The News: The Wisconsin Institute for Law & Liberty (WILL), in partnership with the Archbridge Institute, released a new report titled, “Reforming Childcare in Wisconsin: Reducing Regulatory Burdens to Expand Access.” The report reveals Wisconsin’s ranking as the 10th most restrictive state for childcare regulations, even lagging states like California, Illinois, and Michigan.
The Quotes: WILL Policy Associate, Miranda Spindt, stated, “Wisconsin families are facing a crisis of affordability and access when it comes to childcare. This report demonstrates that unnecessary regulations are a significant contributing factor. While ensuring the health and safety of children is paramount, the current regulatory framework is simply outdated and places a significant financial burden on hardworking families.”
Senior Fellow at the Archbridge Institute, Edward Timmons, said, “Wisconsin has an opportunity to become a leader in childcare access and affordability by embracing targeted regulatory reforms. Our research, in partnership with WILL, underscores the need for a balanced approach that prioritizes the well-being of children while removing unnecessary barriers that limit childcare options and drive-up costs for families.”
More On Our Findings: In Wisconsin’s current childcare landscape, families are burdened by an average monthly childcare cost of $915 per child, a staggering 17% of the median household income for families with young children. This financial strain places Wisconsin families at a distinct disadvantage compared to neighboring states, where childcare consumes 3-7% less of household income.
Lack of affordable childcare has far-reaching consequences, impacting labor force participation and contributing to Wisconsin’s “more severe” skilled worker shortage, as classified by the U.S. Department of Commerce. Nearly 80% of women and almost 25% of men who leave the workforce do so to provide necessary home and childcare. With only 54 available workers for every 100 job openings, Wisconsin cannot afford to sideline parents due to inaccessible childcare.
Recent legislative efforts in Wisconsin show a step in the right direction. A package of bills introduced in 2023, including AB 389, AB 391, and AB 392, aimed to alleviate some of these pressures by creating a new licensing category for family childcare, allowing for more flexible staffing ratios, and streamlining regulations for certified childcare providers.
While these common-sense reforms passed the Wisconsin State Assembly, they stalled in the Senate. Meanwhile, much of the policy discussion has centered on increasing subsidies for childcare providers, even though Wisconsin already receives significant state and federal funding – over $487 million in federal block grants in grant year 2024, in addition to $170 million in emergency funding.
The WILL report further found research indicating the negative consequences of strict childcare regulations. The evidence suggests that childcare licensing creates significant costs, while some requirements have little effect on quality. Studies show that burdensome rules result in fewer childcare centers, fewer job postings for childcare professionals, and higher prices for families. Research suggests that increasing the infant-to-staff ratio by just one infant could reduce childcare costs by 9-20%, while requiring lead teachers to have a high school degree is linked to a 25-46% cost increase.
Our Goal & Call To Action: WILL aims for this report to paint the picture on how excessive and unnecessary regulations strangle the supply of childcare options, drive-up costs, and exacerbate Wisconsin’s skilled worker shortage.
We are also calling on Wisconsin policymakers to prioritize regulatory reform to expand access to affordable, quality childcare. By reducing unnecessary burdens on providers, Wisconsin can unlock greater childcare options for families, encourage workforce participation, and strengthen its economy. The time for meaningful childcare reform is now.
The Archbridge Institute is an independent and non-partisan public policy think tank dedicated to fostering human flourishing through its research in economics and psychology.
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