Wisconsin's child care industry continues to face a critical staffing crisis — one that is expected to get worse if federal COVID-19 relief funds the state allocates to providers dry up.
That's according to a recent national survey of early childhood educators, which showed that 63.3% of Wisconsin centers are experiencing staffing shortages and that 79.8% of workers are facing burnout and exhaustion. The survey, conducted by the National Association for the Education of Young Children, garnered its Wisconsin data from 1,173 respondents. The association released its data in December through the Wisconsin Early Childhood Association.
The survey also indicated that 32.1% of state child care centers would consider leaving their job or closing their program in the future if economic conditions don't improve.
Dane County child care providers within the last few weeks echoed the workforce sentiments expressed in the survey and said the money they receive from the state is merely keeping their businesses afloat.
The U.S. economy loses more than $50 billion per year in revenue, wages and productivity because of "persistent child care problems," according to a 2021 report by Washington, D.C., thinktank Brookings Institution.
And fueling the state's child care staffing crisis are wages that haven't kept up with the rising cost of living, as well as financial burdens and closures brought on by COVID-19. Wisconsin was already seeing child care "deserts" before the pandemic, or regions where a center can't be found for miles despite major need, WECA said.
The average wage that child care workers make in the state is $7.50 to $13 an hour, which for a 40-hour work week puts a family of four at or below the 2022 federal poverty rate.
"We need to start understanding that child care is a public good," said Ruth Schmidt, WECA executive director, adding that the report's results are "striking" but not surprising.
Moreover, 45.6% of Wisconsin survey respondents said they are currently serving fewer children than they would like, with 51.5% reporting longer waitlists of parents needing their facilities.
The backlogs are a consequence of staffing shortages, respondents said.
Meanwhile, 27.1% of state providers said their program would close without current financial supports. More than $700 million in federal pandemic relief funding has been given to providers by the state since the start of the health crisis, but it expires in 2024, Schmidt said.
In Wisconsin, a majority of that funding has supported the Child Care Counts program, which provides payments to child care facilities to increase wages and offset other operating costs. WECA said it is advocating for a $300 million investment to continue the program in the state's 2023-25 biennial budget.
That money would "keep the status quo," Schmidt said, adding that much more is needed from both the public and private sector to help child care providers flourish, not just be stable. "It will keep (the child care industry) from further receding in our state."
There are some glimmers of hope. Efforts within the last year to financially stabilize the beleaguered child care industry have come from other state organizations, too, as consciousness about the sector's economic necessity has risen.
The Wisconsin Department of Children and Families in 2022 implemented a program called Project Growth, which included $10 million to help businesses purchase slots for employees at regulated child care facilities, as well as $8.1 million to incentivize communities across the state to address local child care workforce and resource needs over the next few years.
Madison Area Technical College received a $2.9 million grant from the Wisconsin Economic Development Corp. to help build capacity for child care on the South Side, and for other MATC campuses in the region.
Ongoing struggles
Brenda Fritz, owner and administrator of child care center Academy of Little Vikings in Mount Horeb, said she hasn't seen a resume come across her desk in months.
The business opened in 2013 and has about 42 employees, Fritz said, and she's looking to hire at least five more. And because of a waitlist of 75 children and growing, Fritz said the center is eyeing an expansion.
But that's not economically viable right now, she said, because of her staffing shortage. The academy's waitlist extends into 2024 and includes "babies that haven't even been born yet," she said. The center currently cares for 165 children ages 0-12.
The academy is a recipient of Child Care Counts funding ($25,000 a month since May 2021), of which $15,000 boosts employee wages, which average between $15 and $17 an hour, by $500 a month.
The center gets a separate monthly Child Care Counts stipend of $10,000 to go toward operational costs, and Fritz said that money has been a good retention and stabilization tool but nothing beyond that.
Fritz said she tells her staff members to think of their grant money as bonuses rather than wage increases. That helps fuel the awareness that the funding may soon go away. Without the grants, she would have to raise tuition for families that use her center.
Jen Bailey, executive director of child care program Reach Dane, also receives Child Care Counts funding. That's roughly $112,000 a month since spring 2021, Reach Dane said.
The program services mostly low-income families (1,000 children ages 0-5) across several Dane County locations and has 280 employees. It needs to hire 40 more, Bailey said.
"Currently, we have 10 classrooms that are closed due to lack of staff," Bailey said.
Both providers said they've additionally helped their employees get child care with Project Growth money.
"We pay a lot of lip service, but we don't put our money where our mouth is," Bailey said. "We need to treat it like the profession it is. We are asking people to care for (children) that are in this critical development stage."