Child care in Pa., U.S., facing fast erosion as federal relief program ends
Eric Scicchitano, The Daily Item, Sunbury, Pa.
5 min read
Sep. 30—Advocates say it's not a cliff awaiting Pennsylvania's child care providers when a federal financial relief program expires today, rather, what lies ahead is the continued erosion of an industry already beset by low pay, an unstable labor pool and an inability to meet public demand.
"In the last two weeks, I know about five programs that are closing. It's all about staffing. They can't find staff," said Diane Barber, executive director, Pennsylvania Child Care Association. "It's more about attrition than it is about sudden closure."
Teachers in early childhood education in Pennsylvania earn, on average, $12.43 hourly, or less than $25,844 annually, according to a January report from the advocacy group Children First PA. Their related survey of 3,429 early childhood educators found that nearly half expect to leave the industry within five years.
Partner organizations of the Start Strong PA campaign for early childhood education conducted a survey in February and found approximately 4,000 vacancies in child care statewide. About 85% of programs had staffing shortages and half had closed at least one classroom due to lack of staffing.
The $24 billion Child Care Stabilization Program was established in 2021 through the American Rescue Plan Act (ARPA). The funding was intended to help providers nationwide stay open post-pandemic. Providers were to use the money to pay employee wages, benefits and bonuses, pay rent and utilities, and purchase program materials and supplies.
An independent study by The Century Foundation, self-described as a progressive independent think tank, estimates the program's end could lead to the closure of 70,000 programs across the U.S., displacing about 3.2 million children from their current programs and costing states a combined $10.6 billion annually in lost economic activity because parents and guardians have to leave work to care for their children.
The estimate for Pennsylvania is the loss of 2,848 programs impacting 152,048 children at a cost of $412 million in lost earnings, $480 million in economic activity and $10 million in state taxes, according to the report.
Jen DeBell, executive director, Pennsylvania Association for the Education of Young Children, said 2,189 child care programs closed in the commonwealth between the onset of the COVID-19 pandemic in early 2020 and June 2023.
Individual states determined how the stabilization grant funding flowed. Depending on how the funding was disbursed, some states could be facing a so-called cliff. Additional stimulus funding through ARPA is expected to be shared through next summer, she said. That's when a dramatic impact could begin to surface.
"It's not like on Sept. 30 everything falls apart," DeBell said before cautioning that government assistance is necessary to float the industry. "Unless Congress acts, we're going to see closures continue."
Pennsylvania's Office of Child Development and Early Learning received $728.8 million through the Child Care Stabilization Program.
According to the Pennsylvania Department of Human Services, the office disbursed approximately $625.7 million in grants to more than 5,700 child care centers, group child care homes and family child care homes. An additional $2.9 million was awarded to more than 1,100 providers who care for child relatives in their own homes.
The grant funding was provided by September 2022, according to Human Services, a full year ahead of Saturday's program deadline. A full report including the use of the remaining funding is expected in October.
Another $455.7 million in discretionary funding through ARPA will be expended by September 2024, according to Human Services. The funds are to raise subsidy reimbursement rates paid to child care providers, reduce family co-payments and support non-traditional child care.
And, Pennsylvania's latest budget includes a nearly $90.4 million increase "to continue this enhanced investment supporting access to care and the child care providers who are dedicated every day to helping children and families," Brandon Cwalina, Human Services press secretary, said.
Barber said the increased funding will help maintain the status quo but it won't be enough to keep programs afloat. She's looking to 2025 as the year attrition could begin to race.
As professionals leave the profession, wait lists will grow. The study for Start Strong PA estimates 35,000 children were on wait lists late last winter.
As wait lists grow, or if the costs of care rise, families won't be able to access child care. That, Barber said, will keep people out of work.
ReadyNation and The Pennsylvania Early Learning Investment Commission partnered for another study, also through the Start Strong PA campaign, that found the annual economic cost of inadequate child care resources in Pennsylvania is $6.65 billion in lost earnings, productivity and revenue.
"Underinvesting and not paying attention has come back to haunt us," Barber said.
"We need the government to invest in child care because working families need stable employment," DeBell said in advocating for further government intervention. "If we don't invest early and invest in the child care system, it's impacting our economy and our broader communities. It's a smart investment."
An August study from Pennsylvania Partnerships for Children found that, on average, the cost of infant child care consumes 17.5% of the median family income in the commonwealth. For single parents, the ReadyNation report found the cost hit 40% of the median income.
Leah Spangler, president and CEO of Learning Lamp and Ignite Education Solutions in Johnstown, said the "real issue" is that service is based "on an economic model that doesn't work."
"It's too expensive for families and there is not enough investment into child care at the federal and state levels," Spangler said. "Unlike other industries, 80% of revenue generated by a child care program goes right to employees through wages, employment, taxes and benefits."
