Beginning September 30, 2023, states could be forced to deal with the loss of billions of dollars in federal funding, which will lead to a mass disruption in the child care landscape.
The $24 billion that went to child cares was part of a pandemic program, and has been the largest investment in child care in history. Without that funding, 3.2 million children could lose spots in child cares and more than 70,000 centers could close, according to a Century Foundation report.
In this podcast, Cindy Lehnhoff, the director of the National Child Care Association, explains what's happening and what measures are being taken to save at least some of the funding. She also discusses the consequences of losing the funding — on centers, staffing, families and the economy — and what some states are doing.
Learn more about the NCCA and its work.
Beginning September 30, 2023, states could be forced to deal with the loss of billions of dollars in federal funding, which will lead to a mass disruption in the child care landscape.
The $24 billion that went to child cares was part of a pandemic program, and has been the largest investment in child care in history. Without that funding, 3.2 million children could lose spots in child cares and more than 70,000 centers could close, according to a Century Foundation report.
In this podcast, Cindy Lehnhoff, the director of the National Child Care Association, explains what's happening and what measures are being taken to save at least some of the funding. She also discusses the consequences of losing the funding — on centers, staffing, families and the economy — and what some states are doing.
Learn more about the NCCA and its work.
Welcome to the Childcare Business Podcast, brought to you by ProCare Solutions. This podcast is all about giving childcare , preschool, daycare, after school , and other early education professionals. A fun and upbeat way to learn about strategies and inspiration you can use to thrive. You'll hear from a variety of childcare thought leaders, including educators, owners, and industry experts on ways to innovate, to meet the needs of the children you serve. From practical tips for managing operations to uplifting stories of transformation and triumph, this podcast will be chock full of insights you can use to fully realize the potential of your childcare business. Let's jump in.
Speaker 2:Hello everyone, and welcome to the Childcare Business Podcast. My name is Leah Woodbury, and I'm happy to have you join us today. I'm filling in for our normal host, Ryan Gwaltney . Um, and we are in luck because we have a terrific guest today who's gonna talk to us about a topic that I'm sure you've all been thinking about a great deal. Um, Cindy Layoff, she's the director of the National Childcare Association, is with us. Um, so what we're gonna talk about is this cliff in funding that is projected to happen on September 30th. Um, and I should note that we are recording this podcast on September 12th. Um, and that states are gonna face a huge drop in federal funds for childcare businesses. And Cindy's gonna share what's happening with that, what E c e providers should be doing at this moment, any tips she have . So, welcome, Cindy. We really appreciate your time talking about this important topic.
Speaker 3:Well, thank you Leah, for inviting me. Uh, I, my mission personally, along with the mission of N C C A, involves making sure that the early childhood community knows what is happening and what, if anything, they might be able to do to affect it.
Speaker 2:Oh, perfect. So before we start talking about, about the funding and the possible end of funding, could you tell us a little bit about your organization and what you do?
Speaker 3:Yes. Our mission is to promote the success of licensed providers in quality care and education. This includes the provision of professional development mm-hmm . <affirmative> advocacy and engagement. We offer virtual training in the form of a monthly webinar. We have been very fortunate to have some well-known presenters with different areas of expertise in the early care and education space for those professional development webinars. Our members are able to count those , uh, as training that is required by the states on an annual basis. We provide them for free, and we provide them with certi certificates that they've attended. Um, we also have business affiliates , uh, like Leston Education and Kaplan, and , um, many more learning beyond paper. I I can't even mention 'em all , uh, that offer services , um, to early , uh, care and education providers at a discounted price. And lastly, but most importantly, we keep our members very well informed of the latest activity as it pertains to federal legislation that can either positively or negatively affect their ability to serve the families in their community. Uh, we also partner with other advocacy groups in , uh, DC such as Childcare Aware of America, the Early Care and Education Consortium, the National Women's Law Center Family Focus , just to name a few , uh, to ensure that we are speaking in a unified voice. Uh, we have found that that's very important , uh, so that the numbers of people speaking on this are not, you know, going different directions with what kind of support is needed.
Speaker 2:Great. And that ties directly into what we're, what we're gonna talk about right now , um, that this clock is set to run out on $24 billion in government aid. Is that the correct number, Cindy? I've seen a few tossed around, but it's, it's a staggered. That
Speaker 3:Is , that is the correct number for the childcare stabilization funds that were provided through the ARPA Act in 2021, in response to the pandemic and the crisis that it put childcare in.
Speaker 2:So, can you talk a little bit about those ARPA funds and what they were designed to do and, and what they continue to do for childcares around the country?
Speaker 3:Yes. And you know, let me just start by saying, according to the Department of Health and Human Services, which is the lead agency, you know, over childcare , um, at the federal level, Uhhuh <affirmative> , this money was allocated to approximately 220,000 childcare programs, including centers in family childcare homes nationwide. Okay . It benefited approximately 9.6 million children that are in care, which is a phenomenal, you know, number. Um, it could be used to support operating costs such as rent , uh, the supplies that were needed to combat the Covid pandemic itself from spreading in the centers , uh, utilities and additional cleaning processes and supplies, again to reduce covid outbreaks. But most importantly, it could be used to help recruit, hire, and retain qualified workforce. Unfortunately, at the onset of Covid , uh, the industry lost about one third of its childcare workforce. And the reason for this, you know, was , uh, not just any one thing, you know, some centers closed, and so their staff were completely laid off. Some centers could only afford to have , uh, part of their staff , uh, come to work and be paid because of the social distancing required in childcare settings. It reduced the number of children that could be in care. There was also those childcare providers that , um, may have had autoimmune diseases that just felt like it wasn't safe. Mm-hmm. <affirmative> . We also had childcare providers that had to stay home and take care of their own children that were in , um, elementary schools that had been shut down. And even now, we have never regained the number of childcare professionals and educators that we lost. It is estimated that we still lack about 40,000 , uh, people in the industry , uh, that were here pre pandemic. And, and it also should be noted, Liam , that pre pandemic, we were already struggling to , uh, attract and retain high quality individuals. And unfortunately , uh, the teacher shortage, the public school teacher shortage mm-hmm . <affirmative> has been contributing to that for a very long time because, oh , approximately 20 years ago , uh, we were pushed to put people in credentialing and degreed programs that states sometimes, you know, help fund and ultimately raise the bar on the people working in the industry. But because of the shortages in public schools, our credentialed and degree teachers have turned to the , uh, the public schools to earn more money mm-hmm . To have , uh, to work less hours. And because they don't work year round and to have better benefits, and you can't blame them. Mm-hmm . You absolutely cannot blame them. So, and the other reason is wages in the industry have just not kept up with wages in even less skilled jobs because you are a skilled worker when you work in childcare, whether you're on the care or the education side, or both. Absolutely. 'cause you have to have certain entry level training to work in a childcare center, and then you have to continue with professional develop hours annually. And unfortunately, I could go to my local childcare center with the experience I've had mm-hmm . <affirmative> over 40 years, and probably not earn more than $15 an hour in a childcare setting, but I can go to , uh, McDonald's in my area and earn $17 an hour. And so that's where we are today.
Speaker 2:Okay. And then, so the, the ARPA funding, so that was largely for hiring or , or do you know, like what, what roughly the percentage it was about how centers, I suppose it's probably all over the place, what they used it for, right. Depending on their needs ,
Speaker 3:It is all over . It is all over the place. Yeah . But , um, some of the data that we have, you know, received and seen , uh, is that the majority of them used a majority of the funding to support their workforce, either in bonuses , uh, periodic bonuses, because the way the money, the way the states dispense the money was typically, like on a quarterly basis, providers would receive, you know, a , a a , a certain dollar amount based on their license capacity or other factors , uh, that the state may have, you know, put into play. And they paid bonuses to their current staff, you know, in hopes of keeping them. They, some providers did recruitment bonuses to help get more applicants in, and then many of them raise the pay of their , uh, providers. In fact, according to the last time I looked at Indeed mm-hmm . <affirmative> , when we, before we started the pandemic, the average wage for childcare nationwide, and remember it varies demographically and by education and experience was only about $11 an hour. And it has risen throughout the pandemic to almost $14 an hour. And this money paid for that.
Speaker 2:Okay. So what are you hearing from childcares that , um, are a part of your group about what's gonna happen if these funds expire, if nothing happens to extend them?
Speaker 3:Well, there's a , a few different , uh, uh, circumstances out there. And again, a lot of things depend on demographics and what income areas you're in. But many are concerned that they're gonna lose families that are receiving subsidy assistance because their state assigned co-payments and or overage payments, which is the difference between what the state reimburses a provider and the amount they actually charge their private pay customers will have to be increased. And this is due to the loss of funding, or mainly due to the loss of funding and the increased expenses in this inflationary environment. And that is mainly the cost of labor. Other things have gone up, you know, gas for those who transport children to and from school, food , uh, paper towels , uh, you know, anything you need to run a childcare center. But more than anything, the cost of labor, which is the greatest expense for any childcare facility due to child teacher ratio requirements , um, that's where the biggest increase, you know, has, has come. And again, it's been funded by these wonderful, generous funds , uh, in the R Act . So now that they're going away, we're gonna see states have to assign more parents that are on subsidy, higher copayments. So they're paying part of their care. And then in many states, some childcare providers to, you know, pay their bills. We'll have to charge parents what's called an overage, and that is the difference between what their copayment and state , uh, subsidy , uh, the difference between that and their private pay rate. And I'd like to kind of offer an example of what that might look like for people, because sometimes it's a , uh, you know, there's a , it , it , it's hard to , uh, you know, just hear it and think how, how, how does that work? Uhhuh <affirmative> . So for example, I was recently looking at , uh, I live in Florida in Volusia County, and I thought, what would it be if I were a single parent living in Volusia County with an infant and a three-year-old mm-hmm . <affirmative> ? Well, according to , um, the rules of , um, C C D F and childcare Development Block Grant, I could make $37,000 a year and qualify for childcare subsidy. Now, even if the agency does not apply a copayment, which they probably will, but let's just say, okay, maybe they won't, maybe they'll find funding somewhere for that. Okay . Um , I'm still going to have to pay my local licensed childcare provider the overage, which in this case is $125 a week. Of course, that's a , a low figure considering what a private pay customer would have to pay. But this is a single mother, two children making $37,000 a year gross. So if I have to pay the childcare center $125 a week of my income, that is $6,500 a year, which is 17.5% of my gross income. Now think about that. I mean, that's typically more than I might be paying for rent. Uh , it , and it, it doesn't leave much, you know, for the necessities of life. And that's what it pretty much looks like in most states where, you know, this will occur. The other thing that , uh, providers , uh, in our organization are worried about is that many of their families that are living above the poverty level, and I, and even , uh, significantly above the poverty level , uh, but closer to the medium income , uh, will be priced out of high quality childcare because providers will lose, you know, their stabilization funding that help them afford the increased cost of labor goods and services. Just like I already, you know, said mm-hmm . <affirmative> , what'll happen is under these circumstances, they will have to increase their rates to these families who are already paying 10% or more of their income for childcare services, and many already pay more than their rent, mortgage or tuition to a state college for their child, especially if they have more than one. Um, this was a concern that was in play before the pandemic, and it got worse during the pandemic until this funding was made available. And, and it's actually gonna just , uh, it's gonna be worse than it was even before the pre the pre pandemic because wages haven't kept up with the , the inflationary economy that we currently have.
Speaker 2:So it's, it's gonna affect these families. And I mean, what kind of effect is this gonna have on hiring then? I mean, are centers gonna have to say, well, I have to cut your wages to these teachers and other staff, or, I mean, it's gonna make recruitment even harder. Right?
Speaker 3:Right. And , uh, and that is, all that's gonna do is contribute to the loss, you know , of programs mm-hmm . <affirmative> , because, you know, when you have a childcare center , uh, you know, your rent is the same whether you have 10 children or a hundred children. And if you're , if, if you have to drop your , uh, the amount of children that you can bring in because you can't staff it , then obviously your rent becomes such a high percentage of your operating costs that it could push you outta business. And that is a huge concern, especially in the lower and middle income areas. And I just kind of gave you, you know, some of the reasons or some of the things that are gonna happen that will cause that to occur. And it's so unfortunate because most of the lower and lower middle income families live in rural and urban communities and pre pandemic those communities already had a shortage of childcare providers. In fact, I don't know if you've ever heard the term childcare desert mm-hmm. <affirmative> , but a little over 50% of the children pre pandemic were living in communities referred to as childcare deserts. And that meant that they had more children between the age of zero and six needing childcare than was actually available within the community. So no doubt this percentage is going to rise with this loss of funding.
Speaker 2:Well, and the , um, nci , the National Association for the Education of Young Children, that survey , uh, 43 per , they're predicting that , um, 43% of childcare , excuse me, I shouldn't say predicting it , found that 43% of childcare centers, 37% of family childcare providers say they're gonna have to force to raise tuition once those grants end. And we're talking about childcare deserts already. Exactly.
Speaker 3:And we, and we already have millions of , uh, children, well, that have been priced out of childcare, and not because providers are greedy, but because the high cost of producing high quality care
Speaker 2:Yeah.
Speaker 3:Cost money. And over the years, we've had a lot of, you know, mandates, whether they're state or federal, you know, that have pushed quality. And everybody that works in this industry, that's what they want. I mean, you don't open a childcare center , you know, to get rich and you want good things for kids, but then you're put in a situation of having to make some really , uh, tough choices. And again, we're to the point where the only choice might be to raise your tuition rates beyond what parents can afford, and that's gonna put parents back in their homes, or children, you know, back in with, you know , uh, friends and family, which there's nothing wrong with that. Absolutely nothing wrong with that, except for we do want to , uh, also offer families while they're working the opportunity for their children, you know, to be in an educational environment. And childcare centers provide that so that they , uh, so that the, the years of brain development that are so critical between zero and five mm-hmm . <affirmative> , you know, can occur , um, while their parents are working, those children are stimulated and educated through wonderful play experiences that are developmentally correct for them to move forward socially, intellectually, and developmentally.
Speaker 2:Mm-hmm. <affirmative> . Yeah. It seems like recently we have been seeing more, you know, states trying to say, yes, e c e it is so important, like , um, here in Colorado where , um, ProCare is based in Denver, this 15 hours free , um, for everyone regardless of income. So you have , it seems like there's that push and pull of, you know, supporting it, but then also then we have this coming right on the radar that we have to worry, worry about it . It's a tug and it , it just seems very complicated. Very complicated <laugh> .
Speaker 3:It is . I've had the opportunity to work in three states where the very first states that offered what is called Universal pre-K Okay . Which is Colorado is doing, and they're doing their version. And the three states I worked in , uh, that offered it, and I was actually , um, operationally responsible for programs, state programs that were in my centers , uh, was Georgia, Oklahoma, and Florida. Mm-hmm. <affirmative> . And ultimately , um, there are still funding issues with that . Uh , it , it's not always , uh, as much as it needs to be to be as good as it could be. Uhhuh, <affirmative> , um, these are state funded programs, not federal, of course, in Joe Biden's , uh, president Joe Biden's , uh, bill back Better Bill, he wanted to put $400 billion in federal funds into , uh, pre-K for all. And then of course, there's the , uh, you know, opportunity and for the childcare industry and the high quality centers that are already operating to be a part of that. We call it mixed delivery. And that's what Colorado was doing as well, where childcare centers that meet the criteria can also offer the program. But we know that build back better, you know, did not pass. And so it's just a handful of states like, you know, Colorado and the three I mentioned, and a few others that, that are doing it.
Speaker 2:Okay . So let's dig into this recent report from the Century Foundation that's , um, getting a lot of notice for good reason. Um, that report is predicting about one third of childcare providers who receive stabilization funding are likely to close as the result of this loss of funding. Um, so that equates to 70,000 childcare programs projected to close , um, and eliminating childcare slots for 3.2 million children and their families. And that's, that's a lot of <laugh> , a lot of figures, and a lot of data. But, and Cindy , forgive me, this is such a broad question, but what is this gonna mean for the, for the industry as a whole?
Speaker 3:Well, you know, it's going to affect the industry in that we are going to put people, you know, out of work that are very passionate and very willing to work and provide quality care and education to young children so other people can work. Mm-hmm. <affirmative> . So in addition to many people in the industry already, you know, going out of business, and we're talking about mostly small businesses, which are the backbone of the childcare infrastructure, by the way. Mm-hmm . <affirmative> , uh, there , uh, the backbone of our industry is small businesses. About 93% of childcare , licensed childcare centers are either center licensed centers or homes. And so , uh, it's, it's gonna be huge for these individuals that have really dedicated their time and effort and life, you know, to this mission. Uh, it's gonna be a bigger hit to the , uh, working families because they're already struggling in many places to be able to work , uh, and utilize their talents and strengths and contribute to the economy. And unfortunately, when all of this occurs, you're going to have a lot of employers that are going to be struggling to find the talent and the strength of worker they need, because you're taking so many people out of the workforce that can't get childcare. And of course, unfortunately, this involves a lot of men . Uh , a lot of women more so than men. It will involve men. There are men that sometimes, you know, are the , uh, you know, that are the, the parent at home , uh, and that while the wife works, I mean, it's not as common. And it's also going to really hurt the rural communities and, and, and people of color, because women of color are already , uh, not able to , uh, find jobs in their rural communities and urban communities where , uh, there is not, you know, as many opportunities.
Speaker 2:Well, and the , and the effect on state economies too. The, the loss in tax revenue and jobs, and Yeah . It's businesses losing employees, a huge ripple effect.
Speaker 3:And other businesses will go out of , you know, business too, because if you can't get somebody to, you know, work in your restaurant or somebody to, you know, work in whatever business it is that you have, I mean, I see signs all over my , uh, the area I live in in Florida, they're looking for welders and, you know, they're looking for machinists and they're looking for all kinds of skilled trades as well as, you know, every restaurant in town. Uh, I live in a, in a, in a beach community. And, you know, you have to wait a very long time to be served a meal , uh, because of the shortage. And, and small business owners are, you know, apologizing. You know, I , I , I, I'm so sorry that you have to wait. Thank you for waiting. Um, and we're all doing the best we can do to, to be , uh, you know, patient, you know? Yeah . As , as kind citizens. Um, I would also add that one of the things that's going to happen, and it, it , it's, and it's, it's happening right now, is that the childcare industry will grow in, in numbers. Uh , it , it will, it will grow differently though. It's gonna grow, and it is growing in more affluent geographies as we speak. Um, because the larger companies and the franchisees that, you know, have investors are building centers in more affluent parts of the country, in more affluent parts of a state where the upper middle class are working and need childcare, and they can command the rate that it actually takes to produce a high quality program. So it's not a criticism at all. I worked for a large company for 36 years. I totally appreciate their contributions to the industry. But at the same time , uh, you know, that's, the data's gonna be a little, a little twisted if we just say, okay, childcare had this many centers, you know, in 2022, but by 2024, we had this many, it might not look as bad as it sounds right now because of how we're going to lose programs and how we'll gain. And so the children that need this the most, and the families that need it the most are gonna be the ones that are gonna be doing without. And it just creates a bigger divide. Mm-hmm . <affirmative> , you know, between, it , it's, it's part of that middle class moving away , um, and the divide getting larger. And that's, that's unfortunate because it , it , it's just not gonna serve our, our country well now or in the future.
Speaker 2:So what is happening at the legislative level to get more funding as far as lobbying efforts or what's going on behind the scenes? <laugh> ? Okay.
Speaker 3:Well , first of all, let me give you a , a little , uh, view of maybe what isn't going on. Okay. Um , but some might say it is going on. Uh, first of all , um, just in going back to, we're gonna go back to regular federal childcare development block grant funding. And in fiscal , uh, year 23, that was still in play along with the additional stabilization , uh, money. And , uh, it was , uh, about $8 billion. So basically we're gonna lose the, the 24 and keep the 8 billion, because what is also happening is, is that the house , uh, is not looking to recommend an increase in , uh, childcare. Um, it all has to do with the debt ceiling, which, you know, is another whole political conversation. But the bottom line is they're not recommending any additional funding. So we're gonna go from 24 billion plus 8 billion in fiscal year 23 to just the 8 billion. Now, the Senate, however, is looking at putting in about a billion extra dollars for early , early learning programs, which again, that takes us from eight to 9 billion, which in that kind of environment, you're only serving about one in six children that qualify for subsidy. So think about that number, and then think about the millions of children that aren't on the subsidy , uh, radar that are in the lower to middle, middle class homes that are priced out. And so , uh, that's where we are right now. Now , uh, we do have , um, uh, a group of senators and also advocacy organizations like my own, that have come together, and we are asking for 16 billion emergency dollars to be put in childcare for fiscal 2024. Um, in fact , um, almost a thousand organizations like N C C A signed on to a letter developed by the National Women's Law Center asking for these funds. And , uh, again, there , there's about 30 senators that, you know, have supported that money being appropriated in next year's budget. But of course, that's not near enough for , uh, providers. Uh, it's , it's not near enough for it to pass the Senate. And then we'd still have to, you know, have some cooperation from the house. So at this point, we really, really need to have what I call all voices on deck. We used to talk about having all hands on deck and childcare, because there never seems to be enough hands. You know, when you're dealing with children and things happen, and you know, Murphy's Law, you know , a hundred percent <laugh> phone rings, the child has an accident , um mm-hmm . <affirmative> , you know, something is going , there's multiple things going on at a time. It's like being at home. Only you have multiples, <laugh> , <laugh> . And , uh, so at this point , uh, if we have any hope at all of getting emergency funding, we are going to have to be heard loud and clear. And I'd like to, at this time, really encourage courage. Parents, educators, owners, directors, grandparents who might have to be watching their children, their grandchildren, or great-grandchildren while their , uh, kids work instead of enjoying their retirement. Mm-hmm . <affirmative> , uh, business owners in the community to join forces, first of all start by joining and becoming active in a local or state childcare association. It's, that's not an immediate solution to the problems providers are having, but it's a start. And state governors and legislators need to hear from their constituents loud and clear that childcare providers or essential to providing affordable and acceptable quality care and education to our nation's , uh, uh, children , uh, while their parents work. And in , and I mentioned this I think a little earlier, is that in states where this has occurred, there has been additional state mon funds invested in childcare beyond just the federal level contribution. Uh, they started working on this in anticipation of this, of, in anticipation of the loss of this funding. And so they are much better equipped than the majority of states. New Mexico and Vermont are a couple that really stand out because it was actually , uh, a coalition of individuals like I just described, in each state that worked to be heard mm-hmm . <affirmative> in their state legislators. But for the immediate timeframe, and this is an important timeframe because September is when the Senate Appropriations Committee is meeting and allocating funds to different budgets, and it's really clear that there's gonna have to be some shifting of money. Uh, and unlike the N R A or Big Pharma, and I use them as examples because they have plenty of money to do lobbying mm-hmm. <affirmative> , you know, so that their, their voice and expectations for their members and employees are heard. We, we don't have the money. I mean, we , that's pretty clear. And, but what we do have is voice and passion, and, and we can tell a story and everyone that can possibly pick up a phone and call their federal legislature during the month of September to say, please support the $16 billion emergency fund in 2024 for childcare and any other bills or action that might, you know, rise to the surface. 'cause there's always bills in front of Congress for childcare . Mm-hmm. <affirmative> , you know, we'd even take some tax breaks, you know, for our providers and our parents, because those are very outdated. Um, and, and we could improve on that. It would help. So , uh, in order to easily participate in the ad advocating, you know, for childcare , uh, people listening to, you know, this , uh, podcast and people that they talk to , uh, could actually join the National Childcare Association for $30 a year. And we consistently inform you via email of the things that are happening in , at the federal level, both, you know , uh, for and against, you know, the needs of childcare. And we also put out action alerts that we receive from some of our partners, like Childcare Aware of America and National Women's Law Center, that actually all you have to do is push a button, type in your name, type in your zip code, and up comes your two senators and yours , uh, federal , uh, legislature , uh, in the house. And you can type an email or you can just submit the one that we typed , uh, supporting, you know, the specific bill or action that we're requesting. But I, I cannot emphasize enough if , if enough people, if enough of our legislators at the federal level would hear from their constituents that this is huge. This is what we expect, this is what we need to keep our country moving forward, both now and many years to come. Uh , uh, I , I , I know that it would make a difference. It really would, because they would be forced to, to hear what a lot of people are saying, and not just what a few advocates are saying. And if they go and , and if you wanna join the national organization and do your advocating , uh, you know, by the click of a button, you can go to national childcare.org. And again, excuse me, you don't have to work in a center to be a member and support childcare, be a parent, a business owner, a grandparent, because so many people are affected by, by this issue.
Speaker 2:Yeah, definitely. And what do you, what do you think the odds are that something is gonna happen before this , um, this cutoff at the end of September? Any predictions?
Speaker 3:Um, the predictions is, you know, if you don't do something different, nothing's going to change. Um , and so , uh, it, it is a concern uhhuh , that the silent majority will remain silent. And that's one of the reasons why our organization really pushes, you know , uh, the voices of the people coming forward and lots of voices. Um, really what, what we're hearing right now is that, and this may, this may sound, I don't know, it kind of breaks my heart to say it, but I've heard people say, well, we should be grateful that we're not being cut, because a lot of budgets in our federal, in our federal budget are going to be cut because of the debt ceiling . Uh, however, there are some budgets that will continue to have more, and some have had money that you have to wonder why they're still getting it. And I'm not gonna throw out who those <laugh> folks are, but I, you know, I think the, a the average American, and , and I am an average American. I was a working , uh, mother of three. Uh, my , uh, my daughters are working mothers. My daughter-in-law is a working mother, <laugh> , uhhuh , <affirmative> . We absolutely cannot continue, you know, the way we are and having to worry about picking something less than for our children , or not being able to provide for them because we really need to work. Or what if we just want to work and contribute, you know, to society , uh, that's, you know, we should have that option. But unfortunately, like I said, it , it , it's not looking good, and something big is gonna have to happen. And I would say big voices, lots of voices, and be unified. And let's ask, don't, let not, not just call and say, we need childcare. We need $16 billion in emergency funds. Let's be very specific in what we ask for together.
Speaker 2:Okay . And what other tips do you have for childcare providers? I mean, other than being vocal, other than reaching out, any, any resources you can share?
Speaker 3:Um, I would always say , uh, to be very , uh, uh, close to their , uh, working in relationships and working with their lead agencies, childcare agencies, because sometimes there is money available for grants , uh, that may provide equipment, may provide professional development for their staff at no charge. Uh, so make sure that you're taking advantage of all of the, the things out there. Um, I think there's still childcare providers that could take advantage of childcare food program because of at least 25% of the children that are enrolled in their programs in , in low income and middle income neighborhoods will qualify, and it will reimburse childcare centers , uh, on their food expenses. Uh, so, you know, that's an opportunity. Also, many states offer higher subsidy reimbursement rates for centers that are participating in quality rating scales or national accreditation. So if you put some of those resources together, instead of shying away from them mm-hmm . <affirmative> , uh, you're , you'll raise your revenue line for children that are receiving subsidy. I just taught , um, a , a , a class on accreditation, actually two classes on accreditation at a state conference , um, in New Mexico this past weekend. And that's because their childcare association and their state lead agency want more providers to participate in their , uh, quality rating , uh, uh, system and or national accreditation because it raises the bar on what, you know, care and education you are producing. And as a result, New Mexico pays a very generous amount to those that reach what is called a five star , which includes national accreditation. And there are several states out there that do that. I mean, Oklahoma does it, Georgia does it, Florida does it, South Carolina. I mean, I could go on. And so providers sometimes take , uh, some providers are, are a little scared of, of what they call , uh, uh, getting too close to, you know, government programs. But quite honestly, this is a government program. $24 billion was a government program mm-hmm. <affirmative> , and, you know, so you , you can't talk out of both sides of your mouth. You gotta , you gotta take advantage of what's out there. And at the N C C A , we can help you with that because our parent company is the National Early Childhood Program accreditation, and we actually are approved to accredit , uh, uh, centers and homes in states that offer these kind of ascent uh, these kind of incentives, monetary incentives.
Speaker 2:Well, that, that is really good to know. And is there anything that I did not ask you that I should have or that you think is important for providers, families, communities to know a , about this issue?
Speaker 3:Well, I, I think that one of the things that's really important to know is that childcare providers outside of the monetary struggles
Speaker 2:Mm-hmm .
Speaker 3:<affirmative> really don't feel very appreciate, appreciate , excuse me, appreciated.
Speaker 2:Yeah. Yeah.
Speaker 3:Because , uh, there's always a lot of , uh, individual thinking that goes into what, you know, what you , uh, expect for your individual child mm-hmm . <affirmative> . But there are a lot of things that we cannot do because we know that it is not developmentally appropriate. We know that it is going to violate a childcare licensing or health regulation. And I , I, please don't take it out on your childcare provider. And the other thing is, parents need to realize when the childcare provider raises their rates, they hate it more than the parent does. And if they really, really hate that the rates are being raised, and I've seen this, I've been a victim of it before, where people come after the provider like, we're greedy. Well, instead of doing that, pick up the phone and call your legislator or go to your company that you work for, because that's another opportunity is that we're starting to see companies offer some help with childcare because their recruitment departments see that it is almost a greater need than health insurance at this time Wow . To get people employed. So, you know, that's, that's pretty much, you know, what, what people can do to help themselves.
Speaker 2:All right . Well, thank you so much, Cindy, for sharing your time. And for one last time, can you give some info about your website, how to reach out, any other contact information you'd like to share?
Speaker 3:Yes. Um, we are the National Childcare Association, and as I said, we are part of the NEBA family, which is the National Early Childhood Program accreditation. And our website is national childcare.org , where you can see our, the list of our benefits. And we , uh, you know, post , uh, all of our emails that go out to our members, they're on the web. You can read 'em without joining if that's what you choose to do. Uh, we also , um, appreciate hearing from people by phone. I take those calls personally because as the director, I want to know either the pain or the success of what, what it is , uh, that you are experiencing or doing. Because then part of my job is to share it with the rest of the United States, because one, we don't want anybody to feel isolated or alone in their challenge . And we also wanna share successes so that hopefully , you know, those successes can spread, you know, it can light a fire somewhere where somebody didn't think about it. And my, my personal number , uh, is 4 0 5 9 2 2 2 1 4 oh . And I am always happy to talk to a provider or a parent , um, to help, you know, solve any problem they might be having.
Speaker 2:Alright . Well, thank you again. This was really great. And thank you to everybody who's listening today. Um, subscribe. If you are not to this podcast, we're always trying to get people like Cindy here to share her expertise and help you run your businesses. Have a great day, everyone.
Speaker 3:Bye. Thank you . Dan ProCare.
Speaker 4:Thank
Speaker 1:You for listening to this episode of the Childcare Business Podcast. To get more insights on ways to succeed in your childcare business, make sure to hit subscribe in your podcast app so you never miss an episode. And if you want even more childcare , business tips, tricks, and strategies, head over to our resource center@procaresoftware.com. Until next time,