Friday, November 01, 2024

'Child care is unaffordable for families and not profitable for businesses.' Some communities will vote on changes.

Some communities are asking voters to help pay for
child care. (Shutter Stock photo)
Are U.S. voters ready to help pay for child care services as a part of their community's labor and services infrastructure? Communities in Sonoma County, Calif., St. Paul, Minn., and most of Austin Texas are about to find out, reports Harriet Torry of The Wall Street Journal. The November voting initiatives highlight a problem for urban, metro and rural families -- child care is no longer affordable or not even available due to child care teacher shortages. 

In Austin, classrooms at Ebenezer Child Development Center sit empty because the center's owner, Jordan Maclay, "can’t find enough teachers who can work at the wages she is able to offer," Torry explains. "Maclay is hoping that voters next week will approve an amendment that would raise property taxes by 2.5 cents per $100 valuation throughout Travis County, which includes most of Austin. The state already helps some low-income families pay for daycare. The county money would add to that, with the goal of raising pay and creating new positions for daycare staffers." Voters in Sonoma County, Calif., and St. Paul, Minn., will consider similar ballot initiatives.

Federal lawmakers have tried to remedy the problem, but bills have been stymied, leaving states and counties to grapple with solutions. "Vermont created a new payroll tax, to increase staffing and capacity at daycares. And in Louisiana, taxes on sports betting, cannabis-derived products and casinos raise money for early childhood education," Torry writes. "Florida this year started offering tax breaks to businesses that provide child care for employees."

Child-care centers struggle to make a profit with a business model where oversight is high and ways to cut costs are few. Torry reports, "Daycares are labor intensive. They can’t, for example, hire remote workers. They are also closely regulated, which means they can’t skimp on the number of teachers. Other fixed costs are also high and hard to bring down: the rent or mortgage, insurance, food."

Cynthia Osborne, professor of early childhood education and policy at Vanderbilt University, told Torry, "Child care is unaffordable for families and not profitable for businesses, and child-care educators are the ones really struggling in the middle."

In the end, some parents can't afford to work. Torry adds, "A paucity of child care is a drag on the labor market. About 13% of young children in the U.S. had a family member who had to quit, change or refuse a job because of child care problems, according to the Annie E. Casey Foundation, which examined Commerce and Labor Department data."

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