With the first session of the 131st Legislature behind us, I’m looking back with a deep sense of gratitude and pride in what we were able to accomplish and deliver for the people of Maine. We passed transformational policies that will help more folks make ends meet, foster a sustainable and diverse economy that works for all Mainers and create communities where people can have opportunities to thrive today and for generations to come.
We created a statewide paid family and medical leave program, ensuring that Mainers will no longer have to make the difficult choice between putting food on the table and caring for themselves or a loved one. We established the Dirigo Business Incentive Program, which introduces a worker training tax credit designed to spur businesses to invest more in their employees’ skill development and a capital investment tax credit to encourage investment in our rural communities. We also established a $300 state child tax credit with expanded eligibility so that parents and households with dependents who need it most can access it, helping lift more families out of poverty. Additionally, we doubled salary stipends for child care workers from $200 to $400, helping professionals remain in the industry and improving retention.
But our work isn’t done. As we approach the upcoming second session of the 131st Legislature beginning in January, I’m looking forward to advocating for policies that support Maine families and businesses. One proposal I am working on would further our efforts from last session to bolster child care accessibility by establishing a new child care tax credit for businesses. This credit would be offered to employers that provide early child care and education services to the children of employees. They could do this by establishing their own licensed child care facility or by subsidizing child care for employees at an existing licensed facility. This is a win for businesses, families and Maine communities more broadly.
Businesses have a vested interest in ensuring their staff can access and afford child care. When companies offer child care benefits, they see increased employee retention, improved productivity and a better workplace environment. Families benefit from increased access to employment opportunities and reliable income, and children benefit from greater socialization and education at an early age. Beyond these positive effects, a policy like this can also help tackle many other entrenched problems facing our state, including the housing crisis and the lack of behavioral health care services, both partially rooted in a shortage of available workers.
Roughly 70 percent of all Maine children under the age of six live in households where their parents work, and likely need access to early care or education programs. For too long, Maine parents have faced lengthy waitlists while being forced to either cut back their working hours or leave the workforce all together. In addition to impacting Maine families’ personal budgets, the economic impact of limited child care access is also felt on the state level.
ReadyNation, a national business organization that works to strengthen workforces across sectors, estimates that Maine’s lack of child care may be costing the state $403 million annually. Their recent report found that 22% of Mainers live in a child care “desert,” meaning there are more than three children under age five for each available child care slot. It also found that infant care costs on average about $11,960 per year. That is more expensive than the cost of in-state college tuition. For most parents, this is just not doable. But a child care credit will help alleviate this burden by ensuring that parents are able to get to work and that businesses have the staff they need to keep their doors open.
I look forward to working on this proposal in the coming months and welcome your thoughts and feedback on this issue and others as we get back to work in Augusta.
Rep. Maureen “Mo” Terry, D-Gorham, is serving her fourth term in the Maine House of Representatives. She is the House Majority Leader, where she serves as head of the Democratic caucus. Outside of her legislative work, Rep. Terry is a chef and small business owner. Contact her at maureen.terry@legislature.maine.gov.