Nevada voters in November will also be asked whether the state's Sales and Use Tax Act of 1955 should be amended to remove the sales tax on child and adult diapers.

One of the measures main supporters is Kelly Maxwell, CEO and executive director of Babies Bounty.

We spoke with her at the nonprofit's newest headquarters, the Babies Bounty Center for families near Tropicana and Decatur.

Kelly, let's first talk about your new headquarters.

9000ft compared to 2500.

I think you told me it is facility.

What was the need for this much space?

Well, our programing has grown around 3,000% since Covid, right?

So in the last four years.

So it really, we needed we needed a lot more space.

I had folks working in diaper storage rooms.

we didn't have nearly enough warehousing space, office space all around.

We needed a lot more of it.

And we also needed to build a classroom to expand our educational offerings.

So this this new space allowed us to do that.

And how quickly did you know we needed to do that?

You mentioned the database.

Yes.

And so was that the catalyst?

yes.

When we were just this program you see behind us, this baby bundle program.

we were okay in 20 500ft.

Once we launched the diaper banks and then also our diapers for the clothes program, we quickly realized that we were outgrowing our space.

We had storage units in Henderson, in North Las Vegas, in northern Nevada, but we really needed to expand our headquarters.

Diapers take up a lot of space.

They sure do.

They.

While we are on it, though, the bundle that you're talking about, what goes into it, who gets it?

Yes.

So this was our flagship program.

it's about 16 years old, this program.

it's basically a baby shower in a bag for clients living in poverty.

so we are producing now, over 100 of these a month.

So, in excess of 1200 baby bundles a year to our clients living in poverty.

so clients are referred to us by partner agencies, and we, distribute these to them.

They have a required safe sleep and baby basics course, and they receive all of the items needed to care for their newborn for the first six months of life.

I think you told me it's about $500.

And it is.

It is.

And critical items that you cannot leave the hospital without a car seat.

So there's an infant regulation car seat, brand new portable crib.

So for safe sleeping environment, 25 items of clothing, bibs, rattles, baby books, all of the items needed to care for these newborns.

These families in poverty don't have these items.

And there are children's lives on the other on the other side of that.

Right?

So children are dying from unsafe sleep environments.

So we we're providing those and also the education so that they know how to properly sleep.

Going back to the diaper paint program, something you launched back in May of 2020, in response to Covid?

Yes.

Four years later, what is the need now compared to the new them?

Well, you know, I saw when you were coming here, I thought, the last time we spoke, I had really high hopes that I would solve diaper need in the state of Nevada by 2025. and what we did not count on was inflation.

and the dramatic impact it had on families and what's affordable for them.

so the poorest Americans spent 14% of their take home pay on diapers, right?

So the math just simply doesn't work.

diapers, one of 185% in Covid.

and that number is not going down.

It's not waning at all.

So where we used to see 4 or 500, people attend each of our large diaper banks.

now we're seeing in excess of 800.

So as our population increases and as, the inflationary impact is really compounded, those, stressors for Nevada families, we have seen nothing but week over week increases in her diaper bank attendees.

How do you explain to potential donors, for example, the impact that free diapers can have on low income families?

Sure.

Well, first and foremost, they're preventative medical supplies, right?

So without an adequate supply of diapers and wipes, children, infants are at risk of a whole host of, medical problems.

Right.

So, from severe diaper rash to viral meningitis.

These children then are going to our emergency rooms and seeking medical care, right?

So what?

We're talking about is preventing, additional statewide medical costs.

So when diaper banks are properly funded in the state, you see a $3.2 million decrease in statewide medical costs, right, because we're preventing these illnesses, right?

But beyond that, diapers are a critical component of our economy.

So without an adequate supply of diapers, these families cannot access daycare.

They cannot access school or home, go back to work.

So if we are expecting families to be self-sufficient, but inflation and these exorbitant diaper costs have, really impacted that, if we can help in the seemingly small way to get them back on your feet, then they can get back into the workforce.

I'm not sure how many people know, but it is a requirement for many daycares that you provide the diapers for your child.

It is.

Even the free and subsidized daycares require that you, they will have some diapers on hand.

Really?

Emergency supplies.

But what you need is 8 to 10 diapers per day to take your child to daycare.

That is cost prohibitive for a lot of families.

And 1 in 5 families who rely on daycare have, have called in sick in the last week because they didn't have enough diapers to send their children to daycare.

This November, voters in Nevada will get to vote on ballot question five, which asks whether a sales tax should be removed from child and adult diapers.

The state's fiscal analysis division estimates that it will result in a sales tax revenue loss of about $9.3 million, 2.4 million of which would have gone to the state's general fund.

Had this been implemented in 2023, 2.9 million of which would go to the local schools or tax.

So there is the argument.

This removal of the sales tax would take money away from education.

How would you respond to that?

Well, I would say first and foremost, we worked really hard to pass this diaper tax bill, which 16 other states have already done.

because diaper should have never been taxed in the first place.

They are preventative, health care supplies.

We don't tax other health care items like Band-Aids or Tylenol.

Right?

so so the idea behind this is that, should have never been taxed as a luxury item in the first place.

So we're just getting back to to really what?

Common sense.

but more than that, attaching a fiscal note to something presumes that the savings from the diaper tax will then not be used to purchase other taxable items.

So, sales tax is not a zero sum game.

many of these families will use that savings to purchase other items, let's say a car seat, some infant clothes, some baby bottles.

Those things are taxed.

Right.

So, I think those, those numbers, may be, a little aggressive.

I will say.

Yeah.

that would be as if someone took the money they were saving from this sales tax.

Right?

Put it away and inspect it.

Right.

And we know that that's not how, Nevada families are able to operate right now, particularly in inflation.

And you did mention you had to go through the legislative process to get this even on the ballot.

Nobody voted in opposition to it.

There was very little opposition except for one woman, I believe, who called in.

She said in part, quote, people need to revisit policy and reusing.

If people can't afford the basics for their children, maybe they need to utilize the birth control that we're paying for.

If you have your way this session and how would you respond to that?

Well, I also I want to acknowledge that, yes, we we had six votes in the Nevada State Legislature and not one legislator on either side of the aisle voted no against this tax, because I think really, no matter.

No matter where you fall on the political spectrum, you can see the benefit to, not taxing, health care supplies.

I was present for this caller's testimony.

And, you know, I think, we all, feel strongly about personal responsibility.

but I think there's some misunderstandings about, the way that families are working now.

First of all, cloth diapers are not a possibility for a lot of our families.

Number one, there's only one daycare in the state of Nevada that will accept your child with with, cloth diapers on that, on the campus of, you know, and there's a 200 person waiting list for that daycare.

So if you expect then that self-sufficiency aspect, you can't go back to work if you have cloth diapers.

The other thing is families living in poverty don't often have their own washers and dryers.

You cannot wash cluster diapers, a laundromat.

and if you have 3 or 4 children, cloth diapers are just, you know, really, that's not it's just they're not they're not affordable.

they're not practical.

And again, you cannot send your child to daycare.

so, we investigated that as an option as a pilot program here.

none of our clients were able to, to facilitate it, so.

And then the other aspect of our argument, which I imagine you face sometimes is the attitude that if you can't afford supplies for a baby, then you shouldn't be having children.

How your confront that.

You know, I think we've we've come up against this for decades, right.

so a few things.

we're diapering children who are already here, right?

These are infants.

So whatever poor decisions you think the parents made or didn't make?

first of all, I will acknowledge that maybe they only had four decisions to make, right?

But, and they chose, you know, was the best possible option.

What do you mean by that?

I mean, you know, there are women who cannot say no right there in situations where they don't have that opportunity.

there are young girls who found themselves in situations that, where they didn't have a choice.

Right?

or they, perhaps they even made an irresponsible choice.

Right.

But, their babies on the other side.

And so what we're going to do here at the founding is, is drop the judgment, and we're going to take care of the infants who are already here.

I think I interrupted you before we were talking about that attitude.

And you're taking care of the babies that are already here for ten, right?

I don't necessarily think it's productive to go backwards and judged choices that were already made right, that these children are already here.

in terms of people making sound financial decisions, it's much more difficult to do that with inflation, right?

Those choices were easier to make 40 or 50 years ago, when expenses weren't what they were.

Right.

so today we're talking about exorbitant costs to raise a family.

We're talking earlier about, 30% of take home pay can go to daycare.

so glad you brought that.

Yeah, because there's a new report tax from KPMG said that the cost of childcare in the US is rising at nearly double the pace of overall inflation.

Right.

This is an issue that you are working on with Congressman Steven Horsford he met recently.

Are there any new ideas that we haven't heard of in terms of addressing the affordability crisis of childcare?

Is that up?

Yes.

So we're putting together some solutions for a childcare solution summit coming at the end of the summer.

so ahead of that, we met with Deputy Deputy Treasury Secretary Wally on them.

And just even more to really talk about some innovative ideas that are working around the country.

so Access Capital is a local organization working to fund, home based childcare, opportunities.

And it involves homeownership opportunities and working with highways to loosen some of the restrictions.

there's also you know, so what we need in Nevada is not just the big box childcare solution option.

We need movement in a lot of different areas.

So in the, in the home based childcare that works best for for some folks it's also more affordable.

Right.

And so and then those large units kind of the name brand childcare facilities, we also need those.

And we need tax care credits to, to pay for those.

as I said before, if capitalism could have solved the childcare issue, it would have been solved already.

The math doesn't work between the number of, of children in childcare that you need to actually turn a profit in some of these facilities.

So we do need the federal government to come in with some subsidies.

And lastly, I want to talk about diapers for diplomas.

And another one of your ideas.

How did it come about and what have been the results?

this is my baby is truly my my favorite program.

If I can have one, more than the diaper that was yours too.

Yes.

I love it so much.

I really love what this program is doing to, improve not only the lives of the students directly, but also generations and lifting families out of generational poverty.

So how the program works.

So first of all, it came out of, conversations with our diaper bank clients.

So our diaper bank clients would often call and say, you know, I can't come during the diaper bank hours.

I'm in school, I'm in nursing school, I'm in high school, I'm in college.

I'm in hair school.

could I come after?

And and I said, yeah, of course.

Absolutely.

We would make these exceptions over and over again.

and I started talking to some friends of my in higher education, and, I really wasn't familiar with that space.

And I had this idea.

What if we offered a different kind of opportunity, more so than just come to our diaper bank and we'll give you a week's supply of diapers?

What if we really need in, to help these parenting college students?

so we started with some research and really studied how many students in in Nevada, in higher ed are, parents, and it's 24%.

Right.

Wow.

So we generate we're educating an older population here in Nevada, predominantly female.

So a lot of them are parents.

so, started with conversations with initially Nevada State University.

and then I was able to get, another four institutions on board.

So now we have, you know, the UNR, Truckee Meadows Community College, cSUN, and Nevada State University, and we recently added the Desert Research Institute as well.

so what we do is we offer, diaper scholarships to parenting college students.

and it's a savings of about $1,200 a year per, registered child.

And we will diaper three children per household.

This started in 2023.

What have you found the results to be?

I know it's not a lot of time.

Yes.

Yet metrics from but yes yes, yes, we started with 200 diapers scholarships.

All 200 were claimed the first year.

and yeah, the metrics are amazing.

Not only the the anecdotes coming out of the program, but the overall metrics.

94% of the students, say that this is helping them to graduate.

24% of these students are studying nursing and 16% will be teachers.

So to a total 40% in the two most needed fields in Nevada, and anecdotally, what we're hearing is these students can, cut down on work because parenting students are working, going to school and parenting, right, so they can cut down on work because they have this, diaper relief, right?

additionally, they, can use those added, the savings to take additional credit hours or for other school related expenses.

Kelly Maxwell, Executive Director and CEO of the.

You to thank you for joining the back.

Thank you And thank you for watching.