(Oakland) –  Assemblymember Sandré R. Swanson’s bill to provide a full subsidy to the childcare facility in the Elihu Harris State Building in Oakland passed out of the Assembly yesterday on a 45-24 vote. It now heads to the Senate.

 “Our State government is the only government employer in our area that does not provide fully subsidized childcare for its workers. I am very pleased that the Committee understood the need to provide this important benefit to our employees and their children, and passed this bill,” Mr. Swanson stated.

Fully subsidizing space for child care is a routine procedure for the Federal government; it does not charge rent for the 110 child care programs that serve Federal employees.  Alameda County provides free space for childcare providers in its building, making the State one of the few government employers in the region without this policy. 

“High rents often push childcare operators out of business, leaving parents struggling to find safe, enriching environments for their children.  As any parent without access to quality child care will attest, this will impact their ability to work,.  The Federal government and Alameda county have long since realized this, and both provide space free of charge for childcare operators.  It is time our State government moves into line with the practices of other government employers in our area,” Assemblymember Swanson stated.

Child care provider budgets are constrained by high staff costs, due to the labor intensive nature of the field, and the inability of parents to pay the full cost of quality child care.  Programs spend an estimated 80-85% of their budgets on staff costs, leaving little for rent, administration, food, and other fundamental expenses.  In the end, employees usually absorb the funding shortfall, as seen in the sector’s notoriously low wages.  This leads to programs regularly operating in churches and other facilities not designed for child care.

The current non-profit contractor operating the State employee center in Oakland has been allowed to defer its rent for the first two years of operation, but must pay $24,000 this year or continue asking for annual rent deferrals, with no guarantee it will be granted.  Any future non-profit operators of the space would also face the same issue.  The cost to the State is estimated at $12,000 per year, but the bill would amount to making the current deferral permanent, meaning additional funds would not be required from the State.

“It is a well-known fact that access to quality child care has a positive impact on worker productivity. In these economically difficult times, the State must recognize that child care programs provide a critical service that not only enhances State employee productivity, but improves children’s life long learning, and strengthens our community’s economic and social well-being,” Assemblymember Swanson stated, adding, “Fully subsidizing the center serving infants and small children in Oakland will not only align the State with other local government employers, but will allow it to take an important step in furthering its commitment to our children and working families.”