There are significant child care needs today in Delaware:

• Less than 1 in 5 children are served in public programs: We are a long way from universal. Only 19% of children under age 5 are served in publicly funded child care.

• Care is too expensive for many families, costing as much as a mortgage payment and as college tuition. Additionally, only families earning below $60,000 yearly (below 200% of the Federal Poverty Level) can access state-sponsored programs.

• Parents can’t work, which holds back our economy: Most Delaware parents (57%) said they have reduced hours at work due to a lack of child care, with many others either leaving the workforce (27%), quitting a job (26%), or not pursuing a promotion (30%). Delaware employers have called on policymakers to take action to increase child care access, noting limited productivity and growth due to workforce shortages.

• Child care providers want to offer more openings to families but cannot due to low rates of state reimbursement and staffing shortages. The Purchase of Care rate the state pays to providers is far below the true cost of quality care and education, and well below the national minimum benchmark of the 75th percentile of the market rate (at the 50th percentile). Low rates contribute to significant challenges for compensating and retaining staff.

While this request is focused on FY27 budget, the state needs to make longer-term, transformational investments that expand access to all Delaware families.