House adds “copays” to universal childcare proposal, MLG is not pleased

The budget bill is shaping up in Santa Fe as House Bill 2, was approved on a 15-3 vote by the Legislative Finance Committee. The bill, as Dan Boyd of the Albuquerque Journal writes, could be voted on by the full House later this week.

In it’s current form the budget would increase year-over-year state spending by about $294.5 million — or 2.7 % — over current levels.

But, the most interesting part of the budget is what it does to MLG’s “free” universal child care plan. The answer is it imposes co-pays for families making more than $132,000 per year for a family of four. Under the bill, the exact dollar amount of those co-pays would be tiered depending on a family’s gross income.

The plan would also rely on an additional $55 million distribution from the early childhood trust fund (this would require separate legislative approval).

MLG’s spokesperson stated that the Gov. doesn’t like the plan to impose co-pays.

Our take: Co-pays at least force participants to have some “skin in the game” in terms of participation. Of course, with a massive pot of money (the early childhood fund) available and likely future budget growth (both of which are driven by oil and gas) future New Mexico Democrat governors will have plenty of money to spend on “free” childcare in the future.

For now we’ll see how this debate turns out between MLG and the Legislature.