Report: Nearly a quarter of local child care providers could close by early 2021
As local childcare providers continue to experience critical revenue losses and a dwindling of resources, nearly a quarter of them could close by the end of January 2021, a new report says.
Action for Children collected data and feedback on the state of early childhood education in central Ohio. The agency's Make or Break Moment report, released this month, suggests that 23% of child care providers could close early next year.
CEO Eric Karolak said the report was sparked by community members' interest in knowing how the ongoing COVID-19 crisis has affected the childcare industry and what providers need to remain financially stable.
Feedback was collected using a survey and focus groups. Action for Children received survey responses from 190 centers and 84 homes, and feedback from 39 focus group participants, with the results highlighting a major problem in the region, state and country, Karolak said.
"We knew there's been a problem, but this report puts it all in one place," he said. "It defines what this problem looks like for our region."
The report also highlighted other alarming statistics:
• For two-thirds of providers, monthly revenue doesn't cover expenses.
• Roughly 2% of providers are paying more than $1,000 monthly for additional costs.
• Overall enrollment is at 54% of capacity.
• Nearly one-third of childcare centers are experiencing staff shortages, with an estimated 725 current staff openings.
After combining the results gleaned from the survey and focus groups, Action for Children compiled a list of recommendations to promote long-term sustainability for the child care industry.
Karolak said this crisis is a direct result of low enrollment numbers and a lack of financial support, issues that have been building since the start of the pandemic.
Despite the city of Columbus and Franklin County collaborating this year to direct $8.2 million in federal CARES Act funds to a Child Care Recovery and Stabilization Grant program, Karolak said federal funds have dried up, leaving many providers on their own.
At-home provider Stephani Walker said she is frustrated by the lack of financial support that she and other child care workers have faced since March.
"It saddens me because we have all this money out here, but when we got to apply for it we cannot take advantage of it," Walker said.
Walker, who runs her own independent child care service, said she hasn't qualified for several grants because her business is for-profit and does not have another employee.
Outside of a $500 grant from the Franklin County Department of Job and Family Services, Walker hasn't been eligible for much assistance. It feels like a smack in the face, she said.
"This is why we're being pushed to have to close our business, because they're not making the money available because of all these stipulations and exemptions that we fall under," Walker said. "And that's not OK."
Misti Norman, executive director of Heavenly Kids Center for Learning, said the Downtown center isn't facing potential closure next year. But, like other providers in the area, the organization has seen significant drops in enrollment.
Before the pandemic, Norman saidHeavenly Kids served between 150 and 160 children. Now, enrollment is down to 85, with roughly 55 showing up on average each day. Although fewer children are in the center, overhead costs have remained the same.
Along with costs to run the facility, Norman said, most of the enrolled children are subsidized, with the government paying varied portions of their tuition through the Publicly Funded Child Care (PFCC) program. However, the center is paid only for the children who are present. The program also has "market rates," which prohibits public centers from setting their own tuition and enrollment costs.
"With the providers that are depending on the PFCC that are like me, we can't increase rates or adjust the tuition," she said. "It is what it is. We get what we get from them."
At-home provider Alice Jefferson said she also has seen a "wipeout" in enrollment while experiencing cost increases. Over the summer, Jefferson, who heads the Reliable Childcare Learning Center in Canal Winchester, renovated her basement to create a 1,000-square-foot space so the kids could socially distance.
And although she has cut expenses, Jefferson's business has stayed afloat with grants from Action for Children. The organization helped her receive toys, PPE equipment and even provided sensory tables, computers and other educational tools.
"Eric and his staff just came through from day one," Jefferson said. "They've answered the phone calls and came to check in on us to see how we were doing mentally and emotionally."
Still, Jefferson said more funding should be allocated to child care providers, especially for independent workers. Like centers, they also carry overhead costs.
"This isn't a Columbus problem, or a Delaware, or even a central Ohio or state of Ohio problem," Karolak said. "This is a national crisis that's happening all over the country. There's no place that's escaping this."
Walker said a more vocal leader is needed to advocate for more resources and financial assistance.
"We need someone at the higher level to be our voice," she said. "We have them but they're not communicating with us in-home providers about what our needs and our challenges are."