PIERRE, S.D.(SDBA)- The Senate Appropriations Committee voted 5-3 Thursday to move a childcare assistance bill to the 41st day, effectively killing the measure for this session.
Senate Bill 126 would have increased childcare assistance rates from 75 to 90 percent of the market rate for eligible families below 209 percent of the federal poverty level.
Bill supporter, Republican Sen. Tim Reed from Brookings, led a task force on the childcare issue.
Reed testified that 39 percent of childcare programs operate below licensed enrollment due to staffing shortages driven by low wages.
Four out of 10 childcare workers leave their jobs annually.
Kerri Tietgen (tee-jen), CEO of EmBe (M-B) in Sioux Falls, described how current assistance rates affect families.
Department of Social Services Chief Financial Officer Jason Simmons opposed the bill, citing federal guidelines.
The state receives $32 million in federal funds and contributes $800,000 in general funds to maintain the program. Simmons noted South Dakota ranks among the 17 states with the highest reimbursement rates at 75 percent.
The measure would have cost approximately $8.25 million to implement.
Business leaders testified about local efforts to address childcare needs.
Brooke Rollag, executive director for the Lake Area Improvement Corporation in Madison.
Sen. Taffy Howard, R-Rapid City, moved to defer the bill to the 41st day.
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