- Suzanne Brault is a consultant with experience in early child care and education.
- She says the market for childcare and early education is fractured with huge implications for families, businesses and government.
- He called for major state and federal investment in the system.
We know who they are, frantic parents looking for childcare, learning their only option is to be put on another waiting list. The grandparents, (some delighted, most exhausted), are tapped to care for a 3-year-old T-Rex who continues to bite his baby brother. Employers, thrilled to meet the elusive new hire, are now scrambling to find childcare to wake them up. These moments, all snapshots of people experiencing our broken child care landscape.
Our inability to address market failures, making the product (child care) too expensive for the buyer (parent), is inefficient. We can and must do better, finding solutions that acknowledge the true cost of care and the immense value inherent in early care and education.
We speak of our children as treasures, as the source of their future happiness and success. When parents go to work, someone needs to care and educate our children. Annie E. According to the Casey Foundation, 73% of available caregivers for children under 6 in Wisconsin are in the workforce. Every child is unique, with 90% of brain development occurring between birth and five. For parents, finances weighing the cost of care (often the equivalent of a mortgage payment or college tuition) are stretched so thin that the rationale for staying or returning to the workforce is questioned.
Why are costs so high and wages for providers so low?
High-quality early care and education costs a lot, given the current market and subsidized rates in the region and what most families can afford. A large portion of the costs for child care cover workforce wages; It is a labor intensive business with no option of automation. Childcare businesses typically make much smaller profit margins (1-2%) than most businesses (10-20%). As a result, most child care businesses can only offer their workforce poverty level wages, lower than other jobs with similar education levels. In a recent survey, 80% of childcare providers said compensation was the No. 1 recruitment and retention issue.
The vital workforce, providing the quality care and education that our children deserve, is stretched to the breaking point; Low wages, job demands and mindsets that prompt the childcare workforce to rush to other jobs.
Federal pandemic relief dollars have been a critical lifeline, helping to keep centers open and care available. These dollars are invested in a number of ways, including dedicated support payments to address core provision, child care calculation program providers and employee compensation needed to protect and retain this valuable workforce. This federal support will end in January 2024.
The National Association for the Education of Young Children’s latest field survey provides data on the impact of federal stabilization funds in Wisconsin and what would happen if they end:
- 63% of WI child care centers are reporting staff shortages. Of those, 46% are serving fewer children and 52% have long waiting lists.
- When federal stabilization grants end, 61% of centers will have to raise tuition, and 33% will have to cut staff salaries, prompting out-of-region flight.
Wisconsin’s 2023-25 biennium budget priorities are currently being debated in our state legislature. The call for state investment of $300 million to continue the Child Care Counts program supports our child care and early education workforce and child care as essential infrastructure for thriving families and economic growth and stability.
To be clear, a substantial investment of federal relief dollars has barely kept the child care system afloat. Even with this support, programs face pressure to find and retain staff, empty rooms taunt parents seeking care, and employers’ jobs remain open. State and federal investment is a priority need.
There are many bright spots. Across our state, communities are highly engaged, seeking to understand complex care systems and the root causes of why systems are failing, and working to create public/private partnerships and models of care that meet the needs of children, families and providers. Regionally, the Greater Fox Valley Child Care Coalition is hosting a series of learning and action events, so you can get involved and join efforts to co-create systems of care. (To learn more about the Fox City event click here https://conta.cc/3TFF2GZ.)
Without sustained state investment and commitment to ECE, the stage is set for parents to face high costs, stark choices, forced decisions for their families, financial stability, and future success. As infrastructure is a priority need for ECE, please urge your legislators to support the continuation of the Child Care Counting Program in the 2023-23 biennial budget deliberations.
Suzanne Brault is a principal at Brault Consulting LLC, which provides strategic support and guidance to public sector and non-profit organizations. Her areas of expertise include advocacy, cross-sector relationship building, and early care and education.