Commentary: Federal funds for child care will help, but not solve, Delaware’s crisis

While federal injections certainly help stabilize the industry and one-time, pandemic-induced increased costs, much more needs to be done, especially for an industry that has lost 1 in 6 workers since the onset of the pandemic and whose high-skill workers earn minimum wage (currently, the average is below the upcoming $15 minimum wage at $10-$11 per hour) with no benefits.”

This week, Gov. John Carney announced $120.6 million in funding for early childhood allocated through the American Rescue Plan Act.

Included in this total are $66 million previously awarded, as required by the federal Administration for Children & Families (ACF) in the form of stabilization fund grants. Child care providers have already spent the vast majority of those dollars to reimburse spring and early-summer expenses wrought by the pandemic, including increased staffing, personal protective equipment, substitutes and smaller group sizes.

ARPA investments in child care announced Monday include:

• $24 million in additional stabilization grants, which represent an immediate infusion for a struggling industry.
• $10.6 million in direct financial relief for Delaware child care workers, to support recruitment and retention bonuses.

Another $10.6 million has been allocated to establish an Early Childhood Innovation Center at Delaware State University, aimed at bolstering the child care workforce through a statewide scholarship and support model, including peer cohorts, career advising and scholarship partnerships across higher-education institutions. Most child care workers hold a high school degree, but future requirements will likely require postsecondary degrees (as recommended by experts like the Institute of Medicine).

The remaining funds will go to state-level infrastructure and system building (details were not released by the state).

These one-time federal investments come at a time when advocates are pushing for increased state funding in the child care industry, and parents are struggling to find care for their children. They are also aligned with the Delaware Early Childhood Council’s July recommendations, which included input from child care providers, service providers, parents and council members.

Current state

While federal injections certainly help stabilize the industry and one-time, pandemic-induced increased costs, much more needs to be done, especially for an industry that has lost 1 in 6 workers since the onset of the pandemic and whose high-skill workers earn minimum wage (currently, the average is below the upcoming $15 minimum wage at $10-$11 per hour) with no benefits.

• Workforce: In October, ACF issued a memo indicating that “child care staff hiring is more challenging than ever” and urging “states, communities, and local programs to take bold action now to invest ARP funds and other sources of COVID-19 relief funding to address the current ECE workforce shortage this fall and beyond.”
• State investment: The state reimbursement rate for child care pays only about 50% of providers’ current costs. Delaware’s pre-K offering is ranked 39th of all states in providing funding for children in poverty.
• Access: The state child care subsidy only covers 10,000 children under 12 (about 8% or one-fifth of those eligible). And Delaware ranks 42nd among all states in terms of access to state funded pre-K.

Advocates and community leaders are pushing for the state to invest $55 million in the fiscal year 2023 budget, with $40 million in child care and $15 million in pre-K.

Long-term vision and opportunity

Delaware and the nation are rethinking early learning as a public good — an approach seen in the U.S. when children turn 5 in public education. But nations like Denmark, for example, invest in care for toddlers at a rate more than three times higher than the U.S.

That could change soon. President Joe Biden has put forward a proposal to prepare the U.S. for:

• Universal pre-K for all 3 -and 4-year olds, serving 19,400 more children in Delaware.
• Broad expansion of child care that will cover costs of quality care, pay living wages to staff on par with K-12 educators and cover families up to 250% median income; in Delaware, this will benefit 53,000 families.

While Congress has not yet approved this proposal and federal guidance on implementation is not expected for several months, states will have to commit a funding match, and infrastructure investments will be needed to reach the expansive program outlined in the federal proposal. For Delaware, this will mean investments in:

• Early-learning workforces, including living wages and benefits for staff, at parity with K-12 educators.
• Higher standards for the workforce, including associate degrees and bachelor’s degrees for teachers.
• Facilities — today, Delaware doesn’t fund the buildings in which child care operates.

As we watch the congressional process and federal guidance play out, Delaware’s foundation must be built — this is the biggest investment in families and young children in generations, and Delaware has an opportunity to build the comprehensive system we need.

Madeleine Bayard is senior vice president of Rodel and leads policy, programmatic, government affairs and communications initiatives.