Covid-19 and the future of childcare regulation
In July, the National Association for the Education of Young Children (NAEYC) surveyed childcare providers around the country on how they are faring through the pandemic. What they found was discouraging to the future of childcare. More and more providers feel they are on the verge of closing.
Among their key findings;
Approximately two out of five respondents—and half of those who are minority-owned businesses—are certain that they will close permanently without additional public assistance.
Nationally, 18% of child care centers and 9% of family child care homes remain closed.
Of those who are open, 86% of respondents are serving fewer children now than they were prior to the pandemic. On average, enrollment is down by 67%.
At the same time, upwards of 70% of child care centers are incurring substantial, additional costs for staff (72%), cleaning supplies (92%), and personal protective equipment (81%).
One in four early childhood educators reported that they have applied for or received unemployment benefits, while a full 73% of programs indicated that they have or will engage in layoffs, furloughs, and/or pay cuts. For minority-owned businesses, the situation is worse; only 12% have not resorted to these measures in order to survive
How bad is it?
The coronavirus pandemic, and related lock-down rules have dealt a heavy blow to the childcare industry. Providers saw enrollment go down while costs soared. This worsened profitability and other pre-existing issues.
As reported by Time magazine:
Lauren Brown, the director of World of Wonders Childcare and Learning Center in In Marysville, Ohio, says cleaning costs have skyrocketed 300%, while the center grossed $20,000 less in June and July than it normally would. Annette Gladstone, the co-founder of Segray Eagle Rock daycare in Los Angeles, says she’s struggling to keep up with rent on her daycare building since enrollment is so low. Segray Eagle Rock normally accommodates 177 children; by late August, it had two dozen kids. Despite the blistering Southern California heat, Gladstone has kept the windows open while the air conditioner is running because the CDC indicates the practice can increase ventilation. Meredith Kasten who runs the Early Childhood Center in Greensboro, North Carolina, says the demand for her services all but dried up. “Our waiting list used to be a year long,” she says. “It’s now empty
This will likely have a domino effect on the economy. The closure of childcare facilities leads to childcare shortages, which inadvertently translates to higher prices.
In fact, according to the Center for American progress, this process has already started happening. In Minnesota, prices have jumped at least 33 percent, on average, for infant and toddler care.
Strict regulations have made things worse
While the pandemic itself has had some negative consequences on childcare, strict regulations have played a big role in decimating the childcare industry. The pandemic was merely a catalyst.
As Time illustrates
Stringent government regulations designed to safeguard child safety and development are also a factor. Most states require that day-care centers maintain high adult-to-child ratios and ample square footage. In some places, day-care operators are required to hire staff trained in early childhood development. These measures are important. Research shows that early-childhood education shapes everything from adult brain volume to reading proficiency. “That has an impact on our future labor force and their economic potential, which ultimately is tied to our country’s economic potential,” says Katica Roy, a gender economist. But these requirements also have the effect of making daycares less nimble in the face of economic crises.
Hopefully, lawmakers can take this as a lesson on the costs of overregulation.