Childcare is not working in Texas – companies are also paying the price

For working parents of preschool and high school-aged children, the new school year brings more structure to the weekly schedule. However, for parents of preschool children, it remains difficult to find high-quality, affordable care year-round. This is further proof that if child care doesn't work, business doesn't work.

Texas' child care system is broken, costing our economy more than $9 billion each year because parents either stay home from work or leave the workforce due to a lack of child care, according to a study by the Texas Chamber of Business and Industry and Early Matters.

Quality care is unaffordable and difficult to find. This is an equally big challenge for child care providers, who struggle to find and retain staff.

The good news: A study sponsored by ChildCareGroup, Early Matters Dallas and Workforce Solutions Dallas aims to identify the needs of parents in child care deserts and the options available. And more and more North Texas companies are showing interest in addressing the child care challenges affecting their employees.

Here are a few more ideas worth considering:

Free care for educators. One solution to the workforce crisis is to offer free child care to professionals in the field. In Kentucky, a pilot program has recruited professionals while offering families low-cost child care. In the first year alone, more than 3,200 Kentucky parents who work in the field participated in the program. At least a dozen other states are currently considering a similar solution.

Such support would make sense in Texas, where the average annual salary for a child care worker is $29,450, according to the Bureau of Labor Statistics. That's below the federal poverty line of $31,200 for a family of four.

Share the cost of care. Employers are in a unique position to support childcare solutions. A recent report from the Boston Consulting Group found that 58% of parents who left their jobs say they were unable to find childcare. However, employers who subsidized or provided childcare enjoyed a high return on investment through higher employee retention and satisfaction.

Michigan has adopted a popular “tri-share” cost model: public funds, employer contributions, and parent fees cover the cost of child care. Other states are adopting the model, and employers, child care providers, and stakeholders in Texas are considering it.

Another approach: on-site or nearby programs run by experienced child care providers. This can be especially helpful for businesses that are open for long periods of time, such as hotels, factories and hospitals. Employer-managed child care placement services can help employees find child care programs.

New Mexico uses tax revenue from the oil and gas industry to fund child care, and some advocates in Texas are considering a similar tactic through the state's Permanent School Fund.

Make sure locations are convenient for parents and affordable for operators. Proximity to a child care facility is critical for parents, but facility costs can be overwhelming for child care programs. We can address both issues simultaneously.

City and county governments could increase incentives for developers to include child care space in new projects. Developers converting vacant office buildings into multi-use retail and residential buildings could also set aside vacant space for child care. Multi-use buildings that include affordable housing, on-site child care, retail amenities, and access to nearby jobs would transform the “Live.Work.Play” model into the “Live.Work.Play” model.Learn.Work.Play.”

Elementary schools and community centers could provide similar opportunities and offer year-round, full-day programs. Our daycare center on Dallas College's Eastfield campus provides conveniently located childcare options for students. Add a health clinic, food bank, adult education, or job training and these buildings would become dynamic, neighborhood-based centers.

Time to act

The newly formed Employers for Childcare Task Force, a bipartisan business coalition seeking innovative solutions ahead of the Texas legislative session, is a welcome cooperation partner.

I encourage our leaders to explore models that address the fundamental challenges of the system. To ensure Texas remains a place for growing businesses, we must make child care work for everyone. And we should focus on those who will ultimately benefit most from these efforts – our children – who will be the workforce of the future in Texas.

Tori Mannes is CEO and President of ChildCareGroup in Dallas.

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