Child Care Study Summary & Community Action Plan
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The Greater Oklahoma City Chamber, through funding from the City of Oklahoma City, partnered with the Coalign Group and the Oklahoma Partnership for School Readiness to establish a comprehensive data repository and strategy to address child care needs as it impacts the workforce of Oklahoma City. The research encompasses insights into the requirements of large and small diverse businesses across a variety of industries within Oklahoma City while also considering national trends in the child care industry.
Overall, it is estimated that the child care crisis costs the state of Oklahoma $1.2 billion in lost earnings, productivity, and revenue each year. Failure to address the child care crisis now will create further devastating effects with increased child care program closures, increased issues with workforce recruitment and retention, and fewer Oklahomans able to participate in the workforce overall. The sooner governments, businesses, and philanthropy can join together to invest in solving this crisis, the sooner Oklahomans can return to work and invest in their family’s health, education, and future.
Impact of Child Care Issues
Women in the Workforce
Oklahoma City, like many cities across the country, is facing a child care crisis. Inadequate access to quality child care programs negatively impacts Oklahoma City’s economy. It hampers parents’ and guardians’ ability to join the workforce and earn a living to support their families. Many employers across the country have experienced pandemic-related disruptions and difficulty hiring due to issues with child care, and businesses in Oklahoma City are no exception. In 2021, more than one in ten Oklahomans reported having to quit a job, not taken a job, or change jobs due to problems with child care.
The COVID-19 pandemic exacerbated the child care crisis, impacting parents’ ability to work and businesses’ ability to recruit and retain a reliable workforce. Child care is a critical economic infrastructure and investing in it creates broad, positive impacts on families, local businesses, and state revenues. While Oklahoma’s GDP and total employment have recovered remarkably well from the pandemic, the economic recovery hasn’t been equitable. Women’s participation in the workforce still considerably lags behind the rate of men. Nationwide, 2.3 million women have left the workforce since the onset of the pandemic, resulting in women’s lowest
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workforce participation rate since 1988. In Oklahoma, if the women’s labor force participation rate increased to equal that of the men’s, there would be an additional 99,000 workers and an increase of $3.7 billion in wages earned statewide.
County is $58,239 and caregivers with young children are likely to be newer in their careers and have less earning potential.
Supply and Demand
In addition to high costs, the lack of available slots for children needing child care negatively impacts families’ ability to access child care programs. In Oklahoma County, there are more than two children for every slot available in a licensed child care program. This trend is exacerbated by the fact that over the last five years, the local market has experienced a 3% reduction in the total number of child care slots available in Oklahoma County.
Accessing Early Childhood Care and Education (ECCE)
Having access to high-quality ECCE programs encourages parental/guardian employment, which creates more economic security and better opportunities for families. However, accessing ECCE programs has become increasingly difficult across the country and in Oklahoma. This has created a child care crisis in which 55% of Oklahomans, including 68% of rural Oklahomans, live in a child care desert, meaning there are either no providers within their zip code or too few available slots. Those who have child care available near them might not be able to afford it as the cost of care continues to increase. Additionally, those needing care outside of a typical workweek schedule or those needing care that can accommodate children with disabilities might have even more difficulties accessing ECCE programs. Problems related to the child care crisis are not just limited to families searching for care. Child care professionals face low pay and few benefits, and as a result, child care providers have high turnover rates and a difficult time recruiting new employees.
Child Care Costs
Simply put, child care is very expensive, and the cost greatly impacts families’ ability to access ECCE programs. Currently, the average cost for infant care for one year at a child care center in Oklahoma County is $11,080. This is a steep price considering the median household income in Oklahoma
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Wages
retirement), and better professional work environments provided by publicly funded opportunities such as Pre-K.
Compensation for child care professionals is a complex issue
because families needing child care cannot afford higher payments; however, current prices do not allow child care providers to offer livable wages, benefits, or support for the professional development of their employees. Public funding for child care (assistance to low-income families) uses per-child reimbursement rates that are far below the true cost of care. Providers who choose to accept subsidies from the state of Oklahoma to care for children in low-income households are only reimbursed 29 to 69% of the true cost of care, forcing them to pay the remaining 31 to 71% out of their own funds. The average annual wage for a child care professional in Oklahoma is $22,790. Half of all child care professionals are enrolled in at least one public assistance program. Early childhood education also has the lowest earning potential of all college majors. Although pay is low across the system, it varies greatly depending on the program and age of the children in care. For example, the average annual wage for a child care teacher in Oklahoma is 47% less than that of a Pre-K teacher ($11.67/hour vs $17.16/ hour), but Pre-K teachers are paid 38% less than similarly qualified kindergarten teachers ($17.16/hour vs $23.70/hour). In addition, the cost of infant/toddler care is notably higher than that of older children due to smaller child/teacher ratios and additional regulations required for child safety. Often, ECCE professionals are enticed to leave the industry to seek relatively higher pay, expanded benefits (like health care and
OKC Child Care Survey Results & Focus Groups A survey was conducted targeting the Oklahoma City workforce who have children. A total of 564 people responded. The survey focused on capturing the benefits and challenges related to obtaining child care in OKC and how it impacts workforce behavior. A summary of the key survey results is provided below.
Top 3 reasons for those unable to find child care in the past 12 months:
• Cost of care is too expensive (27%) • Child care program was full (22%) • Quality of child care (15%)
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Impact on Work
Where/When Child Care Facilities are Needed
64% stated they have had a family member consider leaving employment instead of utilizing child care. Top 3 reasons how child care has impacted employment in the past 12 months: • Took unplanned vacation time/PTO due to lack of child care (61%) • Took unplanned sick leave due to child’s illness or COVID-19 close contact (61%) • Reduced or changed my work hours for more than just a few days (37%)
The following three criteria were evaluated to make broad, top-level recommendations of where child care facilities are needed:
• Density of workforce • Child care capacity (Supply) • Child care needs (Demand)
Based on these criteria, zip codes for potential child care expansion were identified. The below map displays both priority and secondary expansion opportunities by zip code in Oklahoma City.
86% said their current employer does not provide child care benefits.
Highest-ranking factors that help participants decide to enroll their children in employer- sponsored child care:
• Hours of available care • Qualifications of staff • Cost of care • Health/Safety precautions
95% said having child care benefits through their employer would make the position more attractive.
Highest-ranking benefits that would be most appealing to participants:
• Flexible working hours • Remote work or work from home • Flexible working days or work shifts • Paid maternity leave • Family-centric work policies
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Recommendations
Of those responding to the survey:
• 54% prefer child care that is closer to home • 25% prefer child care that is closer to work • 21% had no preference Of those with current child care, 79% indicate that the location is within 10 miles of home or work. • 31% within 2 miles from home or work • 48% within 3-10 miles from home or work
The early childhood education system is complex with many challenges. The system is made up of providers, educators, child care professionals and parents/guardians. They are all key components to making certain that we have a well-prepared workforce in the future and engaged and focused employees today. Below are top-level recommendations to consider where everyone in the community can play a role and be engaged in working toward solutions and improvements. What State / City Leaders Can Do
65% need after-school or summer care.
Support Businesses
44% utilize 20 - 40 hours of child care 33% utilize more than 40 hours of child care
• Provide tax credits for businesses that support their employees’ child care needs/provide child care subsidies. • Invite local businesses to join the governing boards of local early learning collaboratives.
In addition to the quantitative survey, multiple qualitative focus groups were held to gauge the difficulties various industries experience in finding and maintaining child care for their workforce. Industry-specific focus groups looked at the impact on manufacturing, office and shared services, aerospace and defense, and hospitality and retail. Moreover, focus groups were held with those in education and training, foundations and non-profits, and ECCE providers. The focus groups allowed individuals to voice their stories and opinions in more detail and brainstorm immediate and long-term solutions. The data collected from the combined survey and focus groups helped develop the following recommendations.
Support Families
• Expand the amount of the Child Tax/Child Care Tax credit or raise/eliminate the eligibility requirement that the taxpayer’s gross income cannot exceed $100,000 for married couples filing jointly. • Continue to waive co-payments of the Child Care Subsidy Program for low- income families. • Fully fund the child care subsidy program and expand the child care subsidy eligibility. Utilize graduated income levels for child care subsidies.
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Support ECCE Providers
Support ECCE Workforce Development
• Support the fixed costs of providing child care by moving from attendance-based subsidy to enrollment-based subsidy. Another option is to increase the amount of allowable absent days in order for the child care facility to receive the full subsidy reimbursement.
• Utilize federal Child Care and Development Funds, state funding initiatives, and philanthropic funds to
create contracts and grants that can help support workforce development as well as target programs that service specific needs or groups of children (like children with special needs). Contracts/Grants could be designed to support individual workers (like staff in child care centers) or specific programs or skills (like bilingual staff). They can bolster salaries, improve benefits, and increase opportunities for training and professional development. Additional contracts/grants could be provided to providers who meet the following criteria: • Serve specific, vulnerable populations like low-income families or those in communities with fewer child care options and resources.
• Increase provider reimbursement rates of the Child Care Subsidy Program.
• Extend the Oklahoma Child Care Desert Grants by braiding public and private dollars. • Provide incentives to developers and companies to build or help fund new child care facilities.
• Use Tax Increment Financing to help fund new child care facilities.
• Use New Market Tax Credits to help fund the construction of new child care facilities in low-income census tracts.
• Serve children needing non- traditional hours of care.
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• Meet higher quality standards according to Oklahoma’s Quality Rating Improvement System. • Offer financial incentives for staff to reach higher levels of education or professional development. • Offer certain benefits to program staff such as health insurance, paid leave, time off, retirement, etc. • Make it more attractive for people to enter early childhood education as a career. Consider providing tax credits for ECCE professionals to encourage more to join the ECCE workforce.
• Improve relationships between the Oklahoma Human Servcies and ECCE providers to create a more cooperative and collaborative system of enforcement and communication about regulations. Help them understand the “why” behind regulations and when new regulations are adopted.
• Evaluate the caregiver-to-child ratio requirements.
• Evaluate the USDA’s Child and Adult Care Food Program since the cost of purchasing and preparing nutritious food presents a challenge due to inflation.
• Bolster the existing Oklahoma Child Care Wage Supplement program.
Regulations
• Improve partnerships with providers in the process of inspecting and licensing child care facilities. • Reduce the amount of time it takes to obtain fingerprint results and background checks to speed up the time to get a child care professional license. Additionally, allow fingerprint/background checks received during educational training to be transferrable to an employer. • Provide categorical eligibility for child care assistance to individuals working in a licensed child care facility, meaning they would qualify for assistance because they belong to a protected class not based on their income. • Evaluate cumbersome requirements for outdoor play spaces, adequate egress, and regulations related to bathroom facilities.
What Employers Can Do
Policies
• Provide flexible schedules and remote work when possible.
• Provide part-time positions and creativity with scheduling employees.
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• Provide generous parental leave/PTO policies to either or both parents.
• Sponsor the development of child care facilities.
• Implement Dependent Care FSA programs that are supported through employer contributions to help offset the cost of child care. Raise awareness of existing programs that are being underutilized by existing employees.
• Downtown employers (office and hospitality industry) could partner together to operate an extended-hours child care facility downtown. • Be actively engaged in pro-child care policies at the local, state, and national levels, which should focus on ECCE workforce development, enhancing child care subsidy programs, and passing new legislation that helps grow and expand access to high-quality child care.
• Provide a child care stipend to employees as a benefit.
• Utilize a platform to help develop a program to support access to child care resources and employer-sponsored programs, such as Mirza - https://www. heymirza.com.
• Provide employees with child care resources and information about
availability. www.oklahomachildcare. org or (800) 438-0008 provides a child care resource and referral (CCR&R) service to link families to quality, licensed child care options in Oklahoma. For Oklahoma County, Rainbow Fleet - www. rainbowfleet.org/find-child-care is the CCR&R agency. Additionally, OKDHS Child Care Locator is another good resource to share as part of the employee onboarding process - https://childcarefind.okdhs.org.
• Create/contribute to more degree-specific scholarships to help offset tuition costs and develop more higher education partnerships to attract more students to the early childhood care industry. • Directly support or give to philanthropic organizations that support ECCE providers and programs.
Support
• Build relationships and partner with nearby ECCE providers to build awareness of child care homes/centers/facilities, contract for child care spots for employees (especially for extended hours or shift work), and provide overall support.
• Support summer camp and after-school programs.
• Banks could consider providing donations to early childhood programs through impact funds. • Extend the Oklahoma Child Care Desert Grants by braiding public and private dollars.
• Support facilities/programs that offer backup care for emergencies.
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• Raise funds to provide competitive compensation, benefits, and advanced job training to help stabilize the child care workforce.
• Provide funding to ECCE providers and programs.
• Be actively engaged in pro-child care policies at the local, state, and national levels, which should focus on ECCE workforce development, enhancing child care subsidy programs, and passing new legislation that helps grow and expand access to high-quality child care. • Create/contribute to more degree-specific scholarships to help offset tuition costs and develop more higher education partnerships to attract more students to the industry to become early child care professionals.. • Utilize federal Child Care and Development Funds, state funding initiatives, and philanthropic funds to create contracts and grants that can help support workforce development as well as target programs that service specific needs or groups of children (like children with special needs). Contracts/grants could be designed to support individual workers (like staff in child care centers) or specific programs or skills (like bilingual staff). They can bolster salaries, improve benefits, and increase opportunities for training and professional development. What Educational Institutions Can Do • Make it more attractive for people to enter early childhood education as a career.
What Philanthropic Organizations Can Do
Partnerships
• Partner with businesses and educational institutions to support ECCE providers/ programs. • Partner with CareerTechs and higher education to secure funding to bring back child care development centers onsite at higher education institutions that offer degrees in child development. Multiple institutions previously offered onsite centers but closed due to the expiration of grant funding.
Support
• Raise funds to support child care for families who struggle to afford it.
• Offer donations to supply food resources and clothing, community building for parents, and specific child care programs to increase access for educators and teen parents.
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• Increase accessibility by expanding access to ECCE courses that are flexible, available both online and in-person, available in multiple languages, and remain high- quality. • Fund the development of remedial courses that incorporate early childhood development. • Invest in advisors and student-teacher supervisors to help navigate higher education and support hands-on learning. • Create a process to award credit for demonstrated competencies and prior work experience through Credits for Prior Learning (CPLs) or Prior Learning Assessments (PLAs). • Develop training systems that focus on core competencies and training child care professionals more efficiently, as Missouri and Pennsylvania have done. • Partner with philanthropic organizations to secure funding to bring back child care development centers onsite at higher education institutions that offer degrees in child development. What ECCE Providers Can Do • Make it more attractive for people to enter early childhood education as a career.
for extended hours or shift work), and overall provide support. • Improve partnerships with state/city leaders in the process of inspecting and licensing child care facilities. • Improve relationships between the Oklahoma Human Services and ECCE providers to create a more cooperative and collaborative system of enforcement and communication about regulations. What Parents / Guardians Can Do • Recognize early childhood education as a profession – with high standards and requirements. Respect the work of early childhood educators as professionals in your child’s life who are creating the foundation for future learning and skills. Compensate them competitively, offer benefits, and give them the ability to take time off to manage their personal and family obligations. • Advocate for and support pro-child care policies at the local, state, and national levels, which should focus on ECCE workforce development, enhancing child care subsidy programs, and passing new legislation that helps grow and expand access to high-quality child care. • Directly support or give to philanthropic organizations that support ECCE providers and programs. • Encourage employers to provide child care benefits. Seek out information about existing child care programs offered by employers. Thank employers that already provide child care benefits.
• Offer on-call care, flexible hours, and after- hours care.
• Build relationships and partner with nearby businesses to build awareness of child care homes/centers/facilities, contract for child care spots for employees (especially
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