The end of the year is a time for reflection and counting blessings. Feeling lucky to raise children in Hawaii is something we embrace. But it should not be left to luck that families are able to live here. Our state can make policy choices now to help all working families afford to stay in Hawaii and help keiki thrive.

The need for affordable child care and paid family leave is critical because 66.5% of young children in our state have both parents who work. That is according to the Annie E. Casey Foundation’s KIDS COUNT report released this year, which ranks Hawaii in the bottom third of the nation for the economic well-being of its children (38th).

A major hurdle is the lack of childcare options, especially for infants and toddlers. Hawaii has only 25,247 licensed child care slots for 108,340 children under age 5. This translates to a mere 1 in 4 children securing a spot. Many rural areas and neighbor island communities are “child care deserts” with limited or no options. Expectant parents face agonizing waitlists, adding uncertainty to an already stressful time.

The high cost of living in Hawaii extends to child care. Consistently ranked as having the least affordable center-based care, the financial burden is immense. While federal guidelines suggest child care costs no more than 7% of a family’s income, the average cost for one child is a staggering 13% in Hawaii. This forces families to choose between child care and other necessities like housing and healthcare, hindering their ability to achieve financial stability.

The lack of a statewide paid family leave program further complicates this issue and can have significant economic repercussions. Research studies indicate that families without paid family leave often face increased financial strain and stress, which can lead to negative childhood outcomes.

Additionally, businesses without paid family leave may experience higher turnover rates, which result in additional costs associated with hiring and training new employees. Moreover, the overall productivity of the workforce declines as parents struggle to balance work and family responsibilities without the support of paid leave. These factors contribute not only to individual challenges but also to broader economic implications for the state, highlighting the urgent need for universal access to paid family leave.

Nearly half of Hawaii’s residents are burdened with economic challenges. According to the 2024 ALICE (Asset Limited, Income Constrained, Employed) Report, 44% of Hawaii’s population struggle to make ends meet. Every day, on every island and across all ethnicities, families are making difficult decisions to deal with high costs of living and limited incomes.

Paid family leave acts as a crucial safety net for these households. By providing financial security during critical times, paid leave helps ALICE families maintain stability and avoid falling deeper into financial hardship when they need to attend to medical and personal matters at home.

Collectively, current data from KIDS COUNT, ALICE, and other sources emphasize the critical need for policy changes to support working families and improve the well-being of children in Hawaii.

Adults and children in every community across each island are all connected. Now is the time for us to come together and call upon our legislators to leverage the state’s budget surplus to uplift Hawaii’s families! By investing in child care, paid leave and other critical economic supports, we can create a brighter future for our keiki, families, communities — and ourselves.

Deborah Zysman is executive director of Hawaiʻi Children’s Action Network.