New governor, lawmakers must prioritize our youngest

By Gerald Szostak, Board Chairman at First Things First

This editorial originally appeared in the December 23, 2022 edition of the Arizona Capitol Times.

As we look forward to all the possibilities that the new year brings, it's also a good time to reflect on the opportunity that our state leaders - especially our new governor and state legislators - have to prioritize our youngest Arizonans.

Today's babies, toddlers and preschoolers are our state's generation next - the generation that in just a couple of decades will be entering the workforce and beginning their own families. We know that the first five years of life are the most critical developmental years. The brain is built from early experiences, so early childhood is our best opportunity to ensure a solid foundation is set from the start.

We have a shared responsibility to ensure all kids have the tools they need to learn, grow and succeed. That means supporting families with every policy we set - from child tax credits to paid family leave - to reduce financial pressures on families and help to create the safe, stable environments that children need to thrive.

One key part of this is early care and education. About 64% of children under age 6 in Arizona live in households where all the adults work, and many of those families rely on childcare outside the home. But like many states, Arizona has an ongoing child care crisis.

Even before the pandemic, the child care industry was struggling - nearly half of the state was a child care desert and child care was already expensive, with one year of infant care costing more than one year of state college tuition. Post pandemic, finding and affording child care is harder than ever.

Our state is experiencing a child care worker shortage, with many providers leaving the field for higher-paying jobs in retail and hospitality. This means that many programs are closing classrooms because of lack of staff, and they are serving fewer children than they were before. This crisis in child care is not lost on Arizona businesses. A recent analysis by the U.S. Chamber Foundation shows that the cost to businesses and our state coffers is almost $2 billion a year. Employers lost an estimated $1.42 billon annually due to absences and employee turnover related to child care issues. And those cost the state about $348 million in lost tax revenue.

Recent pandemic relief funds directed to child care have helped to shore up this critical infrastructure for our state's economy. But these funds are short-term and will be gone soon. Now, we need everyone to come together to find commonsense, long-term solutions.

One place to start would be to restore our state's general fund investment in child care subsidies. During the last recession 14 years ago, the state eliminated $69 million in state funding for child care subsidies. Only a portion of that funding - about $7 million - has returned. Restoring this state funding would be a critical step forward in helping more families afford child care. And it would be a step forward in creating stronger communities and families.

The decisions we make today will create the next Arizona. Our state's leaders can make sure all kids have what they need right now and in the future.

Gerald Szostak is board chairman of First Things First, which funds early learning, family support and children's preventive health services to help kids enter kindergarten ready to succeed.