Investing in child care would be a win for Washington’s economy and working families | Opinion

Washington’s working families and businesses face a persistent challenge: access to affordable and reliable child care. This isn’t just a family issue. It’s an economic one.

When parents struggle to find care, they struggle to remain in the workforce.

Businesses, utilities and industries suffer from lost productivity and unnecessary turnover.

The numbers are staggering. Washington’s working families lose an estimated $1.3 billion in earnings every year due to a lack of child care options.

Washington employers lose $2.8 billion annually in productivity costs tied to absenteeism, turnover and underemployment.

Three in 10 Washington parents report workplace discipline resulting from child care disruptions, and one in four has been fired or let go as a direct result of unreliable care.

In total, our state’s economy suffers an estimated $5 billion annual loss due to inadequate child care infrastructure.

We can’t afford to ignore this crisis any longer.

Working parents deserve better. Washington businesses deserve better. Our economy needs solutions that prioritize stability, accessibility and immediate action.

Rather than relying on bloated, government-run programs that take years to implement and rarely deliver promised results, direct action is the right approach. A model that allows and even encourages businesses utilities, and other employers to directly assist employees with child care costs or establish onsite child care options is a powerful and immediate solution.

When employers can support their workforce in this way, it leads to better employee retention, stronger workplace morale, and a more stable economy.

That’s why I introduced House Bill 1564, which provides tax incentives to businesses investing in child care support.

Under this plan, businesses that assist employees with child care costs through direct subsidies or establishing onsite child care would receive a 100% credit against their business and occupation tax.

This ensures that dollars generated by businesses stay within their workforce, providing immediate relief to working families while promoting workforce stability.

Because businesses can deploy these funds far faster and more efficiently than the state, families benefit from rapid, targeted support.

Instead of waiting for top-down mandates or vague promises of future funding, we need to invest in solutions now, where they are needed most.

This approach is novel, practical and entirely doable.

Some may argue that incentivizing businesses to provide child care comes with a cost.

The Department of Revenue estimates it could cost the state over $100 million annually in foregone tax revenue — assuming 52,000 employers take advantage of the credit.

Let’s be honest.

If 52,000 businesses in Washington step up to support child care, that’s not a loss. That’s a win.

That means hundreds of thousands of working families are receiving support, businesses are seeing higher retention rates and a stronger workforce is driving our economy forward.

The return on investment is clear: skilled employees stay in the workforce, increased tax revenues from higher earnings and a reduced reliance on government assistance.

Investing in child care is investing in Washington’s future.

Even in tight budget years, we must prioritize innovative solutions that keep parents working and businesses thriving.

Fixing Washington starts with real solutions that empower people, not more government inefficiencies.

This isn’t about politics. It’s about practical, immediate solutions that benefit everyone.

Business leaders, workers and policymakers across the spectrum recognize that a stable workforce is the key to economic success.

When businesses take ownership of the problem and help solve it, the results are faster, more effective and more sustainable than any state-run alternative.

Washington has a choice: let government mandates and bureaucracy slow progress or empower businesses and communities to take meaningful action today.

By supporting HB 1564, we can keep families in the workforce, strengthen our economy and ensure that child care is no longer a barrier to success.

Fixing Washington starts with investing in solutions that work. Let’s put our priorities where they belong — with Washington’s working families.

This story was originally published February 12, 2025 at 5:00 AM with the headline "Investing in child care would be a win for Washington’s economy and working families | Opinion."