Northeast Missouri communities urge Gov. Kehoe to approve community child care exchange funding

HANNIBAL, Mo. — Economic development leaders, early education advocates and families in Marion and Ralls counties are urging Gov. Mike Kehoe to approve funding for a childcare cost-sharing exchange — an innovative public-private partnership that would help address persistent child care shortages across northeast Missouri.

The initiative, backed by a $5 million state appropriation, requires only the governor’s signature to move forward. Local leaders say the timing is crucial for the region, which is grappling with significant service gaps in early childhood care.

“While we have strong pre-K programs in place, families with infants, toddlers and young preschoolers face far fewer options,” Maria Kuhns, executive director of Hannibal Regional Economic Development Council, said in a press release. “This approach gives us a targeted way to expand care for the age groups with the greatest need, using a cost-sharing model that makes sense for families, providers and employers.”

A regional assessment conducted by the Hannibal Regional Economic Development Council found a shortfall of more than 700 infant and toddler care slots across the two counties, along with an unmet need for more than 300 placements for children ages 3 to 5. Despite families spending an average of 11% of their household income on child care, providers still struggle to break even or offer competitive wages to retain staff.

“The economics of childcare just doesn’t add up for families or providers,” said Denise Damron, executive director of United Way of the Mark Twain Area and a parent to children enrolled in childcare. “This cost-sharing model spreads the responsibility more equitably and helps stabilize programs so we can keep high-quality care available across Northeast Missouri.”

The cost-sharing model would connect state funding with contributions from employers and families to improve affordability and reliability of care. It is designed to help working families — especially those ineligible for subsidies but unable to afford market-rate child care — while also boosting provider sustainability.

Marion and Ralls counties have begun an in-depth early childhood system assessment, laying the groundwork for swift implementation once Kehoe gives the green light.