Child care déjà vu

Here we go again.

As his predecessor did six years ago, Gov. Phil Scott has proposed more money to help low-income families pay for high quality child care. It’s a worthy investment, as it would have been in 2013. But repeating the mistake his predecessor made, Governor Scott wants to pay for his proposal by taking from Peter to pay Paul.

The governor’s budget for fiscal 2020 calls for about $11–13 million in new taxes, including a $7 million increase Vermont could get by changing the way it taxes certain internet sales. But sales taxes, as a result of a major reshuffle the Legislature approved last year, are now dedicated exclusively to the Education Fund. So while raising the additional revenue makes sense, and would help to level the playing field for Vermont retailers, skimming money from the Education Fund shifts costs onto the property tax.

The heads of the Legislature’s two tax-writing committees, Sen. Ann Cummings, D-Washington, and Rep. Janet Ancel, D-Calais, forcefully argued these points on Vermont Public Radio last week.

The governor deserves credit for proposing additional money for the Child Care Financial Assistance Program (CCFAP)—although $7 million is not enough. State assistance for low-income families is below the rates charged by most high-quality child care providers—regulated providers with a 4-STAR or 5-STAR rating. The state subsidy is supposed to be enough to cover the rates charged by at least 75 percent of these providers, but Vermont has repeatedly fallen short of that goal. The latest estimate is that it will cost more than $6 million just to meet the state’s commitment for families currently getting help.

And we know there are many more families that can’t afford high-quality child care, but don’t qualify for enough, or any, support under the existing program. Vermont is going to need to make a substantial investment in child care. And we can’t expect to pay for it by raiding the Education Fund.

Six years ago, Gov. Peter Shumlin wanted to increase child care funding by taking money from the Earned Income Tax Credit (EITC). He was proposing to raise taxes on the lowest income workers to pay for a critically important service.

Governor Scott’s plan doesn’t hit those least able to pay. But he wants to use money that would otherwise lower property taxes. It doesn’t square with his insistence for the last two years that Vermont’s property taxes are too high.