Simon’s Aid to Parents

Republican gubernatorial candidate Bill Simon Jr. on Monday proposed a tax credit for parents to offset the cost of child care, and a tax break for businesses that provide day care to employees’ children. The cost to the state, he said, would be nothing.

Like his earlier proposal to cut California’s capital gains tax, Simon said, the tax breaks for child care would stimulate business, making up for the lost revenue.

“To the extent you can encourage people to come to work because the employers can give them some form of child care, that in turn will encourage businesses to thrive,” Simon said.

“So, ultimately, there may not be any impact at all.”

Simon announced the proposed tax breaks at a day-care center near Skid Row as toddlers played in a sandbox behind him.

Women a Priority

It was the first of several Simon events this week that his campaign has designed to appeal to women.

California women have strongly favored Democrats in recent elections, so Simon strategists have made it a priority to win them back.

Simon will hold a forum in the Bay Area this week to discuss business issues with female entrepreneurs. He’ll stage a similar event in Fresno.

In laying out his proposals, Simon accused his Democratic rival, Gov. Gray Davis, of neglecting the needs of working parents.

“Why has our governor chosen to ignore the plight of California’s families for these last 3 1/2 years?” Simon asked. “Why does Gov. Davis’ proposed budget package make fewer parents eligible for child-care assistance?”

Rita Saenz, director of the state Social Services Department, said Simon’s remarks were misleading because Davis had increased child-care spending since 1999 by 62% to $2.8 billion.

Roger Salazar, a spokesman for Davis’ reelection campaign, said Simon “has no idea what he’s talking about.”

He cited Davis’ approval of tax incentives similar to those proposed Monday by Simon.

“Those of us who--unlike Mr. Simon--can’t afford British nannies, know that Gov. Davis has significantly increased funding for child-care services for low-income working families,” Salazar said.

He also challenged the premise that Simon could provide new tax breaks at no cost to the state--at a time when California faces a budget gap of nearly $24 billion.

“He’s asking us to just take it on faith “ Salazar said.

In his one-page package of child-care proposals, Simon offered few details.

The list did not include the tax break for employers, but Simon described it during his visit to the day-care center.

He said employers would get a tax deduction for providing “certain types of child care” but did not specify what types of care or how much the deduction would be.

Details Are Fuzzy

Simon did not say how much the tax credit would be for parents whose children receive child care, or how the state would determine eligibility.

Simon also said he would reduce the regulatory burden on child-care providers without compromising safety, but he did not specify what rules he would scrap.

He called for consolidating state child-care programs under the Department of Education.

Simon also proposed expanding the number of parents receiving child-care subsidies by providing less to families with higher incomes. “There is no excuse for not exploring innovative ways to provide more care with the same amount of money,” he said.