A Looming Crisis: ECE and the End of Child Care Counts
Milwaukee’s child care providers are no strangers to sacrifice. Since the start of the pandemic, they’ve stretched every dollar to keep their doors open, their classrooms running and their families supported.
Child Care Counts represented a lifeline for many, allowing them to use federal funds to stabilize their programs during an unprecedented crisis. But as this funding comes to an end in June, providers are left wondering how they’ll sustain their programs and maintain the quality of care their communities have come to rely on.
Our latest report, Still Making Every Dollar Count, uncovers the profound impact of Child Care Counts – and what’s at stake when this funding expires. Responses from over 650 providers across Milwaukee paint a vivid picture of resilience, creativity and, above all, a looming crisis that could affect thousands of families.
A Lifeline for Providers
Photo submitted by Child Care Counts survey participant.
For many providers, Child Care Counts funding has been a crucial support system, covering basic operating expenses like classroom and cleaning supplies, utilities, rent and even food – a notable addition not seen in previous surveys.
“Inflation has driven up costs for everyone, and child care programs are struggling to cover the cost of feeding children,” explained Samantha Reynoso, Milwaukee Succeeds’ early childhood education (ECE) data analyst. “It’s a stark reminder of how rising costs like food, rent and utilities are compounding the challenges providers already face.”
In 2023, providers experienced a 50% reduction in Child Care Counts payments, providing a sobering preview of what’s to come. To make up the difference, many were left with no choice but to raise tuition, cut scholarships and scale back services. Staffing challenges also intensified, as providers lowered wages, reduced benefits and, in some cases, laid off staff altogether.
“It decreased the bonus/stipend that we could offer our staff significantly,” wrote one provider. “Unfortunately, it came during a year that we had significant staffing issues and we had to close a classroom which led to a fiscal year where we took a $50,000 loss.”
For some, even these measures weren’t enough. Several providers reported dipping into their own savings or taking on a second job to cover expenses. Others considered simply closing their doors.
On the Edge of a Cliff
“I'm speechless at the thought of [Child Care Counts] ending. The thought is excruciating. Because how can I stay afloat?...If I do not have this program, I do not have hope.”
Survey data reveals a stark reality: Providers are already preparing for significant changes after this funding ends, many of which will directly impact their staff and families. Respondents foresee having to tighten budgets, cut back activities, reduce grocery expenses and delay critical capital projects.
Staffing challenges are another major concern. “We already know that group providers in Milwaukee make $13/hour and can easily go to a big box store and make more money,” explained Kristin Kappelman, Milwaukee Succeeds’ director of research. “Providers mentioned having to cut staff, decrease wages or stipends, close classrooms and scale back benefits. This all continues to feed into the ECE staffing crisis, which leads to a lack of available child care for our workforce.”
The most alarming prediction is that nearly 100 Milwaukee providers expect to close entirely without renewed funding. This would leave families scrambling to find care and force many parents – particularly mothers – to choose between their jobs and staying home with their children. The loss of child care access would disrupt early learning opportunities for thousands of children and create cascading challenges for employers.
“The 50% funding reduction was already a sign of what’s to come,” said Samantha. “Without sustained investment, many programs won’t survive, leaving families without care and businesses without a reliable workforce.”
Photo submitted by Child Care Counts survey participant.
Resilience and Resourcefulness
Even in the face of these challenges, many providers remain determined. Some are already planning to take on second jobs, tap into savings or cut their own pay to keep their programs afloat.
This resiliency isn’t new. As Kristin noted, “Child care providers are resourceful and are some of the most caring individuals. I wouldn’t be surprised if they just continue to do what they’ve done in the past and figure out a way to make it work. Providers will get creative so that they can continue to provide a service to the community.”
Yet as a community, we can’t keep asking them to do more with less. It’s time to support our child care sector – and provide a long-term solution.
What Can We Do?
The data is clear: Without renewed investment, Milwaukee’s child care sector faces a bleak future. But there’s still time to act.
“I hope this data inspires people to see early childhood education as the public good it is,” emphasized Samantha. “Investing in ECE doesn’t just benefit children and families – it strengthens businesses, the workforce and the entire community. It’s one of the smartest and most impactful investments we can make for our future.”
Advocating for child care funding in the upcoming state budget will be critical, and Milwaukee Succeeds is already taking steps to ensure that the issue is at the forefront of the conversation. Starting in September, we launched a six-part ECE Advocacy Training Series designed to equip early educators and community members with the tools and knowledge to become champions for change. Now they’re ready to step up and share their stories in hopes of building a better future for their communities.
Check out our new report to explore the full findings and learn how you can join the fight for Milwaukee’s children, families and child care providers.
