Judging by the rapid population growth in Utah over the past decade, the secret is out — Utah really is a great place to live. This year, U.S. News & World Report named Utah the best state in the nation for the third consecutive year, citing its strong economy, low violent crime rate and high academic performance. Yet despite this strong showing and the governor’s website touting Utah as “the most family-friendly state in the nation,” not everyone is thriving — approximately 88,000 Utah children live in poverty.
This is especially concerning because research shows that ages 0-5 are critical for setting the stage for an individual’s life. During the first five years, the human brain experiences rapid growth, accounting for 90% of a person’s brain development, and is a pivotal age for learning essential life skills such as problem solving and self-control. Additionally, according to the Center on the Developing Child at Harvard University, toxic stressors during this period can alter brain development, leading to difficulties with learning, emotions or behavior later in life. Early stressors can also impact a child’s long-term physical development, harming their immune system and leading to adverse health outcomes later in life, such as cardiovascular and lung diseases.
During this vital developmental period, families with children aged 0-5 also face heightened economic and caregiving challenges. These families, just starting their careers, earn lower wages than they will later in life while also facing high childcare costs or potential income loss if one parent stays home. This is in addition to other expenses of raising young children, such as nutrition, medical care, diapers, utilities and housing.
Utah families are especially burdened by high housing costs. The annual income needed to afford a two-bedroom rental in Utah is $60,930, far above the $32,930 that an extremely low-income (ELI) four-person household earns. Approximately one in five Utah renter households fall into this category, with 74% spending more than half of their income on housing and utilities. In my experience as a homeless services caseworker, I encountered many families in this situation and saw how one unexpected significant expense could result in eviction, leading to homelessness, loss of belongings and instability for the children in the family. This unstable situation increases caregiver stress, which in turn affects a child’s emotional and developmental well-being.
As state legislators consider their priorities for the next legislative session, one of the most directly impactful policies they can implement for children aged 0-5 is the expansion of the state child tax credit (CTC).
In addition to current state assistance programs, Utah has recently implemented a state-level credit for children aged 1-4, which provides low-income households with up to $1,000 per child in tax relief. In contrast to the exclusions in the federal CTC, Utah has the opportunity to build a more inclusive state CTC by expanding the current credit to ages 0-5 and making the credit fully refundable. Under this system, families with little or no tax liability would still receive the full credit, allowing those in greatest need to benefit fully.
The child tax credit is an effective way to target a high-need population because it utilizes a program we already have — the tax system — to distribute funds, meaning more money goes to the people who need it most. The CTC also reduces the harmful stigma associated with applying for welfare and is narrowly tailored to a population that would benefit from the flexibility of cash assistance to meet the various needs of their young families.
In addition to being economically beneficial, the CTC is a sensible choice for our family-friendly state. Utah must address the needs of all its children by considering the diverse social and economic circumstances of families across the state.
With increased support for families with children aged 0-5, we can address societal concerns before they arise. Instead of merely reacting to symptoms caused by early childhood stress, we can invest in early childhood programs to ensure our children are getting off to the right start with the stability and tools they need to succeed years down the road as healthy, resilient adults.