Rep. Jim Dunnigan, an insurance broker, was shocked two years ago when one of his two employees rejected a pay raise because it would put her above the income threshold for child care vouchers.

"I would have liked her to take the raise," said the Taylorsville Republican. "But the money was significantly less than the amount she would [forgo] in child care subsidies."

Since then, Dunnigan has been mulling how to remove barriers to self-sufficiency for low-income parents, many of them single, working mothers and former welfare recipients. 

One idea gaining momentum is a proposal to extend government-subsidized child care to families with higher incomes, but in lesser amounts. The goal would be to wean families off assistance as their income increases. 

To offset costs, the Utah Department of Workforce Services would charge families higher co-payments than previously, saving $1.7 million and leaving taxpayers on the hook for just $490,000. 

Roughly 492 Utah children would benefit, said state child care director Lynette Rasmussen. That's on top of the 14,000 who already get subsidies; not a huge jump. 

But Rasmussen said the proposal, which lawmakers asked her to research, is "innovative in that it encourages parents to move forward in their careers." 

The child care "cliff effect," is a real problem, though no one can say how widespread it is, said Rasmussen. 

Dunnigan and other conservatives support a plan pitched on Wednesday to extend child care aid to families earning 70 percent of Utah's median household income. For a family of two, that's $27,612. 

The current threshold for a family of two: $24,084. 

But Sandy Republican Rep. Sylvia Andersen questioned the wisdom of paying for the program by charging more to those least able to afford it. 

Workforce Services officials propose more than doubling the co-payment for those in the lowest income tier, whereas some middle-tier families would pay smaller co-payments.

Full text available at the Salt Lake Tribune