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Child Care Providers Request Permanent State Funding
Child care providers in Wisconsin say they need a permanent stream of state money to avoid a “crisis” later this summer.
The Wisconsin Early Childhood Association on Friday released a report on the end of COVID-era funding, and what it means for the future of daycare in the state.
"While the sector has shown extraordinary resilience in recent years, that resilience has been closely tied to temporary federal stabilization funding," the report states. "Stabilization funding has not only prevented widespread program closures, but has also helped insulate families from tuition increases during a period of rapidly rising provider costs and intensifying household financial strain. As operating expenses continue to climb and family affordability is already stretched thin, the impending expiration of stabilization payments—combined with the absence of dedicated state revenue to replace them—threatens to push the system into crisis."
The report details:
The Association suggests the solution lies in changing childcare funding from a grant-based system, to a permanent state-supported system.
"Wisconsin’s ECE system has been relentlessly challenged due to underfunding. Throughout the COVID-19 pandemic, providers remained open to support essential workers while navigating chronic staffing shortages and rising operating costs showing immense strength and dedication,” the report stated. “Stabilization payments played a critical role in preventing widespread program closures and rebuilding licensed capacity, largely by supporting the workforce that makes ECE possible. Yet these gains remain fragile and closely tied to continued public investment. Without sustained funding, Wisconsin risks reopening [a childcare] gap."
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