Child care report warns of fragile day care network
Nearly four out of every 10 child care providers in Wisconsin were closed as of a point of time count in mid-May with an equal number expressing uncertainty they could remain financially viable during the coronavirus pandemic, according to a new report that warns the state’s day care network may not be viable to support the reopening of schools and businesses.
The report, issued by the Wisconsin Policy Forum last week, also raised concern about the risk of exacerbating an already-wide gap in quality child care for low-income families.
Quality child care was already in high demand before the pandemic, with lowincome families facing acute challenges in accessing it. The Wisconsin Shares subsidy for low-income parents covers only about 15% of the average cost of infant care per year. And high training costs and low pay for providers have caused staffing shortages and turnover, leading to some areas of the city to be termed “child care deserts.” Over half of all children in Wisconsin live in a child care desert.
And high-quality child care is considered of critical importance for children’s development and academic futures, especially for low-income children. Last December, Gov. Tony Evers’ office announced a $10 million federal grant to improve access to early childhood programming in the state.
As of May 19 this year, 39% of child care providers in Wisconsin were closed. The Policy Forum report notes that more than half of the closed providers were larger centers, while under half of them were small providers open to a limit of eight children.
And in a March survey of Wisconsin child care providers by the National Association for the Education of Young Children, 38% reported not knowing how long they would be able to survive a closure without financial assistance, with 20% saying they could not survive two weeks and 10% saying they could not withstand any closure at all without support.
The report also warns that competition for child care may worsen as more parents return to work and that altered or limited school schedules in the fall may stretch the system further.
Betsy Mueller, the lead author of the report, noted that some families may be faced with additional child care costs if their kids are only in school certain days of the week. And she highlighted the burden that having children at home more often has on women.
“This is an industry where the margins are so narrow,” said Ruth Schmidt, executive director of the Wisconsin Early Childhood Foundation. The Wisconsin Shares subsidy is the only public funding that goes into child care; mostly, providers rely on parents to pay their bills and need to be operating at close to full capacity to do so.
That’s no longer possible, in part because of social distancing regulations — in Milwaukee, for example, child care providers can only operate at 50% capacity — and in part because some parents are reluctant to send their kids back to child care. Schmidt is worried that some providers that have reopened may be forced to shutter again.
Rainbow Academy, located on Layton Avenue, reopened July 9 after a child tested positive for COVID-19 three weeks ago. Though the child was asymptomatic, the day care decided to close for two weeks.
This is the second time the day care has decided to close its doors during the pandemic. Rainbow Academy closed two weeks in April due to employees’ fears surrounding the virus.
“At first, staff was hesitant to work,” said Jameela Shawar, an employee at Rainbow. “But then we were considered essential and we had to work. You want the safety of all the children and the staff, while doing everything that we can.”
The day care reopened its doors April 27. Since then, it has only run at 20% capacity.
Shawar said the children wear masks and temperatures are checked, but when it comes to babies, there is only so much that can be done with the toys they grab and what they are putting in their mouths.
“We’ll do everything we can for the safety for our staff and children, that’s our main goal,” she said. “But it’s always in the back of your mind that something could happen. It was one of my biggest fears to have a positive case, and we did get a positive case.”
And while Wisconsin providers will collectively receive $51.6 million in federal CARES funding — 90% of which has already been allocated — the report warns that additional funding may be necessary.
“While the CARES Act block grant distributions may help,” the report reads, “they might only represent the beginning of what is needed to ensure an adequate supply of high-quality child care for Wisconsin families going forward.”