[Congressional Record Volume 144, Number 140 (Thursday, October 8, 1998)]
[Senate]
[Pages S11986-S11988]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRAHAM:
  S. 2593. A bill to amend the Internal Revenue Code of 1986 to provide 
a credit against tax for employers who provide child care assistance 
for dependents of their employees, and for other purposes; to the 
Committee on Finance.


         The Worksite Child Care Development Center Act of 1998

  Mr. GRAHAM. Mr. President, I rise today to introduce legislation 
designed to aid millions of American families with one of their most 
pressing needs--child care. This legislation would make child care more 
accessible to millions of families who find it not only important, but 
necessary, to work.
  In the ideal world, most parents, I believe, would prefer to have 
their children raised by at least one parent at home. However, for a 
vast majority of families in America, this ideal is not possible. And 
for the working poor and many in the middle class of our society, this 
ideal is a luxury that they cannot afford.
  The legislation which I am introducing today would not solve the 
child care needs of American parents. However, it would serve to 
provide a much needed incentive--a jump start--to promote employer 
provided child care, particularly among our nation's small businesses.
  The legislation I am introducing today would offer a tax credit to 
those employers who undertake the responsibility of assisting their 
employees with child care expenses. This bill--the Worksite Child Care 
Development Center Act of 1998--would modify that part of the Internal 
Revenue Code of 1986 which relates to business tax credits. It would do 
so by providing child care tax credits to employers for--
  A one-time 50 percent tax credit, not to exceed $100,000, 
specifically for facilities start-up expenses, which includes expansion 
and renovations of an employer-sponsored child care facility;
  A 50 percent tax credit, not to exceed $25,000 annually, for those 
expenses related to the operating costs of maintaining a child care 
facility; and
  A 50 percent tax credit, not to exceed $50,000 annually, specifically 
for those employers who provide payments or reimbursements for their 
employees' child care expenses.
  One may ask, ``Why is this legislation important to American 
employers and employees?'' Mr. President, I submit to you that there 
are four compelling reasons for the Congress to pass this legislation.
  First, child care is a major concern for American families. We should 
be concerned about child care because it has become one of today's most 
pressing social issues. Ask working parents today to identify their top 
daily concerns, and a large proportion will most certainly identify 
quality, affordable child care as one of them.
  On June 1st of this year, I hosted a Florida statewide summit on 
child care, which was attended by over 500 residents of my state who 
shared with me their concerns, and sometimes their frustrations, about 
this issue. The feedback that I received from my constituents covered a 
myriad of issues reflecting the high level of concern that parents have 
regarding access, quality, and the level of investment we are making in 
child care. We had five panel sessions moderated and staffed by 25 of 
Florida's most distinguished professionals in the field of child 
development and human services and education. The panels covered a wide 
range of issues from affordability and access, to quality of care, to 
public-private partnerships between government and businesses.
  I am pleased that I was able to hear from my constituents and from 
experts regarding the extent and nature of the problem. One participant 
summed it up well, ``The issues addressed in the summit today are 
concerns that need to continue to be addressed until the needs are met; 
however, the needs are going to continue to grow as our preschoolers 
and school-agers go into middle schools.''
  Mr. President, it's no wonder that there is so much interest in the 
issue of child care. Child care, when it is available, is provided to a 
child at one of the most important times in that child's life. Indeed, 
recent research has confirmed what many of us had always believed--that 
quality child care can positively influence cognitive and social 
development. Current scientific research tells us that the most crucial 
period in children's brain development and brain readiness--which 
determines so much of the course for the rest of their lives--is that 
time between birth and the age of three.
  Second, America's workforce is changing. The work place has changed 
dramatically over the past fifty years. In 1947, just over one-quarter 
of all mothers with children between 6 and 17 years of age were in the 
labor force. By 1996, the labor force participation rate of working 
mothers had tripled. The Bureau of Labor Statistics reports that 65 
percent of all women with children under 18 years of age are now 
working. This percentage is not expected to decrease--it is expected to 
grow. As we enter the 21st century, women will comprise 60 per cent of 
all new entrants into the labor market. A large proportion of these 
women are expected to be mothers of children under the age of six.
  The implications for employers are clear. Employers understand well 
that our nation's workforce is changing rapidly. Those employers who 
can attract and hold onto the best employees are likely to be among the 
most competitive.
  Many of our larger corporations and government agencies have 
recognized this and are already moving in that direction. For example, 
our nation's military is often cited as having a model child care 
program for its personnel. Military leaders know well the relationship 
between a parent's peace of mind and satisfaction with good child care 
and job performance.
  In my State of Florida, several major firms have taken similar steps 
to invest in their employees. I recently visited Ryder Corporation's 
Kids' Corner child care center in Miami where more than 100 children 
are cared for in a top-notch day care program. Ryder has received many 
accolades, including being recognized as the Best Employer of Women in 
the State of Florida by the Florida Commission on the Status of Women. 
Ryder now plans on extending the care that it provides to the children 
of employees by establishing a charter school on-site.
  Similarly, NationsBank, formerly Barnett Bank, in Jacksonville, 
operates a state of the art child care facility for its employees. 
According to Ms. Mari White, the Senior Vice President of Work 
Environment Integration at NationsBank--and a member of my informal 
Advisory Committee on Child Care--this program makes good business 
sense. She views the availability of child care at the work site as a 
workforce retention tool for NationsBank as well as a great recruitment 
tool for new employees. In addition to its day care center, NationsBank 
also operates a Satellite Learning Center--a charter school for 
employees' children.
  I commend Ryder Corporation, NationsBank, and the many other 
corporations in Florida and throughout the nation, which have taken the 
important step forward in providing child care for its employees. I 
submit to you that small businesses, which do not have the resources to 
undertake such efforts, ought to have the ability to offer similar 
benefits to its employees. My legislation is intended to make it easier 
for them to do so.
  Third, child care is important for the success of Welfare Reform. 
This legislation is an important component to our national welfare 
policy. While most American families struggle with child care, this 
problem is most acute among the working poor and the middle class.
  In 1996, Congress and the President changed welfare as we knew it. We 
made fundamental changes to the policies, and the social expectations, 
relating to work and welfare. The federal government has asked our 
business community and governmental agencies to work in partnership in 
keeping the working poor off of the welfare rolls. If we are to see the 
reforms of 1996 succeed, we must ensure that the means to succeed are 
provided.
  The working poor--particularly those formerly on welfare--face major 
challenges associated with staying off of welfare. These challenges 
include their ability to:
  (1) get to and from work;
  (2) obtain the job training they need to get and hold onto their job; 
and

[[Page S11987]]

  (3) access to affordable and quality child care.
  Although States spend millions of dollars each year on subsidized 
child care, at any given time there may be up to twice as many children 
eligible who are not enrolled in the system. These children are on 
child care waiting lists. In the State of Florida for example, as of 
July of this year, there were 29,744 children on the state's wait list 
for these services. Many of these families on waiting lists do not 
receive temporary cash assistance because they work in low-wage jobs, 
such as in the retail sector, hotel and motel business, fast food 
restaurants, nursing homes, and child care centers. They earn too much 
money to qualify for many government programs, yet they earn too little 
money to have real choices about their child care.
  This is not an issue of whether they should stay at home or work--
they must work. In other words, for them child care is not an option, 
it is a necessity. I am reminded of a letter that I recently received 
from Ms. Ruth Pasarell-Valencia, the Commissioner at the Housing 
Authority of the City of Miami Beach, in which she states, ``We need to 
wake up from the nightmare of child care neglect. In this era of 
Welfare Reform and cuts in many public assistance benefits, we have to 
be very careful not to hurt our children in the process of making 
adults self-sufficient.''
  By addressing our citizens' child care needs, particularly that of 
our working poor, the federal government has an opportunity to 
contribute to the success of welfare reform. This legislation offered 
today would be one part of the federal government's response to this 
need.
  Fourth, small businesses need this support.
  Mr. President, I believe that the provisions contained in my 
legislation will be a boon for American small businesses. According to 
the Small Business Administration, small businesses in America employ:
  Fifty two percent of all private workers;
  Sixty one percent of private workers on public assistance; and
  Thirty eight percent of private workers in high-tech occupations.
  Small businesses have contributed virtually all of the net new jobs 
which have been created during these recent years of job growth. And 
small businesses represent 96 percent of all exporters of goods leaving 
the United States. Small businesses are truly a big piston in the 
engine of our nation's economy.
  Yet, we know that the owners of small businesses struggle to make 
ends meet. That is why initiatives like the one I propose are important 
for strengthening the vitality of our small business community. For 
small businesses, resources are limited and survival in a competitive 
world market is difficult. Think of the impact on a small business when 
one of its employees is absent for the day to care for his or her child 
because that employee's day care worker is sick that day with the flu.
  According to the U.S. Department of the Treasury, employers surveyed 
reported positive benefits associated with providing child care to its 
employees. The Treasury Department's data indicates:
  Sixty two percent reported higher morale;
  Fifty four percent reported reduced absenteeism;
  Fifty two percent reported increased productivity; and
  Thirty seven percent reported lower job turnover.
  Providing child care to employees can be a major step-up for small 
businesses. My legislation would provide tax credits to the employers 
who make investments to help their businesses and their employees with 
child care, or back-up child care when their regular services are not 
available.
  Mr. President, in concluding, I would like to thank the 30 members of 
my Informal Children's Development Advisory Committee in Florida which 
has provided invaluable support to me, my staff, and Floridians 
throughout the state. This group of dedicated individuals, who hail 
from a wide variety of professions, were instrumental in organizing the 
Child Care Summit which we held in South Florida in June of this year. 
They have worked with child care professionals, parents, and business 
groups to raise awareness on this issue, and have supported my efforts 
to draft this important legislative proposal.
  To them, I offer my deepest thanks for the assistance they have 
provided me and for all of their hard work on behalf of the welfare of 
children in Florida.
  I would like to quote Ms. Janet Ndah, the Dean of Students at the 
Punta Gorda Middle School in Punta Gorda, Florida, who says of my 
legislation: ``As an educator and a working parent, care for children 
is definitely a priority and a challenge. Therefore, I am extremely 
supportive of this child care act and in particular, the tax credits 
that employers would receive as they begin a site-based child care 
facility.''
  Ms. Phyllis J. Siderits, who works at the Florida Department of 
Health--and who has served as a member of my Advisory Committee--also 
has written to me of the benefits of this proposal: ``This Act is of 
benefit to employers as well as employees. For too long, I have 
witnessed the inability to maintain qualified and competent employees 
because of child care issues, whether those issues were ones of 
compensation, scheduling and work time difficulties, or caretaker 
concerns. It is especially gratifying to know that this act would be of 
benefit to employees who have children with special needs and allow the 
employees to have closer contact with their children during the day 
where employer-sponsored child care facilities exist. We have not 
supported single-parent or dual-parent families who work and have 
tremendous difficulties obtaining child care. The ideal solution is an 
employer-sponsored child care facility. I think this proposed 
legislation offers all of the incentives to create a win-win solution 
for employers and employees.''
  Mr. President, I am disappointed that it seems that the 
Administration's child care initiatives will not pass Congress this 
year. That comprehensive proposal outlined by the President at the 
start of this year would have provided much needed support to American 
families in this vital area. However, I believe that the legislation 
which I am introducing today would make a valuable contribution to the 
quality of life and care for families; the success of Welfare Reform; 
and the strengthening of our small business community.
  On July 30, 1998, I introduced, with 20 of my colleagues, a Senate 
Resolution which would designate October 11, 1998 as National 
Children's Day. That legislation now has 52 cosponsors and is awaiting 
passage by this Congress. It is only fitting that I am introducing this 
child care legislation just days prior to that date which the United 
States Senate is designating as ``National Children's Day.''
  Mr. President, it is in recognition of our commitment to the children 
of our nation that I introduce the Worksite Child Care Development 
Center Act of 1998. Our children and their families deserve our 
support. Mr. President, I ask unanimous consent that the text of S. 
Res. 260 and a list of the members of the Advisory Committee be printed 
in the Record.
  There being no objection, the items were ordered to be printed in the 
Record, as follows:

                              S. Res. 260

       Whereas the people of the United States should celebrate 
     children as the most valuable asset of the Nation;
       Whereas children represent the future, hope, and 
     inspiration of the United States;
       Whereas the children of the United States should be allowed 
     to feel that their ideas and dreams will be respected because 
     adults in the United States take time to listen;
       Whereas many children of the United States face crises of 
     grave proportions, especially as they enter adolescent years;
       Whereas it is important for parents to spend time listening 
     to their children on a daily basis;
       Whereas modern societal and economic demands often pull the 
     family apart;
       Whereas encouragement should be given to families to set 
     aside a special time for all family members to engage 
     together in family activities;
       Whereas adults in the United States should have an 
     opportunity to reminisce on their youth and to recapture some 
     of the fresh insight, innocence, and dreams that they may 
     have lost through the years;
       Whereas the designation of a day to commemorate the 
     children of the United States will provide an opportunity to 
     emphasize to children the importance of developing an ability 
     to make the choices necessary to distance themselves from 
     impropriety and to contribute to their communities;

[[Page S11988]]

       Whereas the designation of a day to commemorate the 
     children of the Nation will emphasize to the people of the 
     United States the importance of the role of the child within 
     the family and society;
       Whereas the people of the United States should emphasize to 
     children the importance of family life, education, and 
     spiritual qualities; and
       Whereas children are the responsibility of all Americans 
     and everyone should celebrate the children of the United 
     States, whose questions, laughter, and tears are important to 
     the existence of the United States: Now, therefore, be it
         Resolved, That--
       (1) it is the sense of the Senate that October 11, 1998, 
     should be designated as ``National Children's Day''; and
       (2) the President is requested to issue a proclamation 
     calling upon the people of the United States to observe 
     ``National Children's Day'' with appropriate ceremonies and 
     activities.
                                  ____


     Senator Graham's Appointees to the Informal Florida Statewide 
               Children's Development Advisory Committee


                           1997-1998 Members

       Ms. Mary Bryant, Children's Coordinator, Executive Office 
     of the Governor, Tallahassee; Ms. Gloria Dean, ESOL 
     Instructor, Neptune Beach Elementary School, Jacksonville; 
     Ms. Tana Ebbole, Executive Director, Children's Services 
     Council, West Palm Beach; Dr. Rebecca Fewell, Director, 
     Debbie Institute, University of Miami School of Medicine, 
     Miami; Mr. William S. Fillmore, President, Florida Head Start 
     Directors Association, Pinellas Park.
       Dr. Steve Freedman, Director, Institute for Child Health 
     Policy, University of Florida, Gainesville; Ms. Jane Goodman, 
     Executive Director, Guard Ad Litem-Miami, Miami; Dr. Mimi 
     Graham, Director, Center for Prevention and Early 
     Intervention Policy, Florida State University, Tallahassee; 
     Mr. Ted Granger, President, United Way of Florida, 
     Tallahassee; Ms. Mary Frances Hanline, Associate Professor, 
     Department of Special Education, Florida State University, 
     Tallahassee.
       Dr. Delores Jeffers, Executive Director, Lawton and Rhea 
     Chiles Center for Healthy Mothers and Babies, Department of 
     Community and Family Health, University of South Florida, 
     Tampa; Ms. Katherine Kamiya, Chairwoman, Florida Interagency 
     Coordinating Council for Infants and Toddlers, Lawton and 
     Rhea Chiles Center for Healthy Mothers and Babies, 
     Tallahassee; Ms. Daniella Levine, Executive Director, Human 
     Services Coalition of Dade County, Inc., Coral Gables; Dr. 
     Ann Levy, Director, Educational Research Center for Childhood 
     Development, Florida State University, Tallahassee; Ms. 
     Barbara Mainster, Executive Director, Redlands Christian 
     Migrant Association, Immokalee.
       Ms. Esmin Master, Executive Director, First Coast 
     Developmental Academy, Jacksonville; Mr. James E. Mills, 
     Executive Director, Juvenile Welfare Board of Pinellas 
     County, Pinellas Park; Mr. James J. Mooney, Director, Metro-
     Dade Office of Youth and Family Development, Miami; Ms. Susan 
     Muenchow, Executive Director, Florida Children's Forum, 
     Tallahassee; Ms. Joan Nabors, Executive Director, Florida 
     Initiatives, Inc., Tallahassee.
       Ms. Rose Naff, Executive Director, Florida Healthy Kids 
     Corporation, Tallahassee; Ms. Janet Ndah, Dean of Students, 
     Punta Gorda Middle School, Punta Gorda; Dr. Pam Phelps, Vice 
     President, Creative Center for Childhood Research and 
     Training, Tallahassee; Ms. Patricia Pierce, Associate 
     Executive Director, Institute for Child Health Policy, 
     Gulfport; Mr. Larry Pintacuda, Chief of Child Care, Florida 
     Department of Children and Families, Tallahassee.
       Mr. Peter Roulhac, Vice President, First Union National 
     Bank of Florida, Miami; Ms. Phyliss Siderits, Assistant 
     Division Director, Children's Medical Services, Tallahassee; 
     Dr. Linda Stone, Program Director, Lawton and Rhea Chiles 
     Center for Healthy Mothers and Babies, University of South 
     Florida, Winter Park; Dr. Barbara Weinstein, President/CEO, 
     Family Central, Fort Lauderdale; Dr. Anita Zervigon-Hakes, 
     Interagency Coordinator, Maternal and Child Health, Lawton 
     and Rhea Chiles Center for Healthy Mothers and Babies 
     Tallahassee.
                                 ______