Excel by Eight pushing for better childcare and access

Mississippi County’s growing steel industry and satellite manufacturers have brought jobs and economic growth through the years, but there have been unique challenges tied to this industrial growth. Mississippi County Regional Chamber of Commerce Executive Director Liz Smith told Talk Business & Politics that finding adequate childcare is a problem in most places, but it’s an especially vexing one in her county.

The steel plants operate 24 hours a day and often seven days a week with many workers having staggered shifts where they might be working four days in a row during the day and the next week they might be working the same shifts at night. These schedules make it difficult for spouses to find childcare so they can be employed too, she said.

In 2020, Smith joined the Excel by Eight coalition, a non-profit organization that is dedicated to solving health and education issues facing children in the state. The coalition has more than 70 organizations that are tied to it including the Mississippi County Regional Chamber of Commerce, St. Bernards Healthcare, and the Batesville Chamber of Commerce.

Excel by Eight Director Alison Williams told TB&P that her organization will push for legislation in 2025 to improve childcare access in Arkansas. Those will include tax credits for individuals and companies and allowing early childhood educators to be included in the state’s teacher retirement system.

“I’m very excited to be a part of this special group,” Williams said during a recent presentation she gave before the Mississippi County Regional Chamber of Commerce.

The cost of childcare for many in the state, especially low-income earners can be staggering – if they can find childcare at all, Williams said. Currently, the childcare needs of infants and toddlers outpace the number of slots available in the state, she said.

If parents can find a slot for an infant, the median cost is $7,280 per year and it can range as high as $10,400. Costs like that can consume up to 29% of an average person’s salary in the state, she added. The median cost for toddler care is $6,934 and can range as high as $9,880 per year.

Finding quality care is difficult, too, Williams said. On average, early childhood educators make about $18,000 less than a kindergarten teacher and don’t access to the Arkansas Teacher Retirement System. What often happens is those educators leave and become K-12 teachers, she said.

Why is taking care of these children in this age group so important?

Most brain development occurs before the age of three, she said. That means enhancing and enriching a child’s education during this window of time is critical in their development.

“Early childhood education has long term benefits,” she said.

One way to recruit and retain educators into this sector is to allow them to participate in the teacher retirement system, she said. Excel by Eight will push for legislation to allow for that next year, she said.

Two other initiatives supported by the group would provide incentives for businesses to aid in childcare for workers. Williams said providing childcare help for workers should be similar to how employers provide healthcare as an incentive.

One is a 50% tax credit for funds placed in a Dependent Care Account FSA or DCFAS account. The federal government allows up to $5,000 per year to be placed in these accounts, tax free, and it can be used for childcare. The tax credit could incentivize businesses to put money into these accounts as an additional benefit for workers, she added.

“It gives families a choice on how to use those dollars,” she said.

Another 50% tax credit will also be sought by the group. Williams said this tax credit would be for businesses that retain slots at local childcare facilities to use as an incentive to retain or lure new workers. The businesses would pay the full amount for the slots or partially pay for them and they would get the tax credit based on how much they paid, she added.