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The child care industry is on the cusp of a crisis
(www.axios.com)
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this post was submitted on 20 Sep 2023
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I'm so frustrated paying $950 a month. My kid just got old enough to go into a lower tier, but right after that, they raised the prices across the board so I still pay the same...
If they have like 30 kids at about $950 each, where is all of that money going? All of the ladies that work there make minimum wage.
30 kids at $950/mo is $28,500.
Each FTE, at $15/hr minimum wage, is $2400. But employees cost more than just their wage, between taxes, Medicare, benefits, etc. National average is 1.25 - 1.4 times their wage. Let’s call it 1.3. Each FTE is now $3120.
Then staffing ratios. Childcare.gov recommends, for 4 year olds, no less than 1:8 and no more than 16 students in a class. So you’ve got at least 4 teachers, minimum, for your 30 students.
Payroll for teachers alone is $12,480. And you need someone to run the books and keep the lights on. Even if that person (who may even be the owner) is paid $15/hr, and can cover for a teacher in a pinch when there’s sick/personal time, now you’re at $15,600 in payroll.
You’ve got $12,900 left in monthly budget. Haven’t paid for rent (in a pretty large, properly zoned place), or insurance (I imagine that’s a costly industry to insure)…or toys, or books, or classroom materials, or hygiene supplies, or electricity, or heat.
And I should hope that whoever is running this, who may even be the manager/emergency teacher, is doing so for more than they could earn at McDonalds. Especially given that that person probably has a college degree, is a trained first-responder, and has to deal with a lot of shit as part of their job, both literally and figuratively.
Staffing ratio for toddlers is double that by the way. 13-35 months, ratio 1:4 and no more than 8 in a group (as recommended by childcare.gov). So if we’re talking 30 two year olds, we’re talking eight teachers, at 15/hr, payroll is almost all of tuition.