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Oklahoma proposal would split childcare bills among families, employers and state

An interim study at the Oklahoma Capitol examined a three-way payment model intended to make childcare more affordable for families who earn too much for traditional subsidies. Rep. Suzanne Schreiber says she plans to introduce a bill next legislative session, but lawmakers have yet to settle eligibility, small-business access or funding.

Oklahoma proposal would split childcare bills among families, employers and state

Oklahoma lawmakers are weighing a childcare cost-sharing proposal that would divide expenses among parents, employers and the state, aiming to ease family costs and help businesses keep workers.

The model was discussed during an interim study at the Capitol on Wednesday, Oct. 14. In an example presented by state Rep. Suzanne Schreiber, a Tulsa Democrat, a $900 monthly childcare bill would be split into three $300 contributions: one each from the state, the employer and the parent.

Under the concept, the state would contribute only when both an employer and an employee pay toward care. The state’s share would match the employer’s contribution, up to one-third of the total cost, with the employee paying the remaining portion. The plan is intended in part for households that are above the income threshold for conventional childcare subsidies but still struggle to afford care.

Supporters pointed to Michigan, where a similar program has operated for about four years. Grace Kelly of the Partnership for School Readiness said 310 employers participate, serving more than 1,000 employees and over 1,100 children. She said participating families are estimated to have saved a combined $14 million in childcare costs.

Childcare prices vary widely across Oklahoma, Kelly said. She cited an average market rate of about $13,000 a year, ranging from roughly $7,000 in rural communities to $18,000 in some cities, while the cost of providing care is about $16,000 annually.

The proposal remains under consideration, and key questions include what income limits to set, how small businesses could take part and how to ensure dependable funding. Schreiber said she intends to introduce legislation in the next session.

The issue also affects employers. Adam Maxey of the Oklahoma State Chamber said childcare problems are keeping people from work and causing businesses to miss production deadlines. Supporters argue that shared payments could give workers more affordable care while helping employers recruit and retain staff; lawmakers have not yet approved a program or established its costs to the state.

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