Open Discussion Forum

  • 1.  Managing Pay Rate Increases for Teachers

    Posted 02-20-2019 09:41 AM
    We have been looking at the impact on our business of the government possibly increasing the minimum wage to $15.00 per hour.  We are a medium size childcare center in the outer suburbs of Houston and we currently pay our teachers between $8.00 and $11.00 per hour based on experience.  Our tuition rates range from $180.00/wk to $225/wk based on the age of the child.  For the purpose of this discussion we just looked at the impact on our infant program.  In our infant program, the staff ratio for the state of Texas is 1-4 or 2-10.  We operate at a 2-10 ratio and we are always full. We one set of teachers for the morning shift and one set of teachers for the afternoon/evening shift and we are open from 6:30 to 6:30.  We have a third teacher that goes into the room as needed for feeding times and diaper changes.  We have long term staff that work in that classroom so they are all making $11.00 per hour.  If we increase just one of their hourly rates to $15.00 per hour that would be a $4.00 per hour increase to our expenses.  At 40 hours per week that would be an overall increase of $160.00 per week to our expenses for that classroom.  In order to recoup our expenses for that increase, we would have to raise the tuition rate by $16.00/wk per child which now make the tuition rate $241.00/wk per child.  If we gave that same increase to another staff person in the classroom, the weekly rate would have to go up again by $16.00 per week which would then make the tuition $257.00/wk per child.

    We already hear from our parents that child care is too expensive at $225.00 per week and we do not have the most expensive rates in our area.  Everyone wants quality care in a nice facility, but it is very expensive to provide high quality care in a nice facility.  When we hear government officials and child advocates talk about increased pay for teachers and the need for high quality programs and reducing ratios, we never hear them talk about the true financial cost of meeting those expectations and who is going to be responsible for paying for it.  Early Childhood education is a business whether it occurs in the private setting or in the public school arena.  Our taxes pay for education that occurs in the public school system and yet people complain about their taxes being to high.  In the private sector education is paid by individuals and if they received subsidies, the subsidies do not come close to reimbursing at what the true tuition rates are for the different age groups.

    I would like to hear everyone's thoughts on this topic and if anyone has really thought about the impact on families and businesses in early childhood education.  I will also be at the Policy Forum in D/C next week Feb. 24-27 if anyone would like to get together in person to discuss this topic.

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    Tim Kaminski
    Director/Owner
    Gingerbread Kids Academy
    Richmond TX
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  • 2.  RE: Managing Pay Rate Increases for Teachers

    Posted 02-20-2019 11:57 AM

    Hello Tim ,
    I hear you loud and clear. I have the same issue you can read my post. What are we to do?, We cannot keep up with the big chains. We have a waiting list until next Dec. In our Infant program. If we could find qualified staff we could reopen our other Infant room to help more families.The same goes for our other room. I do not understand where we are supposed to get the money to keep running our centers. I just paid over $4000.00 for heat exchangers and $10,000.00 for a whole new unit on a rented spot. Now we have not been able to renew Parent Aware so we lost 20% of our county funding. Something is not right. I have been in this field for 40 years in my own center for 23 and it is getting harder and harder to do. Staff shortages and staff know it and do not respect what you tell them or totally ignore the Director because they know there is none out there. How do we begin to solve this problem? I have been talking but it seems everyone wants big degrees in the field. We are Professionals. Why should we as hard working, caring people of young children have to face these issues when at times it feels like deaf ears. I know people hear us but it does not feel right to me. Your thoughts are welcome. Up here we find it hard to compete with large chain centers yet we are trying,we pay about $13.00 per hour to Leads but I do not feel that is enough, where large centers can afford it we cannot. I give all as much as I can with nothing left in the end.  I hope someone would listen and get back to the basics for children and families
    Cindy



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    Cindy Morey
    Owner
    Little Folks Daycare Inc
    Minneapolis MN
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  • 3.  RE: Managing Pay Rate Increases for Teachers

    Posted 02-20-2019 03:17 PM
    Hi To all,
     We here and Detroit are suffering the same situation. I'm not sure what the solution is but a couple of thoughts that I've had with my wife is part owner are if the wages do go up we will have to put those particular people at the increase in wages on a part-time basis and look to a system  like a merit pay whereas if we had no complaints and we get no issues on a monthly basis we can give them a bonus opposed to increasing the wages. I don't think it is fair as a provider to have to worry about where the funds are going to come with an increase . We pay between $9.40-$14.00(If they have a CDA) . I have been really considering going back into the classroom to off set the cost .
    If someone has a better solution I'm all in !

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    Derrick Lockhart
    Toddler Time Child care
    Southfield MI
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  • 4.  RE: Managing Pay Rate Increases for Teachers

    Posted 02-21-2019 01:58 PM
    Thanks Tim and others for communicating about the issues directors/owners have when thinking about increasing wages/benefits for staff, but the reality that parents/families are paying as much as they can!

    You all are running small businesses that your community relies on. Without the early childhood workforce, parents of young children can not work. Early childhood is the workforce behind the workforce! Consider the need for public/taxpayer funding to subsidize early childhood programs- home, center, and school-based. Early Childhood is infrastructure- like utilities, transportation, housing, agriculture, and more. Certainly it will take advocates and allies to influence decision makers. 

    I'd like to invite you to participate in a national initiative -  Power to the Profession. This issue is not a new one in the early childhood field. We have to find solutions for all - children, families, the early childhood workforce, and communities we live in. This initiative is designed to form a profession for those early childhood educators working across settings and the age spans of Birth-Age 8. Decision Cycle 6 relates to compensation for early childhood educators. 

    Please join me in supporting our profession by sharing your perspective as part of Power to the Profession. The latest draft from the Power to the Profession National Task Force is now available and they are seeking feedback and input from across the early childhood field. Power to the Profession relies on all of us to participate so we can create a cohesive profession and advance early childhood educators in an effective, diverse, and well-compensated profession across all states and settings.

    Known as Decision Cycles 345+6 Discussion Draft 2, the latest draft includes an audacious vision for the future of the profession and presents a way to get there. The recommendations focused on differentiating pathways, preparation, and compensation. These recommendations make up key components of the structure of the profession and establish a common language and expectations for our profession.

    So, please join me and provide your input into the future of our profession.

    Read the draft. Review the executive summary and check out the other resources. There are also multiple resources in Spanish.

    Then, complete the survey to share your thoughts with the Task Force. They are looking for as many voices as possible to inform their recommendations.

    I'm also curious to know what you think. After reviewing the draft, do you support the audacious vision proposed by the Task Force? Do you agree with the recommendations on differentiating pathways, preparation, and compensation?

    Thank you!



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    Mary Airy
    Power to the Profession Facilitator
    Iowa AEYC
    Cedar Rapids, Iowa
    319-560-3761
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  • 5.  RE: Managing Pay Rate Increases for Teachers

    Posted 02-21-2019 02:57 PM

    Hi Mary,

    Thank you for your response.  I am aware of the "Power to the Profession" initiative and have attended the National Policy Conference in DC 2 of the last 4 years and will be attending again this year.  The goals of the Power to the Profession are very audacious.  In theory it sounds good to professionalize the industry with different levels of degrees and training.  However the reality is that there is no current reimbursement model for businesses to support these kind of proposed grand changes to the industry.  Early childhood education and care is paid for via private pay, subsidies or in some cases public school funded taxes.  My frustration is that in all of the discussions or seminars I attend, no one can effectively say where the money is going to come from to support these changes. People already complain that their public school taxes are too high, and most public schools already deal with over crowding in their elementary school programs, so raising taxes to cover early childhood education most likely will not happen.  Subsidy programs currently do not reimburse at the actual cost levels required to provide the care and are only available to low income families.  We have tried for 10 years in our area to get the subsidies raised only to see them go up by a few cents each time.  I have heard that creating and requiring the different levels and degrees of education would make us similar to the nursing profession in terms of responsibilities and pay levels based on those responsibilities.  The reality is that the nursing profession is part of the healthcare profession and there are multiple reimbursement models in place to pay those professionals at higher level.

    Power to the Profession is trying to align our industry with the Education Industry and yet even within that industry, public school teachers are not being paid what they should be paid with their higher degrees, because public school systems say they are strapped for funds.

    NAEYC really needs to have small business owners on these committees like myself and others from around the US to discuss how these changes are going to impact our business models and the families that we serve.  If we keep putting the cart before the horse we are never going to get anywhere, or in the end we might find out that we have a very nice cart, but no horse to pull it.



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    Tim Kaminski
    Director/Owner
    Gingerbread Kids Academy
    Richmond TX
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  • 6.  RE: Managing Pay Rate Increases for Teachers

    Posted 02-21-2019 08:35 PM
    Tim,
    Glad to hear you are participating in the Public Policy Summit. I was there last year. I'm also glad to hear that you are aware of Power to the Profession and the work that is being accomplished there. 

    I absolutely understand the challenges of implementing the P2P audacious vision and the necessary bridge from current reality to that vision. The good news, is that the National Task Force has been meeting for 2 yrs. and have reached consensus on an initial framework. 

    The National Task Force consists of 15 co-equal organizations with NAEYC being one of the fifteen. Directors and owners perspectives are an important audience that needs to provide input now and in the future. Have you responded to the surveys? Have you called in during the office hours? Have you participated in focus groups or discussions with fellow directors in your area? The National Task Force does want input from various perspectives. Check with the Texas AEYC affiliate(s) to see what is happening to provide input to P2P. 

    Thanks for all you do for children, their families, and the early childhood workforce. 




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    Mary Airy
    Power to the Profession Facilitator
    Iowa AEYC
    Cedar Rapids, Iowa
    319-560-3761
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  • 7.  RE: Managing Pay Rate Increases for Teachers

    Posted 02-21-2019 05:11 PM
    Tim,

    I have read your posts concerning the financial tightrope of Early Childhood Programs. Thank you for your clarity in outlining the very real problems facing this industry.  

    I owned and operated a private childcare/preschool program for 3 years.  During that period I could only offer my staff minimum wage. The benefits:  if you show up you get paid.  The staffing was so scary that I decided the liability risk was too great to continue, so I closed.

    7 years later I accepted a job as director of the preschool/child care that was being started by our local hospital.  This experience was like night and day from the first.  We were able to offer $17-20.00 for preschool teachers, plus a complete benefit package.   Our budget for equipment and supplies was very generous...we never lacked for anything that spoke to quality.  The difference:  the hospital subsidized the child care by about 30% of our operating budget.  (and that is excluding the space and utilities, which were lumped in with the whole hospital facilities budget)  

    The hospital was and is convinced that the investment in the child care more than paid for itself.  It decreased employee turn-over and absenteeism, and increased employee morale and productivity.  It is also a factor in attracting new employees, as the quality of care is undeniably the best in the area.  

    I would love to be a part of your discussion in DC, but since I cannot, here is my point that I feel should be a part of the discussion:
    Perhaps it would be well worth NAEYC's efforts to target businesses, rather than just lobbying the government, for a better understanding of the quality/availability/cost problem facing our industry.  From what I understand, there is research that identifies the financial benefits to employers who subsidize early childhood programs for their employees.  (as described above)  Employers are also one of the biggest losers when their employees can't find quality care and early education.  An effort to promote our industry from this angle would take the burden off the taxpayers, and increase the burden, (voluntarily) on employers who stand to gain themselves. Win-Win for all: employers, employees, community, families, and especially the children!

    In the meantime, as you consider your own personal situation:  have you ever considered contracting with some of the best employers in your area?  For example, offer them a percentage of your enrollment spaces for an annual fee that would help ensure the quality of your program and availability for your community.  I have never seen this model in person, but have wondered if it would work.

    Best to you.  I would love to hear feedback on how the discussion goes in DC.

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    Elizabeth Werner
    Blessed Beginnings
    Cody WY
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  • 8.  RE: Managing Pay Rate Increases for Teachers

    Posted 02-21-2019 05:37 PM
    Hi Elizabeth,

    Thank you for your reply.  I had never thought about the possibility of approaching larger businesses to see if they would offer a childcare subsidy for their employees as part of their employee benefits program.  It is definitely worth looking into.  Those are the kinds of out of the box ideas that we need to bring to the table.

    Thank you again.

    Tim Kaminski

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    Tim Kaminski
    Director/Owner
    Gingerbread Kids Academy
    Richmond TX
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