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These cities raised taxes — for child care. Parents say the free day care 'changed my life'

apnews.com These cities raised taxes — for child care. Parents say the free day care 'changed my life'

A growing number of cities are passing tax increases to expand access to child care. Last year, New Orleans added more than 1,000 child care seats for low-income families after voters approved a historic property tax increase.

Last year, New Orleans added more than 1,000 child care seats for low-income families after voters approved a historic property tax increasein 2022. The referendum raised the budget of the program seven-fold — from $3 million to $21 million a year for 20 years. Because Louisiana’s early childhood fund matches money raised locally for child care, the city gets an additional $21 million to help families find care.

New Orleans is part of a growing trend of communities passing ballot measures to expand access to child care. In Whatcom County, Washington, a property tax increase added $10 million for child care and children’s mental health to the county’s annual budget. A marijuana sales tax approved last year by voters in Anchorage, Alaska, will generate more than $5 million for early childhood programs.

The state of Texas has taken a somewhat different tack. In November, voters approved a state constitutional amendment that allows tax relief for qualifying child care providers. Under this provision, cities and counties can choose to exempt a child care center from paying all or some of its property taxes. Dallas was among the first city-and-county combo in Texas to provide the tax break.

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