Childcare providers were already struggling to keep up with the demand for their services. Then came the deadlock over the state budget, which has lasted nearly three months.
• For each week without a state budget, providers in Central Pennsylvania are missing out on about $1.1 million in state subsidies, according to Christy Renjilian, executive director of Community Connections for Children, a York-based nonprofit that supports childcare programs in Adams, Cumberland, Dauphin, Lancaster, Lebanon, Perry and York counties.
• Some providers have responded by borrowing money or charging for services that are typically free for low-income families, Renjilian said.
• Others are cutting classrooms and laying off teachers, translating into between 500 and 1,000 children who have lost access to childcare in the seven counties, Renjilian estimated.
• “That’s a moving target,” she said. “The longer this drags on, the more programs are going to shut their doors.”
How is this happening: The budget impasse has frozen two sources of funding for childcare, according to Renjilian.
• They are the Pre-K Counts and Head Start State Supplement programs. The latter supplements federal Head Start funding.
• The two programs fund about 35 providers serving roughly 4,300 three- and four-year-old children from lower-income families.
• Some of the providers operate in school districts, others are housed inside larger nonprofits, Renjilian said.
Why does it matter: Local and statewide business groups have identified access to childcare as a key workforce issue.
• About 81% of businesses in Pennsylvania face moderate or significant recruitment and retention issues due to childcare, according to a 2024 report by the Pennsylvania Chamber of Business and Industry and the Pennsylvania Early Learning Investment Commission.
• In York County, private-sector leaders have poured several million dollars over the last few years into initiatives designed to boost the supply of childcare spots, which shrank during the Covid-19 pandemic.
• “This is an ongoing, chronic issue,” Renjilian said, noting that her organization has recently seen an uptick in calls from parents scrambling to find childcare.
Where’s the budget: The state’s current fiscal year began on July 1 without a spending plan in place.
• Lawmakers and the Shapiro administration appear no closer to a compromise than they did nearly three months ago.
• Childcare providers hope the two sides can at least agree on a $55 million proposal that would bolster efforts to recruit and retain teachers.
• They earn, on average, about $12.40 per hour, Renjilian said. “Getting any additional funding to support the educators is just critical and will have a direct impact.”
Source: https://biznewspa.com/news/
