Indeed, the need is great and the workers are few. No better example may exist in the community than the need for ample, quality childcare. Keenly aware of such a problem, the Community Foundation of Wabash County announced a major initiative last Thursday afternoon to address the situation.
To resolve the issues of better pay for childcare workers and more affordable rates for families, the Community Foundation is launching an initiative called Operation Change the Future. The operation is a two-phase project that provides $60,000 first-phase grants to licensed early education programs to raise the wages of childcare workers.
The Community Foundation is investing a total of $2 million in this initiative.
“These grants will raise wages to a competitive level and make it possible for teachers and caretakers to stay in the classroom,” added Julie Garber, Community Foundation’s vice president for strategic initiatives.
Participating programs are The Montessori School at Wabash Presbyterian Church, First Friends at Wabash First United Methodist Church, LaFontaine Learning Community in LaFontaine, and Manchester Early Learning Center in North Manchester. These programs serve almost 300 children and have formed a collaboration called First Five Alliance to reduce costs by eliminating duplication.
“A central barrier to providing affordable, high quality early education is a lack of an available workforce. In order to be affordable for families, childcare businesses have historically paid their staff at low wages. Few caretakers and teachers will work reliably for little more than minimum wage. When childcare staff leave their positions for better pay, few replacements are available to take their childcare jobs,” said Garber.
For the time being, childcare fees will remain the same. When higher wages improve the ability of licensed childcare businesses to attract and retain a workforce, participating programs will agree to raise the fees that families pay to attend. The increase in fees is a reality for all businesses that must produce revenue to cover their operating costs, added Garber.
Knowing many families will not qualify for state childcare vouchers, nor will they be able to pay new higher rates for childcare, the Community Foundation will offer the second phase of grants to programs that will enable them to discount fees for families under 300 percent of poverty who are not receiving state vouchers. A family of four with a combined household income of $93,600 will qualify to apply.
Garber believes when programs are fully staffed in all classrooms, the children in attendance should generate enough revenue to allow programs to cover their cost and even allow for discounts to middle-income families. She added, clearing the initial hurdle of raising wages without the revenue of enough children, has been difficult for childcare businesses.
The Operation Change the Future campaign has been supported by financial institutions with a presence in Wabash County, the local business community, and numerous individuals who support investments in early education. “We’re grateful to all the Wabash County visionaries who support education at many levels as the path to population growth and greater prosperity for all. Children, families, employers, and the larger community will benefit from their generosity,” said Garber.
Jody Olinger, director of First Five Alliance, helps all members of the alliance with hiring, training, recruiting staff and children, purchasing, and onboarding of staff. Savings from these shared services reduces operating costs for each program.
“We are beginning to see better revenue for childcare businesses and higher quality of programs, especially where increasing numbers of staff are pursuing credentials to teach. All alliance members are voluntarily rated by the Indiana early childhood education rating system called Paths to Quality,” added Olinger.
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