Washington, D.C. — The child care industry is in crisis, facing a national shortage of providers and programs to meet the needs of families, leaving half the country in a child care desert. While the federal government fails to meet the funding needs of the child care industry, states have the chance to help aid providers in the field through better wages and program incentives to deliver more care options for families in their states.
A new CAP report outlines five key steps governors can take to increase their state’s child care supply so families can have more affordable options for their children. These five steps include:
- Calculating the true cost of child care and setting child care subsidy rates accordingly so that these rates reflect the actual cost of child care for providers
- Developing wage scales that create parity with K-12 compensation
- Creating new financing strategies to address the pending fiscal cliff spurred by the expiration of federal COVID-19 relief funding
- Establishing grants and contracts with early childhood providers so that providers are compensated based on enrollment, not attendance
- Offering incentives to expand child care options in child care deserts
“It’s no secret that our child care industry is in crisis. The lack of funding and providers has left three children competing for one spot at child care centers, putting an unnecessary stress on parents in need of care,” said Anna Lovejoy, director of Early Childhood Policy and author of the report. “Now is the time for governors across the country to help increase their state’s child care supply so that for years to come, every family has access to affordable and high-quality child care to set their kids up for success.”
Read the report: “Top 5 Actions Governors Can Take To Address the Child Care Shortage” by Anna Lovejoy
For more information or to speak with an expert, please contact Sarah Nadeau at [email protected].