Israel’s Ministry of Economy Allocations Committee has authorized approx. NIS 200 million ($51 million) for planning and building hundreds of new classrooms in that country within a new track for day care center construction.
This comes in addition to NIS 600 million ($155 million) already allocated, which the government says will enable tens of thousands of families to enter the subsidized day care center system in coming years
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The funding comes together with new regulations which include: government funding of 90%-100% to be given to the local authorities for construction, recognition for higher construction rates than in the past, removal of bureaucratic blocks, a shortened budgetary track, and more.
Another NIS 200 million is planned to be allocated later this year.
The program is intended to significantly increase the number of supervised day care centers allowing more families to send their children to government daycare. This will, in turn, give them the time needed to join the labor market.
Local authorities will be eligible for 90%-100% of construction costs for new day care centers.
Currently only around one quarter of children aged 0-3 participate in the Ministry of Economy’s supervised system – approximately 90, 000 children — with the remainder attending private day care centers or being cared for by their families. The families whose children are in the supervised system are eligible for a subsidy for their children, totaling over NIS 900 million ($230 million) a year. Day care centers are one of the main tools for encouraging potential workers, with the emphasis on women, to join the labor market, and easing the cost of living.
Director General of the Ministry of Economy, Amit Lang said, “The reform is the result of policies to remove the obstacles, reduce the cost of living, and help parents join the labor market. The fact that such a significant budget of NIS 1.2 billion allocated to the issue has not led to significant construction in recent years demanded quick and significant action, and the high demand that accompanied the first allocation is proof that it is indeed an efficient, accessible and fast format. I am sure the new regulation will bring about a significant change in the supply of day care centers in the coming years, alongside more workers joining the labor market, and a significant reduction in the cost of living.”
