ATLANTA — The cost of childcare is higher than ever for parents. It’s also a struggle for providers who are balancing their rising cost with affordability.
Lily Ligon’s story is the same for so many parents.
“Half of my check, you know usually goes to childcare,” said Ligon.
“The price was outrageous, so I kept her home for a while,” she added.
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A Bankrate study found that parents are spending an average of 12% of their income on childcare. In some states that goes up to 20%.
The cost is also something providers are struggling with. Sharon Foster started Bells Ferry Learning Center in Marietta 24 years ago. In all those years, she said the state of childcare is unlike any time before.
“I think we are in a place where the cost of childcare is overwhelming for many, many families,” said Foster.
There is a reason for the cost.
“At least 50% and in many centers it’s closer to 70-75% goes right back out in the form of wages or payroll,” said Foster.
At Miss Neicy’s Home away from Home Learning Center in Southwest Atlanta, they’re trying to keep teachers but the cost with the yearly requirements makes it challenging.
“Why go through 18 hours of learning, you got to deal with these kids and you’re making $12 an hour? You can go to Walmart and make $15,” said John Kimbrough, owner and operator of Ms. Neicy’s Home Away From Home Childcare Center.
In addition, COVID-era funding has stopped. For example, when funds from the American Rescue Act expired in 2023, one study said it could eventually lead to more than 900 childcare centers closing in Georgia alone.
“All of that funding is gone, and so we’ve had to raise tuition rates to make up for the fact that that money is gone,” said Foster.
Kimbrough says he lost 25% of his customers and he is frustrated.
“We are called to help people we have the best jobs in the world we educate the young minds of the future, and nobody cares,” said Kimbrough through tears.
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Georgia’s CAPS or Children and Parent Services offers scholarships to families and currently serves 55,000 kids. But it’s budgeted for 51,000 kids. CAPS was able to serve more kids during the pandemic, with additional relief dollars but that money ended last fall.
Through attrition, they’ll drop back to 51,000 kids.
“We got to find a way to just make is more affordable for parents,” said Foster. “It’s going to take assistance from either the state or the federal level.”
“A couple of other states have implemented tri-share programs which means there’s three payers for each child’s tuition. One is the state, one is the employer and the third is the parent,” Foster proposed.
They’re hopeful but there is no clear plan in sight. Foster said they’re hoping to get across to lawmakers and businesses that affordable childcare is good business.
The state did offer a $500 yearly bonus to childcare teachers.
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