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Home My WebLink AboutWS 1 - Child Care Wage Enhancementt ProgramPRESENTATION TO FOLLOW: By: _____________________________________ Item: Jennifer Banta, President United Way of Johnson & Washington Co. Lynette Jacoby, Johnson County Social Services Director Laurie Nash, Johnson County Youth & Family Services Manager Missie Forbes, Executive Director at 4Cs of Johnson County Shelly Maharry, Community Foundation of JC CEO/President Cady Gerlach, Better Together 2030 Executive Director WS .s- Allah. 410 Child Care Wage Enhancement Program 4) City of Iowa City Work Session - March 7, 7023 L' Child Care Solutions Coalition Coals of Johnson County Child Care Solutions Coalition x Increase access to affordable, high quality child care Strengthen business partnerships and investments r Build a pipeline of child care workers & entrepreneurs Promote early education as a valued profession Increase wages and access to benefits i What the Data Shows Johnson County Child Care Data -2022 73% of families with children under the age of 6 have all parents working outside the home 22,484 children ages 0 -12 in Johnson County 9,311 child care spaces available, a loss of 411 spaces since 2021 data(9,722 spaces). 12% decrease in child care programs in the last 5 years $11 .161hour average child care worker wage — the lowest for any tracked profession A family earning the area family median income ($97,891 ) pays 15% of their income on child care for an infant — 7% considered affordable. Weekly cost for infant care in a center in Johnson County increased 11% in the last year and 19% over five years- Infant care is 32% higher in this County than the State average In 2022, the cost of infant care was $282.78 per week, or $14,705 per year in Johnson County i In Johnson County, a family with two children in THE child care pays an average of $2, 192 every COST OF month, adding up to $26,303 every year. CHILDThat's more than two and a half times the average CARE price of tuition at University of Iowa. i Surveying Centers Survey of Child Care Centers Contacted all licensed centers - September 21 , October 12 , 2022 42 of 52 (81 % ) participation rate 4X 43 questions Interviews averaged of 30 minutes or Licensed Center Capacity All Slots 4 , 254 licensed capacity range 20-297 Full-time "ar"meonly OFull time 4, 037 licensed capacity range 28-297 Filled Slots All Slots All 2 , 949 currently filled slots NFilled ❑❑pnn range 11 -297 Full-time Slots Full-time 2,797 currently filled slots Filled range 15-255 oapan Wait hists 11874 total wait list for 42 programs of those , 5 programs have gait lists of 100 or more 5 programs that have wait list of 100 or more , total 1 , 175 children 30 programs have wait lists of less than 100, totaling 699 children Shortage Bottom is the number of kids on waiting list for whom there may be available slots. ---__� Top is remaining wait list if all empty slots O KemaYning Walt Llst Shortage 140� are filled. Empty Slots 120q 1 Cp4 800 OW Opp 200 0 Capacity — Staff impact 102 full-time staff openings 66 part-time staff openings 5 other staff openings (sub, summer, etc) Shortage - Staff Impact If all current empty slots are 204) __ filled, it leaves a wait list of 8618. However, some of the '20� 114$ ,',00a empty slots can't be filled $4° due to staff shortage. 4 Given current staffing 2W situation, if all available slots are filled, it leaves a �1ys wait list of 1 ,148. 0 Empty Slots 0 Remaining Walt Ust Shortage Average Wages Classroom Assistant/Associate Lead Classroom Teacher Starting 12.22 14.190 Average 1315 16.21 Maximum 14.82 18.50 Wage Flanges Classroom AssistanVAssociate Lead Classroom Teache Starting 10.00 - 15.75 10.50 — 23.25 Average 10.75 - 17.00 11 .00 — 23.25 Maximum 11 .00 - 18.00 11 .00 — 35.00 Wages • 35 centers raised "' f starting wages in past we MMOM • '' R year at an average of $ 1 .481hr. : • Increases ranged from $0.50lhr. to $4.001hr. Other increases were 8% - 12% Tuition 1400 Average Tuition Billed Monthly I 1200 1000 800 600 400 200 0 Monthly Average Average Tuition Billed Weekly m I nfam 52yo ■3 yo 4-5 yo app 290 280 270 2130 i 250 249 230 Weekly Average h Infant ■2 ya 03yo ■4-5 yo Iowa State Child Care Assistance Reimbursement Rates Ohl ldCate R*S-1-lonsedCenter InfantlToddler Preschool $thoolAge AveJwk- $232.10 $189.80 $150.03 duality Rating I ar 2 F Cludlity Rdting 9 pr 4 qualify Rating 5 $240.50 $210.00 $170.00 State Child Care Assistance 32 centers accept CCA 16 cap amount -. of CCA slots . = i • i i i 1 r i0}1n9m R 4�ro�* Ton my OFJOHNSONCOUNTY I Carr OF IOWA Cin• SETTER UnliedWapoiJohneon TOGETHER &Wfl4�7�n�S9fl COIInlIP3 —D30— Ll imil'14 r,)1 d�'OM' iOv.,A CITY A4EA Community Business Foundation or Partnership Johnson County Wage Enhancement Program will provide a g $2/hour wage increase to eligible child care professionals . Who Qualifies - Centers Licensed child care centers serving children birth — 5 years Participate in QRS or INK Quality Rating Scale — or maintain NAEYC Accreditation Hourly minimum wage no less than Johnson County recommended minimum wage of $11 .56 Maintain Child Care Assistance cap of no less than 20% Priority funding to centers not already subsidized The amount billed to CCA families will not exceed $241mo. for one child and $40/mo. per family. The program pays payroll taxes for employers so that no additional costs are incurred by employers. (0.153 per $21h r) Who Qualifies — Child Care Professionals Consistently work 32 hours/ week or 47, . more — full time. Year round employee Teach children birth to age 5 (excludes Statewide Pre-school teachers) , Earn less than $23/hour Classroom teacher, assistant, floater, and center director with teaching responsibilities How • Collaboration rcity & County The City of Iowa City and Johnson County each provide seed money investing $25flk per year io fund the operation of the Child Gare Solutions program forthree years ($75Q,OOQ each}. Business The business community invest S15Q per yearlper employee to sponsor Child Care Solutions in their Community community, Better Together 2Q30Foundation serves as liaison to business community Community Community Foundation accepts business oonkributions and holds money until they are distributed to Johnson County Johnson County. Fund is held by Better Together 2U3Qas "fundholder" at CFJC. Social Services will work with providers to pay the supplemenk the wages cf empleyees working within Socialan approved child care center, 4Cs of Johnson4Cs will work with childcare centers, and in home providers to educate them abauk the program and County get them vnbaarded. Childcare Coalition Charitable Giving Fund — Better Together 2030 Fund held at the Community Foundation of Johnson County Public and private dollars may be held Agreement signed and holds funds for the agreed upon purpose; "Consistent with the charitable purposes of the Foundation, distributions from this Fund will be used to serve the community by enhancing the quality of life for Johnson County residents through the support of childcare efforts and projects designed to enhance the quality of childcare for residents and support those efforts of the Childcare Coalition and promotion of affordable and accessible childcare for all and in support of the Better Together 2030 All In Vision." Private Fundraising - Employers Employers are asked to contribute to the program at a rate of $ 150lemployee annually to the fund . Seven employers have committed to participation thus far including one large employer Tax deductible contribution opportunities Outreach through Workforce initiatives will continue Interest is building ! � AL r r ` & Annual Cosl Estimate for Childcare Wage Initialive 1)Cast of wage supplement: A]Total number of employees from qualifying centers- 135 B)Calculate total hours: Average number of hours; 1,826 (assuming 35 hra per week) 245,700 C}Calculate total supplomanl. $ 2.00 par hour,plus FICA taxes S 510,196 2)Community Foundation led(1.26%), Annual funding-. $ 265,000 S 3,313 3)Administration fees{County}; S S 513,549 Program LaunOes—I nitial Investment from City of Iowa City,County, and private businesses. ECI funds are expended first. Il Depending on ABPA prooedur%per municipawly,funding is expended as directed.County funds are held 4 County,All other funds are in DT2010 fund at CFJC to begln growth and invewwnl. Program pilot sees nitial success and data reporting, Fundraising continues with private businesses into fund,growing in investment and returns. Program evaluation checkpoint with City and County. Second year pllol and data collecllon writlnues. r Program data Collection conllnues. Fundralsing Contlnues. Program evaluation checkpoint with Cily and County and funders. 1 Funds are expended from ARPA.Private funds are a primary source of funding. Program evaluation and adjustment continue. 1 1 1 Johnson County leads the country in childcare solutions and rivestment. 1b IMPACT OF INVESTMENT INTO 41 CHILD CARE SOLUTIONS FUND a Attract & Retain Child Care Workers Promote the profession of Early Childhood Educator as a valued industry in our community. Increase Access to High Duality, Affordable Child Care Allow far parents to choose the best fit far them. Consistency of care enhance overall childcare quality. Increase the number of Child Care Assistance spots Increase number of slots available without raising the cost for families. w 40 � 4 Thank you PRESENTATION CONCLUDED