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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Original Message:
Sent: 02-20-2019 09:40 AM
From: Tim Kaminski
Subject: Managing Pay Rate Increases for Teachers
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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