NC day care centers predict price hikes for child care, staff cuts without state money
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A child care crisis
North Carolina isn’t immune to issues with child care. It’s tougher than ever to find quality and affordable care. Is it squeezing out parents who can’t afford it or don’t have connections?
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NC child care industry in crisis: prices too high for parents and pay too low for staff
NC day care centers predict price hikes for child care, staff cuts without state money
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Most child care providers in North Carolina say it will be difficult to hire experienced staff or keep current workers if lawmakers don’t include millions of dollars for the industry in the 2023-24 budget, according to a March survey.
Nearly all child care programs in the state — more than 4,400 — have received North Carolina Child Care Stabilization Grants, made possible by funding from the 2021 American Rescue Plan Act, totaling $276.8 million. But that money is set to expire at the end of 2023, and so far, neither the House nor Senate budgets include new funding to offset when those grants end.
“(They) invest shockingly little for our young children, their families and their educators,” said Jenna Nelson, executive director of the NC Early Education Coalition, a statewide advocacy group.
To better understand staffing challenges providers will face when the money ends in December, the North Carolina Child Care Resource and Referral Council conducted a state survey. Roughly 2,518 child care programs responded. More than eight in 10 programs who responded used the money to provide salary increases, first-time salaries for many family child care providers and/or bonuses, according to the survey. Additionally, about six in 10 programs used the money to hire more staff.
Rhonda Rivers, regional director of education for LeafSpring Schools of Charlotte, says pandemic grants allowed the school to keep teachers in place and classrooms opened. LeafSpring Schools serves more than 600 families and have about 130 staff members.
“We used the grants to increase pay across the board (which was an absolute necessity simply to compete with area businesses including restaurants and retail that were all paying more than child care) and for hiring and retention bonuses,” Rivers said.
Pay raises are particularly important, child care programs in North Carolina say, because they have waitlists that average about 25 children. Retaining and increasing staff to open more classrooms after the pandemic has been a key, survey respondents said.
Extra funding allowed programs to provide a $2 to $3 hourly increase in wages and provide bonuses totaling between $2,000 and $3,500, according to the survey.
Additionally, more child care programs offered benefits after receiving Stabilization Grant funds such as mental health support, paid sick leave and health insurance. More than four in 10 of the programs noted they would be unlikely to maintain the increased benefits when the funding ends, according to the survey.
“When the incentives end and we do not get further funding, I look for my staff to walk out the door because I will have to cut their pay, benefits, and bonuses,” one survey respondent wrote. “These young ladies are very tired and feel they should continue to receive these incentives. It’s a different world out here from what we were dealing with before Covid.”
Asked what could happen to their programs once stabilization funding ends, child care providers said staffing and affordability concerns could threaten their ability to operate. More than eight in 10 providers indicated they would not be able to maintain current salary levels or were uncertain if they could do so.
“Our communities cannot afford for this to happen,” Rivers said. “Ending the financial support of the stabilization grants will make maintaining staff salaries very challenging. It would probably result in tuition increases for parents and tough financial decisions would have to be made in other areas.”
Advocates are encouraging parents to reach out to North Carolina legislators.
“Every legislator votes on bills and budgets that impact this child care,” Nelson said.
The Charlotte Observer reached out to multiple lawmakers but none responded.
This story was originally published May 18, 2023 at 6:00 AM.
