Is this the solution to the Sioux Falls childcare crisis?

SIOUX FALLS, S.D. (KELO) — Affordable and available childcare in Sioux Falls is an ongoing issue for both parents and providers. A new initiative presented to the Sioux Falls city council on Tuesday looks to relieve the concern.

On Tuesday, officials said childcare services struggle to stay open due to high employee turnover and administrative burdens, and when families do find openings, they’re not always affordable.

“If all available parents cannot work because they are constantly wrestling with issues of childcare affordability and availability, then those people can’t go to work. The businesses in Sioux Falls cannot benefit from those employees,” Woods, Fuller, Shultz & Smith attorney Justin Smith said who spoke on the initiative Tuesday.

The initiative is split into three objectives. The council focused primarily on Objective I Tuesday afternoon. Smith said it focuses exclusively on Family Day Care Homes (FDCHs) and identifying how to make those more accessible. Smith added that succeeding under this objective could open up to 60 new childcare slots a year, and many of the proposals within it could fit larger childcare centers down the road.

Three potential regulatory changes are included in the initiative. One is amending a city ordinance to allow FDCHs to increase ratios to provide services up to two additional school-aged children during planned closures.

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“If the facility had another sibling of normal childcare age in that facility, again, more bodies in the door would simply mean more money in the door for the center,” Smith said.

However, there are some concerns with that proposal.

“To me it seems ludicrous to mention that we’re going to give care to two more kids to an in-home center when a place that is set up for this can only have ten. It makes absolutely no sense to me. And we talk about creating 400 spots. What would it mean if we changed the ratio law for everyone involved?” Little Tykes University owner Corri Poore said.

There was also discussion on amendments to zoning and childcare ordinances to permit the use of commercial spaces for FDCHs and Group Family Day Care Homes. Smith said this is a “down-the-road” option if other ideas need to be explored beyond other proposals.

The third regulatory consideration is a tax credit, which officials said would lead to measurable savings for daycare homes.

“The council would have to craft the pertinent ordinance to strictly limit the types of products to which the sales tax rebate could apply, such as groceries, school supplies and other items for use directly in the childcare program,” Smith said.

“I can testify personally that the tax credit would be extremely beneficial,” Karen Rieck said on Tuesday. Rieck has an extensive background in childcare. “My mortgage payment increased by $400 a month because of the increase in property taxes and having to pay the difference because of lack of escrow account.”

Four economic incentives are also on the table. Those include a Sioux Falls Tri-Share Program, start-up grants for new FDCHs, cost assistance with child services and a support network of colleagues and mentors.

“Similar programs have had great success in other communities, and at the end of the day, this could really, really benefit a lot of families and endure and then directly benefit child care providers,” Smith said. “The most important and immediate of the recommendations in the report is to create a Staffed Family Child Care Network or a Shared Services Alliance.”

Other public input included further support, questions and concerns for the initiative, as well as caution when it comes to following state licensing requirements. The council’s next step is selecting which regulatory and economic initiatives to focus on.

The main goal of Objective I is to open three to five new family day care homes annually. Objective II, which includes discussion of the Sioux Falls Tri-Share Program, will be discussed in October. Objective III is set for a November discussion.