What's happening
This bill requires a comprehensive study of the economic impact of childcare and early education programs in New York State.
Why it matters
By requiring a detailed economic analysis of childcare and early education, the bill could provide critical data to guide future state investments or reforms, helping policymakers evaluate whether expanding programs could yield a positive return for New York’s economy.
The study’s focus on workforce participation—such as enabling parents to work or pursue education—could highlight the broader economic ripple effects of childcare, including increased family income, reduced absenteeism, and greater business attraction to the state.
By examining demographic gaps and the unmet needs of eligible families, the findings may reveal inequities in access to childcare and early education, potentially influencing funding priorities or policy interventions to close those gaps.
The required review of how early education impacts children’s long-term outcomes (like school readiness, graduation rates, and reduced reliance on public assistance) could strengthen the case for treating childcare as a public good with long-term fiscal and social benefits.
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Study Childcare’s Economic Impact
Plain English, a few words. Used as the page title.
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History
- Referred to commerce, economic development and small business
- Referred to commerce, economic development and small business
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Study Childcare's Economic Impact
In Assembly Committee · Economic Development · Sponsor Michaelle C. Solages
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2695
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
AN ACT to amend the economic development law, in relation to the "childcare and early education sector on the economy act"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "childcare and early education sector on the economy act".
§ 2. Legislative findings and purpose. The legislature hereby finds and declares that there appears to be a serious shortage of high-quality childcare and early education options in communities throughout New York state. There is a strong consensus among researchers that childcare and early education programs provide a substantial economic payoff to communities where they are located. The legislature declares that it is crucial for the governor and legislators to obtain reliable, objective information about the economic benefits and burdens of investing in expanded childcare and early education programs within the state.
The purpose of this act is to study the economic impact on the state economy of quality childcare and early education programs for children aged 0-4, and after-school programs for children aged 5-12.
§ 3. The economic development law is amended by adding a new article 23 to read as follows:
ARTICLE 23
ECONOMIC IMPACT OF CHILDCARE AND EARLY EDUCATION SECTOR Section 450. Definitions.
451. Study of the economic impact of the childcare industry.
452. Nature of the study.
453. Report.
§ 450. Definitions. For purposes of this article, "childcare and early education" means:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04575-01-7
S. 2695 2
1. Licensed full-day childcare and early education programs and centers.
2. Licensed part-time childcare and early education programs and centers.
3. Head Start and Early Head Start programs.
4. Public pre-schools.
5. Family childcare homes.
6. After-school programs for children aged 5-12.
§ 451. Study of the economic impact of the childcare industry. The department shall conduct a study of the economic impacts on the state economy of quality childcare and early education programs for children aged 0-4, and after-school programs for children aged 5-12.
§ 452. Nature of the study. The study of the economic impact of the childcare industry shall include:
1. An evaluation of childcare and early education as a sector of the economy, including:
(a) Number of workers directly employed at childcare and early education facilities, and the gross value of their wages.
(b) Gross receipts of the industry, that is, total number of dollars flowing into the sector in the form of payments for care from parents and from public and private subsidies.
(c) Value of goods and services purchased by the childcare and early education industry.
(d) Federal dollars flowing to the state for childcare and early education.
2. An evaluation of the degree to which available childcare and early education:
(a) Enables parents to work outside the home and earn income.
(b) Enables parents to attend educational programs.
(c) Decreases absenteeism at work, reduces turnover, or increases productivity.
(d) Attracts businesses to the state.
3. An analysis of demographic data to identify the relative gap between the needs in the state and available resources, and the return to the economy if that gap is closed, including:
(a) Number of children aged 0-12 with both parents in the labor force, or with their single parent in the labor force.
(b) Trends of likely future growth in the number of children aged 0-12 in the population for the next decade.
(c) Demographic makeup of parents in the labor force and demographic makeup of adults with children who might wish to join the labor force.
(d) Cost of childcare and early education, and its relationship to family income.
(e) Availability of child care.
(f) Number of children eligible for state or federal aid.
(g) Number of children eligible for, but not receiving, state or federal aid.
4. A review of available literature on the impact of childcare and early education programs on children's future ability to contribute to the workforce, including:
(a) An evaluation of school readiness at kindergarten and first grade.
(b) An evaluation of positive outcomes in school, from elementary through likelihood of high school graduation.
(c) An evaluation of resulting reductions in public spending, for example from:
S. 2695 3
i. less likelihood of being assigned to special education classes relative to those not in quality care or preschool;
ii. greater likelihood of graduation from high school;
iii. less likelihood of involvement with the criminal justice system and prison;
iv. greater likelihood of being employed; and
v. less likelihood of being on public assistance.
§ 453. Report. The department shall report the results of the study of the economic impact of the childcare industry to the governor and the legislature on or before January first, two thousand eighteen.
§ 4. This act shall take effect on the first of July next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the economic development law, in relation to the "childcare and early education sector on the economy act"
Purpose
The purpose of this bill is to require the Department of Labor to conduct a study of the economic impact that the child care industry has had on the state economy. The study of the economic impact of the childcare industry shall include an analysis of the number of workers directly employed at childcare and early education facilities, a determination as to the gross receipts of the industry, the value of goods and services purchased by the child care and early education industry and the amount of federal dollars flowing to the state for child care and early education. The study will also evaluate the degree to which available child care and early education enables parents to work outside of the home and earn income, enable parents to attend educational programs, decreases absenteeism at work and attracts businesses to New York State. This study will further include an analysis of the demographic data to identify the relative cap between the needs in the state and the available resources, and the return to the economy, if that gap is closed. The study will review available literature regarding the impact of childcare and early education programs on children's future ability to contribute to the workforce. The Department shall report the results of the study of the economic impact of the childcare industry to the governor and the legislature on or before January first, two thousand and seventeen
Summary of specific provisions
This bill amends the Economic Development Law by adding a new Article 22 and Sections 450, 451, 452, 453, by requiring the Department of Labor to conduct a study of the economic impact of the childcare industry and submit the results of the study to the governor and the legislature.
Justification
Currently, there does not exist any requirement for a public agency to conduct a comprehensive study which would serve to identify the economic impact that the child care industry has had on the New York State economy. It is essential for the state's economic well being to conduct a study in order to determine the value that the child care industry has had on the state economy and thereby expend state resources in the most effective manner possible based upon the results of this study.
Prior legislative history
2015-16: S.2862A - Amend and Recommit to Economic Development 2013-14: S.3503 - Referred to Economic Development 2009-12: S.2168/A.10133 - Referred to Economic Development This legislation was initially introduced in 2006 as A.12047.
Fiscal implications
None.
Effective date
This act shall take effect on the first of July next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.