BY THE NUMBERS: COVID-19’S IMPACT ON CHILD CARE

California

CHILD CARE IS ESSENTIAL TO AMERICA’S ECONOMIC RECOVERY

• July state-by-state data from the National Association for the Education of Young Children (NAEYC) illustrates the dire circumstances for child care centers and family child care homes in California. Of those surveyed:

› 38% of child care programs are certain that, without additional public assistance, they will close permanently.

› At the time the survey was open, 33% of child care centers and 5% of family child care homes remained closed.

› Of programs that are open, 90% are serving fewer children now than they were prior to the pandemic. Overall, average enrollment is down by 81%.

› 61% of respondents agree with this state’s guidelines for child care.

› 92% of programs are paying more for cleaning supplies; 82% for personal protective equipment, and 59% of respondents are paying more for staff and personnel costs.

› Respondents were asked what supports their program received to help it survive. Forty-six programs said they received the Paycheck Protection Program, including 24 large child care programs and 22 small child care programs; of these, 12 are family child care homes and 9 are minority-owned businesses.

› 60% of programs responding to the survey have engaged in furlough, pay cuts, or layoffs.

› Assuming they are operating at 80% of capacity or less, 47% of programs responding to the survey expect to close within six months, if they don’t receive additional public support.

• According to the Center for American Progress, 419,708 licensed child care slots are at risk of disappearing, which represents 51% of licensed child care slots

• In March, 144 child care providers in California responded to a NAEYC survey reporting that 34% would not survive closing for more than two weeks without significant public investment and support that would allow them to compensate and retain staff, pay rent, and cover other fixed costs.

• A second survey in April with 163 child care providers responding in California indicated that 55% of child care programs were completely closed, with another 20% open only for children of essential workers.

› Of providers who are still open, 72% are operating at less than 25% capacity.

› 38% of respondents reported needing to either lay off or furlough employees, or reported being laid off or furloughed themselves. Another 40% anticipated such actions occurring in the next 1- 4 weeks.

› 50% of respondents said they have applied for an SBA Loan. 60% were either worried about being able to pay back a loan or did not want to take out new loans.

• California received $350.3 million in supplemental funds in the CARES Act to serve the children of front-line and essential workers and support providers yet, we know this is not enough to cover the impacts COVID-19 has had on the child care market and ensure providers will be there when the economy beings to open up. To read more about how your state has allocated its supplemental funding, click here.