the 2024 legislative session in January to expand the childcare facility tax credit from 50% to 100%. Brian Dayton, vice president of policy and advocacy for the chamber, said in the recent edition of West Virginia Chamber magazine that expanding the credit could make a dent in the state’s poor labor force participation rate which remains nearly the worst in the nation.
“With the budget surplus the state has seen recently, we believe expanding day care is an investment in our future,” Dayton said. “The state is going to get a lot of that money back just by having those people working, getting their income tax dollars and seeing them actively participate in the economy.”
Menke recommended lawmakers consider creating matching grants to businesses that provide access to daycare, or creating business development and worker development programs with childcare in mind. The expansion of universal pre-Kindergarten in the state to three-year-olds and up would also help. Menke said Toyota is constructing two childcare development centers for its workforce in Putnam County.
“Childcare is important, no question. But we have to solve the root cause of the problem first,” Menke said. “Availability of quality childcare at a reasonable cost is our goal, but we also have to make sure we have the workforce that’s there just because we’re going to compete for the workforce in all businesses.”
However, Menke’s presentation received a cool and abbreviated response from members of the committee whose charge is giving “special attention to addressing legislation related specifically to child welfare” when the committee was created in 2020.
Sen. Patricia Rucker, R-Jefferson, questioned whether state government should have any role in addressing childcare.
“We are, of course, very supportive of business here and we have been trying to do what we can to encourage, support, and everything else, but honestly there is a limited role for government for certain, but it’s not really the responsibility of government to ensure childcare,” Rucker said.
According to the annual West Virginia Kids Count Data Book, funded in part by Annie E. Casey Foundation, the percentage of children whose family had to change jobs due to child care problems was 13%.
West Virginia ranked 42nd in the nation overall for child well-being and 47th in economic well-being according to the 2022 Kids Count report. Between 2016 and 2020, 35% of children had parents that lacked secure employment in the state, up from 35% between 2008 and 2012. West Virginia ranked 36th for family and community, with 36% of children in single-parents families. Between 2016-2020, up from 33% from between 2008-2012.
The West Virginia Kids Count Data Book cited statistics from the 2022 National Database of Childcare Prices. According to that report, the annual cost for center-based child care for toddlers in West Virginia was $7,955, which makes up about 30% of the cost as a percentage of median income for a single mother and 9% for two-parent households. The annual cost for family or home-based care for toddlers in the state was $6,251, or 27% of the median cost for single mothers and 7% for two-parent households.
Senate Minority Leader Mike Woelfel, D-Cabell, last week announced he plans to introduce a bill in the legislative session next month to create a tiered-tax credit aimed at providing families below the poverty level a tax credit up to 50% of their childcare expenses.
“These tax credits will reduce child poverty, bolster labor force participation, and grow West Virginia’s economy,” Woelfel said. “Creating these tax credits will improve economic security for those who are in an apprenticeship, improving their education, or deterred from working by the high cost of childcare. A collateral benefit will be enhanced economic viability for quality childcare centers. It’s win-win.”
Story by Steven Allen Adams, News & Sentinel