MILWAUKEE — Wisconsin childcare providers are days away from losing state funding they've relied on for years. Some are warning that rate increases may be necessary to stay open.
The state's Child Care Bridge Payment Program is set to expire June 30.
Created to replace a federal initiative called Child Care Counts, the $110 million program provided funding to providers throughout the pandemic before expiring last year.
Kleanna Johnson owns Hugs and Tugs Family Childcare, an in-home childcare center in Milwaukee where she cares for 14 children. She said the bridge payments added $18,000 to her business over the past year.
"It helped out a lot," Johnson said. "Buy materials, make payroll, go on field trips."
With the funding set to end, Johnson said she may have to raise her rates by $100 per month before January to remain open.
"Within my program, I have three families that pay out of pocket, and if I increase it, it'll be very challenging," Johnson said.
She said the decision weighs heavily on her.
"Yes, it's very tough because some of my subsidy parents can't afford to pay their co-payments, so I don't know exactly what it may look like," Johnson said.
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The Wisconsin Early Childhood Association released a study last month that found 1 in 4 providers reported they will either have to close or significantly reduce services to families.
State Sen. Dora Drake, a Milwaukee Democrat, said her party pushed for another one-year extension of the bridge payments, but Republicans were not on board.
"For our providers, they shouldn't feel like they have to choose between running a good business and not providing care, which is why they got into the industry in the first place," Drake said.
Pewaukee Republican Rep. Adam Neylon said the funding was never meant to be permanent.
"We certainly understand where {Johnson} is coming from and feel her pain. However, the original program was not designed as a long-term sustainable way of paying for childcare in Wisconsin," Neylon said.
Neylon said Republicans chose to prioritize more funding in the state budget for 4K education and Wisconsin Shares, which covers a portion of childcare costs for low-income families.
Johnson said she hopes lawmakers find a path forward.
"I hope that we get some type of relief that they can continue the program and help us with more funding," Johnson said.
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