ILLUSTRATED IS THAT SCHOOLS NEED
THAT SPENDABLE REVENUE.
>> AS THE STATE BUDGET IS BEING
HAMMERED OUT, ANOTHER AREA OF
NEED HAS TO DO WITH CHILDCARE,
BECAUSE ACROSS WISCONSIN,
PARENTS ARE STRUGGLING TO AFFORD
CHILDCARE WITH THE AVERAGE COST
OF INFANT CARE TOPPING $12,000 A
YEAR.
AT THE SAME TIME, CHILDCARE
PROVIDERS ARE STRUGGLING TO KEEP
THEIR DOORS OPEN DUE TO A
SHORTAGE OF STAFF, BECAUSE
RETAINING EARLY LEARNING
TEACHERS WITH MORE PAY ONLY
MAKES THE CARE MORE EXPENSIVE
FOR ALREADY STRAPPED PARENTS.
WHAT A MESS, AND ONE THAT
IMPACTS OUR ECONOMY ALREADY
SHORT ON WORKERS.
THE BUSINESS MODEL OF CHILDCARE
IS BROKEN, ACCORDING TO OUR NEXT
GUEST, RENÉE ERNSTING, DIRECTORS
OF THE CHILDCARE PARTNERSHIP
PROGRAM WHICH REPRESENTS
COUNTIES IN WESTERN WISCONSIN.
RENEE, THANKS VERY MUCH FOR
BEING HERE.
>> THANK YOU.
>> HOW CRITICAL IS THE SHORTAGE
OF CHILDCARE TEACHERS IN WESTERN
WISCONSIN?
>> IT IS INCREDIBLY -- I'VE
NEVER SEEN IT QUITE AS BAD AS IT
IS.
I'VE WORKED IN CHILDCARE IN THIS
AGENCY FOR 20 YEARS, AND WE
REGULARLY REPORT, WE DO SURVEYS
AND REPORT THAT DATA ON WHAT
WE'RE SEEING IN THE AREA AND
THAT'S DECEMBER, WE DID A
CAPACITY SURVEY AND WE HAD
PEOPLE THAT WERE HIRING IN THE
PAST 12 MONTHS HAD HIRED 600
TIMES, YET THEY STILL HAD 300
TEACHING POSITIONS OPEN, AND
IT'S JUST SO INCREDIBLY
DIFFICULT TO FILL THESE
POSITIONS, THE LOW WAGES, THE NO
BENEFITS, THOSE KIND OF
PROBLEMS.
WE JUST CAN'T KEEP A TEACHER IN
SOME OF THESE CLASSROOMS AND
THAT LEADS US TO THE CHILDCARE
DESERTS THAT WE'RE SEEING
BECAUSE WE HAVE ENOUGH
BUILDINGS, PERHAPS, IN WESTERN
WISCONSIN FOR CHILDCARE.
WE DON'T HAVE THE TEACHERS IN
THOSE CLASSROOMS, AND THAT'S THE
SHORTAGE THAT WE'RE SEEING.
>> SO TO THAT, THE LACK OF
TEACHER LEAVES MILE-LONG KIND OF
WAIT LISTS, I UNDERSTAND, FOR
SOME PARENTS SEEKING CHILDCARE.
IS THAT THE CASE THERE?
>> WE HAVE WAIT LISTS THAT START
WHEN YOU ARE JUST THINKING ABOUT
HAVING A CHILD.
WE'RE RECOMMENDING PEOPLE START
TO CALL AND GET ON WAIT LISTS
BEFORE THEY'RE EVEN PREGNANT,
AND THAT'S SOMETHING THAT'S
REALLY BEEN HAPPENING PROBABLY
FOR THE PAST THREE YEARS,
ALMOST, IN OUR AREA.
RIGHT NOW, WE SURVEYED BACK IN
DECEMBER, AND WE HAD 4,000
CHILDREN IN OUR 10 COUNTIES ON
WAIT LISTS.
>> WOW.
>> IT'S JUST REALLY A TOUGH
SITUATION.
>> YOU SPOKE -- GO AHEAD.
>> GO AHEAD.
>> YOU SPOKE TO THE WAGES FOR
CHILDCARE TEACHERS ACROSS THE
STATE THE AVERAGE IS LIKE 11 TO
$13 AN HOUR, BUT MEANWHILE,
PROVIDERS DON'T DARE PAY MORE
BECAUSE THEY WOULD HAVE TO PASS
THAT ALONG TO THE PARENTS.
IS THAT RIGHT?
>> THAT'S THE EXACT ISSUE WITH
THE BROKEN BUSINESS MODEL.
IT'S ALREADY UNAFFORDABLE FOR
FAMILIES AND IT'S JUST TOO
DIFFICULT TO RAISE RATES BECAUSE
YOU KNOW YOU'RE NOT GOING TO BE
ABLE TO KEEP THOSE -- THOSE
FAMILIES ARE NOT GOING TO BE
AB TO SUSTAIN THAT KIND OF
BILL.
YEAH.
WE HAVE A PROGRAM RIGHT NOW THAT
WE'RE HELPING PEOPLE THAT HAVE
FALLEN BEHIND.
WE COULD HAVE GIVEN OUT OVER
$97,000 IN A VERY SHORT PERIOD
OF TIME, YET SO MANY PEOPLE
APPLYING FOR THAT KIND OF
ASSISTANCE, WE HAD.
>> IN MAY, FEDERAL MONEY THAT
WAS CREDITED WITH KEEPING SOME
3,000 CHILDCARE BUSINESSES OPEN
IS BEING REDUCED.
WHAT THEN?
>> WELL, WE'RE REALLY CONCERNED
ABOUT THAT.
WE HAVE PEOPLE REPORTING THAT
THEIR PRICES FOR CHILDCARE WILL
GO UP BETWEEN 20 AND 40%.
I'M VERY CONCERNED THAT PARENTS
WILL NOT BE ABLE TO AFFORD THAT.
IT WILL COME DOWN TO, AND WHAT
WE'RE HEARING FROM A LOT OF
FAMILIES THAT WE'RE TALKING TO,
IS THAT ONE OF THE PEOPLE WILL
NOT BE WORKING ANYMORE, AND WE
ALREADY HAVE A WORKFORCE CRISIS
IN EVERY OTHER INDUSTRY.
I'M TALKING TO EMPLOYERS ON A
REGULAR BASIS IN WORKFORCE
DEVELOPMENT AGENCIES AND THINGS
LIKE THAT, SO THAT IS A REAL
WALL TO HIT HERE IN WESTERN
WISCONSIN, WHERE WE WILL JUST
NOT HAVE WORKERS IF MOMS OR DADS
ARE STAYING HOME TO CARE FOR
CHILDREN.
>> MEANWHILE, ON THE GROUND IN
DAYCARE BUSINESSES, THERE'S KIND
OF AI A MAJOR TURNOVER OF TEACHS
ALL THE TIME.
IS THAT RIGHT?
>> THAT IS THE SITUATION AND
THAT IS THE OTHER PIECE OF THIS
THAT'S VERY SCARY TO ME AS AN
EARLY CHILDHOOD PROFESSIONAL,
THE AMOUNT OF TRANSITIONS THAT
HAPPEN IN CHILDREN'S LIVES,
THAT'S ENOUGH, JUST GOING TO
CHILDCARE AND TRANSITIONING TO
KINDERGARTEN AND THOSE TYPES OF
THINGS.
WE DON'T NEED TRANSITIONS OF
TEACHERS ON A DAILY, WEEKLY,
MONTHLY BASIS.
THAT IS SO HARD ON THE CHILD,
AND SO HARD ON THE FAMILY.
SO WE'RE VERY CONCERNED ABOUT
THE MENTAL HEALTH RAMIFICATIONS
OF ALL OF THESE TRANSITIONS.
>> ANOTHER THING OF INTEREST
THAT I'VE LEARNED WHILE LOOKING
AT THIS ISSUE WAS THAT 4-K
OPPORTUNITIES IN PUBLIC SCHOOLS
REALLY ENDED UP BEEPING BEING IS
TO THE PRESCHOOL POPULATION AND
THOSE BUSINESSES.
HOW SO?
>> AND I HATE TO SAY THAT
BECAUSE I'M A SUPPORTER OF 4-K,
BUT WHAT HAPPENED PRIOR TO THE
PANDEMIC WHEN 4-K REALLY STARTED
TO OPEN UP IN ALL OF THE
COMMUNITIES, THOSE 4-K FAMILIES
THEN GO TO THE SCHOOL DISTRICT
INSTEAD OF GOING TO CHILDCARE,
AND THAT'S THAT BUSINESS MODEL
THAT'S BROKEN, UNFORTUNATELY,
BECAUSE YOU'RE NOT MAKING ANY
MONEY WITH INFANT AND TODDLER
CARE.
THE RATIOS, WHICH I DON'T WANT
CHANGED, ARE 4:1, AND SO FOUR
INFANTS TO ONE ADULT.
SO YOU'RE SUSTAINING YOUR
BUSINESS BUT YOU'RE NOT MAKING
ANY MONEY.
YOU'RE REALLY LOOKING AT THE
AMOUNT OF MONEY THAT'S COMING IN
ON FOUR-YEAR-OLDS OR THREE OR
FOUR-YEAR-OLDS BECAUSE YOU CAN
HAVE OVER 20s OF THEM PER
TEACHER, AND SO THAT'S REALLY
THE SITUATION, IS THAT IT WAS
KIND OF AN UNINTENDED
CONSEQUENCE, IN MY OPINION.
>> SO THE STATE IS LAUNCHING A
GRANT PROGRAM THAT PARTNERS WITH
BUSINESSES WHOSE EMPLOYEES NEED
CHILDCARE.
HOW IMPORTANT IS THAT AS SOME
KIND OF A FIX HERE?
>> I FEEL THAT IT'S INCREDIBLY
IMPORTANT, AND IT'S BASED ON NOT
JUST HELPING THE FAMILY AND
HELPING THE EMPLOYER GET THE
EMPLOYEE TO BE ABLE TO STAY AND
RETAIN THEM AND BE PRODUCTIVE.
THAT'S THE FIRST PIECE OF IT.
BUT THE OTHER PEELS OF IT IS
THAT PROGRAM, IT'S CALLED
PARTNER UP, AND IT PAYS WHAT'S
CALLED THE TRUE COST OF CARE
INSTEAD OF MARKET RATE.
SO YOU MENTIONED MARKET RATE
EARLIER AS ABOUT A THOUSAND
DOLLARS A MONTH FOR AN INFANT.
TRUE COST OF CARE IS CLOSER TO
$1,800 IN MY AREA.
AND SO THE PARTNER UP PROGRAM
PUTS THE BUSINESS BUYING THE
SLOT AND THEN SOME GRANT MONEY
TOGETHER ALONG WITH, IN THIS NEW
ROUND OF PARTNER UP, SOME OF THE
FAMILY PAYING FOR THE CARE AND
THE THREE OF THEM THEN CAN
AFFORD THE COST OF CARE INSTEAD
OF THE MARKET RATE.
>> MEANWHILE, WITH ABOUT HALF A
MINUTE LEFT, WHAT ADVICE TENS OF
THOUSANDS OF FOR STATE BUDGET
WRITERS WHEN IT COMES TO HELPING
THE CHILDCARE CRISIS HERE IN
WISCONSIN?
>> I THINK THAT I'D LIKE TO SAY
THAT THIS MARKET IS NOT GOING TO
FIX ITSELF.
IT IS NOT ONE OF THOSE MARKETS
WHERE WE CAN JUST CHARGE MORE.
AND SO REALLY LOOKING AT SOME
SUSTAINABLE HEALTH THAT WILL
REALLY HELP NOT JUST THE ECONOMY
IN THE SENSE OF THE CHILDCARE
BUSINESSES, BUT THE ACTUAL
BUSINESSES OUT THERE THAT ARE
JUST TRYING TO RETRAIN AND
ATTRACT NEW WORKERS.
AND SO, PLEASE, LOOK INTO THE
PARTNER UP PROGRAM AND THE
FUNDING, INCREASED FUNDING WOULD
BE SUPER TO WESTERN WISCONSIN.
>> ALL RIGHT.