JEFFERSON CITY, Mo — Missouri’s economy is facing a significant blow, with over a billion dollars being lost due to inadequate childcare options, as reported by the state’s business community. Despite this critical issue, the General Assembly has once again failed to pass tax credits intended to support the childcare industry, a priority outlined by Governor Mike Parson.
Missouri is in the midst of a childcare crisis, with 94 out of its 114 counties labeled as childcare deserts. This shortage is leading many employees to quit their jobs voluntarily due to the unavailability or high costs of childcare services.
Over the last two years, the state has witnessed a decline of 1,100 childcare providers, leaving some counties completely devoid of such facilities.
Governor Parson has stressed the urgency of addressing this issue and has been urging lawmakers to approve tax credits aimed at tackling the problem. However, for the second consecutive year, the legislation failed to pass in the Senate.
Governor Parson expressed his disappointment, stating, “It’s unfortunate that there are certain individuals who are hindering progress for the sake of political reasons.”
The scarcity of childcare is a major concern for both employers and employees. Employers are struggling to find workers, while employees are grappling with the challenge of securing affordable and reliable childcare.
Senator Lauren Arthur remarked, “Just because we didn’t pass the legislation doesn’t mean that the issue has disappeared; if anything, it will worsen.”
Governor Parson argued that backing the childcare industry should be a prioritized area for state funding, stating, “Of all the things we allocate state funds for, sometimes on pet projects and others, we should be able to assist everyday people in going to work, as that is what drives economic growth.”
The failure to pass the legislation has led to a blame game, with some attributing responsibility to the Republican group called the Freedom Caucus.
Critics argue that this group prioritizes political disputes over practical solutions. Conversely, members of the Freedom Caucus oppose the proliferation of tax credit programs, arguing that they have not led to growth in Missouri.
The economic repercussions of the childcare shortage are substantial. According to the Missouri Chamber of Commerce, the state’s economy suffered a loss of over $1.3 billion last year due to the absence of sufficient childcare.
Many parents are placed in a difficult position: either quit their jobs to care for their children or pay high amounts—ranging from $10,000 to $15,000 annually—for childcare services.
Sen. Arthur urged voters to consider this issue in upcoming elections, stating, “Ultimately, I hope voters go to the polls in August and in November and pay close attention to who is supportive of trying to make childcare more affordable and accessible, and who obstructed that effort.”
While the state budget for this year includes around $78 million for childcare subsidies aimed at assisting low-income families, many argue that this amount is insufficient to tackle the broader issue. Governor Parson remains undecided on calling a special session to address this problem.
As Missouri continues to grapple with this childcare crisis, the economic and social consequences are escalating, highlighting the pressing need for legislative action and comprehensive solutions.
