Policy Brief

Increase Support for Child Care Providers

To establish wages and benefits for all early educators based on their education and level of experience, with parity between kindergarten teacher compensation and that of early educators with comparable backgrounds.

Background

During this past year, several more child care businesses across Alaska closed their doors, leaving parents struggling to find child care in a market where the supply continually fails to meet the demand. The positive impact of federal relief funds on the child care sector demonstrates that public investment in child care can help safeguard this market. But the continued struggles of child care businesses indicate a need for a significant, sustainable investment in policies that directly support the workforce.

One of the specific challenges currently facing child care businesses is hiring and retaining early educators. Salaries in other industries, including retail stores and fast food restaurants, are increasing. Early educators are leaving the field for jobs with higher wages and better benefits, resulting in child businesses closing their doors due to a lack of educators. Child care businesses can’t afford to pay higher wages without raising costs for parents. And while child care providers are educated and well-trained, they aren’t paid based on their knowledge, experience, or the value of their service.

Policy in Action

Starting in 2023, Washington DC will provide free or reduced insurance premiums for employees (and their family members) of licensed child care centers (https://dchealthlink.com/healthcare4childcare-archive).

In Kentucky, they are piloting a program that allows early educators to qualify for child care assistance for their own children, regardless of their income level (https://www.chfs.ky.gov/agencies/dcbs/dcc/Documents/childcareemployeeexclusionflyer.pdf).

Impact

An early educator with a bachelors degree has a job teaching four year olds at a child care center. Despite her degree and years of experience, her salary is less than a kindergarten teacher at the local school district. She struggles to provide for herself and her two school-age children. The staff at the child care center often divide food donations from the food bank among them to help stretch their pay checks. Benefits like health insurance for her and her family seem out of reach in her current career. She loves her job, but without an increase in wages or the ability to pay for health insurance she is unsure how long she can continue to work in the child care field.

Child care providers are able to continue working, creating increased stability for child care businesses, parents, and the economy.

Resources