Toledo Community Leaders Release New Report On Growing Economic Impacts of Ohio’s Childcare Crisis
FOR IMMEDIATE RELEASE: April 10, 2024
CONTACT: Cyndy Rees, 614-264-6662 (cell); crees@strongnation.org
TOLEDO COMMUNITY LEADERS RELEASE NEW REPORT ON GROWING ECONOMIC IMPACTS OF OHIO’s CHILDCARE CRISIS
A new report from ReadyNation shows the estimated costs of Ohio’s infant, toddler childcare shortage could cost $3.85 billion annually
Holland, OH (April 10, 2024) – Toledo business and community leaders released a new report from the business leader member group ReadyNation showing Ohio’s infant and toddler childcare crisis costs families, businesses and taxpayers an estimated $3.85 billion each year. Just four years ago, the estimated impact was less than half as large.
The report, Insufficient Infant-Toddler Child Care Costs Ohio $3.85 Billion Annually, lays out the deep impacts of the child care crisis and the dire need for expanded state investment, as well as encouraging policymakers to work to lessen the burden. While Governor DeWine presented his State of the State address highlighting his concerns for early care and education investments today, business and community leaders gathered in Holland this morning at All 4 Kids to discuss the current crisis and steps that should be taken. Participants included Amanda Goldsmith vice president and director Client & Community Relations, PNC Bank; Reverend John C. Jones, president and CEO, Hope Toledo; Cyndy Rees, ReadyNation state director; and Camille Harris, owner, All 4 Kids, and community.
“Since its inception 20 years ago, PNC Grow Up Great has focused on high-quality early childhood education, which we view as a critical component of high-quality childcare,” said Bill McDonnell, PNC regional president for Toledo. “Research has proven that the return on investment in high quality early education and school readiness initiatives are significant and help create stronger communities. The ReadyNation report highlights what we know to be true, a lack of support for our littlest learners and their care has a troublesome impact on our communities.”
ReadyNation Ohio commissioned a survey of working parents of infants and toddlers in Ohio. The survey sampled 408 parents, both mothers and fathers of children ages birth to 3. Eighty percent of working parents surveyed reported that access to child care presents a challenge and more than half said it is a significant challenge to find child care that is either affordable (59%) or high quality (55%).
“The costs of insufficient childcare in Ohio are immense,” stated Cyndy Rees, state director, ReadyNation Ohio. “Each year a child is under age 3 without sufficient child care, families lose earnings and incur job-search costs totaling $2.41 billion per year. Businesses lose an average of $1,900 per working parent in extra hiring costs and reduced revenue, with the annual burden on Ohio’s businesses at $862 million. In addition, taxpayers lose an average of $1,270 per working parent in lower federal and state tax revenue, which amounts to $576 million each year. The losses experiences by Ohio families, businesses and taxpayers total $3.85 billion each year.
Reverend John C. Jones, president and CEO, Hope Toledo used the report release to share good news about the work coming from the programs working with Hope Toledo. (John please generate a quote)
All 4 Kids Owner Camille Harris, who operates a 5-Star Step Up to Quality program, echoed the pressing crisis faced by child care programs in Ohio, “Without question, programs have long wait lists and a huge need for an increased workforce. We need resources to offer our staff competitive salaries and benefits to ensure we have the staffing levels needed to support families in our community with the highest-quality programs.”
“Child care is the workforce behind the workforce,” stated Cyndy Rees. “Ohio has made historic investments in early education, but we must fully commit to supporting our parent, businesses and taxpayers by elevating child care as a critical tool for strengthening Ohio.”
ReadyNation is a member group of some 3,000 business executives committed to building a skilled workforce by promoting solutions that prepare children to succeed in education, work, and life. Click HERE to access the report:
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Insufficient Infant-Toddler Child Care Costs Ohio $3.85 Billion Annually Report survey details:
ReadyNation conducted a professional national survey of parents of children aged birth-3, asking how problems with child care impacted their work lives along four dimensions: productivity, time at work, work disruptions, and career pathways.
Lower productivity.
The survey asked parents if, during the past three months, they experienced any of these issues due to child care challenges:
Been late to work (57% of parents reported that they have)
Left work early (60% of parents reported that they have)
Missed a full day of work (62% of parents reported that they have)
Been distracted at work (54% of parents reported that they have)
Missed part of their shift (37% of parent reported that they have)
Time at work
The survey asked parents if, as a result of child care problems, have you ever:
Reduced your regular work hours (52% of parents reported that they have)
Had your pay or hours reduced (39% of parents reported that they have)
Changed from full-time to part-time (33% of parents reported that they have)
Work Disruptions
The survey asked parents if, as a result of child care problems, have you ever:
Been reprimanded by a supervisor (31% of parents reported that they have)
Quit a job (28% of parents reported that they have)
Been let go or fired (15% of parents reported that they have)
Been demoted or transferred to a less desirable position (17% of parents reported that they have)
Problems that could impact career pathways and development
The survey asked parents, as a result of child care problems, have you ever:
Turned down a new job offer (43% of parents reported that they have)
Turned down further education of training (41% of parents reported that they have)
Had problems participating in work-related training (31% of parents reported that they have)
Turned down a promotion or reassignment (35% of parents reported that they have)
A national economist took the survey data and modeled the annual economic impacts of these work problems caused by child care challenges, finding that:
Parents take a hit of $5,320 per working parent, for a total across all parents of children under age 3 of $2.41 billion.
Employers take a hit of $1,900 per working parent for a total of $862 million.
And the hit to taxpayers is $1,270 per working parent, for a total of $576 billion.