Editorial: Regulations and the high cost of child care
Published in Op Eds
A national report on child care regulations gave Nevada passing marks. But the review also reveals that the state could be doing more to bring down costs and expand the pool of providers.
High child care costs are a financial strain on families and can prevent parents from entering the workforce, further stretching budgets. But the problem is not necessarily a market failure: Child care, in many places, is one of the most heavily regulated economic sectors, driving up costs and limiting new entrants into the field.
The issue has become a hot political topic. New York City’s socialist mayor ran on a platform that included “free” child care. Democrats in many locales — including Nevada — have proposed subsidies or other public assistance to help residents cover child care expenses. At the federal level, congressional Republicans last year expanded the Child and Dependent Care Tax Credit as part of President Donald Trump’s tax relief bill.
“However, the problem government officials are addressing is one of their own creation,” J.D. Tuccille wrote for reason.com. “Child care is so expensive largely because government red tape gets in the way.” That includes barriers to entry that limit competition.
The Archbridge Institute this month released its examination of child care laws in the 50 states. Those “with the most child care freedom and the lowest regulatory burden” got the best marks. Nevada ranked the 16th-most free. Idaho, South Carolina, Arizona, Alabama and Florida made up the top five, while Massachusetts, Maryland, Pennsylvania, New York and Vermont brought up the rear.
Among the factors considered were training hours required, education mandates and child-to-staff ratio demands.
Not surprisingly, as Tuccille pointed out, statistics from other sources reveal a correlation between government intervention and high costs. According to a move.org report drawing on data from the Economic Policy Institute and the Census Bureau, families in states with the most child care freedom paid lower costs than their counterparts in high-regulation states. For instance, costs in Idaho were 43 percent cheaper than in Vermont.
Nevada lawmakers should look to Arizona and Idaho for tips on how to broaden the pool of child care providers through more reasonable regulation. That could include relaxing zoning codes that inhibit the creation of home-based child care businesses and streamlining licensing requirements that serve as barriers to entry. Burdensome education demands on child care workers should also be reconsidered, as they are unrelated to the health and safety of children.
Wallet Hub reports that Nevada’s child care costs are the 11th-highest in the country. A more hospitable regulatory climate would improve that ranking.
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