the economic impact of vermont's child care industry
DESCRIPTION
The Economic Impact of Vermont's Child Care Industry. 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 [email protected]. Topics of Discussion. Purpose of study - PowerPoint PPT PresentationTRANSCRIPT
The Economic Impact of Vermont's Child
Care Industry
The Economic Impact of Vermont’s Child Care Industry
Ellen Pratt, Business Liaison, Windham Child Care Association and Kids Are Priority One campaign
Topics of Discussion
Purpose of study
Key findings
Conclusions
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.
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
Sponsors
Windham Child Care AssociationRegional Child Care Resource and Referral Agency
Peace and Justice Center
State-wide, non-profit; Sponsor of State’s Livable Wage Campaign
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
Child Care Contributes to the Economy
Direct Effects
Indirect Effects
Working Parents and Their Wages
graph
Large employer
Number of Employees 0 2,000 4,000 6,000 8,000 10,000
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.
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.
Child Care Enables People to Work
19% of Vermont households with children under 18 are female-headed.
Welfare reform means people must work.
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.
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.
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.
Comparison of wages
Quality of Child Care Affects Future Workforce
2/3 of child care providers receive health coverage through VHAP.
40% turnover among child care providers.
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.
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.
Sources of Revenue for Early and Higher Ed
Revenue for Early Revenue for Higher Education Education
60%
39%
1%
FamiliesState & Fed.Private
23%
35%
42%
FamiliesFederal & OtherState
Conclusions
Child care industry is growing part of state economy.
Child care is an essential social infrastructure.
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.
Child Care is Everybody’s Business!