New Report Reveals Concerning State of ECE

In November, the National Association for the Education of Young Children (NAEYC), in partnership with the RAPID Survey Project, released a new report detailing the state of child care nationally following the expiration of stabilization funding. The report, titled Going Over the Child Care Cliff, reveals that many of the concerning predictions regarding tuition increases, wage cuts and closed classrooms are now becoming a reality.

Most notably, they found that 29% of families experienced tuition hikes, 28% of providers who had run out of stabilization funds were forced to cut wages or weren’t able to sustain previous salary increases, and 24% of providers who had run out of funds were serving fewer children. All of this comes just one month after the expiration of the grants.

Tuition Increases

“Program directors are having no choice but to raise tuition rates on families, straining their already tight household budgets,” read the report.

In Milwaukee, infant child care costs over $16,000 a year per child – or over a quarter of the average family’s income. Increasing those amounts further more will mean putting quality child care outside the reach of many parents.

Families of color are disproportionately impacted by these tuition hikes, with 38% of Black families and 34% of Latine families reporting increases, compared to 24% of white families.

Wage Cuts for Educators

“Early educators have seen their wages further stagnate or even decrease, exacerbating mental strain and burnout and driving them out of the field,” said the report.

In addition to the wage decrease, 13% of respondents indicated that they had to reduce staffing benefits. In a field that’s already having issues recruiting and retaining staff, these wage cuts and benefit decreases are further exacerbating the issue. 34% of providers who have lost funding had understandably also lost staff.

“It is heartbreaking to see good teachers leave because they can’t afford to live on these wages,” said one center director from Colorado.

In Milwaukee, where almost 80% of providers are already reporting staffing shortages, the exodus of even more employees has the potential to bring many centers to the breaking point.

Closing Classrooms and Centers

“In some cases, these painful measures have not been enough, and providers have been forced to close their doors outright, leaving families in communities across the country desperately scrambling to find safe, quality, affordable options,”

This comes at a time when 79% of parents who are looking for child care were already encountering significant obstacles. The lack of access has ripple effects throughout the community, heavily impacting the workforce and the economy. 84% of those parents struggling to find care reported that their ability to work was impacted, which means a considerable loss of productivity for employers.

In Milwaukee, almost 5,000 children lack access to child care, with waitlists that are months long. This means that closed classrooms and shuttered centers pose a significant threat to families across the city.

What Now?

“I feel overwhelmed and that each month it gets a little worse,” said one home-based provider from Oregon. “Honestly, I don’t know how long I can do this.”

At the height of the pandemic, federal funds were essential. (Check out our Child Care Counts report, titled Making Every Dollar Count, to discover the impact federal relief dollars had on Milwaukee providers.) Now that COVID has waned, however, the need hasn’t gone away. Without continued investment in one form or another, this struggling industry is set to topple.

“Federal investments are needed now – and over the long term – to prevent child care programs in all communities and states from enacting the painful steps they anticipated, including raising tuition, cutting wages, and reducing hours,” concluded the report. “Each of these reactions – up to and including program closure – limit families’ access to the care they need to work and the early learning environments that help their children thrive.”

Using the Data for Good

“This national data is so important because it supports what we’re hearing from Milwaukee’s early childhood educators,” said Samantha Reynoso, Milwaukee Succeeds’ ECE data analyst. “The data tells a compelling story of rising tuition, shrinking wages for early educators, and the imminent threat of closed classrooms. It’s not just about numbers; it’s about the impact on families, communities, and the future of ECE.”

NAEYC’s provider surveys offer a rich source of timely information on the state of the ECE sector. The Milwaukee Early Childhood Education (ECE) Coalition has utilized the results of previous reports in a variety of advocacy activities, including the successful advocacy to the Common Council for City of Milwaukee American Rescue Plan Act funding. Survey results were also cited in the highly influential Legislative Fiscal Bureau Budget Papers prepared for the Joint Finance Committee this past year.

The findings from this new report – particularly the local-level data of Milwaukee providers – will be used in a similar fashion, helping the Coalition inform decision-makers and make a case for continued investment in the sector.

NAEYC will be conducting a new survey this winter to learn more about the state of ECE across the country. Stay tuned for more information and data on how this essential sector is faring!