The Economic Impact of Vermont's Child Care Industry

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The Economic Impact of Vermont's Child Care
Industry
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The Economic Impact of Vermonts Child Care
Industry

• Ellen Pratt, Business Liaison, Windham Child
  Care Association and Kids Are Priority One
  campaign
• 802-387-4512
• empratt_at_sover.net

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Topics of Discussion

• Purpose of study
• Key findings
• Conclusions

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Purpose of Child Care Economic Impact Report

• Show link between health of child care
  infrastructure and economy.
• First step in integrating child care planning
  into local and state economic development plans.

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Purpose of Child Care Economic Impact Report

• Engage others in discussions about solutions to
  child care problems.
• Goal efficient use of public and private sector
  dollars on child care

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Sponsors

• Windham Child Care Association
• Regional Child Care Resource and Referral Agency
• Peace and Justice Center
• State-wide, non-profit Sponsor of States
  Livable Wage Campaign

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Findings

• Child Care Contributes to the Economy
• Child Care Enables People to Work
• Child Care Supply Affects Economic Growth
• Quality Child Care Affects Future Workforce
• Low Wage Employees Require Subsidies

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Child Care Contributes to the Economy

• Direct Effects
• Indirect Effects
• Working Parents
• and Their Wages

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graph
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Large employer
Number of Employees 0
2,000 4,000 6,000 8,000
10,000
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Long-term Savings

• 1 invested in high-quality child care per at
  risk child yields 7 in future savings.
• Savings realized in crime,
  welfare, tax and special
  education.

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Child Care Enables People to Work

• 80 of Vermont women with children under age 6
  are in workforce.
• Half of all Vermont businesses have employees
  with children in child care.

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Child Care Enables People to Work

• 19 of Vermont households with children under 18
  are female-headed.
• Welfare reform means people must work.

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Child Care Supply Impacts Economic Growth

• Regulated child care system can only meet 65 of
  estimated need in state.
• Severe shortage of infant/toddler slots.
• Shortage of care acute for retail and service
  sector employees.

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Child Care Supply Impacts Economic Growth

• Insufficient supply of child care negatively
  affects economy.
• Windham County employees report child care
  problems affecting work.
• NH businesses lose 24 million/year because of
  child care-related absenteeism.

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Quality of Child Care Affects Future Workforce

• High-quality child care increases likelihood of
  future success.
• Long-term gains in IQ, reading and math scores,
  high school completion, lower rates of juvenile
  arrests.

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Comparison of wages
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Quality of Child Care Affects Future Workforce

• 2/3 of child care providers receive
  health coverage through VHAP.
• 40 turnover among child care providers.

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Low Wage Employees Require Child Care Subsidies

• Vermonts economy depends heavily on lower wage,
  service-sector jobs.
• State spent 27 million (FY00) on child care
  subsidies.

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Low Wage Employees Require Child Care Subsidies

• In FY01 6,900 children received subsidies. 190
  increase since 1975.
• Average subsidy covers only 58 of average market
  price of child care.

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Sources of Revenue for Early and Higher Ed
Revenue for Early Revenue for Higher
Education Education
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Conclusions

• Child care industry is growing part of state
  economy.
• Child care is an essential social infrastructure.

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Conclusions

• Insufficient supply of child care negatively
  impacts states economy.
• High-quality child care lays groundwork for
  future success.
• For many small businesses, publicly-funded child
  care is essential.

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• Child Care is Everybodys Business!