Profit Margins Day Care

Profit Margins Day Care – Shortages caused by low wages and razor-thin profit margins have ripple effects that reach beyond schools and affect everyone.

Kim Ramsey had to close the baby room at her Montgomery County childcare center due to staff shortages. Read more about Thomas Hengge / Staff Photographer

Profit Margins Day Care

Profit Margins Day Care

PA Spotlight is an independent, nonpartisan news outlet produced by The Philadelphian in association with PennLive/The Patriot-News, TribLIVE/Pittsburgh Tribune-Review and WITF Public Media. Sign up for our free newsletter.

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HARRISBURG — Children’s giggles and occasional screams are believed to emanate from the nursery at Willows School, where the lyrics to “Twinkle, Twinkle, Star” line the walls. But a few heads, supported by stalls, did not crawl for a while.

Before the coronavirus pandemic, the place was a daycare center for eight children, requiring a total of four slow-cheeked workers — to make sure diapers were changed, they were quiet, and everyone was safe.

The room didn’t actually make a profit, but it put kids in the door, said Kim Ramsey, the school’s CEO. Families often stick with their Montgomery County center, established in 2012, and as their children get older, they move to larger apartments that require fewer staff.

But 20 months after the first case of the coronavirus was reported in Pennsylvania, Ramsey still doesn’t share the child’s room with anyone. She cuts her hours, opens later in the morning and closes in the evening, and is able to take care of fewer children. Its enrollment earlier this month was 55 boys — up from about 110 before the pandemic.

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Hundreds of millions of dollars in federal stimulus money have helped many of Pennsylvania’s 6,800 foster care programs survive as they deal with stay-at-home orders, low admissions, cleanups and increased costs. With nearly $2 trillion in social spending plans through Congress, change could be on the horizon.

But now, the industry is leading Pennsylvania’s economic recovery against a severe deficit because stimulus money is no longer seen as a sustainable source of support for higher wages. In a survey released Sept. 1, more than half of more than 100 plans in Pennsylvania said they would close at least one school. About 20,000 children were on the waiting list.

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There were 7,100 fewer public childcare jobs in August 2021 than two years earlier – a 15% decrease. Several thousand workers returned to work in September and October, but the industry is still recovering more slowly than the rest of Pennsylvania.

Profit Margins Day Care

The inability to attract and retain a serious workforce has ripple effects beyond schools, as parents shift work schedules to shorter hours and face difficult decisions about how to care for their children without losing paychecks. If they have to call, it affects the productivity of the business and contributes to stress on the supply chain.

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“The question is always what happens next?” Erica Peterkin, a 37-year-old mother, said her family pays about $1,000 a month for child care in Bucks County.

The last year of school, Peterkin and her husband, a truck driver, split the gap in daycare coverage between them and relied on multiple people to take their children to school and daycare.

Earlier this year, Peterkin found her daughter’s daycare at 7 p.m. To open – half an hour later than before, at the same time his migration to the secretary of the emergency room begins. He was able to qualify for federal benefits that allowed him to cut his hours while keeping his job secure.

Now, on weekdays, Peterkin drops her 6-year-old son off at her preschool program, which opens at 6:30 p.m. He then goes to his daughter’s center and waits for the doors to open. He came to work at 7.30 pm. — and hopes the Center will not receive any unexpected news about the coronavirus case.

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One of the main reasons child care providers are underpaid is: low pay. Preschool teachers in Pennsylvania earned a median wage of less than $14 an hour in 2019, while the median wage for daycare workers was even lower — less than $11 an hour. This is because most care providers operate on razor thin edges.

A center owner in Allegheny County who wants to reopen a preschool program told Spotlight PA about 12 hours a day. The center’s director in Erie County said low wages mean some wage workers rely on public assistance. The owner of a center in Westmoreland County, Burger King, recently hired his 16-year-old son for $13 an hour — about $3 more than some new employees are paid.

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In Warren County, Brandylyn Lyon, 38, considered returning to childcare this month after losing her job teaching English as a second language online. But the low salary kept her away.

Profit Margins Day Care

“It’s very emotional,” Lyons said of the nursing job. “It’s not worth it to me to spend $12 an hour.”

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Expenses can rival mortgage or rent payments, forcing some parents to decide whether it’s worth taking days away from their children because their wages go toward childcare. Low-income families are helped by government aid, but it often doesn’t cover the true cost of child care, putting pressure on providers, said Jen Dibell, executive director of the Pennsylvania Association for the Education of Young Children.

Corona virus has made the pandemic even more severe. Stay-at-home orders forced many businesses to close, and childcare centers saw enrollment decline. Providers are also increasing security and cleaning costs.

In legislation passed last year, lawmakers in Washington and Harrisburg approved spending about $525 million in federal funds to support child care in Pennsylvania, according to Start PA Strong, a child care campaign.

The goal was to stabilize the industry so that parents could return to work. And to some extent it worked. Overall, there are 280 fewer licensed child care providers in Pennsylvania in October 2021 than there were at the start of the pandemic, according to public data. Leaders and industry leaders believe the number would have been much higher without the help.

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Licensed child care centers — programs that can serve large numbers of children, such as Ramsey in Montgomery County — outperformed other programs, especially smaller providers that operate out of their homes. Those smaller providers often serve the outer suburbs and rural areas, offer unusual hours, and are places where some families feel more comfortable taking infants and toddlers, said Tracy Campanini, secretary of the state’s Office of Child Development and Early Learning.

Campanini said it was unclear whether those providers were closed because of the industrial strikes or whether they had special concerns about bringing children into their homes because of the coronavirus.

In programs that have opened up, encouraging shortages prevents them from serving as many students as they could before the pandemic.

Profit Margins Day Care

“Child care providers really want to step up again, and families are looking for care, but they’re having a hard time,” Campanini said.

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In a survey of 1,163 Pennsylvania public child care programs, 92% of respondents reported staffing shortages and 51% of respondents reported closing at least one school. The survey was conducted in late August and early September by members of Start Strong PA, a campaign that includes DeBell’s group.

Last night, parents arrived at Kiddsville Affiliated Child Care & Preschool in South York County to pick up their children. In the middle, just a few miles from the Maryland border, are coach company names like Precious Cargo, Little Whistle and Little Machine.

Lauren Dell, a 20-year-old dental assistant and single mother, said several months ago she needed to find childcare before sending her two daughters to the Kidsville Junction Stewartstown location. Many places, he said, do not accept more children.

“Tough times and very expensive, I sent them somewhere else for a higher price,” Dell said. “Now things are starting to get better.”

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Earlier this fall, federal stimulus funds allowed Kittsville Associates to expand their hours. Returned at 6:30 p.m. The period before the onset of the epidemic.

“It means everything to me,” said James Dakota, 32, who works as an auto parts distributor. “It’s special to me because it’s a full day.”

Other parents said they understood the extra time meant they could work more on their jobs, hang around extra, or no longer have to worry about being late for pick-up. But hiring staff is a constant struggle, said Sharl Quinan, the center’s owner.

Profit Margins Day Care

“Keeping them happy also worked, because now we need extra cleaning and everything else,” Quinan said. “Parents were stressed. Staff were stressed.’

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A few months ago, Quinan lost two employees to strategic materials: one to Rutter, the other to Royal Villas. She accommodates. Two years ago, the standard starting rate for someone without a college degree at Kittsville Associates was $10 an hour. Now, it’s $15 or so

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