Employees of small businesses in Montgomery County could soon see a new job perk: government grants to help cover the cost of child care.
The average weekly cost of full-time child care in Montgomery County ranges between $127 and $364, according to a 2017 county report. That’s an average of $12,766 per child every year.
County leaders hope a child care incentive would attract new businesses and talent to the area and decrease business owners’costs.
Under the proposed bill, the child care grant would provide up to $500,000 in matching funds to businesses with 50 employees or fewer.
The grant would match up to 50% of the employer’s contribution to employees’ Flexible Spending Accounts for eligible child care and dependent care. Only employees earning a gross income of less than $125,000 would be eligible for the grant. Both for-profit and nonprofit businesses could participate in the program.
The funds for the program would be taken from the county’s economic development funds. Businesses would receive a match of up to $1,250 per employee, which would provide a total of $2,500 to each employee. The number of children per employee does not change the grant amount.
Council Member Gabe Albornoz, the lead sponsor of the bill, said the rising costs and lack of options for child care in the county inspired him to pursue it.
The Montgomery County Chamber of Commerce originally brought the idea forward. Albornoz, and co-sponsor Andrew Friedson presented the bill before the County Council on Tuesday.
“We’ve heard one of the challenges that businesses are having in the county and in our region is recruiting talent and that is a big driver of business development,” Albornoz said.
In particular, applicants in the technology field have growing options for jobs. Child care funds could help make the county more appealing.
“We know there are a number of families that are struggling to be able to afford quality child care,” Albornoz said. “This would help families in the middle class to afford child care here in the county. … We do believe this would be a benefit that an employee would be looking for or enticed by.”
According to the 2017 report, 4.9% of the families in the county were below the poverty level in 2010 — a jump of about 42% from 2000.
Businesses can apply every year and are limited to a little more than $62,000 that they could receive through the grant. With a cap on the total amount of the fund, it’s first come, first served.
The county’s finance office will monitor the program to ensure that the grants are not misused. Any leftover funds would go back to the county.
Albornoz said no concerns have been brought up over the bill and he hopes to see the grants open to businesses starting in July.
“We are actively trying to grow the number of opportunities that are [in the county] and increase the affordability for parents,” he said.
Briana Adhikusuma can be reached at briana.adhikusuma@moco360.media.
