Letter from the Cliff’s Edge
Dear employers,
We stand on the brink of a genuine emergency: the impending child care funding cliff. The expiration of $24B in American Rescue Plan stabilization funding. The projected shuttering of 70,000 child care programs. The estimated hit of $10.6B to state economic revenue from lost productivity and taxes.
Most importantly, falling off of this cliff will impact millions of lives. Research from The Century Foundation shows 3.2M children could lose access to high quality early education. 232,000 early educators may see their roles cut and seek higher wages elsewhere. 10,000 parents, in New York alone, might be forced out of the workforce. When caregivers lose, we all lose.
Employers, that includes you.
As the founder of a pioneering child care company, I've dedicated the past year to emphasizing the invaluable nature of child care benefits for the hourly workforce. It's not merely a nice-to-have; it's a necessity. Onsite child care is not selfless; it’s savvy. I share data daily from the US Treasury, McKinsey/BCG, and the US Chamber of Commerce to illustrate the remarkable returns of high-quality, affordable child care and its positive impact on working parents.
Naysayers push back: The cost! The liability! For these challenges, there are solutions.
In my experience, the toughest challenge to employer-sponsored child care is silent and subtle. It’s inaction. The choice made by companies to overlook the data, accept the revolving door of employees as normal, and shy away from embracing innovation.
In his book "The Survivors Club," writer, producer, and former President of Disney|ABC Television Group Ben Sherwood shares the 80/10/10 rule for survival. The rule: in survival situations, 80% of the people do nothing; 10% of the people become hysterical; and 10% react proactively - often saving themselves & others in nearly impossible situations. The 80/10/10 rule applies to surviving anything….it even applies as we barrel towards the child care cliff.
Our heroes, child care workers, demonstrate their ongoing commitment to early learners despite hourly pay of only $11.65, few benefits, and little support. Our elected representatives, frantic and fighting, appear unprepared to rescue our faltering industry. And then there’s the 80%. The passive employers who see smoke and fire outside their plane window but stay glued to their seat, stunned and unable to respond.
A small but growing list of companies defy this narrative. SAS, Patagonia, Corning Incorporated, and Toyota Motor Corporation have sponsored child care for decades. More recently, Steamboat Resort, Hormel Foods, and Pittsburgh International Airport opened doors to new child care centers.
Employers, recognize that there is no rescue team arriving on the scene. It’s time to study the data, revisit the budget, and lend a hand to the parents struggling among you. Your support for today’s caregivers will unlock the potential of tomorrow’s leaders. You are the heroes we need right now.