State task force report includes 56 recommendations for improving child care across Alaska

ANCHORAGE, Alaska (KTUU) - In an ongoing effort to address childcare across Alaska, the state Department of Health recently announced the release of a final report by the Governor’s Task Force on Childcare.

The two-year study examined potential childcare solutions, including reducing burdensome regulations, while enhancing accessibility and affordability. This has now led to 56 recommendations across six key areas.

In a prepared statement, the department stated that it has already implemented 13 recommendations and is actively working on 21 others.

Per the same statement, Gov. Mike Dunleavy, R-Alaska, expressed his gratitude for the task force’s work, highlighting that the report will help the state develop policies to address the lack of childcare resources.

“My goal is to make Alaska the best state in the country to raise a family,” Dunleavy said. “Having access to quality and affordable childcare is essential for working parents.”

According to the final report, Alaska has lost nearly 10 percent of its licensed childcare providers since January 2020, and more licensed facilities are expected to close once federal pandemic relief funding runs out. Additionally, a report from the U.S. Chamber of Commerce Foundation in 2021 found that Alaska’s economy is projected to lose $165 million annually due to childcare issues.

Moreover, the report indicates that more than half of Alaska’s young children live in households in which all parents are employed, but three of every five Alaskans reside in “childcare deserts,” or areas with limited access to licensed childcare facilities.

“Removing barriers, especially in rural areas, and supporting the childcare workforce are other areas we expect to see long-lasting improvements as a result of this important work,” Department of Health Commissioner Heidi Hedberg said.

The report is the second in a pair, with the first report — issued on Dec. 31, 2023 — focusing on childcare challenges related to background checks, licensing, and workforce.

DOH Health Care Policy Advisor Leah Van Kirk said during an interview with Alaska’s News Source that regarding background checks, the department has already implemented a major one of the recommendations in order the streamline the process.

“We are following the recommendation to implement digital fingerprinting,” she said. “And so this next year, we look forward to piloting a digital fingerprinting process.”

The state has invested — through ARPA funds — in digital fingerprinting equipment, she said, so that data can be transmitted electronically instead of through the mail.

She also said the department has added to its regulations a provision stating that administrators can designate someone in their absence.

This allows administrators to delegate their authority while they’re offsite, creating more flexibility for staffing, Van Kirk said.

“To be a little bit easier for childcare providers,” she added. “Instead of having that administrative requirement of onsite during the whole duration of hours of operation.”

The first report also recommended creating a sustainable state-funded wage subsidy for licensed childcare professionals and recognizing childcare professionals as essential workers in Alaska.

The second — the most recent and final report — issued on Sept. 30, 2024, focused on accessibility, affordability, and quality.

Speaking on accessibility, Van Kirk noted that individuals in rural Alaska face additional challenges due to a lack of childcare options, either because there are insufficient providers or because there is inadequate building space for a facility. Stakeholders identified a couple of solutions to these issues, she said.

“Some of our stakeholders have indicated that licensed home childcare is more viable in their communities due to lack of buildings,” Van Kirk said. “There are some communities that have schools, for instance, that would be a space where a childcare facility could be developed. And so that was one of our recommendations in the task force.”

Heather DeLoach, corporate finance manager for Bright Beginnings Early Learning Center in Anchorage, said she questions how easy it would be for schools to retrofit buildings or rooms to be childcare centers.

“The childcare center in, say, an elementary school, the building itself is not built for an early childhood setting,” DeLoach said. “The bathrooms, the sinks, everything would have to be scaled down to the proper size in order to properly care for the children.”

DeLoach said for her the issue is finding the delicate balance between paying her employees a livable wage and providing affordable childcare. For some families, the cost of childcare is more than rent.

“I mean, if McDonald’s had to have a certain number of people employed for every customer — if they had to have one employee for every 10 customers — burgers would cost a lot more, you know,” she said. “We’re paying the same wages as other jobs that are much, much easier.”

In the end, she said her most common problem is finding qualified individuals who are willing to work for what the company can pay.

“Subsidizing workforce and workforce development ... I totally get not wanting to just throw money at the problem,” DeLoach said. “If they’re looking to target workforce development, then that could come in the form of ... payroll tax credits, or some kind of a grant, or something that’s targeted funds toward that.”

To address affordability, the final report recommends increasing the income eligibility for the Childcare Assistance Program (CCAP) and providing incentives for childcare providers through the Childcare Grant Program for those who meet specific criteria, which DeLoach supports.

“The highest rate that a family can receive is half of the tuition that we have to charge ... so there’s a huge gap there,” she said.

In his proposed FY 2026 budget, Dunleavy is allocating $6 million to implement expanded eligibility of the childcare Assistance Program under SB 189. The law’s provision — sponsored by Rep. Julie Coulombe, R-Anchorage — during the last session aims to expand the eligibility requirements for the state’s childcare assistance program. Instead of being limited to 85% of the median monthly income, eligibility will now extend to 105% of that amount.

Furthermore, childcare co-pays for eligible families will be capped at 7% of their household income.

The full report, available on the state task force’s website, can also be accessed by clicking here.

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