Wisconsin Assembly Bill AB388

Wisconsin 2023-2024 Regular Session

• Introduced: 9/1/23
• Refer: 9/1/23
• Report Pass: 9/12/23
• Refer: 9/12/23
• Engrossed: 9/14/23
• Refer: 9/20/23
• Enrolled: 2/16/24
• Vetoed: 3/29/24
• Failed: 5/15/24

Caption

Creating a child care center renovations loan program. (FE)

Impact

The passage of AB388 is anticipated to have a significant effect on the availability and quality of child care services across the state. By offering financial assistance to improve facilities, the bill aims to ensure that licensed child care providers can meet safety and quality standards, thus fostering a more conducive environment for child development. This initiative is seen as essential to supporting families in Wisconsin, ultimately encouraging workforce participation and addressing child care shortages that have been a growing concern in recent years.

Summary

Assembly Bill 388 establishes a revolving loan program dedicated to the renovation of child care centers in Wisconsin. The bill mandates the Wisconsin Economic Development Corporation to provide interest-free loans to licensed child care providers, allowing them to enhance their facilities. The funding distribution requires that 60% of the loans be allocated to in-home licensed providers while the remaining 40% goes to those that are not home-based. In-home providers can obtain loans up to $30,000, whereas non-home providers can receive loans up to $100,000. One critical stipulation is that in-home providers must maintain enrollment for their facilities within one year to retain eligibility for the loan.

Contention

While the bill has garnered support from various child care advocacy groups, some lawmakers have expressed concerns regarding the distribution of funds, particularly the percentage bifurcation between in-home and other licensed providers. Critics argue that this could inadvertently favor larger, non-home daycare entities over smaller, family-oriented operations. Additionally, there are apprehensions about the feasibility of strict enrollment stipulations, as maintaining enrollment levels can be challenging for providers dealing with fluctuating demand and staffing shortages.