Childcare Study - Draft, Not for Distribution

This study examines the current state of childcare accessibility in Wilkes County, NC. It provides documentation of existing services and resources and recommends steps to create an innovative childcare ecosystem in Wilkes. These steps help enhance labor force participation, create a healthy environment for families, and identify roles community stakeholders must play to expand access and affordability to quality childcare.

This research is funded by the Leonard G. Herring Family Foundation.

Published June 2023 by Wilkes Economic Development Corporation

Letter from Lee Herring of the Herring Family Foundation

Childcare study letter from Lee

The Leonard G. Herring Family Foundation has been devoted to Wilkes County for decades. We seek to enable individuals to learn, grow, and provide richer and healthier lives for themselves and their families.

When we consider ways to accomplish this mission, improving access, quality, and affordability of childcare in Wilkes County is a primary strategy. High quality early childhood education and care is not only paramount for our community’s children’s development, but it is critical to supporting a local workforce and driving a strong economy.

Before this study, we heard story after story about parents struggling to find adequate care for their children. But our community didn’t have a clear grasp on the depth and drivers of this problem. Now we do.

This extensive study combined economic and population data, feedback from childcare providers, parents and community members, and deep analysis of the current childcare offerings and workforce. What we found was a startling decline in availability of childcare seats, a dire need for afterschool programming, and real stories of struggle from parents and childcare providers alike.

The good news is that for nearly every challenge, we found innovative, promising strategies for how to improve the childcare system. We are encouraged by the set of recommendations that give our community a playbook for prioritizing investments and strategies that will result in higher quality, more available childcare. Some recommendations are low-hanging fruit, while others will require deep investment over time but could yield significant impact.

Systemic issues in the childcare sector require federal and state policy change and investment, but in meantime, there’s a lot we can do locally. We need businesses to step up and adopt policies and practices that support working parents. Childcare providers must find new ways to collaborate to stabilize their business model. We need Wilkes County Schools to work with the community to provide more safe spaces for children after school and in the summers. Wilkes Community College must train more childcare educators. And we need both public and private investment to fund innovation and stabilization of the childcare system.

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This report would not have been possible without LeeAnn Nixon and her team at the Wilkes EDC facilitating the Study Taskforce. We are grateful for the above-and-beyond work that Taskforce members Cyndi Dancy, Dr. Pam Shue, Kirsten Roberts, and Michelle Shepherd devoted to collecting and analyzing data and drafting the recommendations. Hundreds of parents, childcare providers and business representatives participated in focus groups and surveys – thank you for your care for our community’s children and working parents.

High quality, affordable, and accessible childcare is within our community’s reach. Let’s commit to working together to make this a reality for Wilkes County families.

Lee Herring President, Leonard G. Herring Family Foundation

Executive Summary

Wilkes County has a childcare problem. This rural, northwest North Carolina county is the state’s 13th largest county geographically and 40th in terms of population with approximately 65,800 residents. Wilkes County’s population base is declining, as is the labor force and the percentage of people who are working or actively looking for work. While this labor force situation is not an uncommon problem across the nation, Wilkes County is also facing economic challenges with fewer resources to attract and retain talent and employers. Childcare is a major factor in the talent equation and is an economic development issue.

Among the more than 13,000 children under 18 years of age in the county, the vast majority live with their parents and 85% of those are in households where at least one parent is in the labor force. With only 29 licensed childcare providers and a handful of out-of-school programs providing after-school and summer care, Wilkes County has an estimated gap of 3,316 spaces between children in some type of childcare program and children needing childcare. In other words, Wilkes County is short on childcare by over 3,000 seats and parents in Wilkes County are having trouble finding affordable, available quality childcare.

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With such a pronounced need, the Leonard G. Herring Family Foundation committed to prioritizing early childhood education and funded a comprehensive childcare study in Wilkes County to be carried out by a community-led childcare taskforce. Understanding that early childhood education lays the foundation for the success of children today and that of their community in the future, recommendations included in this report are intended to lay the groundwork for building a childcare ecosystem that supports economic growth.

Wilkes County Childcare Study Findings

• Licensed childcare providers and seats have declined.

• Licensed childcare is at capacity for birth to 5 years.

• Staff shortages and lack of qualified staff are barriers to increasing childcare capacity.

• Low wages make attracting and retaining childcare staff challenging.

• Licensed early childcare costs too much for the average family to afford.

• Wilkes County after-school and summer care options are exceedingly limited.

• Wilkes County has an estimated gap of 3,316 childcare spaces needed for children.

Why Wilkes County Must Improve Its Childcare Ecosystem

• Childcare is an economic development issue.

• Existing childcare gaps affect Wilkes County workers and employers alike.

• Wilkes County needs better outcomes for families and children.

• Insufficient childcare hinders wealth.

• Investing in childcare is investing in the future.

• Quality early childhood education builds healthy brain development.

• Lack of adequate childcare costs $122 billion in losses to businesses, parents, and taxpayers nationally (2022).

• Wilkes County needs childcare to improve its economic position.

Recommendations

Building and Maintaining a Successful Childcare Ecosystem in Wilkes

County

Increase Workforce Participation of Parents through Family-Friendly Practices

Employers can increase retention and encourage non-working parents to participate in Wilkes County’s labor force by adding family-friendly policies and benefits. See more on page 30.

Attract, Develop, and Retain Childcare Workforce

Staffing for licensed childcare providers in Wilkes County has decreased by 48% since 2007. Increasing the childcare workforce is imperative to meet the current demand for childcare. See more on page 30.

Support the Childcare Business Model of Existing Providers

Financial stability of existing childcare centers in Wilkes County may be strengthened through training programs, shared services, and cooperative buying programs. See more on page 31.

Encourage New Childcare Providers

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Innovative co-location models and other strategies for supporting childcare operations may be used to attract new providers to Wilkes County. See more on page 32.

Help Families and Caregivers Navigate Childcare

A central, community-wide team is needed to help Wilkes County families and caregivers to find childcare and give young children the early education experience needed to develop. See more on page 33.

Continue to Elevate the Importance of Childcare in the Community

Form a collaborative partnership between community organizations and businesses to ensure that Wilkes County is current on (1) early childhood legislation, (2) research (or science) of early childhood education, and (3) ways to promote ideas and solutions that positively impact children, families, and the county’s economic growth. See more on page 34.

Wilkes County is home to more than 13,000 children under 18 years old with approximately 12,000 living with their parents, including 3,942 children ages birth to 5 years and 8,092 children ages 6-17.1 The overwhelming majority of these children, 85%, live in households where at least one parent is in the labor force.2 These parents need to entrust their children to reliable and trained caregivers at a reasonable cost to be able to earn the paychecks that support their families. However, parents in Wilkes County are having trouble finding affordable, available quality childcare. Wilkes County is what is known as a “childcare desert” in North Carolina.

Wilkes County’s childcare challenges mirror similar trends across North Carolina and the U.S. The loss or lack of qualified staff and other economic factors have driven a decrease in affordable, accessible, and quality childcare programs in many communities nationwide in the last couple of decades. Wilkes County licensed childcare programs have declined by 65% since 2007. Statewide, 188 childcare operations in North Carolina closed between January 2020 and March 2022.3 An average 47% increase in operating costs related to implementing COVID-19 health and safety protocols caused many childcare facilities to close.4 Perennial staff shortage challenges in the childcare industry, worsened by the Covid-19 pandemic, have forced childcare facilities to offer fewer spots.5 Existing teachers are leaving the profession for retirement or other jobs and potential candidates are deterred from entering the field.6 In addition, ongoing post-pandemic inflation has exacerbated these factors creating a substantial crisis in early childcare and K-12 education.7

Why should all Wilkes County residents—with or without children—be concerned?

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The crisis in early childcare and K-12 education is affecting economic development. As this report will illustrate, insufficient childcare for working parents is detrimental to Wilkes County’s economic prosperity. Sustaining and growing the county’s economy will require:

• Increasing the number of people available to work,

• Attracting new industry,

• Retaining existing businesses, and

• Creating a family-friendly community environment appealing to prospective residents. These efforts will fall short without affordable, available quality childcare to meet working parents’ needs.

1 According to the U.S. Census Bureau data, children under 18 who lived with parents were classified to be “own children” of at least one parent, defined as “sons and daughers including stepchildren and adopted children of the householder”. U.S. Census Bureau American Community Survey, 2021: Age of Children under 18 Years in Families and Subfamlies by Living Arrangements by Employment Status. Retrieved from data.census.gov.

2 Based on analysis of U.S. Census Bureau’s 2021 American Community Survey data referenced in note 1.

3 North Carolina Early Childhood Foundation. (2022). Childcare & Economic Recovery Across North Carolina During Covid-19. Retrieved from https://buildthefoundation.org/wp-content/uploads/2022/11/NCECF_EconomicReport2022-1.pdf

4 Workman, S., & Jessen-Howard, S. (2020). The true cost of providing safe child care during the coronavirus pandemic. Center for American Progress. Retrieved from: https://www.americanprogress.org/article/true-cost-providing-safe-child-care-coronavirus-pandemic/

5 NAEYC. (27 July 2021). Survey: Four in five child care centers in the U.S. are understaffed. Retrieved from https://www.naeyc.org/about-us/news/ press-releases/survey-childcare-centers-understaffed

6 See e.g., Sullivan, E.T. (5 August 2021). The Child Care Staffing Crisis is Getting Worse. EdSurge. Retrieved from https://www.edsurge.com/ news/2021-08-05-the-child-care-staffing-crisis-is-getting-worse; Long, H. (19 September 2021).

7 See e.g., Sullivan, E.T. (20 December 2022). How Inflation is Squeezing Early Childhood Educators. EdSurge. Retrieved from https://www.edsurge. com/news/2022-12-20-how-inflation-is-squeezing-early-childhood-educators;

WIn June of 2022, the Leonard G. Herring Family Foundation committed to prioritizing early childhood education and funded a comprehensive childcare study in Wilkes County. A Childcare Taskforce was commissioned to execute the study and develop recommendations for enhancing the workforce and creating a healthy environment for families. Wilkes County citizens and representatives from community organizations, including the Wilkes Economic Development Corporation, the Wilkes Community Partnership for Children, and The Health Foundation, were appointed to the taskforce. Joined by consultants Dr. Pamela Shue, Ed.D. (Appalachian State University) and Cyndi Dancy (Dancy Research), experts in early childhood education and economic development, the taskforce focused on understanding the current state of childcare in Wilkes County and developing strategies to revitalize and strengthen the county’s early childcare system. (See the Appendix for additional details on the taskforce’s methodology.) This report is the culmination of the taskforce’s work. It describes the current childcare landscape in Wilkes County, the need for more childcare providers and seats for children, and the opportunities for creating more childcare options. It is important to note that the Childcare Taskforce acknowledges family structures that include grandparents and others as guardians or primary caretakers. However, this study focuses on parent-led households as they are the most prevalent family structure in Wilkes County and provide the most data. The taskforce envisions that the findings and recommendations included in this report lay the groundwork for building a childcare ecosystem that supports economic growth and prosperity and yields benefits for all children in Wilkes County.

WILKES COUNTY CURRENT ECONOMIC SNAPSHOT

Background

Wilkes County sits in the northwest part of North Carolina. A rural community, Wilkes County is the state’s 13th largest county geographically and ranks 40th in population. Home to 65,806 residents overall, most residents live in Wilkesboro and North Wilkesboro in the center of the county. Manufacturing was the largest industry sector in 2022 accounting for 17% of the county’s employment, followed by retail (15%) and health care/social assistance (13%). Major employers include Tyson Foods, Lowe’s, Atrium Health Wake Forest Baptist Wilkes Medical Center, Wilkes County Government, Wilkes County Schools, and Wilkes Community College. According to the most recently available data, Wilkes County’s average annual salary for all workers was $43,887 while the median household income was $43,933.8

Wilkes County Childcare Study

Economic Challenges

Wilkes County faces demographic and economic challenges in several areas that are intertwined with childcare needs. Changes in population and employment over time have implications for economic development in Wilkes County that could be mitigated with improved childcare opportunities for Wilkes County workers.

Declining Population

In the past decade, Wilkes County’s population fell by 4.6% following a trend in many rural areas across the nation. (See Figure 1.1.) Neighboring rural counties, Surry and Yadkin, have also declined in population, but Wilkes County’s population declined at a higher rate.9 In contrast, Watauga, Forsyth, and Iredell counties grew during the past decade with large urban or university centers enticing new residents to relocate.10 Though Wilkes County’s birth rate has increased and new residents have moved to the county, outbound migration and the death rate outpace those trends, leading to a 5.1% projected population loss from 2020 to 2030.11

Job Loss and Labor Force Concerns

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Employment (defined as the number of jobs in Wilkes County fulfilled by county residents or in-commuting workers) has declined by 4.3% during the past decade, a rate similar to that of population loss during the same period. (See Figure 1.1.) Total employment was estimated at 22,421 in 2022 down from 23,400 in 2012 (and 26,700 in 2007).12 The labor force is also weakening. From 2012 to 2022, Wilkes County experienced a 12.7% contraction in the labor force (defined as the total number of residents who are either employed or unemployed and actively looking for work), down from 30,856 in 2012 to nearly 27,000 in 2022.13 Overall, these data show that the workforce in Wilkes County is declining at a faster rate than that of both jobs and population.

8 Average annual salary data generated using Chmura JobsEQ for Workforce software using a 4-quarter average including covered (companies pay unemployment insurance), uncovered, and self-employed workers. Accessed December 2022. Median household income from U.S. Census Bureau American Community Survey (2021). Retrieved from data.census.gov.

9 U.S. Census Bureau Population Estimates data, 2021. Retrieved from census.gov/programs-surveys/popest.html. Surry declined by 1 percent and Yadkin fell by 3 percent over the past decade (2012-2022).

10 U.S. Census Bureau Population Estimates data, 2021. Retrieved from census.gov/programs-surveys/popest.html. 10-year growth rates for: Watauga: 5 percent; Forsyth: 9 percent; and Iredell: 19 percent.

11 North Carolina Office of State Budget and Management, data produced by the State Demographer for North Carolina. Retrieved from osbm. nc.gov/facts-figures/population-demographics. Accessed December 2022.

12 Four-quarter employment data generated using Chmura JobsEQ for Workforce software. Accessed December 2022.

13 NC Department of Commerce, Local Area Unemployment Statistics, accessed February 2023. Retrieved from d4.ncommerce.com.

Sources: U.S. Census Bureau American Community Survey, accessed February 2023. Retrieved from data.census.gov; NC Department of Commerce Local Area Unemployment Statistics, accessed February 2023. Retrieved from d4.ncommerce.com; Data generated from JobsEQ, accessed February 2023; NC Department of Health and Human Services: Division of Child Development and Early Education. Child Care Analysis Detail Report, November 2022. Retrieved from ncchildcare.ncdhhs.gov *2021 data for population and labor force participation

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Moreover, Wilkes County’s labor force participation rate has declined from a high of 61.3% in 2007 to 52% in 202114 The labor force participation rate measures the percentage of the population 16 years and older that is active in the labor force, employed or actively looking for work and is a vital indicator of the relative amount of available labor resources in a community. Wilkes County’s declining labor force participation rate mirrors a current global labor shortage driven by several factors, including an aging workforce and disenfranchised workers who lack the necessary skills for today's economy. But Wilkes County’s labor participation rate is lower than both the national and state rates, 63% and 62.2%, respectively, as well as neighboring Surry County's rate of 56.6%.15 Further, labor force participation rates vary for different demographic groups in Wilkes County (see Figure 1.2).

14 U.S. Census Bureau American Community Survey, 2021. Retrieved from data.census.gov.

15 U.S. Census Bureau American Community Survey, 2021. Retrieved from data.census.gov.

Wilkes County Childcare Study

Figure 1.1. Wilkes County Population, Labor, Childcare Changes, 2007-2022

Figure 1.2. Wilkes County Labor Force Participation Rates, 2021

Sources: U.S. Census, American Community Survey 2021

Affordable, accessible, and stable quality childcare is needed to support existing workers and entice additional workers into the labor force to meet current and future employment needs in Wilkes County.

Women in the workforce

In Wilkes County, women participate in the workforce at a rate of 59.2%, well below the national (73.7%) and North Carolina (72.8%) labor force participation rates for women.16 Since the number of women in the U.S. workforce has increased over the last half of the twentieth century,17 the absence of women from the workforce in Wilkes County is significant. Yet, as Figure 1.2 shows, women with children have relatively high labor force participation rates among all demographic groups. Women in the county with children have the highest labor force participation rate at 78.2%; and among them, women with children 5 years old and under participate in the labor force at a rate of 66.5% while women with children ages 6-17 years have a much lower rate of participation at 57.9%. Given the shortage of available and affordable quality childcare described in this report, these data beg two questions: first, who is caring for children of working women?; and second, would more women enter the workforce if Wilkes County offered sufficient affordable, accessible, and quality childcare options for their infant, toddler, and elementary and middleschool-aged children?

Workforce and economic development

These data on labor force participation rates highlight a critical need for a workforce that enables economic development. Industries and businesses thrive and grow where workers are plentiful. The current talent crunch means that communities without a strong workforce have less advantageous economic prospects. As of early 2023, nearly 1,000 online job postings from companies and staffing agencies across all industries in Wilkes County advertised need for workers in the region.18 Wilkes County must improve labor force participation rates to fill these positions and ultimately retain and grow existing businesses and attract new industries. Affordable, accessible, and stable quality childcare is needed to support existing workers and entice additional workers into the labor force to meet current and future employment needs in Wilkes County.

16 U.S. Census Bureau American Community Survey, 2021. Retrieved from data.census.gov. The authors wish to acknowledge that the choice to work outside of the home is a personal choice as reflected in comments received through stakeholder engagement. Some parents keeping children at home expressed plans to continue to do so and gratitude for the financial ability to do so. Some parents stated they would stay at home until their children went to school while others said they would homeschool.

17 Mitra Toossi and Teresa L. Morisi, Women in the Workforce Before, During, and After the Great Recession, U.S. Bureau of Labor Statistics, July 2017

18 Based on data generated from JobsEQ. Accessed February 2023.

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Wilkes County Childcare Study

THE NEED FOR CHILDCARE IN WILKES COUNTY

Though many factors affect the workforce, lack of adequate childcare is a primary challenge in Wilkes County, especially for families with working parents.19 In surveys, focus groups, and interviews, parents described major childcare factors lacking in Wilkes County—quality of care, cost, stability of staff, and days/hours care is available —and the challenges they had finding these in Wilkes County.

A review of the most recent available data for Wilkes County children who live with their parents validates parents’ feedback. Childcare availability has a significant impact on two-adult/two-income families, singleparent/one-income families, and all families with school-aged children. Though a minority of children belong to single-parent/one-income families, children age 5 years and under are heavily represented among those families, signaling a great need for childcare options for children not yet in school. Because the need and ecosystems differ for childcare for younger children (birth to 5 years old) and school-age children (elementary and middle school), this report addresses these childcare markets separately.

Need for Early Childhood Care: Birth to 5 Years

Most recently available data show that 13,194 children under 18 years of age in Wilkes County with 12,034 children living with their parents in 2021. 20 Among these children, 3,942 were 5 years old or under and living in a variety of family structures. A majority of children lived in households with two working parents or a single working parent (2,604 or 66%). Additionally, 27% lived in households with one parent not in the labor force, and 7% lived with a single parent not in the labor force.

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7 %

All parents not in labor force

27 % One parent not in labor force

66 % All parents in labor force

19 As previously noted, this report focuses on parent-led households as the most prevalent family type in Wilkes County and for which more data is available. However, the Childcare Taskforce acknowledges family dynamics that give rise to grandparents becoming primary guardians and other family structures, and intends that recommendations and the desire to improve early childhood experiences will benefit all children in Wilkes County.

20 U.S. Census Bureau American Community Survey, 2021. Retrieved from data.census.gov.

Source: U.S. Census Bureau American Community Survey, 2021. Retrieved from data.census.gov.

Figure 1.3. Living arrangements of Children 0-5 years in Wilkes County, 2021

Licensed childcare providers and seats have declined

A majority of working parents (65%) surveyed during this study stated their preference for childcare in a center, classroom setting such as NC Pre-K, Head Start, or licensed home for their children ages birth to 5 years old. However, stakeholders recounted throughout this study that a greater range of childcare providers served Wilkes County prior to the Covid-19 pandemic and even earlier. They recalled various childcare options in operation pre-Covid that were run by independent organizations, the Wilkes County Community College, and all Wilkes County Schools elementary schools.

Data on the number of licensed childcare providers in Wilkes County aligns with stakeholder inputs. From 2007 to 2022, the number of licensed childcare providers in Wilkes County declined by 65% reflecting a 48% decrease in the number of children served by licensed childcare operators. In 2007, 83 licensed childcare providers served 1,883 children. At the end of 2022, 29 licensed childcare providers served 977 children, including 909 children 0 to 5 years old. The significant decrease in the number of licensed family childcare homes from 38 in 2007 to four in 2022 reflects the greatest change in the licensed childcare operator landscape in the last 15 years.

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Source: NC Department of Health and Human Services: Division of Child Development and Early Education, Child Care Analysis Reports, 2007-2022. Retrieved from ncchildcare.ncdhhs.gov/County/Child-Care-Snapshot/Child-Care-Statistical-Report

Figure 1.4: Number of Licensed Childcare Providers in Wilkes County, 2007-2022

Among the 29 childcare providers serving Wilkes County in 2023, the majority are childcare centers such as school-sponsored Pre-K programs, Head Start, and privately-run independent programs. Twelve of Wilkes County School System’s 13 elementary schools across the county host Pre-K programs that are statefunded and open to children who qualify by criteria, such as income level or development need (See Figure 1.5). Additionally, three federally funded Head Start programs are available, along with two religiousaffiliated programs, and eight independent programs. As of 2023, there are four licensed family childcare homes in operation. A complete list of licensed childcare providers in Wilkes County is included in the Appendix of this report.

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*NC Pre-K programs are at the following elementary schools as of 2022: Boomer Ferguson, C.B. Eller, C.C. Wright, Millers Creek, Moravian Falls, Mountain View, Mt. Pleasant, Mulberry, Roaring River, Ronda Clingman, Wilkesboro, North Wilkesboro. Only Traphill Elementary School does not have a Pre-K program.

**The 2007 Childcare Analysis Report includes the Community Service Organization/Agency provider type and included the following groups in Wilkes County:

• Easter Seals UCP Woodlawn Children’s Center

• 4-H After-School programs (8)

• After-School Fun Clubs (3)

• Wilkes Family Resource Center

Source: NC Department of Health and Human Services: Division of Child Development and Early Education. (2022). Child Care Analysis Reports. Retrieved from ncchildcare.ncdhhs.gov/County/Child-Care-Snapshot/Child-Care-Statistical-Report

Notes: The state data is modified to reflect the late November 2022 closure of one religious-affiliated center.

Figure 1.5 Licensed Childcare Providers in Wilkes County, 2007 vs 2022

Overview of North Carolina Childcare Rules

State laws and regulations govern childcare to ensure safety and quality and address standards related to operators, staff qualifications, and curriculum. Key issues arising in this report are addressed below.

Licensure. In North Carolina, a childcare license is required for keeping 3 or more unrelated children under 13 years of age regularly (at least once a week), for more than four hours per day. North Carolina authorizes two types of childcare licenses:

• Family childcare home. A childcare arrangement located in a residence where, at any one time, more than two children, but less than nine children, receive childcare.

• Childcare center. A childcare arrangement where, at any one time, there are three or more preschool-age children or nine or more school-age children receiving childcare. This also includes a center located in a residence, where the program is in a residence and the licensed capacity is six through twelve children, or up to fifteen school-age children.21

Head Start is a federally funded preschool program serving three- and four-year-olds and their families. Public schools and licensed nonprofits operate Head Start programs in North Carolina.

NC Pre-K programs are state-funded and designed to provide high-quality educational experiences for eligible four-year-olds at no cost to families. Public schools and private (including nonprofits) licensed providers operate Pre-K programs in North Carolina.

Any childcare arrangement that operates for four hours or fewer per day does not require licensing. These include half-day programs for preschool-aged children, after-school care, recreational programs operating three or fewer months per year (e.g., summer camps and vacation church schools), and cooperative childcare arrangements between parents.

Ratings. North Carolina implemented star ratings beginning in 2000 to recognize quality factors in childcare operations. The North Carolina Division of Child Development and Early Education gives star ratings based on staff education and program standards. Religious-sponsored childcare programs can operate without a star rating unless they choose to apply for this evaluation.

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Training requirements. Administrators and teachers directly responsible for supervising children in licensed childcare centers are required by law to meet certain education and experience qualifications depending on the setting in which they work.

• Family childcare homes and centers. See North Carolina staff requirements.

• NC PreK. See teacher requirements.

• Head Start. See teacher requirements.

Licensed childcare is at capacity for birth to 5 years

As of November 2022, all licensed childcare providers in Wilkes County served an estimated total of 977 enrolled children. Most children in licensed childcare operations are four years old and younger since most children begin attending kindergarten at the age of five (Figure 1.6). Among the 909 children, ages 0 to 5, including 5-year-olds not in kindergarten enrolled in licensed childcare, nearly all are served in centers (98%); only 16 children are cared for at licensed family childcare homes. Among all licensed childcare providers, Pre-K programs serve over one-third (37%) of children under 5 years.

Waiting lists for future spots exist but many programs stated they need more staff to serve more children. The availability of staff is a significant part of the childcare crisis.

Source: NC Department of Health and Human Services: Division of Child Development and Early Education. (2022). Child Care Analysis Reports. Retrieved from ncchildcare.ncdhhs.gov/County/Child-Care-Snapshot/Child-Care-Statistical-Report

Note: The state data is modified to reflect the late November 2022 closure of one religious-affiliated center.

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Among children enrolled in licensed childcare, all but one attended the first shift, from morning to afternoon. Only one child reportedly attended childcare in a family childcare home during the second shift. This shift, from afternoon to evening, has limited availability in existing childcare programs. No licensed childcare operators in Wilkes County offer care during the third shift, occurring overnight typically. Afternoon, evening, and overnight childcare options are especially important for employees with shift jobs in industries such as healthcare, food services, retail, security, and manufacturing.

A childcare operator’s capacity is regulated by state rules that set a maximum number of children who can be accommodated in a licensed childcare operation based on the square footage of the facility.22 However, the actual capacity is driven by the ages of the children enrolled in the program and the staff available. State regulations governing childcare operators require teacher-child ratios ranging from 1:5 for infants to 1:25 for 5-year-olds or older (see Figure 1.7). Providers in Wilkes County collectively have a maximum capacity of 1,499 seats across two shifts, however, the current mix of ages in care and available staffing have a functional capacity of approximately 1,000 seats.

The taskforce reached out to licensed childcare operators in March 2023 to confirm enrollment data and inquire about current capacity. Based on these reports, enrollment was approximately 998 given existing staff at that time and no licensed operators had available spots for new enrollees aged birth to 3 years old. Providers collectively reported having 17 open spots—including five at elementary school-based Pre-K

Figure 1.6: Wilkes County Licensed Childcare Enrollment by Age, November 2022

programs with eligibility requirements and 12 for after-school students—and reserved spots for summer programs, children transitioning from one classroom to the next age group, or possibly siblings entering care. Waiting lists for future spots exist but many programs stated they need more staff to serve more children. The availability of staff is a significant part of the childcare crisis.

National and county estimates suggest that 17% of childcare workers will leave their jobs on an annual basis—a rate higher than the 12% rate for all occupations— meaning that filling existing staff needs is compounded by replacing workers that will leave during the year.

Source: North Carolina Administrative Code. (2022). Chapter 10A NCAC 09.0713. Staff/Child Ratio for Centers. Retrieved from ncchildcare.ncdhhs.gov/Portals/0/ documents/pdf/C/Chapter_9_Child_Care_Rules_April_1_2022.pdf?ver=ZZ_Ggs8MYUW03ndXtmkHRw%3d%3d.

Staff shortages and lack of qualified staff are barriers to increasing childcare capacity National and county estimates suggest that 17% of childcare workers will leave their jobs on an annual basis—a rate higher than the 12% rate for all occupations—meaning that filling existing staff needs is compounded by replacing workers that will leave during the year.23

In a taskforce survey, childcare providers reported that staff shortages (86% of respondents) and lack of qualified teachers (78% of respondents) are the two greatest staffing challenges childcare operators face. Collectively, Wilkes County’s 29 licensed childcare operators employed 182 people as of November 2022. The number of staff has declined steeply from 356 employees at 83 childcare providers operating in 2007, a 48% decrease that directly correlates to the 48% decrease in the number of children enrolled in licensed childcare between 2007 (1,883 children) and 2022 (977 children).

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Stakeholders acknowledge that inadequate training and low training standards are challenges for the Wilkes County childcare industry. Parents reported some underwhelming experiences with the staff at childcare facilities while employers reported difficulty in finding workers who will perform their roles as their job requires given the wages that are offered and training that is required.

North Carolina childcare rules require childcare workers meet certain education and training requirements depending on the childcare setting where they work. Higher education institutions in North Carolina, including Wilkes Community College and Appalachian State University, the closest 4-year college, offer early childhood credentialing or degree (Associate/Bachelor) programs.24 (Figure 1.8)

23 Based on data generated by JobsEQ. Accessed February 2023. 24 NC Community College Systems Office. (2023), Appalachian State University Department of Early Childhood Education. (2023). Retrieved from direct communication.

Figure 1.7: NC Childcare Staff to Child Ratio Requirements

Early Childhood Education Program at Wilkes Community College

Source: NC Community College Systems Office, Jan 2023

Four-year College/University

Early Childhood Education Credentials Awarded by Appalachian State University

Source: Appalachian State University, Jan 2023

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In addition, childcare workers are eligible to participate in the T.E.A.C.H. Early Childhood® Scholarship program, a statewide scholarship that offers a debt-free college education to current members of the early education workforce. However, prospective participants are often prohibited from participating in T.E.A.C.H. if the childcare employer does not agree to the terms of the T.E.A.C.H. contract, which may require the employer of a childcare teacher to pay a percentage of costs for tuition and textbooks, provide paid release time each week, and award the T.E.A.C.H. participant a bonus or an increase to the overall pay by 4% at the end of the contract.25 Though stakeholders acknowledge that T.E.A.C.H. may help address challenges such as inadequate training and low training standards, many Wilkes County providers reported not being able to afford the program's requirements. Of the current 182 childcare staff in Wilkes County licensed family childcare homes and centers, only eight teachers participate in T.E.A.C.H.

The challenges workers face to attain the training needed in the childcare industry are summed up in feedback from stakeholders. While childcare providers say they do the work for the love and benefit of children, others wonder “why go to school to make no money?”

Low wages make attracting and retaining childcare staff challenging

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In a survey of Wilkes County childcare providers, low pay was ranked as the most challenging element of childcare work. Childcare wages are primarily determined by fees that parents can afford to pay for the care of their child(ren). Consistent with national and North Carolina averages, as well as surrounding counties within a 45-minute driving radius, Wilkes County childcare center workers earn an average salary ranging from $22,880 for infant and toddler teachers to $25,896 for preschool teachers of children ages 3 to 5 years. (See Figure 1.9.) At an average of $10.91 an hour (for an annual salary of $22,700), a childcare worker in Wilkes County earns half the Wilkes County average wage of $21.10 per hour ($43,887 annual salary) and less than employees in the largest industry sectors. Employees earn an average of $24.95 an hour ($51,890 annual salary) in manufacturing; retail workers earn an average of $15.44 an hour ($32,105 annual salary).

25 Child Care Services Association. (n.d.) T.E.A.C.H. Early Childhood North Carolina. Retrieved from childcareservices.org/programs/teach-northcarolina

26 Child Care Services Association North Carolina Early Care and Education Data Repository, Infant and Toddler Care in North Carolina Fact Sheet (2022). Retrieved from childcareservices.org/research/nc-ece-data-repo. Accessed January 2023.

Source: Based on data generated with JobsEQ. Accessed on December 2022

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Childcare salaries are also driven by the particular qualifications required in different childcare settings. The Wilkes County average salary of $22,880-25,896 for infants, toddlers, and preschool teachers in childcare centers who are not required to hold four-year college degrees is typically well below salaries for Head Start and Pre-K teachers who are. (NC Pre-K teachers must hold four-year college degrees and Pre-K teachers must also hold a state birth to kindergarten teaching license.) Head Start teachers in North Carolina earn an average of $34,000 annual salary, comparable to the $35,000 starting salary for North Carolina public school teachers who are also required to hold a four-year college degree. Pre-K teachers typically receive a salary on par with the pay scale of the local school system where their program is located. Only childcare administrators have a commensurate average salary of $37,800.27

The Covid-19 pandemic exacerbated childcare staff shortages and precipitated the closure of nearly 16,000 childcare operators between December 2019 and March 2021.28 Federal funds authorized in the American Rescue Plan of 2021 to address the ongoing impacts of Covid-19 included nearly $24 billion in Childcare Stabilization Grants that were allocated to states, territories, and Tribes.29 Many childcare providers used the federal Childcare Stabilization Grants or COVID relief funds to temporarily increase staff salaries in order to retain staff and continue operating to serve working families during the pandemic. At the time of this writing, these relief funds are due to end in December 2023, raising concerns that more childcare workers will leave the profession when the relief funds are no longer available to supplement wages.

182

$22,880

Employees in Licensed Infants/Toddlers Teachers

Childcare Operations Average Wage

27 Based on data generated by JobsEQ. Accessed December 2022.

$25,896

Threes/Fives Teachers

Average Wage

28 Child Care Aware of America. (2022). Demanding Change: Repairing Our Child Care System. Retrieved from info.childcareaware.org/ hubfs/2022-03-FallReport-FINAL%20(1).pdf?utm_campaign=Budget%20Reconciliation%20Fall%202021&utm_source=website&utm_content=22_demandingchange_pdf_update332022

29 Office of Child Care. (2021). American Rescue Plan (ARP) Act Child Care Stabilization Funds Frequently Asked Questions (FAQs). Retrieved from acf.hhs.gov/occ/news/american-rescue-plan-arp-actchild-care-stabilization-funds-frequently-asked-questions

Figure 1.9: Comparative Salaries of Childcare Workers, 2022

While childcare providers say they do the work for the love and benefit of children, others wonder “why go to school to make no money?”

Profile of the Average Childcare Worker in Wilkes County

An overwhelming 95% of childcare workers in Wilkes County are women, mirroring the 94.8% nationwide rate.

Workers in this role are somewhat evenly divided across age groups. The largest segment (22%) are between 45 and 54 years old, similar to the 23% of all Wilkes County workers across all industries who are 45-54 years old. Workers in Wilkes County are skewed slightly toward the older age groups when compared to the national data.

Source: JobsEQ, 2022. Wages for occupations are 2021

Licensed early childcare costs too much for the average family to afford

Though salaries for childcare workers are comparatively low, the cost of childcare for families is relatively high. Parents, employers, and childcare providers emphasized the impact of the high cost of childcare in taskforce surveys and focus groups. Some participants reported settling for affordable childcare further from desired quality providers located closer to their homes and jobs. One parent commented that their monthly childcare cost was as much as a house payment, “It’s a mortgage!”

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Based on data from the North Carolina Division of Child Development and Early Education and the Child Care Services Association, market rates for childcare in Wilkes County range from $576 a month for a three- to five-year-old in a family home setting upwards to $983 for an infant in a 5-Star rated childcare center (see Figure 1.10.) Compared to Surry County and Forsyth County rates, center-based childcare in Wilkes County is significantly higher in reported costs. Infant and toddler care is particularly expensive. Infant childcare is more expensive than preschool due to the required lower childto-staff ratio.

Source: Child Care Services Association, November 2022

Note: Star ratings are an indicator of the quality of care. For more information about star ratings see https://ncchildcare.ncdhhs.gov/Services/Licensing/Star-Rated-License.

30 Child Care Services Association. 2021-2022 Wilkes County Infant Toddler Child Care Landscape Study (March 2021). Retrieved from childcareservices.org/research/ece-studies/infant-toddler-child-care-landscape-study-2022/

Figure 1.10: Childcare Costs in Wilkes and Neighboring Counties, by Age and Rating, 2022

The cost of childcare has a major impact on a family’s budget, ability to work, and their quality of life. A sample budget prepared by the Child Care Services Association (see Figure 1.11.) shows that a single parent earning $36,625, with one child would spend 27% of their budget to pay for childcare in Wilkes County.30 Families earning less can gain assistance if funds are available. However, this study found through surveys that Wilkes County parents, employers, and childcare partners seem to disfavor the use of assistance due to frustration with the complicated requirements to qualify for childcare. Some parents are making just enough income not to qualify for public assistance but still not enough to afford care. This “benefits cliff” exists where public assistance ends when income rises leaving expenses that are still unaffordable.

Figure 1.11: Childcare Costs for a Single Working Parent Family with One Child

Source: Child Care Services Association, November 2022

In the face of reduced licensed childcare capacity, families are turning to non-licensed options. Based on the parent survey, approximately 30% of Wilkes County working parents report their children are cared for by family, friends, or neighbors, and 10% are using babysitters and nannies. Others are using half-day, church-based schools or preschools operating four-hour morning programs for 2-day, 3-day, or 5-day enrollment. These programs are not subject to state regulations or oversight and are not included in a state-run directory for licensed childcare operators or listed through the Wilkes Community Partnership for Children. While serving an essential need for early childhood education, half-day programs do not fulfill a workforce solution for working parents in need of full-day care.

Demand for licensed childcare birth to 5 years

To better understand the current capacity of licensed childcare to meet the demand for childcare for infants, toddlers, and preschool-age children in Wilkes County, the taskforce used data and survey feedback to model childcare situations for 3,942 children from birth to 5 years living with parents in the labor force in Wilkes County (see Figure 1.12). This model targets the need for available spaces in the licensed childcare system based on stated preferences in the parent survey.

The model is based on the following assumptions:

• 3,942 children birth to 5 years living in one- or two-parent households in Wilkes County

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• 2,604 children live in a household where all resident parents are in the workforce (66%)

• 909 children birth to 5 years are enrolled in licensed childcare in Wilkes County

• parents may choose to stay home with their children or to keep their children with family or other nonlicensed situations

• Based on survey responses from parents in the labor force, 67% of parents with children from birth to 5 years prefer childcare in licensed or classroom settings such as NC Pre-K or Head Start

Based on these assumptions, the model estimates demand for 1,745 childcare seats needed for children birth to 5 years and a gap of 836 seats.

This model shows that an estimated 836 additional seats in licensed childcare are needed to fulfill the current demand for licensed childcare that parents in the labor force with children birth to 5 years living at home are experiencing. Given the preference for childcare settings of working parents surveyed, this model shows that the current infrastructure of licensed childcare facilities and staffing is inadequate to

meet the needs of Wilkes County’s children. Although the population has been dropping in the county, data published by the North Carolina State Demographer estimate that the population of children birth to 5 years is actually projected to increase by 7% by 2030.31 Thus, the need for licensed childcare will grow.

Meeting the demand for licensed childcare may also allow more parents to enter the labor force. Data on children ages 5 years and younger (see Figure 1.3) shows that 267 children are living in a household with a single parent who is not in the labor force. Additionally, 1,071 children are in homes with one working parent and one parent presumably at home. These parent groups may be enticed into the workforce if more quality, affordable childcare options are available.

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NEED FOR CHILDCARE: SCHOOL-AGE CHILDREN

Among 13,194 children under 18 years of age in Wilkes County, 12,034 children were living with their parents. Of those living with their parents, 8,092 were aged 6 to 17 years old and 57% lived where all parents in the home were in the labor force; 24% lived in households with one parent (out of two at home) were not in the labor force; and 19% lived with a single parent not in the labor force. (See Figure 1.13.) However, the best available data suggest that only 70 children ages 5 to 12 years are enrolled in licensed childcare in Wilkes County. (See Figure 1.6). In response to a parent survey, only 12.4% of parents with children ages 5-12 years reported that their child was in before- or after-school programs and an additional 23% reported their children were in a childcare center or program. Collectively, these responses suggest that the majority of school-aged children in Wilkes County are not participating in organized outof-school childcare.

Figure 1.12. Wilkes County Estimated Childcare Demand for Birth to 5-Years

19 %

24 % One parent not in labor force

57 % All parents in labor force

After-school care presents challenges

Parents in Wilkes County report a dire need for out-of-school time childcare for pre-school, elementary and middle school students in Wilkes County. In a parent survey, a clear majority responded that finding before- and after-school and summer childcare was “very difficult.” (See Figure 1.14.) Parents surveyed reported other challenges with after-school care in Wilkes County. Many out-of-school programs are located in the central part of the county including those operated in the elementary schools. Parents with children in after-school care identified having to leave work early to pick up their child as their top challenge. Employers also reported recognizing that workers often have to leave to transport children from school to after-school care. With its large geographic footprint, transporting children between school and after-school care can be time-consuming. Further, parents with children who go home after school also noted that students are waiting at school for an extended period while a short-staffed bus driver pool runs multiple loops from a single school.

Stakeholders highlighted a need for programs for middle-school-aged children, particularly given the concern that the opioid crisis is finding a footing among unoccupied young people. One respondent noted, “The way to break cycles is to fill in those gaps. This is a grand opportunity to make a shift.”

Wilkes County’s after-school care challenges mirror the challenges parents statewide are having finding childcare after school. A statewide study found that parent demand for aftercare has grown from 28% in 2004 to 47% in 2020.32 The study also found that for every child in North Carolina in an after-school program, three others are waiting for a spot.33 (See Figure 1.14.)

Figure 1.13. Children Ages 6-17 Living with Parents, 2021

Source: U.S. Census Bureau American Community Survey, 2021. Retrieved from data. census.gov.

Wilkes County’s after-school care challenges mirror the challenges parents statewide are having finding childcare after school.

Source: Wilkes Childcare Study Taskforce Parent Survey, Distributed Fall 2022.

Benefits of After-School Care

Research suggests that how students spend time outside of school is a determining factor for success in school and in life. 34 After-school and other out-of-school learning programs are also shown to improve academic performance, particularly in math.35 After-school programs also help boost school attendance, keep kids engaged, and improve behavioral and foundational skills.36 After-school programs—as with childcare for younger children—give parents peace of mind and the ability to engage in the workforce. The North Carolina Center for After-school Programs reports that 75% of North Carolina parents believe these programs reduce the likelihood that kids will engage in risky behaviors and 86% support public funding for after-school programs. 37

Source: North Carolina Center for After-school Programs. (2019). The Power of After-school in North Carolina. Retrieved from drive.google.com/ file/d/1MNRsKG1N-e53wIHjKbAfQfsbMzl30dOe/view

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AFTER-SCHOOL PROGRAMS GIVE PARENTS PEACE OF MIND BECAUSE THEY THEIR KIDS ARE SAFE AND ENGAGED IN FUN LEARNING OPPORTUNITIES.

80 % 86 % 75 % 65 %

34 Jennifer

of North Carolina parents say after-school program give them peace of mind and them keep their jobs.

of North Carolina parents support public funding for after-school programs.

of North Carolina parents believe after-school reduces the likelihood that kids will engage in risky behaviors

of North Carolina parents say after-school excites kids about learning

(Data Source: The After-school Alliance

35 North Carolina Center for Afterschool Programs. (2017). Afterschool Alliance fact sheet. Retrieved from afterschoolalliance.org/documents/ What_Does_the_Research_Say_About_Afterschool.pdf

36 Id.

37 North Carolina Center for Afterschool Programs. (2019). The Power of Afterschool in North Carolina. Retrieved from drive.google.com/ file/d/1MNRsKG1N-e53wIHjKbAfQfsbMzl30dOe/view

Mccombs, Anamarie Whitaker, and Paul Yoo. The Value of Out-of-School Time Programs. Rand. 2017

Wilkes County after-school care options are exceedingly limited

The taskforce researchers’ efforts to identify after-school programs validated the challenge parents reported having in finding after-school programs in Wilkes County. Outside of licensed care, there are few out-of-school program operators. Before and after-school programs and summer camps, like halfday early childcare programs, are not subject to childcare licensing requirements and currently, no comprehensive central directory or data collection for these programs exists.

Parents and other stakeholders most often and consistently referenced the YMCA of Northwest North Carolina as an out-of-school time childcare provider. During the school year, the YMCA operates an After School Academy program at four elementary schools and one middle school in Wilkes County with 40 seats per site for a total of 200 seats. La Escuelita, also operated by the YMCA, provides after-school homework assistance for up to 24 elementary students from Moravian Falls who live in Country Square neighborhood. It is important to note that before-school hours of operation ended recently when the Wilkes County School System implemented an extended school day schedule, having an earlier start to the school day, which created limited available space for the program as well as decreased enrollment. In addition to the YMCA programs and licensed childcare, only three churches were identified as currently offering after-school care.

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Nanny's Day Care

North Wilkesboro Elementary

Wilkesboro Elementary Wilkesboro

School-Based YMCA Program

Childcare

School-Based YMCA Program

School-Based YMCA Program

Sources: YMCA of Northwest North Carolina; NC Department of Health and Human Services: Division of Child Development and Early Education. (n.d.) Child Care Analysis Report, November 2022

Note: Researchers also conducted internet searches of local elementary schools and church websites.

Summer programs

Parents also reported that summer program options for school-age children are challenging to find. The most reported options include YMCA-operated summer camp programs at four locations, including the Wilkesboro YMCA branch, C.C. Wright Elementary, and North Wilkesboro Elementary with 40 seats at each, and La Escuelita with 24 seats. During the summer of 2022, the YMCA served 198 children.

Figure 1.15: Known After-School Program Providers

Parents also reported that summer program options for school-age children are challenging to find.

Other organizations, including churches, clubs, arts, or STEM-based programs, provide summer childcare targeting primarily elementary and middle school-aged children. Summer options advertised for 2023 or offered in the recent past include Camp Invention: Wonder at Wilkesboro Elementary; Hope for His Children Day Camp in Ferguson; Wilkes Art Gallery; and 4-H club camps. Some of these programs operate for less than a full day or are short-term (such as one week). Several licensed childcare centers, such as Millers Christian School, offer expanded summer camp programs, while other licensed operations shift from after-school to full-day programs for school-age children in their care. Nonetheless, the programs offered are sparse and do not provide a consistent or accessible option for full-time working parents to send their children.

Demand for licensed childcare for school-aged children

To better understand the demand for out-of-school time care for older children, the taskforce used a model based on school enrollment data for students in kindergarten through high school. Overall, more than 10,000 kindergarten through 12th grade students are enrolled in Wilkes County K-12 public schools (83%),38 private schools (2%),39 and home schools (15%)40 for the 2021-2022 school year. Excluding home-schooled children, more than 3,900 children are enrolled in a public or private elementary school and approximately 2,100 children are enrolled in a public or private middle school. (See Figure 1.16.)

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Sources: NC Department of Public Instruction (2022). North Carolina Public Schools Statistical Profile. Retrieved from apps.schools.nc.gov/; NC Department of Administration. State of North Carolina Private Grade K-12 School Statistics (2021). Retrieved from ncadmin.nc.gov/public/private-school-information/statenorth-carolina-private-grade-k-12-school-statistics; NC Department of Administration. State of North Carolina Home School Statistics. Retrieved from ncadmin. nc.gov/public/home-school-information/home-school-statistics

The model for out-of-school childcare demand is based on the following assumptions:

• 6,038 children attended elementary and middle schools at a public or private school in Wilkes County

• Approximately 57% of Wilkes County children ages 6-17 live in a household where all resident parents are in the labor force

Figure 1.16. K-12 School Enrollment in Wilkes County

• Applying a rate of 57% of parents in the labor force to the number of students at elementary and middle school outside the home, an estimated 3,442 children are attending school while living in a household where all resident parents are in the labor force

• Based on survey responses from parents in the labor force, 82% of parents with school-age children prefer childcare in licensed programs or classroom settings such as the YMCA, or faith-based programs

• Based on data on the number of children ages 5-12 in licensed childcare or enrolled in aftercare programs, approximately 342 children in elementary and middle schools in Wilkes County have an out-ofschool time seat.41

Based on these assumptions, this model estimates a demand of 2,822 out-of-school childcare seats needed for elementary and middle school children in Wilkes County and a gap of 2,480 seats.

Wilkes County’s afterschool care challenges mirror the challenges parents statewide are having finding childcare after school.

WHY WILKES COUNTY MUST IMPROVE ITS CHILDCARE ECOSYSTEM

Lack of available, affordable, quality childcare has broad negative impacts on the workforce. Insufficient childcare options can hinder labor force participation rate. In addition, children who attend early childcare programs with dependable, knowledgeable teachers have better chances of academic success and strong lifelong outcomes. Early childcare that helps children prepare for school success contributes to a stronger future workforce.

Wilkes County Childcare Study 24

Figure 1.17. Wilkes County Estimated Childcare Demand for School Age Children

Economic Development

Based on the North Carolina Department of Commerce’s annual ranking for economic well-being, Wilkes County is one of North Carolina’s 40 most economically distressed counties.42 Wilkes County’s future depends on creating conditions that support economic development. By supporting entrepreneurial growth, retention, and expansion of existing businesses, and recruiting new industries, Wilkes County will increase the wealth and upward mobility of its residents.

First and foremost, Wilkes County needs to build a highly educated and skilled workforce that helps attract and retain businesses and other employers. But that won’t happen unless families have affordable and accessible quality childcare where they can leave their children while they are working or in school. Families will struggle to attain financial stability as long as they are scrambling to make childcare arrangements. Employers competing for a limited labor force will close or move where laborers are more plentiful.

The Covid-19 pandemic immediately demonstrated the impact that a lack of childcare has on the economy. Many working parents could not work when childcare programs and schools closed disrupting workflow and production for Wilkes County businesses and employers. Many parents opted out of the workforce when the pandemic permanently closed some childcare providers exacerbating Wilkes County employers’ need for labor. As of early 2023, Wilkes County had just under 1,000 online job postings across all industries for companies and staffing agencies looking for workers in the region.43

Better Outcomes for Families and Children

Underestimating the importance of early childhood development and not investing enough in early childhood care and education is perhaps the biggest mismeasure a community can make in building a strong workforce and community. Research shows that investments in early childcare deliver a significant return on investment for educational and health outcomes that impact long-term economic well-being.

Insufficient childcare hinders wealth

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In 2021, Wilkes County's median household income was $43,933, putting it in the bottom third of all North Carolina counties on that economic well-being measure.44 About one in five residents (19.5% of the county’s population) is considered to be in poverty,45 a measure that does not consider costs such as childcare and health care that are determining factors in one’s ability to sustain a household while working.46 Even more concerning, nearly 30% of Wilkes County children (27.4%) live in poverty.47 Public assistance programs such as the federal Supplemental Nutrition Assistance Program (SNAP) provide income to 21% of households in Wilkes County. While Wilkes County's average annual wage per hour per worker employed in the county, regardless of where they live, is $21.10 per hour (or $43,887 annually),48 the cost of living (or living wage) ranges from $11.90 in a two adult/no children wage earning household to $52.19 for a single adult household with three children.49 At an average cost of $762.5050 for childcare in Wilkes County, working families will struggle to gain financial security putting upward mobility farther from reach.

42 North Carolina Department of Commerce. (2023). County Distress Rankings (Tiers). Retrieved from commerce.nc.gov/grants-incentives/countydistress-rankings-tiers. County Tiers are calculated using four factors: average unemployment rate; median household income; percentage growth in population; adjusted property tax base per capita.

43 Based on data generated from JobsEQ. Accessed February 2023.

44 U.S. Census Bureau American Community Survey, 2021. Retrieved from data.census.gov. The highest concentration of household incomes (17%) falls between $50,000 to $74,999.

45 U.S. Census Bureau American Community Survey, 2021. Retrieved from data.census.gov.

Research illuminates the adverse economic impact that families experience without adequate childcare and the implications for businesses and taxpayers. A 2022 study reported a combined $122 billion loss in annual earnings and revenue for U.S. parents, businesses, and taxpayers.51 This study itemized annual costs of inadequate childcare as follows:

• Working parents lose an average of $3,350 in lost earnings, reduced productivity at work, and more time looking for work, or $37 billion in aggregate.52

• Businesses lose an average of $1,150 per working parent in reduced revenue and in extra recruitment costs, or $13 billion in aggregate.

• Taxpayers lose an average of $630 per working parent in lower income tax and sales tax, or $7 billion in aggregate.

Investing in the future

Research also shows that investing in high-quality, early education programs generates significant returns on investment. James Heckman, a Nobel Laureate economist, has found that every dollar spent on high-quality, birth-to-five programs for disadvantaged children can deliver a 13% per annum return on investment from better education, health, and employment for parents, greater economic productivity, and reduced spending on healthcare and crime.53 Researchers at the University of Nebraska-Lincoln found that lack of access to childcare hindered the state of Nebraska’s economic viability through workforce participation and loss of production.54 A study conducted by economists at the Federal Reserve Bank in Minneapolis found that investments in early childhood resulted in more effective public schools, improved health, less crime, and more educated skilled workers that provided up to a 16% per year return on investment.55

Moreover, healthy development in the early years, birth to three-year olds (Figure 1.18) is a critical determinant of economic prosperity, educational achievement, and lifelong health, and is the foundation for strong communities, responsible citizenship, and successful parenting of the next generation. Within the past 20 years, research on brain development has also provided compelling evidence that early experiences affect the development of the brain, which is directly connected to a young child’s rapid physical, cognitive, language, and social-emotional growth:

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“The brain is a highly interrelated organ, and its multiple functions operate in a richly coordinated fashion. Emotional well-being and social competence provide a strong foundation for emerging cognitive abilities, and together they are the bricks and mortar that comprise the foundation of human development. The emotional and physical health, social skills, and cognitive-linguistic

46 U.S. Census Bureau American Community Survey, 2021. Retrieved from data.census.gov.

47 U.S. Census Bureau American Community Survey, 2021. Retrieved from data.census.gov.

48 Data from JobsEQ. Accessed December 2022.

49 Based on the Living Wage Calculator, developed by the Massachusetts Institute of Technology, which considers wages in relation to a geographically specific cost of living for basic necessities including food, housing, childcare, health insurance, and transportation. Living Wage Calculator. (n.d.). Retrieved from https://livingwage.mit.edu/

50 Average of all market rates for childcare reported in Figure 1.10.

51 Council for a Strong America. (2 February 2023). “$122 Billion: The Growing, Annual Cost of the Infant-Toddler Child Care Crisis.” Retrieved from strongnation.org/articles/2038-122-billion-the-growing-annual-cost-of-the-infant-toddler-child-care-crisis

52 Based on a count of 11 million parents nationally.

53 The Heckman Equation. (n.d.) “Quantifying the Life Cycle Benefits of a Prototypical Early Childhood Program.” Available at heckmanequation.org/ resource/lifecycle-benefits-influential-early-childhood-program/

capacities that emerge in the early years are all important prerequisites for success in school and later in the workplace and community.”56

For example, research shows that vocabulary gaps begin at birth and that children with higher socioeconomic status (SES) are exposed to a wider and more complex vocabulary in their first four years of life than their peers of lower SES (See Figure 1.19).57 Other research shows that vocabulary is directly correlated to a child’s reading achievement.58 Through correspondence during the 2022-23 school year, Wilkes County Schools reported to the taskforce that 52.3% of children in grades 3-8 in the 2020-21 school year were not proficient in reading. Though most of the elementary schools demonstrated student growth, the percentage of students who scored at or above proficient levels in reading decreased from 53.9% of grade 3-8 students in 2018-2019 before the Covid- 19 pandemic to 47.7% of students two years later. The research suggests that strong early childcare could help reverse that trend.

Healthy Brain Development

Most brain development occurs between birth to three years of age than at any other time in life, with more than 1 million new neural connections being formed every second. At birth, a baby’s brain is about a quarter of the size of the adult brain but by the time the child is ready for kindergarten, it is 90% of an adult’s brain. The quality of relationships and experiences children are exposed to in these early years is crucial for making positive brain connections, development, and lifelong outcomes.

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Source: C.A. Nelson (2000). Credit: Center on the Developing Child

Cumulative Language Experiences

54 University of Nebraska-Lincoln College of Business. (2020). The Bottom Line: Economic Impacts of Inadequate Child Care Access in Nebraska. Retrieved from firstfivenebraska.org/wp-content/uploads/2021/07/Bottom_Line_Report-FINAL.pdf

55 Rolnick, A. and Grunewald, R. (1 March 2023). “Early Childhood Development: Economic Development with a High Public Return.” Retrieved from minneapolisfed.org/article/2003/early-childhood-development-economic-development-with-a-high-public-return

56 Harvard University: Center on the Developing Child. (n.d.) Brain Architecture. Retrieved from developingchild.harvard.edu/science/key-concepts/ brain-architecture/

57 Hart, B. and Risley, T. (1995). Meaningful Differences in the Everyday Experience of Young American Children as referenced in SoundEnglish. (29 June 2020). “30 million words.” Retrieved from soundenglish.org/30-million-words

58 C.A. Nelson (2000) as credited to Center on the Developing Child cited in Center on the Developing Child, Harvard University. (n.d.) InBrief: The Science of Early Childhood Development. Retrieved from developingchild.harvard.edu/resources/inbrief-science-of-ecd/

Figure 1.18: Human Brain Development

Figure 1.19: Cumulative Language Experiences

Source: Hart and Risley (1995). Credit: Soundenglish.org

What if?

This report presents research that makes a case for building a solid childcare infrastructure. Inadequate childcare can drag down available workforce, leading to businesses deciding to relocate. Another way to understand what is at stake for businesses and residents of Wilkes County is to consider the impact of a business stopping operations in the county. What happens if a company cannot find the right labor force in Wilkes County? The company can close operations in Wilkes County and move to another geography outside of the area or lay off workers.

This model presents an example of hypotheses of the economic impact on people, occupations, payroll, sales, and value of output if 100 jobs are lost for two different types of businesses.

Example 1: A Headquarters Operation is laying off 100 workers at its Wilkes County location. This type of business has a 1.36 multiplier and will affect not only those 100 people but suppliers and other businesses in the area.

100 HQ Jobs lost =

• $6.5 million annual payroll lost – total of $8.3 million in compensation in the community

• $14.2 million annual sales lost – total of $20.5 million in annual sales in the community

• $21,980 lost revenue in a childcare service company

Example 2: A Manufacturing Operation is laying off 100 workers at its Wilkes County location. This type of business has a 1.75 multiplier and will affect not only those 100 people, but suppliers and other businesses in the area.

100 Manufacturing Jobs lost =

• $4.3 million annual payroll lost – total of $7.3 million in compensation in the community

• $37.2 million annual sales lost – total of $50.5 million in annual sales in the community

• $25,557 lost revenue in a childcare service company

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If a headquarters operation in Wilkes County closes or lays off workers, ripple effects in the local economy ensue. If this event represents 100 jobs, 36 additional jobs are affected resulting in additional lost payroll. For a manufacturing firm, a loss of 100 jobs would affect 75 additional jobs in the community. Adverse impact on company and vendor sales would result in fewer earnings in the community for spending which would in turn impact local businesses resulting in more loss reflected in reduced sales, staff reductions, etc. Childcare services would also suffer losses in jobs and income when newly unemployed workers no longer need childcare.

CONCLUSION

Findings

The Wilkes Childcare Study revealed some considerable childcare needs in Wilkes County. The number of licensed childcare providers and spots for young children have decreased dramatically since 2007. Afterschool and summer care programs in the county are also severely limited. The demand for childcare is significant and is not projected to lessen in the coming years. Both workers and employers are feeling these pressures particularly in a tight labor market in which labor force participation is declining. Childcare providers are not immune to the current challenging workforce dynamics and finding suitable, well-trained workers is difficult for them as well.

Addressing the critical shortage of childcare options in Wilkes County will positively impact all members of the community not just parents and caregivers. Childcare solutions are needed immediately to meet the current demand for working parents in the county. Short-term actions can also expand the availability of childcare for caregivers wanting to work and re-enter the labor force. A mix of long-term strategies aimed at developing high-quality childcare programs can enhance the early-childhood development of future Wilkes County workers and create a childcare ecosystem that will help build the workforce and community of generations to come.

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HOW WILKES COUNTY CAN IMPROVE CHILDCARE

Recommendations

The Wilkes County Childcare Study Taskforce developed recommendations on short and long-term strategies the county may explore to improve the childcare ecosystem in the county. These recommendations reflect the Taskforce’s goal of enhancing the childcare environment by increasing workforce participation, supporting and expanding existing childcare providers, building and attracting new care providers, addressing childcare worker needs, helping families navigate Wilkes County childcare, and prioritizing the importance of early childhood care and education throughout the community.

Wilkes County Childcare Study

Increase Workforce Participation of Parents through Family-Friendly Practices

Increase employee retention and encourage non-working parents to participate in Wilkes County’s labor force by adopting family-friendly employment policies and benefits.

Seventy-five percent of U.S. mothers and 50% of U.S. fathers say they have passed up work opportunities, switched jobs, or quit to care for their children.59 Employers that offer family-friendly policies and benefits are known to have a competitive advantage in retention and recruitment, employee satisfaction, increased productivity, and reduced absenteeism.

1. Encourage all sizes of employers to explore and engage with Family Forward NC for assistance in forming family-friendly culture, policies and benefits. A few ideas for employers to consider adopting include parental paid leave, family-sustaining wages, flexible work and scheduling, childcare assistance and accommodations for pregnant or breastfeeding mothers. Family Forward NC offers assistance in planning, as well as a program certifying that an employer’s meets certain standards that support children and families’ well-being. Community organizations should look for ways to acknowledge publicly employers that have achieved family-forward certification.

2. Employers may consider participating in a community fund or consortium to support childcare. In exchange for contributing collective financial support to centers, participating employers could ensure that their employees are prioritized for available childcare slots as an employee benefit. Employers could also offer an employee benefit that helps pay for childcare costs.

Attract, Develop, and Retain Childcare Workforce

Build a quality childcare workforce to ensure a supply of licensed centers and homes sufficient to meet the demand for childcare.

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Local childcare providers shared in a survey that staff shortages and lack of qualified teachers are the top challenges operators face. With childcare staff in Wilkes County decreasing by 48% since 2007 and national estimates suggesting that 17% of childcare workers will leave their jobs on an annual basis, attracting, developing, and retaining childcare workers is imperative.

1. Increase childcare staffing within centers by encouraging early education career pathways, internship/apprenticeship opportunities in Wilkes County high schools and Wilkes Community College. The Career & College Promise (CCP) program could also be encouraged as a potential pathway to an early education career. Other fields of study and career paths that are experiencing talent shortages have adopted work-based learning approaches to help bridge the experience gap and to promote interest while supporting training. This model has proved successful in a variety of settings.

2. Encourage the use of scholarships such as T.E.A.C.H. Scholarships through local advertising and increased public awareness of such programs. This statewide scholarship offers a debt-free college education to current members of the early education workforce. This effort will help more employers and workers learn about the possibility to receive much-needed training to advance their careers in early childhood education

59 Craighill, Peyton and Danielle Paquette. “The surprising number of parents scaling back at work to care for kids.” The Washington Post. August 6, 2015. Retrieved from washingtonpost.com/business/economy/the-surprising-number-of-moms-and-dads-scaling-back-at-work-to-care-for-theirkids/2015/08/06/c7134c50-3ab7-11e5-b3ac-8a79bc44e5e2_story.html?utm_term=.bd7035932210

3. Utilize On-The-Job-Training programs to supplement wages. Some employers may be able to participate in this federally-funded program that offers businesses a wage reimbursement incentive to help offset the cost of training new employees with limited skills. Wage reimbursement may range from 50% to 75%, depending on the size of the business and other factors. This could help childcare providers in hiring new workers.

4. Establish a community fund or consortium that helps supplement childcare employees’ pay. Low pay for childcare workers was identified as a challenge in this study. During this effort, a stabilization grant was still available through federal funds to help boost pay for workers in a severe talent crunch. However, the risk of the funding going away in 2023 was a concern for many childcare providers. This recommendation suggests that an evergreen fund to supplement wages be considered for being able to attract and retain more workers in childcare, and therefore allowing more providers to thrive and provide essential services.

5. Encourage childcare providers to join a shared benefits policy. Another challenge identified in the study was that childcare workers often lacked employee-sponsored insurance. A shared benefits policy would include employee benefits such as medical and disability insurance, along with other programs such as retirement to participating providers. Employee benefit packages are often not affordable for small businesses alone, however, if a group bands together to participate, costs per employee will likely be lower and, hopefully, more affordable.

6. Create a centrally organized childcare teacher substitute pool that all childcare providers may access to address day-to-day staffing challenges. Many public and private school systems have a list of qualified people who can fill in when an educator must miss work due to illness or other urgent situations. This practice can be organized for a variety of childcare providers to aid in situations that could otherwise make childcare unavailable for enrolled children. This could be manned by retired childcare workers and teachers who are not necessarily interested in full-time work but could work in a temporary capacity. A central organization could manage this pool taking the stress off local providers.

Support the Childcare Business Model of Existing Providers

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Strengthen childcare centers through training programs, shared services, and cooperative buying programs to improve financial stability.

Childcare providers are key in providing important early education services, however, they are also small businesses with multiple administrative tasks to manage. This goal aims to support these vital small businesses through existing resources available in Wilkes County, to possibly bring in successful models from other areas, and to form new ventures that could make the running of childcare services easier to manage.

1. Utilize existing training program infrastructures at Wilkes Community College (WCC), the Small Business Center (SBC), and Small Business Technology Development Center (SBTDC) to strengthen childcare operators’ business skills and management practices. The Wilkes Partnership for Children offers classes and technical assistance to small business operators. WCC can also develop training classes specifically for childcare operators, and SBC and SBTDC could be encouraged and

incentivized to provide confidential consulting services that support childcare operators’ use of best business practices.

2. Provide support for growth and expansion to existing centers that funds exploration of potential growth opportunities, and review of eligibility to local grant programs, including the Small Business Development Incentive Grant and the Entrepreneur Grant Program, for funding to support capital improvements, equipment purchases, and job creation activities.

3. Consider creating a shared back-office program among local providers to improve efficiencies and reduce administrative costs. Services could include accounting and billing, vendor selection, IT support, and HR.

4. Establish a cooperative buying program among local providers to leverage buying power for supplies and food.

Encourage New Childcare Providers

Encourage new childcare options to proliferate using innovative co-location models in addition to traditional growth strategies.

The suggested approaches for supporting existing childcare providers may encourage their growth and expansion as well as help attract and launch new businesses offering childcare services. Other strategies focused on growth should be explored to increase the number or childcare providers in Wilkes County to a level that can meet existing and future needs.

1. Encourage innovative alternative childcare centers by facilitating appropriate co-location of childcare services with other care providers. Intergenerational care operations exemplify an innovative co-location model that helps address both care needs for children and aging adults. Colocated child and adult service operations using shared spaces and services (for example, kitchen and dining facilities and food, maintenance, and transportation services) and combining purchasing power may realize significant financial efficiencies as well as positive cross-generational benefits. Socially, studies have shown that activities that include children and older adults can increase selfesteem and promote friendships. Examples of care operations providing cross-generational include:

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• Messiah Lifeways and U-Gro are both located in Messiah Village, a residential community for older adults in Mechanicsburg, Pennsylvania.

• ONEgeneration in Van Nuys, California has both adult daycare and childcare supporting intergenerational activities.

2. Facilitate the expansion of home-based licensed providers. Supporting family or friend homebased childcare situations to become licensed childcare operators could help expand licensed childcare availability, particularly in the more rural parts of Wilkes County. Prospective resources for supporting such transitions include:

• A new Home Based Child Care Initiative recently launched by MDC focused on creating a system of networks and leadership to support home-based child care in North Carolina.

• New federal funding that the NC Department of Health and Human Services announced in 2023 that will be used this year to enhance the NC Family Child Care Home network.

3. Promote the establishment of out-of-school childcare programs. As this report describes, the need for after-school and summer childcare for Wilkes County children is severe. Since afterschool and summer care operations do not require licensing the barriers and costs for opening new programs are relatively low. Existing and new providers may be encouraged to launch new out-ofschool time care options through collaborative efforts aided by individual and collective exploration of resources designed to support out-of-school startups. Potential starting points include:

• Providing an out-of-school care start-up guide similar to one offered by the school Alliance to potential afterschool and summer childcare providers,

• Recruiting after-school or summer childcare providers, such as Western Youth Network (operating in Allegheny, Ashe, and Watauga Counties) or similar organizations, to offer camps in Wilkes County. Community organizations that operated after-school programs in the past (see Figure 1.5) should also be encouraged to once again offer programs.

• Coordinating partnerships between potential program providers and community organizations with facilities containing appropriate childcare space, such as churches or community centers.

In addition, summer camps currently provided by organizations such as the 4-H Club, arts, sports or STEM could coordinate offerings to help caregivers “mix and match” programs to achieve continuous care over broader time frames than individual providers offer.

4. Encourage sick and shift-based childcare. With licensed childcare offered only during the day from approximately 8 a.m. to 5 p.m. timeframe, health care, first responders, and other shift workers have no licensed care options for childcare in Wilkes County for alternate work schedules.

Additionally, for the protection of others, children who exhibit signs of illness are not permitted in childcare environments often resulting in their caregivers’ absence from work. To provide care for children with mild illnesses, providers could explore the possibility of contracting with existing childcare providers to house a space in their location or another central facility; for example, the Get Well Place at LeafSpring School in Richmond Virginia provides backup care for children with common childhood illnesses such as colds, flu, or stomach bugs.

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Help Families and Caregivers Navigate Childcare

Establish a central, community-wide team to help Wilkes County families and caregivers find childcare that provides young children the early education experience they need for healthy development.

Given the challenges of identifying available, accessible, and affordable childcare, Wilkes County families and caregivers need a community-based organization to support caregivers facing childcare challenges.

1. Form a “one-stop shop” for all matters related to childcare. Having one centralized organization in the community that is readily identifiable to families and caregivers can help them navigate childcare options and opportunities with more efficiency than they currently experience. Such an organization could be newly formed or incorporated into an existing entity, such as the Wilkes Partnership for Children. This would also be the organization with blended funding to pool resources and address multiple sectors of childcare.

2. Include provision of certain critical supports in the “one-stop shop” design. Among the supports that a centralized childcare support organization may provide, two are particularly important to empower families and caregivers to support their children’s well-being.

• Supports for caregivers in finding ways to improve childhood development. Resources should be developed for parents, grandparents, and all kinds of families and caregivers who care for children to assist them in identifying high-quality childcare options as well as developmental resources and opportunities for children including high-quality, cost-effective reading, book share, tutoring and play activities.

• Supports for caregivers in need. Parent support programs that enhance a family’s ability to move out of poverty and provide for themselves are needed to help them navigate the “benefits cliff” that occurs when a small increase in earnings results in a family losing or receiving significantly less of the public benefits that helped finance basic needs and quality childcare. A centralized community-wide organization, alone or in partnership with low-income agencies, could host regular parent meetings on financial literacy and coordinate community volunteers to provide financial mentorship to caregivers. The Wilkes Circles of Care, based on a nationally-proven and innovative program, provides a model for consideration: It helps individuals and families move out of poverty by providing access to a large network of resources, including dedicated volunteer teams, that help navigate employment, job skill development, education and social services.

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Continue to Elevate the Importance of Childcare in the Community

Facilitate collaborative partnerships between community organizations and businesses that help ensure the advancement of childcare matters in Wilkes County.

Enhancing Wilkes County’s childcare system will require ongoing monitoring of developments in (1) early childhood legislation, (2) current research (or science) of early childhood education, (3) ideas and solutions that positively impact children, families, and the county’s economic growth, and (4) funding opportunities for childcare.

1. Develop partnerships among county and city agencies, businesses, and community organizations focused on prioritizing development of child/family-focused budgets and facilitating critical activities, including:

• Identifying various funding opportunities for childcare enhancement (e.g., federal, state, and local public grant funds; national, state, and local philanthropic grants).

• Preparing grant applications for, and managing grants that support community childcare initiatives.

• A system for organizing or coordinating multiple funding sources, both private and public, for the advancement of childcare in Wilkes County. Such a system could address, for example, a funding formula for a community fund that supports childcare slots in all areas of the county.

2. Develop partnerships with neighboring counties. Partnerships with surrounding counties with common interests related to childcare may help Wilkes County monitor and address legislative issues affecting childcare issues in rural North Carolina.

NEXT STEPS FOR WILKES COUNTY

The Wilkes Childcare Study Taskforce is thankful for the opportunity to build a working team focused on examining the county’s childcare landscape and present what we learned in this final report. The taskforce will begin the work of sharing this report within the community and finding champions for childcare to further advance the county toward the goals outlined in this document. As this report describes, the taskforce’s hope and ambition is to improve the childcare ecosystem in Wilkes County and thus improve the labor force. Through an annual review, the taskforce’s sponsors intend to track and measure Wilkes County’s progress toward achieving these goals.

The taskforce thanks the childcare providers, parents, employers, and community partners who participated in surveys, focus groups, and meetings to share their experiences with the study team. Wilkes County holds great promise and many growth opportunities that the taskforce and its sponsors hope can be realized in part through investments in early childhood education and care.

APPENDIX 1: METHODOLOGY

The Taskforce determined that the scope of the study should include:

• Identifying all existing licensed public, private, and in-home care facilities for two different age ranges, birth to age 5 and age 6 to 12 years old.

• Accounting for the existing state of childcare and assess needs based on data, stakeholder feedback, the expertise of consultants, and community experience.

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• Examination of the demographic, economic, and labor force dynamics in Wilkes County that inform its economic standing as well as its growth potential. The taskforce understands that there are different types of families and different needs across ages, incomes, types of professions, and childcare choices.

• Analysis of the most common challenges and strengths affecting the county

• Recommendations that will help parents, employers, and citizens of Wilkes County.

Phase 1: Discovery

• Research

• Stakeholder Engagement

Phase 2: Analysis

• Identify Strengths/Gaps

• Evaluate Trends

Phase 3: What's Next? Recommendations

• Recommendations/Actions Steps

• Identify Community Champions

Stakeholder Engagement

Recognizing the importance of stakeholder input to any community study process, the taskforce sought feedback from people living and working in Wilkes County. The perspectives that community members gave provided context to the quantitative data accumulated in the project’s Phase 1, illuminated issues critical to understanding the community, and thus helped validate our analysis of all the data collected.

The taskforce sought feedback from stakeholders who were customers, providers, employers, or partners in childcare within the county. Our aim was to identify challenges, strengths, and details on their needs related to childcare that would help shape further data collection and recommendations for improving childcare in the county. In all, we made more than 575 contacts using various efforts. The online parent

survey alone represented feedback affecting 833 children. Our three main methods for engaging stakeholders were:

1. In-person focus groups

• Three parent meetings across the county

• One employer meeting

• One childcare provider meeting

2. Electronic surveys

• Two parent surveys

• One employer survey

• One provider survey

3. One-on-one interviews

• Partners

• Employers

• Childcare providers

• Other experts or childcare program operators

In all, this effort yielded perspectives on childcare experiences and indicators of childcare challenges and needs in Wilkes County. From the varied responses and conversations, several main themes began to emerge surrounding the challenges of finding, running, and maintaining childcare operations. In summary, all audiences agreed that Wilkes County is a childcare “desert” without needed available, quality care. Key challenges stated via stakeholder engagement were:

• Cost of childcare

• Staffing of childcare operations

• Large geography to cover

• All of the above lead to a lack of available, quality childcare spots

Selected Stakeholder Results

Childcare Provider Survey Results, 2022: “Long hours, staffing challenges, but 100% about the children.”

If you are a director/owner of a childcare program, please rank the following in order of most difficult challenges, to its least difficult challenges. (1 being most difficult and 6 being least difficult)

Rank Challenges

% of responses per item. 57% of respondents (owners/directors) ranked staffing shortages as the top challenge.

work

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When asked what the best thing about childcare work, respondents answered overwhelmingly that it was all about helping children. Responses included the phrases below:

"Watch the children grow"

"Experiencing milestones"

"Relationships and bonds with children & families"

"Making a difference"

"Learning from children"

"Hugs"

"It is such a great responsibility and privilege"

APPENDIX 2: LIST OF LICENSED CHILDCARE PROVIDERS

APPENDIX 3: ECONOMIC HIGHLIGHTS

Wilkes County Major Employers, 2022

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Source: Wilkes Economic Development Corporation, NC Department of Commerce Labor Analytics and Economics Division, 2022

60 Enrollment information was collected through a direct call with the childcare provider in February 2023 or from the latest report published by the NC Department of Health and Human Services: Division of Child Development and Early Education. Calculations in the report were made using the latest reports retrieved during the discovery phase conducted in November 2022.

NC Department of Health and Human Services: Division of Child Development and Early Education, Childcare Analysis Detail. Accessed November 2022.

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With such a pronounced need, the Leonard G. Herring Family Foundation committed to prioritizing early childhood education and funded a comprehensive childcare study in Wilkes County to be carried out by a community-led childcare taskforce. Understanding that early childhood education lays the foundation for the success of children today and that of their community in the future, recommendations included in this report are intended to lay the groundwork for building a childcare ecosystem that supports economic growth.

Cyndi Dancy Dancy Research

Pamela Shue Appalachian State University

Kirstin Roberts The Health Foundation

Michelle Shepherd Wilkes Community Partnership for Children

LeeAnn Nixon Wilkes EDC

Robin Hamby Wilkes EDC

Francisco Martinez Wilkes EDC

This research is funded by the Leonard G. Herring Family Foundation.

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