All eyes will be on the North Carolina House of Representatives this week as leadership prepares to unveil its budget reconciliation proposal for next fiscal year, with the looming and unresolved question of whether the House (and Senate) will agree to appropriate $300 million to keep North Carolina's child care facilities afloat after federal stabilization grant funding expires at the end of this month.
Child care workers have been fighting the issue for months, warning that without state funding, three in 10 child care programs could close, affecting as many as 90,000 children.
As the industry faces funding challenges, the U.S. Chamber of Commerce Foundation, in collaboration with the North Carolina Chamber of Commerce Foundation and child advocacy group NC Child, commissioned a survey of North Carolina parents with children under the age of 6 to assess the direct economic impact that the lack of child care support is having on the North Carolina economy.
Here's what they found: Parenting issues are estimated $5.65 billion annual losses to North Carolina's economy.
Without safe, affordable child care, parents can't go to work, and businesses find themselves short-staffed or forced into a cycle of retraining new employees.
“The health of North Carolina's economy is directly tied to the strength of our workforce, and this study shows that our state is not reaching its potential in both families and economic competitiveness,” North Carolina Chamber of Commerce Foundation President Meredith Archie said in releasing the report last week.
In this Monday's Numbers column, we take a closer look at the findings of the “Untapped Potential” report.
35 – Among parents who reported work disruptions in the past year, the percentage who said they left their jobs as a direct result of childcare issues
$4.29 billion – Estimated annual costs of child care-related employee turnover and absenteeism to North Carolina employers
$1.36 billion – The amount of tax revenue North Carolina loses each year due to job loss and absenteeism caused by child care issues
15 – Percentage of working parents who plan to leave their jobs in the next 12 months
46 – Percentage of parents in school or training who had to make significant adjustments to their schedules due to childcare issues in the past year
twenty four – Percentage of parents who reported working (on-site or online) while caring for children in the past six months
twenty two – Percentage of parents who reported reducing their work hours due to childcare in the past six months
twenty three – Percentage of parents who have shared shifts with other family members in the household to care for their children in the past six months
12 – Percentage of parents who said they delayed employment due to childcare issues
51 – Of North Carolinians who interrupted their education due to child care issues, they expect to wait at least a year to return to school (another 5% said they don’t plan to return or don’t know when they’ll be able to return).
Back to Education
$9,255 – Average annual cost of full-time care for one infant at a child care center in North Carolina.
$7,592 – Average annual cost of full-time care for a 4-year-old in daycare in North Carolina.
The report found that low-income families are more likely to base their choice of child care on price, compared with higher-income parents who consider other factors such as quality of care and proximity to work.
Erica Palmer Smith, Executive Director of NC Child, summed it up as follows:
“Quality early childhood education lays a foundation for children during the most formative years of their lives. Additionally, we know that access to child care is critical to helping parents keep their jobs and support their children. This study clearly demonstrates the importance of investing in our child care system in North Carolina.”
To read the full “Untapped Potential” report, click here.
The House Appropriations Committee is scheduled to consider the spending plan at 9 a.m. Tuesday.