In 10 days, the U.S. will fall off a “child care cliff” — that’s the day pandemic-era funding for the industry runs out.
Why it matters: The funding amounted to a $24 billion Band-aid patched over an industry that’s long struggled. When the bandage comes off, the state of child care in the U.S. is likely to be even worse than it was before 2020.
30 kids at $950/mo is $28,500.
Each FTE, at $15/hr minimum wage, is $2400. But employees cost more than just their wage, between taxes, Medicare, benefits, etc. National average is 1.25 - 1.4 times their wage. Let’s call it 1.3. Each FTE is now $3120.
Then staffing ratios. Childcare.gov recommends, for 4 year olds, no less than 1:8 and no more than 16 students in a class. So you’ve got at least 4 teachers, minimum, for your 30 students.
Payroll for teachers alone is $12,480. And you need someone to run the books and keep the lights on. Even if that person (who may even be the owner) is paid $15/hr, and can cover for a teacher in a pinch when there’s sick/personal time, now you’re at $15,600 in payroll.
You’ve got $12,900 left in monthly budget. Haven’t paid for rent (in a pretty large, properly zoned place), or insurance (I imagine that’s a costly industry to insure)…or toys, or books, or classroom materials, or hygiene supplies, or electricity, or heat.
And I should hope that whoever is running this, who may even be the manager/emergency teacher, is doing so for more than they could earn at McDonalds. Especially given that that person probably has a college degree, is a trained first-responder, and has to deal with a lot of shit as part of their job, both literally and figuratively.
Staffing ratio for toddlers is double that by the way. 13-35 months, ratio 1:4 and no more than 8 in a group (as recommended by childcare.gov). So if we’re talking 30 two year olds, we’re talking eight teachers, at 15/hr, payroll is almost all of tuition.