WBTW
January 8, 2025
South Carolina agency seeking $32M in ongoing aid to support affordable childcare programs
by: Adam Benson
COLUMBIA, S.C. (WBTW) — There’s a hidden expense weighing down thousands of South Carolina small businesses and their employees.
“The lack of affordable, quality childcare is a major concern of small business owners, and it is a key contributor to their labor shortage problem,” South Carolina Small Business Chamber of Commerce CEO Frank Knapp told a legislative committee on Monday.
In 2023, center-based childcare for infants and toddlers in South Carolina cost on average between $8,727 and $9,048 against a median income of $31,575 for a single-parent family, according to Child Care Aware of America.
With the legislative session just a week away, some lawmakers are hoping to get a jump start in working to solve the problem, meeting with industry experts and state officials on possible pilot programs and funding opportunities that could offset the financial demand for those who can least afford it.
Knapp said soaring childcare costs affect employee turnover, recruitment, retention, continuity and other factors.
“We need to think about a solution where government assistance for childcare is routed through our small businesses that are in the most need for labor and not able to compete,” he said.
One answer could be to mirror a “tri-share” funding formula perfected in Michigan that splits childcare costs between employers, businesses and government sources.
Connelly-Anne Ragley, legislative liaison for the state Department of Social Services, told lawmakers the agency is seeking $32 million in recurring revenue to support childcare programs as part of its 2025-26 budget request.
If approved, about $1 million of that would go toward the creation of a “tri-share” system in South Carolina, she said.
The idea has support from people like Sue Williams, who oversees the Children’s Trust of South Carolina.
“We’ve seen time and time again that when parents have access to supportive systems like affordable childcare, the rates of abuse and neglect go down,” she said. “That’s because parents are given the opportunity to focus on their jobs while knowing their children are safe and well cared for.”
State Rep. Shannon Erickson, a Beaufort Republican and former president of the South Carolina Child Care Association, said officials need to look at both sides of the issue when it comes to finding the best long-term solution.
“The other piece I think we’ve got to look at is, ‘how do we lower costs?’ Because at the end of the day, we don’t have an unlimited amount of money, and parents sure don’t,” she said.