Surviving the Perfect Storm — Childcare Services Battle High Costs and Low Wages

By Sonja Whitemon

In Mecklenburg County, there are more than 56,000 children under the age of 6, many of whom must attend childcare programs because their parents work during the day. Childcare is essential to our society, but it has been in crisis for years.

According to a Cost of Care report from Care.com, around 47% of parents spend up to $18,000 a year on their childcare expenses. Twenty percent of parents indicated they spend more than $36,000 in a year. The U.S. Department of Education estimates the cost of a four-year, in-state tuition plus fees, books and boarding for the 2023-24 school year to be $24,030, making the cost of childcare for some parents, more than the cost of college.

Making matters worse, childcare providers now are anticipating what has been called a “fiscal cliff” once pandemic-era stabilization funding expires this year.

“As federal grants to reduce the cost of childcare sunset, thousands of children may go without proper childcare, with over 100 centers planning to close — almost 30% of all our childcare centers,” said Congresswoman Alma Adams. “High operating costs and the rising cost of living are crippling the childcare industry and leaving our children behind.”

This crisis affects more than just parents of small children and childcare operators, it ripples throughout the economy. Parents often miss work when they have inadequate childcare and businesses lose employees who are forced to leave their jobs to care for children. Small business owners are impacted when employees miss shifts or change schedules to accommodate childcare needs.

The childcare crisis was created by a perfect storm of funding shortages for daycare operators, low wages for its teachers and high prices for parents. Karen Smith-Jones, owner of Nana’s Place Learning Center, feels the brunt of it. She said industry conditions could cause more than 1,500 childcare facilities in North Carolina to close.

The stabilization grants offered by the federal government during the pandemic help, she said. “Part of the stipulation was either offer bonuses for staff for retention or that you increase their salaries,” she added. “Once that funding is ended, it will be difficult to maintain that same salary. We will have to reduce salaries. And in turn, you know, we are in a dire strait right now for retaining staff, like much of the country is having a difficult time with teachers.”

Latoya Williams is a mother of three — two adult children and a 4-year-old daughter. “I call myself a ‘re-new’ mother,” she said proudly. “With that responsibility comes the cost of childcare,” she said.

“Childcare costs have always been unaffordable but with the inflation of today, it is almost impossible without government assistance,” Williams added. “The cost of childcare has become an overwhelming burden for many families, including mine. Despite working hard to provide for my family, the expenses associated with quality daycare are often more than I can manage — even with making what some would consider a great income. However, in an economy where costs are rising, and wages are not keeping pace, this financial strain is becoming unbearable.”

Williams is happy that North Carolina Governor Roy Cooper recently signed a bill to fund childcare centers, as centers struggle to make ends meet with the expiration of federal subsidies. Upon signing the bill, the governor said, “This legislation provides critical but limited grants to help keep childcare centers open for the next few months. However, legislators need to do much more for parents, businesses and children by extending these grants through 2025, investing in our nationally recognized NC Pre-K and investing more in quality early childhood education. Our children’s future and our economy depend on it.”

“The new bill that was signed by Governor Cooper does provide relief for me but that is just the first step. Not only does funding need to go into childcare costs but the pay of teachers as well. We all need the help,” said Smith-Jones.

Parents can get help finding affordable healthcare solutions through the following nonprofit agencies.

Smart Start of Mecklenburg County

“We mobilize resources, forge partnerships, and support families to improve early childhood health, education and development, and ensure children are prepared for kindergarten.”

Contact information:

smartstartofmeck.org

Email: info@smartstartofmeck.org

Phone: 704-377-6588

Child Care Resources Inc.

“Child Care Resources Inc. is the go-to source for early care and education and school-age childcare in Mecklenburg County. We work to increase access to the kinds of early learning experiences that promote children’s success in school and in life.”

Contact information:

childcareresourcesinc.org

mailbox@childcareresourcesinc.org

704-376-6697

MECK Pre-K

Launched in 2018, MECK Pre-K is a pre-K education program open to all four-year-old children in Mecklenburg County at no cost to families.

Visit meckprek.org/ for application and enrollment information.

704-943-9585
info@MeckPreK.org

Sidebar

Statistics

A 2024 survey of North Carolina childcare providers found:

  • 29% of all providers (center-based/family based) expect to close
  • 52% have already increased tuition
  • 58% said they plan to increase fees after June
  • 58% have already cut expenses in anticipation of the grants expiring
  • 41% of center-based programs expect to close or combine classrooms when the grants sunset

Source:  North Carolina Child Care Resource & Referral Council