The Forum: Measuring the
Economic Impact of Child Care
Emilie Amundson, Secretary
Erin Arango-Escalante, Administrator, DECE
July 13, 2020
Early Care & Education
• Home visiting/Family Foundations Home
Visiting (FFHV)
• Parenting Support & Service Navigation
• Health Programs
• Early Intervention/Special Education
• Head Start/Early Head Start
• 4-Year-Old Kindergarten
• Child Care
Return on Investment
Economists have found a positive return on early care and education
investments of $7 - $17 for every one dollar invested.
• Less remedial education
• Higher graduation rates
• Lower teen pregnancy
• Lower rates of incarceration
• Higher employment rates
• Higher rates of home ownership
• Less likelihood of dependence on public assistance
• Better long-term health outcomes
Measuring the Economic
Impact of Child Care
Pre-COVID 19: Child Care Crisis
• 78% of parents of children under 3 are in the workforce
• $57B in lost earnings, productivity and revenue
• 86% of working parents said problems with child care hurt efforts and
time commitment at work – falling behind, missed work, absences
• 1/3 of “high potential” women drop out of the workforce every year
because of child care challenges
Connecting the Dots:
WI’s Economy and Child Care
Connecting the Dots:
WI’s Economy and Child Care
Access: February 2020
~50% live in a
child care
desert
Statewide
• 4,500 programs
• 172,000 slots
Rural communities
• Almost 80% live in desert
2010-2020
• 9% decrease in group programs
• 68% decrease in family programs
Access: February 2020
Access: May 2020
% live in a
child care
desert
Statewide
• 2,500 programs
• 85,000 slots
SE urban communities
• Lost 61% of group programs (41,000
slots)
Family child care programs
• 84% still operating
• 11,000 slots
Connecting the Dots:
WI’s Economy and Child Care
Affordability
Median Income Comparison to the Cost of Infant Care at Licensed Group Centers
Affordability
Connecting the Dots:
WI’s Economy and Child Care
Quality
Connecting the Dots:
WI’s Economy and Child Care
Workforce
• 52% of child care teachers have at least an Associate Degree
or more
• Earning $10.72/hour vs. $18/hour ($2,000 less than US
average)
• 53% of child care teachers receive at least one form of public
assistance
• Close to a 40% turnover rate for all child care teachers
Connecting the Dots:
WI’s Economy and Child Care
ROI
All Wisconsin families will have access to high-
quality, affordable, local early care and education
opportunities
2023
Opportunities:
Preschool Development and
Pritzker Grants
Connecting dots across all sectors to
reopen and strengthen WI’s economy
Focus: Business community leaders
• Developing a statewide and regional needs assessments
• Creating statewide and regional strategic plans
• Informing parents, businesses and other stakeholders
about local options and opportunities
• Sharing best practices across communities
• Improving access, affordability, quality, and workforce
issues
Build a Bigger Table
Systematic and Sustainable Structure
Governor, First Lady, Cabinet Agencies plus Department of Public Instruction (LCEY)
Governor’s Early Childhood Advisory Council (ECAC)
Interagency Workgroups
North Workgroup Northeast
Workgroup
West Workgroup South Workgroup Southeast
Workgroup
Stakeholders
Opportunities for the Business Community
Short-term
• Share information from your business perspective to inform
regional needs assessment and strategic plan
• https://dcf.wisconsin.gov/childcare/pdg/listening-sessions
• Review recruitment/retention strategies, employee benefits (e.g.,
subsidized child care, purchasing slots for employees), and family
friendly workplace policies
Opportunities for the Business Community
Long-term
• Improve your benefits and family friendly workplace policies
• Develop or participate in a shared services model (e.g., Jackson
County)
• Invest in child care programs close to your site
• Subsidize employees’ child care costs
• Use your influence to move policy and state investments
