Increase Child Care In New York City
March 10th, 2008
By City Council Member Jessica Lappin
Finding safe, dependable and affordable child care in New York City is a difficult and often heart-wrenching task. Far too many working families are forced to struggle with this issue each and every day because there simply are not enough day care slots to go around. In 2006, over 39,000 children were on Administration for Children’s Services (ACS) waiting lists for care throughout the City. And it is particularly hard to find slots for young infants. According to ACS, less than 3 percent of the children they serve are between birth and one year old. With our population estimated to grow by one million people by the year 2030, this problem will only get worse.
These numbers are especially disturbing within the context of our city’s economic future, since child care is the key to employment, advancement and economic stability. Without child care, it is impossible to lift oneself out of poverty or to remain in the middle class.
Some innovators, such as unions like SEIU 1199, have recognized this problem and developed solutions. In 1993, 1199 and health care employers joined together to create the 1199/Employer Child Care Fund to provide workers with child care services. The fund runs two of its own day care centers in the Bronx, operates summer day camps and holiday programs and offers subsidized weekend art classes.
Sadly, however, most private companies have yet to follow suit. Currently, only 5 percent of businesses in New York City offer on-site child care to employees. On the surface, this is surprising, since studies have shown that reliable child care has proven to save businesses money by reducing absenteeism and employee turnover. But real estate in New York is at a premium, and setting aside the space for child care facilities can prove costly and problematic.
Across America, even in places where real estate is a lot less expensive, other cities and states are using tax breaks to help defray the cost of building or running a center. According to the National Conference of State Legislatures, 18 states either provide, or have provided, income tax incentives to employers who construct and operate child care facilities or pay for childcare services for employees. Two states provide property tax incentives for employer-provided daycare sites. But unfortunately, New York is not one of them.
We should—and can—change that. I recently introduced legislation that would provide a credit on the Commercial Rent Tax to businesses that offer child care to their employees. An employer could either provide care in the space it rents, or it could pool its credit with other businesses to subsidize the operation of an off-site center.
This represents an innovative and timely approach because, unlike most other taxes, the Council can make changes to the Commercial Rent Tax (CRT) without Albany’s consent. The CRT applies to large businesses in Manhattan, located south of 96th Street, that pay more than $250,000 a year in rent.
In addition, I have also introduced a companion resolution calling on the New York State Legislature to enact legislation authorizing New York City to provide tax incentives to businesses that offer child care assistance to employees—regardless of their size or location throughout the city.
It makes practical and economic sense for New York City to join states and cities around the nation that recognize the need for new thinking on how to provide quality, reliable childcare. This achievable approach will help working families, local businesses, our economy and, ultimately, our city as a whole.
Jessica Lappin is a Democrat representing parts of Manhattan in the Council.
Finding safe, dependable and affordable child care in New York City is a difficult and often heart-wrenching task. Far too many working families are forced to struggle with this issue each and every day because there simply are not enough day care slots to go around. In 2006, over 39,000 children were on Administration for Children’s Services (ACS) waiting lists for care throughout the City. And it is particularly hard to find slots for young infants. According to ACS, less than 3 percent of the children they serve are between birth and one year old. With our population estimated to grow by one million people by the year 2030, this problem will only get worse.
These numbers are especially disturbing within the context of our city’s economic future, since child care is the key to employment, advancement and economic stability. Without child care, it is impossible to lift oneself out of poverty or to remain in the middle class.
Some innovators, such as unions like SEIU 1199, have recognized this problem and developed solutions. In 1993, 1199 and health care employers joined together to create the 1199/Employer Child Care Fund to provide workers with child care services. The fund runs two of its own day care centers in the Bronx, operates summer day camps and holiday programs and offers subsidized weekend art classes.
Sadly, however, most private companies have yet to follow suit. Currently, only 5 percent of businesses in New York City offer on-site child care to employees. On the surface, this is surprising, since studies have shown that reliable child care has proven to save businesses money by reducing absenteeism and employee turnover. But real estate in New York is at a premium, and setting aside the space for child care facilities can prove costly and problematic.
Across America, even in places where real estate is a lot less expensive, other cities and states are using tax breaks to help defray the cost of building or running a center. According to the National Conference of State Legislatures, 18 states either provide, or have provided, income tax incentives to employers who construct and operate child care facilities or pay for childcare services for employees. Two states provide property tax incentives for employer-provided daycare sites. But unfortunately, New York is not one of them.
We should—and can—change that. I recently introduced legislation that would provide a credit on the Commercial Rent Tax to businesses that offer child care to their employees. An employer could either provide care in the space it rents, or it could pool its credit with other businesses to subsidize the operation of an off-site center.
This represents an innovative and timely approach because, unlike most other taxes, the Council can make changes to the Commercial Rent Tax (CRT) without Albany’s consent. The CRT applies to large businesses in Manhattan, located south of 96th Street, that pay more than $250,000 a year in rent.
In addition, I have also introduced a companion resolution calling on the New York State Legislature to enact legislation authorizing New York City to provide tax incentives to businesses that offer child care assistance to employees—regardless of their size or location throughout the city.
It makes practical and economic sense for New York City to join states and cities around the nation that recognize the need for new thinking on how to provide quality, reliable childcare. This achievable approach will help working families, local businesses, our economy and, ultimately, our city as a whole.
Jessica Lappin is a Democrat representing parts of Manhattan in the Council.
