Monday 23 March 2009

Downturn takes toll on child care providers

by Linda Angelo | The Flint Journal
Sunday March 22, 2009, 5:54 AM

GENESEE COUNTY, Michigan -- Day care providers are feeling the wrath of the nation's recession as parents lose their jobs or work reduced hours.

Some child care homes and centers have been forced to shut down, and others are operating with higher vacancy rates and less staff.

"Parents are looking for less costly child care options, so they are choosing their friends, family and neighbors," said Mary Ann Ketels, executive director of 4C Child Care Unlimited in Flint.


Recession hits day care industry

A National Association of Child Care Resource and Referral Agencies survey found:

• 45 percent of its providers experienced a decline in child care services offered at homes between the first and last half of 2008.

• 27 percent of its providers experienced declines in the number of child care centers in their communities.

• In the last six months of 2008, 65 percent reported an increase in vacancy rates at child care centers and 76 reported an increase in family child care homes.

• Requests for part-time care increased 41 percent.


In 2008, nearly 130 child care facilities closed in Genesee County, according to the state Department of Human Services.

It's a problem that isn't isolated to the Flint area or Michigan.

The National Association of Child Care Resource and Referral Agencies conducted a survey and found that 45 percent of its providers experienced a decline in child care services provided at homes between the first and last half of 2008.

Child care centers, meanwhile, experienced a 27 percent decline.

Parents can no longer afford the high price of child care after they lose their jobs, cut back hours or have to take lower-paying jobs.

In Genesee County, parents pay an average of $128.33 per week for child care, data show.

Nancy Kramer, owner of Teddy Bear Child Care in Davison Township, said she hasn't gotten many calls lately from parents looking for child care.

"I would average two years ago six calls a week, where now I'm averaging two calls a month," said Kramer, who has been in business since 1982.

"Now I'm averaging more calls per week from people looking for work than looking for child care."

Kramer is licensed to operate a group child care home, which can take up to 12 children. But over the past two years, her enrollment dropped to the point where she could no longer pay an employee and began operating as a family child care home, which can accept up to six children.

The number of family child care homes in Genesee County dropped from 168 in 2007 to 148 in 2008 while group homes declined from 176 to 151, Ketels said.

Of those still operating, many have seen a shift from parents needing full-time child care to part-time care as parents work fewer hours.

That mirrors the national association's survey, which reported a 41 percent increase in requests for part-time care.

Mary Simmington, owner of Little Rascals Child Care Center in Flint, said her center now provides greater flexibility to meet those part-time needs.

"I see a lot of families struggling to make their payments," she said.

The national survey also indicated that 41 percent of its providers said centers were laying off staff.

Simmington said she hasn't had to lay off employees, but they are working fewer hours and one position was not filled after an employee left. Little Rascals, which has operated for 21 years, has experienced about a 25 percent drop in enrollment.

Some child care providers worry about the ramifications of parents pulling their children out of a structured setting to stay with friends, families or relatives.

"We're a preschool, so they miss out on all preschool activities, computer work and a structured environment," said Marcy Beam, program director at Doodle Bugs in Burton. "We run almost what it's like in a kindergarten facility.

"When you are with 20 other students in a class, it's different than when you are home by yourself."

Not all child care providers, though, are experiencing hardships.

Karen Crist of Little Pals in Flint Township said she is licensed for 12 and is full.

"I have a lot of parents who are laid off, but I've kept my rates low," she said.

"I love what I do. I think everybody in the community needs to step up and lower rates. ... They need to work with a little less of a wage and make concessions so everyone can get through this."

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