Governor Walker: Eliminate the Child Care Cliff

In late January Governor Walker recommended a policy that allows working families receiving Wisconsin Shares subsidies to continue on the subsidy program beyond the current income threshold which is 200 percent of the poverty level.

In a press release, the Governor indicated that when families meet the 200% of poverty cliff ($40,230 for a family of 3), “a family may lose far more in subsidies than they gain for working more hours or taking a raise. This discourages work.”

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The plan is to establish a phase-out structure. Families would see co-payments increased by $1 for every $3 that family earns over 200% of poverty level.

This would be promising to families that reach the income cliff. The Governor plans to include this recommendation in his budget proposal in February.

Dave Edie
Early Education Policy Analyst