Here’s some legislation that would be a reward for the SEIU for all of its political donations during last year’s election. Unsurprisingly, the bill summary is misleading:
This act would expand the tiered-rate structure for the childcare assistance program to meet the federal benchmark for access to high-quality childcare for all age groups of children, with higher rates paid to licensed child care centers that have achieved higher quality ratings in “BrightStars”, the state’s quality rating and improvement system. A requirement that childcare providers must raise tuition rates for all other public or private paying families in order to receive higher state rates is removed.
The law already provides for tiered payment rates. All this bill would do is dramatically increase the amount that taxpayers are required to pay.
Taking the taxpayer’s point of view puts another light on the section removing a “requirement that childcare providers must raise tuition rates for all other public or private paying families in order to receive higher state rates.” Right now, the law simply states that taxpayers won’t pay more than child care providers charge their unsubsidized customers. This bill would allow providers to charge those families who pay for their own care less.
One consequence of this change in incentives is obvious: To the extent that the market rate for child care is less than the government’s rate, providers will have incentive to fill up available space with subsidized customers unless families can pay more. If this creates a crisis, then (from the Big Government perspective) so much the better. The politicians will be able to cash in on the promise of giving away “free” care to everybody.