Blog

By Marsha Basloe, President of CCSA

If any issue warrants public attention, public discussion and rethinking as to the best way to ensure families with young children have access to child care and pre-kindergarten, it is our nation’s current approach to the safety and healthy development of young children. It’s not a system as much as a patchwork quilt stitched together over decades. The federal government allocates funds to states through individual programs or funding streams (i.e., block grants), each with different rules, administered by different state agencies, and too often resulting in siloed approaches with little to no coordination or collaboration among state agencies, departments, divisions or communities.

In December 2019, Congress enacted the FY2020 Labor, Health and Human Services and Education Appropriations measure, which included the following funding levels for early care and education programs:

Source: FY2020 non-defense consolidated appropriations bill (HR 1865, PL116-94) enacted on December 20, 2019.

In addition to the funding above, in FY2019, the U.S. Dept. of Agriculture allocated $3.7 billion to states to support healthy meals and snacks for low-income children in child care centers and family child care homes [1] and the U.S. Dept. of Health and Human Services allocated the Temporary Assistance for Needy Families (TANF) block grant to states, of which states chose to use $3.8 billion for child care and $2.6 billion for state pre-K. [2] The number of children served by TANF funds for child care or pre-K is unknown because the federal government only requires aggregate spending to be reported, not how many children are served, the setting children are in (homes or centers, licensed or unlicensed) or the average price paid per child. In all, that’s more than $35 billion through various federal funds for early care and education programs.

Child care is the largest early childhood program with $12.5 billion in funding and yet only about 17 percent of eligible children (based on state standards) receive a subsidy. [3] Many states have a waiting list for assistance, including North Carolina with a waiting list of more than 40,000 children. Families have a difficult time finding care, affording care, and then many parents express concern about the quality of care. Numerous national reports have been released about child care deserts, communities where the need for child care for parents of children under age 6 pales in comparison to the licensed supply of child care. [4] The U.S. Dept. of Health and Human Services released a report in October 2019 that found the supply of home-based care has declined by more than 97,000 providers since 2005. [5]

Why? Child care is a business. Child care centers tend to operate in areas where the population is dense enough with sufficient numbers of private-pay families who can afford weekly parent fees. The operating budget for child care centers largely comprises parent fees and therefore staff is hired at the lowest wages possible to hold costs down. In a good economy with low unemployment, like we have today, turnover is high because staff often can find better-paying jobs in fast food, retail sales or other jobs that require less training or education. Turnover also costs businesses because of the marketing, interviewing, hiring and training required for new staff.

For home-based providers, the hours are long and the pay is low. According to a 2019 economic impact report by the Committee for Economic Development, [6] the average annual income of home-based providers is approximately $15,000 per year, [7] 18% higher than in North Carolina, where the average income of home-based providers is $12,300. [8] The decline in home-based providers (who often serve infants and toddlers) is a hardship for parents, particularly those in rural communities where the economics of operating a center don’t work. Home-based care is often less expensive and providers may be more willing to stay open during nontraditional hours for those parents who work shift work or have long commutes to their job. Yet, again, wages drive interest in opening a home-based program (or closing one) because other jobs in the community may pay more with fewer hours and less stress.

The reality is that mothers are working today. Nationally, approximately 72 percent of mothers with children under age 6 are working outside of the home, [9] 65.4 percent of mothers with children age 2 are working [10] and, 57.8 percent of mothers with children under age 1 are working. [11] Many of these mothers need child care, but federal subsidies reach only one out of every six eligible children. Therefore, most families are forced to afford whatever they can find. However, in too many communities, the supply is not available, let alone affordable.

There is no doubt that if our nation’s early care and education system were designed today, it would look much different. If we can’t think out of the box about a new bold system to better meet the needs of families with young children, we will be stuck with incremental, minor band-aids that ignore the real problem: the system is under-financed and poorly designed. Parents can’t afford quality child care, but we know from the research that high-quality child care really matters to the healthy development of children, particularly in the earliest years as a child’s brain is developing the fastest, setting the architecture for all future social, emotional, physical and cognitive skills. [12]

Two decades ago, child care was a work support. Today, we know that it is a two-generation strategy. High-quality child care helps parents work and helps support the healthy development of children. In fact, parents who can’t access child care reduce their hours or drop out of the workforce. About 94 percent of those who involuntarily work part-time are mothers who cite child care problems as their reason for working part-time. [13]

In 2018, the National Academy of Sciences (NAS) released “Transforming the Financing of Early Care and Education,” which reviewed the multiple funding streams for early care and education and made a number of recommendations. The NAS Committee, made up of early childhood experts and finance experts, recommended investing in early care and education at a percentage of U.S. gross domestic product (GDP) aligned with the average of other member nations of the Organization for Economic Co-operation and Development (OECD). The report recommended increasing funds in four phases, from at least $5 billion in phase one to $53 billion in phase four. [14]

However, it is not just about the money. It is also about program design and meeting the needs of families in urban and rural areas and in an array of settings that best meet the needs of the family and each individual child with an early education workforce that is trained and paid appropriately for the important work they do. 

Rethinking is always a bit more challenging than staying in the box with patchwork fixes. The current system isn’t working for low-income children whose families need a subsidy or the private market where working parents need access to affordable high-quality child care and early education programs. It is time for a discussion about a redesign.


[1] U.S. Department of Agriculture, Child and Adult Care Food Program, January 2020. https://fns-prod.azureedge.net/sites/default/files/resource-files/ccsummar-1.pdf

[2] U.S. Department of Health and Human Services, Office of Family Assistance, TANF expenditures FY2018. https://www.acf.hhs.gov/ofa/resource/tanf-financial-data-fy-2018

[3] U.S. Government Accountability Office (GAO), Child Care: Access to Subsidies and Strategies to Manage Demand Vary Across States, 2016. https://www.gao.gov/assets/690/681652.pdf

[4] Center for American Progress, https://www.americanprogress.org/issues/early-childhood/reports/2018/12/06/461643/americas-child-care-deserts-2018/; Child Care Aware of America, https://www.childcareaware.org/our-issues/research/mappingthegap/.

[5] U.S. Department of Health and Human Services, National Center on Early Childhood Quality Assurance, 2019. https://childcareta.acf.hhs.gov/sites/default/files/public/addressing_decreasing_fcc_providers_revised_final.pdf

[6] Committee for Economic Development of The Conference Board, Child Care in State Economies: 2019 Update. https://www.ced.org/childcareimpact

[7] Ibid.

[8] Ibid.

[9] U.S. Census Bureau, Table S2301, Employment Status, 2018 American Community Survey, 1 Year Estimates.

[10] U.S. Department of Labor, Bureau of Labor Statistics, Table 6. Employment status of mothers with own children under age 3 years old by single year of age of youngest child and marital status, 2017-2018 averages.

[11] Ibid.

[12] Harvard University, Center on the Developing Child. Brain Architecture. https://developingchild.harvard.edu/science/key-concepts/brain-architecture/

[13] Committee for Economic Development of The Conference Board, Child Care in State Economies: 2019 Update. https://www.ced.org/childcareimpact

[14] National Academy of Sciences, Engineering, and Medicine, Transforming the Financing of Early Care and Education, 2018.  https://www.nap.edu/catalog/24984/transforming-the-financing-of-early-care-and-education

By Jennifer Gioia, CCSA Communications Manager

Joe Coffey

Joe Coffey will earn his Master’s in Education (M.Ed.) from UNC-Wilmington next spring, and because of the Teacher Education and Compensation Helps (T.E.A.C.H.) Early Childhood® Scholarship program, he will do so debt-free. T.E.A.C.H. provides educational scholarships to early care professionals and those who perform specialized functions in the early care system.

Joe has had the desire to teach and engage families and children for 18 years serving as a preschool teacher, kindergarten teacher, public school administrator and training and technical assistance specialist. Now, while he pursues his M.Ed., he is the Child Care Resource & Referral (CCR&R) Program Director for Onslow County Partnership for Children in North Carolina.

“I am a true believer in lifelong learning. I also feel it is our responsibility to model life-long learning for those that we serve,” Joe said. “I originally became familiar with the T.E.A.C.H. program when I was completing my associate’s degree. Fellow students shared the information with me.”

What is T.E.A.C.H.?

In 1990, Child Care Services Association (CCSA) created the T.E.A.C.H. Early Childhood® Scholarship program to address the issues of under-education, poor compensation and high turnover in the early childhood workforce. In 2000, the T.E.A.C.H. Early Childhood® National Center was established in response to the growth and expansion of the T.E.A.C.H. Early Childhood® Scholarship. The T.E.A.C.H. Early Childhood® National Center is now offered in 22 states plus D.C. and has awarded over 150,000 scholarships since its opening.

T.E.A.C.H. is an umbrella for a variety of scholarship programs for those working in early education in North Carolina. Because of the complexities of the different scholarships, each recipient is assigned a specific scholarship counselor.

T.E.A.C.H. Scholarship Counselors

Kimberly Bynum

Kimberly Bynum, who has been with CCSA for 22 years, is the program manager for T.E.A.C.H. North Carolina. One of her main duties is to provide counseling to graduate-level scholarship recipients like Joe. Those counselors are the reason Joe can say, “The process has been easy to use and to understand.”

“Joe is a great recipient to work with,” Kimberly said. “There’s not a lot of hand holding to do with him. He’s really proactive, but if there is ever anything missing, like when we do check-ins with our recipients several times throughout the semester, he’s very responsive to getting me what I need.”

Counselors play a vital role for T.E.A.C.H. scholarship recipients, helping them navigate through the many obstacles they may face while furthering their education.

“I do the same thing for Joe as I do for all my recipients. I make sure if they’re enrolled in school, we have the documents we need to go ahead and pay for their tuition upfront, because we don’t want anybody dropped…I usually go through and look at all my recipients, including Joe, to make sure we sent in the authorization to the colleges and universities,” said Kimberly.

And because of T.E.A.C.H., Joe will be able to graduate with his M.Ed. debt-free.

“T.E.A.C.H. has made it possible for me to continually build on my education from an Associate’s in Applied Science to a Master’s in Education without incurring a huge amount of student debt,” said Joe. “Early childhood education is a field in which the professionals are often underpaid and are themselves lacking resources. T.E.A.C.H. provides an avenue to advance education and careers while helping to avoid massive student debt.”

Kimberly finds her part in that process gratifying.

“What I really enjoy most about my position is…developing that one-on-one relationship [with the recipients],” she said. “It really just brings it all together when you’re at a conference or…attending graduations and you get to meet that person face-to-face…Especially at graduation, it makes you feel really proud, because you work with these people for so long, so they made it and they’re done.”

The Economic Impact of T.E.A.C.H.

Kimberly is also proud that T.E.A.C.H. has a wide reach that goes well beyond the scholarship recipient after graduation.

“We are empowering these scholarship recipients to [earn] more education, which in turn, they bring back into their facility, they’re better equipped to teach the children and then the children are ready for school when they start kindergarten.”

Once recipients complete their degree, they increase their marketability in the early childhood education system and may experience growth in their wages as well. In 2018, associate degree scholarship program recipients experienced an 11% increase in their earnings, with a low turnover rate of 8%.

“In addition, it’s increasing the star rating level as far as education goes for those facilities they’re employed in, making them more attractive to families, so increasing business that way,” Kimberly said. “Also, what [T.E.A.C.H.] does in the community…is increase the student enrollment in early childhood education departments [at participating universities and colleges]. So by T.E.A.C.H. sponsoring students at these universities and colleges, there is a positive economic impact on the North Carolina college system.”

To continue supporting the operations of Child Care Services Association and crucial programs such as T.E.A.C.H. Early Childhood®️ Scholarship North Carolina, please consider donating today.