The conference committee on House Bill 1012 approved a modified early childhood funding package that adjusts several programs and adds a new infant- and toddler-focused provider reimbursement fund.

Senator Cleary outlined the Senate’s proposal to prioritize services for children ages 0–3 and described the new infant and toddler provider fund included in the Senate version of HB1012. “Essentially, what this does is provides a monthly reimbursement at a level of $200 per infant and a hundred and $15 per toddler,” Cleary said, explaining the fund is intended to help providers cover the higher staffing ratios and costs for infants and toddlers.

The package approved by the committee makes the following changes (as stated in committee discussion):
- An infant and toddler provider fund (Senate language) with adjusted funding of $11,000,000 (down from $13.5 million in the Senate proposal). The fund is intended to reimburse providers monthly for infants at $200 and toddlers at $115 to reduce losses providers incur serving 0–3-year-olds.
- Waterford funding reduced and designated as one-time funding at $1,500,000, with the committee directing the Department of Human Services to target the program to families lacking preschool access.
- Best-in-class program funding reduced to a $2,000,000 increase above a $12,000,000 base (for a total of $14,000,000 in committee discussion).
- Childcare grants, resources and shared services increased to $3,000,000 (committee agreed to raise the House’s reduced amount slightly).
- Quality rating bonuses retained at the House level (the committee kept the House-recommended $1.5 million for bonuses but discussed moving funding if necessary to avoid double-paying providers receiving both bonuses and the new provider fund).
- The working-parent subsidy (a subsidy, not a tax credit) will receive $2,200,000 in carryover funding to preserve current participants; committee discussion noted this would preserve the program at current utilization levels while the committee considers improvements.

Jessica Thomas of the Department of Human Services told the committee there were 278 participating families as of February and that maintaining current participation at the $300-per-family-per-month match would cost “right around $2,000,000” for the next biennium.

Representative Ms. Cotton urged the committee not to reduce child-care funding, saying, “North Dakotans property tax, housing, childcare. I mean, I can't go home and go backwards on childcare.” Several conferees expressed a desire to stay within the governor’s recommended total for childcare while better targeting funds to infants and toddlers.

Senator Davidson moved the revised package with the Waterford program funded as one-time and an added $2.2 million to the working-parent subsidy; Senator Cleary seconded. The committee took a roll-call vote: Chairman Nelson voted no, Representative O’Brien, Representative Mitscog, Chairman Dever, Senator Cleary and Senator Davidson voted yes. The motion passed 5-1.

Committee members agreed to revisit administrative details (for example, whether Waterford administration should move to the Department of Public Instruction) and to monitor program execution; they also asked departments to provide targeting and utilization data during follow-ups.