The Economic Impact of Vermont's Child Care Industry

1. The Economic Impact of Vermont's Child Care Industry

2. The Economic Impact of Vermont’s Child Care Industry Ellen Pratt, Business Liaison, Windham Child Care Association and Kids Are Priority One campaign 802-387-4512 empratt@sover.net

3. Topics of Discussion • Purpose of study • Key findings • Conclusions

4. Purpose of Child Care Economic Impact Report • Show link between health of child care infrastructure and economy. • First step in integrating child care planning into local and state economic development plans.

5. Purpose of Child Care Economic Impact Report • Engage others in discussions about solutions to child care problems. • Goal: efficient use of public and private sector dollars on child care

6. Sponsors • Windham Child Care Association Regional Child Care Resource and Referral Agency • Peace and Justice Center State-wide, non-profit;Sponsor of State’s Livable Wage Campaign

7. Findings • Child Care Contributes to the Economy • Child Care Enables People to Work • Child Care Supply Affects Economic Growth • Quality Child Care Affects Future Workforce • Low Wage Employees Require Subsidies

8. Child Care Contributes to the Economy • Direct Effects • Indirect Effects • Working Parents and Their Wages

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10. Large employer Number of Employees 0 2,000 4,000 6,000 8,000 10,000

11. Long-term Savings • $1 invested in high-quality child care per “at risk” child yields $7 in future savings. Savings realized in crime, welfare, tax and special education.

12. Child Care Enables People to Work • 80% of Vermont women with children under age 6 are in workforce. • Half of all Vermont businesses have employees with children in child care.

13. Child Care Enables People to Work • 19% of Vermont households with children under 18 are female-headed. • Welfare reform means people must work.

16. Child Care Supply Impacts Economic Growth • Regulated child care system can only meet 65% of estimated need in state. • Severe shortage of infant/toddler slots. • Shortage of care acute for retail and service sector employees.

17. Child Care Supply Impacts Economic Growth • Insufficient supply of child care negatively affects economy. • Windham County employees report child care problems affecting work. • NH businesses lose $24 million/year because of child care-related absenteeism.

18. Quality of Child Care Affects Future Workforce • High-quality child care increases likelihood of future success. • Long-term gains in IQ, reading and math scores, high school completion, lower rates of juvenile arrests.

19. Comparison of wages

20. Quality of Child Care Affects Future Workforce • 2/3 of child care providers receive health coverage through VHAP. • 40% turnover among child care providers.

21. Low Wage Employees Require Child Care Subsidies • Vermont’s economy depends heavily on lower wage, service-sector jobs. • State spent $27 million (FY00) on child care subsidies.

24. Low Wage Employees Require Child Care Subsidies • In FY01 6,900 children received subsidies. 190% increase since 1975. • Average subsidy covers only 58% of average market price of child care.

25. Sources of Revenue for Early and Higher Ed Revenue for Early Revenue for Higher Education Education

26. Conclusions • Child care industry is growing part of state economy. • Child care is an essential social infrastructure.

27. Conclusions • Insufficient supply of child care negatively impacts state’s economy. • High-quality child care lays groundwork for future success. • For many small businesses, publicly-funded child care is essential.

28. Child Care is Everybody’s Business!