Insufficient child care costs North Carolina billions, report finds
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Pathway Preschool Center in Charlotte. Photo: Courtesy of Pathway Preschool Center
Here's a mind-boggling stat: Problems with child care are costing North Carolina's economy $5.65 billion annually, according to a report released by the NC Chamber Wednesday.
Why it matters: Almost 3 in 10 child care centers throughout North Carolina say they'd be forced to close if state lawmakers don't step in with financial support when pandemic-era grants expire at the end of this month, Axios' Katie Peralta Soloff reported.
Driving the news: Already, issues with affording or finding child care create an estimated cost of $4.3 billion for North Carolina businesses, the report found, due to employees leaving jobs or missing work days.
- It also means the state loses out on some $1.36 billion in annual tax revenue.
"Prioritizing child care is not only about ensuring the wellbeing and development of our children but also about fostering a strong economic foundation for the future," Danielle Stilwell, HR development and recruitment manager at Greensboro manufacturer Columbia Forest Products said in a press release.
- "By investing in these areas, North Carolina can attract and retain top talent, which is crucial for sustainable economic growth."
Details: The U.S. Chamber Foundation, in partnership with the NC Chamber Foundation and NC Child, conducted a survey of more than 500 North Carolina parents of children under the age of 6.
- Using survey results, the organizations estimated how often parents miss work or educational opportunities — and thus measured the impact of insufficient child care on the state's economy.
Catch up quick: Since February 2020, North Carolina lost 203 licensed child care programs statewide, EdNC recently reported.
- "They may possibly lose a great quality [program], because I am not gonna be able to sustain and I'm trying to think ahead," Shay Jackson, a licensed provider of a family child care home in Forsyth County, told EdNC.
What's next: Child care professionals are asking North Carolina lawmakers for a one-time allocation of $300 million to extend stabilization grants beyond June.
- But budget talks are at a standstill, and it's unclear if legislative leaders will fulfill the request.
The bottom line: North Carolina is already facing a child care crisis, and it's possibly about to get worse.