The New Jersey Business & Industry Association (NJBIA) is urging an Assembly committee to assess current childcare investments in the state. NJBIA Vice President of Government Affairs, Althea D. Ford, addressed the Assembly Children, Families and Food Security Committee through written testimony. Ford emphasized that analyzing existing investments announced by Governor Phil Murphy could guide future funding decisions to enhance what she describes as an "unsustainable model."
"Governor Murphy noted that the Administration has invested more than $1 billion in the childcare sector to date," Ford stated. Despite this investment, she highlighted ongoing issues with high childcare costs and low wages for workers.
Ford suggested conducting a detailed analysis of who benefits from these investments and their effectiveness in resolving industry challenges. This would ensure that state funds are used effectively to support the vital childcare industry.
Her written testimony will be followed by verbal remarks at a committee hearing discussing the sustainability and expansion of New Jersey's childcare industry.
Ford pointed out that New Jersey's business community has a "vested interest in ensuring a robust and diverse childcare system," as it provides essential services for working parents and because providers are also businesses themselves.
She described New Jersey's current childcare economy as an "unsustainable model." According to Ford, high costs and workforce challenges due to low wages contribute significantly to this issue. She stressed that addressing affordability is crucial for the state's economic outlook since insufficient support for working parents can lead them, especially women, to leave the workforce.
NJBIA proposed legislative measures like Bill A-974/S-2240 (Munoz, Sampon; Ruiz, Vitale), offering tax credits for employer-provided childcare expenditures, and Bill A-2242/S-3382 (Lopez/Freiman/Pintor Marin/Vitale), which allows tax credits for certain staff and registered family day care providers.
Ford also recommended investing strategically in a childcare ecosystem using existing licensed providers while avoiding unnecessary regulatory burdens.
To access Ford’s complete written testimony, click here.
