Arizona Launches Employer-Based Child Care Design Lab

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Workshop participants discussing child care strategies in Arizona.

News Summary

Arizona is launching its first Employer-Based Child Care Design Lab aimed at addressing workforce challenges through enhanced child care solutions. Spearheaded by EPIC, this initiative opens applications for employers until June 20, 2025, with a series of workshops from August to October. The program will help organizations devise actionable child care strategies and understand local child care landscapes. With over 2,600 children waiting for care subsidies, this initiative aims to alleviate challenges for families and businesses alike.

Arizona is set to launch the first-ever Employer-Based Child Care Design Lab aimed at addressing significant workforce challenges through improved child care solutions. The initiative, spearheaded by Executives Partnering to Invest in Children (EPIC), opens applications to employers until June 20, 2025, ahead of a workshop series scheduled to run from August to October of the same year.

The Design Lab program is designed to assist employers in evaluating, planning, and putting into action child care strategies that specifically cater to their workforce needs. It combines group learning sessions with tailored technical assistance, allowing participating organizations to create effective child care initiatives.

By the conclusion of the program, employers will gain a comprehensive understanding of the local child care landscape, alongside a detailed, actionable plan. Insights into how strategic investments in child care can favorably affect their financial outcomes will also be provided, offering a tangible route from awareness to action regarding child care challenges in Arizona.

Grace Appelbe, director of policy & government affairs for the Arizona Chamber of Commerce & Industry, emphasizes that this initiative is a pivotal step for employers looking to transform their understanding of child care issues into proactive strategies. The Arizona Design Lab also builds upon EPIC’s prior successes in Colorado, where three cohorts successfully developed localized child care solutions tailored to their communities.

Partner organizations taking part in the Arizona Design Lab include the Arizona Chamber, First Things First, and multiple United Way entities throughout the state, creating a robust support network for participating employers. An informational webinar is set for June 10, providing business leaders an opportunity to learn more about the program.

Current statistics underscore the urgent need for enhanced child care solutions in Arizona, as over 2,600 children are waiting for child care subsidies through the Arizona Department of Economic Security (DES). The waitlist was initiated on August 1, 2023, following the cessation of COVID-era funding that previously supported families in need.

The financial barriers to child care are significant, with families reportedly spending between $6,500 and $15,000 annually for full-day care of a single child. A Kids Count report suggests that nearly $11,000 is necessary annually to cover full-time child care for one child in Arizona. Furthermore, eligibility for DES subsidies is determined based on family income being at or below 165% of the federal poverty level, which affects many low-income working families.

Parents are often postponing registration for child care services, awaiting approval for state subsidies, leading to increased waitlists for enrollment at child care facilities. The Valley of the Sun YMCA has noted rising waitlists, primarily due to delays in subsidy approvals, and enrollment in certain age groups has declined as families shy away from conventional daycare options due to high costs.

In light of these challenges, Arizona Governor Katie Hobbs has proposed a budget that includes strategies aimed at reducing child care expenses and enhancing availability for families. In December, DES reported that nearly 29,000 children were served through their child care assistance program, highlighting an ongoing demand for accessible child care services.

Employers interested in the Arizona Employer-Based Child Care Design Lab can find additional details and submit their applications at the EPIC website. This groundbreaking initiative signifies a crucial step towards creating sustainable solutions for child care in the state, benefiting both families and businesses alike.

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