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Lawmakers look at ways to increase childcare in Montana

The Early Childhood Endowment Fund aims to create a one-time investment of $150 million for an endowment.
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HELENA — Lawmakers are looking at options to increase childcare in Montana, and many families would agree that the cost and availability are challenges that need to be addressed.

Still, opponents worry that the price might be too steep.

"Childcare is one of the biggest challenges facing not only our communities but our businesses right now," said Sen. Laura Smith, D-Helena.

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Lawmakers look at ways to increase childcare in Montana

She proposed Senate Bill 565, or the Early Childhood Endowment Fund, which aims to create a one-time investment of $150 million for an endowment.

Interest generated by the investment would be used to help make childcare more affordable for Montana families, including securing childcare workers, assistance grants, and expanding licensed after-school care.

Opponents like Sen. John Fuller, R-Kalispell, say that money is needed elsewhere.

"I look at the $150 million endowment, and I think of what we can do for education – putting that money toward education for students that are in school or the relief of property taxes," said Fuller, "I feel that this is a bad expenditure of taxpayer dollars."



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One parent and business owner, Ethan Kohoutek, supported the bill, saying he's lost good employees because of childcare.

"There's just not good childcare for them, so they are staying home with their child," he said. "They would love to work. They'd love to stay in the workforce, [but] just the reality makes it so they can't."


According to the Montana Department of Labor and Industry, "licensed childcare capacity meets only 44% of estimated demand in the state," and "59% of counties [are] identified as childcare deserts, meaning supply meets less than a third of estimated demand."

Opponents also expressed concerns about using tax dollars to pay for it.

"It's created with taxpayer dollars," said Sen. Greg Hertz, R-Polson. "I kinda like the concept of this bill, but I'm not going to support this. What I would support is an endowment fund that is funded by gifts and grants."

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Money from the endowment fund would be allocated by a seven-member board appointed by the governor, including employees of the state and people who represent early childhood organizations.

Smith says 16 other states have childcare trusts or endowments.

A similar endowment is included in House Bill 924, proposed by Rep. Llew Jones of Conrad, R-Conrad, which MTN reported on Tuesday.

That bill also encompasses infrastructure and property tax relief, and Smith said she would be happy if either bill gets signed into law.