I have often written that child care is a neglected need in the USA. And, during the pandemic some 111,000 folks abandoned their child care positions. (That’s about 1/10 of the total industry workforce.) Leaving parents- about 65 million families- who want to be able to work- without any viable child care alternatives.
It’s why the Build Back Better Bill included significant funds ($13 billion in 2020, with some $ 39 billion more via the American Rescue Plan Act) for the states to overhaul and subsidize day care providers. Yet many states- Texas, of course, is a prime example- have hoarded the money and not used it as Congress intended. That’s true even though Texas alone lost some $ 9.39 billion in income and tax revenue from this business segment.
As a rule, the USA has the lowest investment in day care when compared to any other developed country. And, it’s why most day care businesses only return a 1% profit margin. (The average pay scale is $ 27,680, with few, if any, benefits for the workers.) That despite the fact that the costs for a family with a child under 5 run some 13% of their annual income.
The going rate for infants runs about $ 26 a day, $ 22 for a four year old- but with the federal funds, the compensation (not what is charged the parent,but what is collected by the day center) can hit $31.50 through the end of the year. That will significantly increase the profit margin for the centers.
This is why we have decided to help child care operators improve their operations- and their profits. As long as the operation is registered with the local authorities, we will help them increase their bottom line, find ways to purchase food and supplies for the kids under their care, and monitor their finances.
The base cost for each center is $ 100 a month. That cost is primarily for the accounting program, where they will link their dedicated credit cards and business banks. For those centers that only have 9 or fewer children, that will be their total cost. Once there are 10 or more children, we will also collect up to 5% of their gross revenue to handle their payroll, taxes, and annual income tax filings, as well work with them finding nutritious food and snacks at reasonable prices for their charges.
If you are a day care center operator and wish to work with us, we will need a copy of your registration/license, your tax identification number (we hope to convert all of you to business entities and not sole proprietorships), and a credit card for the accounting program.
Let’s grow your business and help you thrive.
Daycare is so important for the development of a child. It is a place where they can interact with other children their age and learn how to socialize. It is also a place where they can feel safe and secure while their parents are away.
It provides a structured environment for children to learn and grow. They are able to explore new things and try new activities.
I am happy to hear about programs like this!
Moi, aussi, Paul!
I watch my two grandsons for my daughter and when I called the only daycare in our town they said it was about $350 a week for both and that’s with a sibling discount. That’s just about half of her check…before taxes. My mom had a daycare in our house when I was in high school so I totally understand what’s involved but it seems like too much.
We need to pay for professional services, the food and snacks provided the kids, the activities…
That’s why we need to release those funds the feds allocated to improve the finances of the day care centers.
An interesting offer. Our day care system was a mess when I had a young child and it is even worse now.
I don’t expect to make “money” off this deal- I expect the day care centers to garner the profits.
Hats off to daycare providers. I’m not a daycare provider but this sounds like it could make a huge difference.
I’m hoping we can help them stay in business and make more profits.
Good to hear that initiatives are on the way to help day care operations!
What is wrong with Texas? They force people to have babies but won’t release the money that was earmarked specifically to take care of these children while their mothers are able to go to work and pay more taxes?!
Texas is just a rogue state, Tamara.
Praying for better days ahead.
I’m with you on that, Doug!
What a great system Roy, hope it helps. I was lucky to be able to have our daughters work with me from day one. Same with our grands and now Lia. I don’t know how some parents can afford to work and pay for well needed childcare.
We need to ensure adequate day care so that families can earn a living!