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.

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.

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 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).

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)