Nearly 100% of child care providers are small businesses. In an industry already stretched thin by narrow profit margins, child care providers can’t cut corners without risking quality of care and education. Many providers are independent and community-based, which means even small disruptions to their daily operations can have serious consequences.
First Things First CEO Melinda Morrison Gulick recently joined Arizona Chamber of Commerce and Industry President and CEO Danny Seiden along with Bill Berk, CEO Small Miracle Education for Seiden’s “Donuts with Danny,” where he visits Arizona businesses and organizations.
The conversation focused on the growing challenges working families face in affording child care and how this issue is increasingly impacting businesses, as employees struggle to access reliable, high-quality care.
Many child care providers, like Children’s Campus, which is one of Small Miracles’ 17 preschools in Arizona, face the challenge of serving families who cannot afford the full cost of care, Berk said. Arizona Department of Economic Security child care assistance and FTF’s Quality First scholarships play a critical role in helping families afford child care. Without them, providers would need to raise tuition beyond what most families can afford, making quality child care even more out of reach, Berk said. “It was wonderful that the legislature and governor renewed their commitment to early childhood education and making sure kids can access places like this.”
Still, more support is needed for Arizona’s families with young children.
With tuition limited by what the market can bear, child care providers need to rely on additional support to offset the rising cost of labor, maintenance and ongoing operational needs.
Helping families find and afford quality child care “has become a business issue,” Seiden said. “A lot of our employers are seeing their employees not be able to afford child care in Arizona.”
Working families unable to find care for their children, results in loss of productivity at work.
Research consistently shows that investing in child care not only supports working parents but also lays the foundation for the next generation to thrive.
“Thirty percent of people have left a job or passed up a promotion because of child care issues, 80% of people have missed work,” Gulick said. “The impact on business and Arizona’s general fund budget is in the billions of dollars because of child care issues. And I don’t think it is just the government’s responsibility. So the partnership with business is really key to understanding what their workforce needs.”
First Things First has been working with state and local governments, municipalities and businesses to develop long-term, sustainable solutions.
“When we think about the fastest growing industries in Arizona, the largest industries in Arizona, manufacturing, health care, construction. Those are not 9-5 jobs. And so it is working in partnership with those employers to say, ‘Okay, how can we provide after hours, early morning hours care to support your workforce?’”
