ADA TOWNSHIP, Mich. — Kent County officials will discuss a proposal Tuesday that would allow Michigan neighbors to save for child care costs through a new tax-advantaged savings account.
The child care savings account is part of a larger set of recommendations from the Kent County Childcare Task Force aimed at addressing what officials call a persistent childcare crisis. Under the proposal, residents could save for childcare costs through a new account with state income tax benefits. The accounts would allow people to start saving before they have children.
The recommendations come as Kent County faces a shortage of more than 20,000 licensed childcare slots for children ages 0-5. County data shows there are only 31,863 licensed slots for an estimated 52,323 young children.
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Rising Costs Impact Local Families
"I was lucky enough to have family members that would babysit my son when he was a baby, but I can't imagine the cost of not having family members and having to send your child to daycare five days a week," said Katelyn Ludwig, an Ada Township parent.
Childcare costs have risen significantly in recent years. In Grand Rapids, infant care now averages $1,100 to $1,550 per month, while toddler care costs $950 to $1,350 monthly. Some families report their childcare expenses exceed their mortgage payments.
Ludwig said she would be interested in learning more about the savings accounts.
"Children are very, very expensive, so anything that the county or the community can do to help parents save and set them up for success for expensive children, I think is something worth looking into," she said.
Dan Willett, another Ada Township parent who raised three children, said his adult children now face high child care costs that affect family planning decisions.
"I think our kids are experiencing the high costs of child care. And literally, it is something that they have to look at in terms of how many kids they want to have in their own family," Willett said.
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Planning Ahead Appeals to Parents
The ability to plan ahead appealed to Willett.
"Everybody is stretched tight these days with their budget. So to be able to plan that and have those things figured out or somewhat have figured out, then that would be very beneficial," he said.
What's Next
The task force developed 14 total recommendations to address childcare affordability, expand supply, strengthen the workforce and maintain county involvement. The savings account proposal would require state legislation to implement.
Kent County leaders are expected to discuss the proposals at their Tuesday morning meeting, with the full Board of Commissioners taking up the item on Sept. 24.
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