Adding incentives to open childcare centers in South Dakota

RAPID CITY, S.D. (KOTA) - Childcare in South Dakota is a $250 million industry, but the state is also losing out on $146 million in work productivity because of the lack of childcare.

Finding solutions to South Dakota’s childcare crisis is gaining momentum, but more than 1/3 of South Dakota kids don’t have access to childcare. Right now, the state doesn’t offer bonuses for people to open a childcare center.

“We don’t have a lot of incentives to become licensed or registered currently. The more incentives we can provide to people, the more they’ll say, ‘Hey maybe I should open a childcare center in my home,’ or ‘Maybe I should invest in a piece of property and open a larger center in my community, because I know that’s the need,” said Kayla Klein, director Early Learner South Dakota.

Last year, a bill was introduced to reduce the property tax for childcare centers but failed. In Wyoming, a similar bill is running through their legislature. While Klein says cutting property tax for childcare centers is a penny in the bucket, it is one more possible solution to the childcare crisis.

“The property tax, along with many other different incentives coinciding together,” explains Klein, a former childcare center owner. “Then I think you will eventually see some momentum making this a sustainable business.”

Klein says, she believes the best bill to cut property tax would be simple with the input of people in the childcare industry and property tax experts.