The waiting list at the center for children Lori Berrigan runs in Palmer the last year has doubled. There are 250 kids in the waiting list. Berrigan stated that she’s running LifeWays at full capacity, however the company is barely making a profit.
“We’re not making money even with 250 children waiting to be admitted, but that’s because we’re offering high-quality services. You can’t offer quality services without paying your staff properly,” she said.
Berrigan told her she needed to raise wages by 30-40% in order to keep her employees. This means she’ll have to raise her rates by 30 percent from this June. She claimed that federally-funded pandemic stabilization grants have helped keep her firm afloat. But even with the substantial rate increase it would be necessary to think about shutting down in the absence of assistance from the government.
“I’m hoping this will remain viable,” she said. “I’m looking forward to seeing what happens this year. In the future, I could be forced to make difficult choices.”
Advocates for child care have contacted legislators about funding issues across the state and it appears to have had a positive impact. The Legislature added $7.5 million into grants for childcare providers in the next budget bill.
There is still work to be completed
The amount is less than the amount that advocates claim it will take to increase salaries and improve the sector. Some lawmakers claim they have more work to complete.
Senate. Cathy Giessel, R-Anchorage She has been a huge supporter of the idea of funding centers for children. Giessel is the head in the bipartisan Senate majority caucus.
She emphasized that reliable and safe child care impacts the mental health of the population of the state in the near future.
“We conserve money by appropriating for these essential services today,” she said. “The Senate majority leadership certainly realized the need in the next year.”
The Senate approved $15 million to fund child care, however it was not enough to get the support of the Republican majority House the majority caucus.
“My objective is to spend more time with House colleagues,” Giessel said. “I did not communicate in the way I could have.”
The $7.5 million that is currently included in the budget has for approval by Governor. Mike Dunleavy, who has the power to block every single or a portion of items within the budget.
Rep. Julie Coulombe, who is a resident of Anchorage and a member the House majority, has backed the funding. She serves as the liaison for the Legislature on the governor’s child care task team which Dunleavy made public in early April. Coulombe has written an act that aims to boost child care. It is also co-sponsored by members from the majority Democratic House minority caucus.
“The reason that I’m trying figure this out is due to the fact that I’m prolife and the governor would like to make the state a pro-family one,” Coulombe said. “I would not want anyone to feel that they can’t have a baby due to no help once the baby’s born. Let’s offer them assistance to have a baby.”
The legislation didn’t make it through this year, however Coulombe expressed her hope for progress in the area of child care when lawmakers meet next year.
The economy and child care
Blue Shibler is the executive director of the Southeast Alaska Association for the Education of Young Children. She noted that child care facilities struggle despite the high need for the services.
“Whether you’re discussing the rural areas of Alaska as well as cities each and every part of Alaska has a child-care shortage. The root of the problem is simply because it’s not a profitable business model. You aren’t able to make a profit. In reality, you’ll only make a loss in this point.” Shibler said.
She added that any kind of funding is great however, more is better.
“I think it’s going assist,” she said. “I believe we’re not likely to see any growth within the sector which is disappointing since we believe that having increased availability of child care is going to provide a solution to the labor shortage.”
The sentiment was also echoed by Department of Labor and Workforce Development Commissioner Cathy Munoz in April. “The absence of accessible and affordable high-quality child care is an important workforce issue,” she said in an announcement to the press.
According to the findings of a study 77% of Alaska parents reported being absent from work because of childcare difficulties. 40 percent of Alaskans interviewed in the study stated they or someone in their household dropped out of work, rejected an offer of employment or changed jobs due to of issues with child care in the past year.
Christina Eubanks has run a traditional childcare center for children in Anchorage over the past 15 years. Eubanks said that the last year was the most stressful in her career, even though the demand is the highest it’s been in the past.
“A woman told me that as soon as I realized that my pregnancy was a possibility I began looking for childcare,” Eubanks recounted. “She’s actually contemplating losing her job. It’s not just a professional woman who is losing her career due to the fact that she’s not able to return working.”
However, to recruit staff, Eubanks has had to increase wages. The minimum she charges is $16 per hour. The increase in pay for employees means Eubanks is increasing her salary to close to $1,700 per month for each child this summer.
“There’s an upper limit on what the public can pay,” she said. Hillcrest, her child care center Hillcrest is evaluating grants for families who cannot afford the cost of an increase. She says the state-funded money will aid in keeping families’ costs down while she works to retain her staff.
The $7.5 million that the state has allocated to its budget is the largest increase she’s received through the government. It’s equivalent to $10,000 per month for her center. She is planning to put it all toward the salaries.
The story first appeared in Alaska Beacon and is republished here with permission.
