CNN
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In the small town of Waupaca, Wisconsin, Susan Ellandot has been a vital presence for dozens of families for the past eight years, caring for their children as early as 4:45 a.m. so others could go to work.
“Most of our parents say, when they drop off their kids, 'I can't do it like you,'” Erandot says. “My answer is always, 'I can't do it like you either! So I'll watch your kid and you do it, because I'm better at it.'”
Ellandot is the owner and operator of My First Adventure Childcare and Preschool, but only for a few more weeks: She announced in May that she would be closing by the end of August.
“It's an emotionally, physically and mentally demanding job,” Eland says. “There are no benefits, the pay is nowhere near what it should be, and we don't get much professional recognition in the community for the value of the work we do.”
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Susan Ellandot has been running a daycare center in the small town of Waupaca, Wisconsin, since 2016. She plans to close the business in July.
Like many centers across the country, My First Adventure has been affected by the child care crisis that is hurting parents and caregivers alike.
Nationwide, the average annual cost of child care per child rose to $11,582 last year, according to Childcare Aware of America's latest annual report. On average, it cost at least 25 percent more to put two children in child care in every state than the average rent. And that cost adds up to $100,000 a year. Typical Mortgage payments in 45 states and the District of Columbia. The report covers infants and 4-year-old.
The cost of placing a child in care is huge, but the strain of running such a facility is equally unsustainable. Running a facility requires a lot of expenses, from expensive insurance to “consumables” like art supplies, books, and food. Low profit margins leave little room for the biggest cost: staff, which is also Erandot's biggest challenge.
“If we were to pay teachers fairly based on their basic education and experience, we would have to charge parents high fees, and centres would stop attracting children and parents would not be able to afford the fees,” she says.
The base cost of hiring enough staff to meet legal and safety requirements for child care facilities is already high. This cost is compounded by the added expense of high staff turnover, primarily due to the low wages these employers can pay. Over the years, Eland has struggled to retain employees because he can't compete with wages offered by local factories and fast food restaurants. According to the U.S. Bureau of Labor Statistics, the average hourly wage for a child care worker in Wisconsin is $13.78.
“It's very humbling to go to work every day and pass by hiring signs for McDonald's and Hardee's, and they're paying more than childcare centres can afford to pay their staff,” says Lydia Higgins, a teacher at My First Adventure.
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Lydia Higgins has served as a teacher and parent with My First Adventure.
The child care industry saw a brief boom during the coronavirus pandemic, as federal funding allowed child care centers to give staff much-needed raises and bonuses, cover rent, mortgages, and utilities, and buy personal protective equipment and other supplies. Erandot was able to raise starting wages from $8 or $9 an hour to $12, reward experienced teachers, and attract and retain enough employees to keep her child care center afloat through the pandemic.
The historic $24 billion investment by the federal government supported more than 225,000 child care facilities across the country (more than 8 in 10 licensed child care facilities) and impacted 10 million children, but expired last September, leaving many facilities facing what has been called the “child care cliff.”
An analysis last year by the Century Foundation projected that more than 70,000 child care centers could close, leaving about 3.2 million children without access to care. This is due to the end of the federal Child Care Stabilization Grant program, which Congress authorized as part of the American Rescue Plan Act of 2021. While several states have stepped up investments in child care in recent years, it has generally not been enough to keep all child care facilities afloat.
Elland has increased fees several times over the last year, knowing it would cost parents more. She felt she had no choice because going back to pre-pandemic salaries would likely see all her staff quit. In some cases, wage increases weren't enough. A few months ago, she said, one of her employees moved to a factory. “They needed to make a living.”
The stress of managing tight budgets and dealing with staff turnover is taking a toll.
Eland first seriously considered exiting the business two years ago and tried to sell, but came up with no viable options and officially announced in May that this summer would be the center's final time open.
The news sent family and staff into a state of panic, with Ms Higgins, who is also a parent at My First Adventure, describing the moment as “panic”.
As more and more caregivers and parents struggle to weather this crisis, she hopes bigger-picture solutions will emerge.
““We need to start by acknowledging how significant this crisis is — not just for parents who are scared and struggling, but as a nation,” Higgins said. “I think at the peak of the pandemic, everyone was really acknowledging it, key workers and so on. I'm not sure that's starting to fade for people.”
The City of Waupaca is actively seeking to support the sale so that the facility can be maintained and reopened by new owners. As it stands, My First Adventure is It will close in July.
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My First Adventure Child Care and Preschool serves 60 families but is set to close this summer.
Elland will start public school this fall. She has been working as a substitute teacher for the past few months, something she has found joy in. She and Higgins say they plan to become more active in representing child care workers and fighting for better conditions.
“We are literally shaping the young people of tomorrow,” Higgins says, “and I think that needs to start being reflected in pay, policies and the allocation of government funding.”
