NORTH RIDGEVILLE, Ohio — When businesses are clear about what they need to thrive, contribute to the economy, and sustain and grow jobs, government officials should listen. This is especially true about small businesses, which are the backbone of Ohio’s economy, accounting for 99.6% of all Ohio businesses and employing 44.7% of all workers.

Even though we’ve emerged from the pandemic, significant challenges remain for small businesses. Chief among them is the ability to hire and retain qualified employees. In fact, a new survey of small business owners from Goldman Sachs’ “10,000 Small Business Voices,” shows that this is the No. 1 problem facing small businesses in Ohio and nationally.

A lack of affordable, accessible child care is a major factor driving this workforce challenge. According to the survey, small business owners overwhelmingly – 83% in Ohio and 80% nationally – said that a lack of access to child care continues to be a barrier to workforce participation, with less than one in five saying there are the right amount or more than enough high-quality child care options in their communities. Small business owners have a vested interest in knowing and understanding their employees, and in Ohio, more than nine in 10 believe it is difficult for working parents to afford quality child care programs for their children.

The experiences and perspectives of small business owners bear out in economic data, with the child care crisis costing Ohio’s economy an estimated $3.9 billion per year in lost earnings, productivity and revenue, according to a recent ReadyNation report.

Northeast Ohio is no exception. We know firsthand that the persistent and growing workforce challenges are directly tied to inaccessibility of high-quality child care – they are two intertwined crises holding back economic growth.

So, it should come as no surprise that Ohio small business owners strongly support (80%) policymakers taking action to increase access to affordable child care.

Fortunately, we have an incredible opportunity at our fingertips to address this challenge head-on. Ohio’s legislature is currently in the midst of the budget approval process. When signed into law by Gov. Mike DeWine at the end of June, the budget will fund state government for two years.

Earlier this year, Gov. DeWine released a budget proposal that prioritized key investments in quality, affordable child care. These investments include:

• $150 million in already received federal funding to provide child care scholarships and to increase infant and toddler child care capacity throughout the state.
• An expansion of eligibility for the state’s publicly funded child care program from 142% of the Federal Poverty Level (FPL) to 160%.
• $46 million per year in Early Childhood Education grants to expand preschool enrollment.

When the House passed the budget last month, the FPL eligibility expansion and the $46 million-per-year increase in preschool investment were maintained. Although the House did include $15 million more for preschool each year over the governor’s request and a new $15 million each year in infant and toddler child care capacity-building grants, the $150 million for child care scholarships for direct care workers (including those in child care) was unfortunately eliminated from the House version because of concern with the one-time nature of the funding source. With the budget now in the Senate, we remain hopeful that these scholarships will be restored through strong legislative leadership that understands the positive impact this investment can have, and that our state’s businesses still need to bring people back to work.

This sentiment and a call for these specific investments in child care are echoed in a recent letter to the state legislature signed by Goldman Sachs’ “10,000 Small Businesses Voices,” along with Ohio’s leading business organizations like the Ohio Business Roundtable, the Ohio Chamber of Commerce, the Ohio Manufacturers’ Association, the Ohio Council of Retail Merchants, the Ohio Restaurant Association, and dozens of other local and statewide organizations and business leaders.

As they wrote, “Even with these targeted investments, too many children and their families will still be left out. They are just the beginning of what is needed to fully address the child care crisis facing kids, parents, and Ohio businesses, but they are a vital step in the right direction.”

Gov. DeWine’s leadership should serve as a guiding light for the legislature to pass a budget that includes his child care priorities. They are indeed just the start of what is needed – but they would have an impactful return on investment and put our state on the path toward a friendlier business environment.

State Rep. Gayle Manning, a North Ridgeville Republican, represents the 52nd Ohio House District. Dan Weiss is the founder and president of Adatasol, a software company headquartered in Highland Heights.

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