NEWS for North Dakotans
Agriculture Communication, North Dakota State University
7 Morrill Hall, Fargo, ND 58105-5665


May 7, 1998

Reports Detail Child Care Earnings, Who Pays; Carrington Effort Shows Promise

A report released by the Center for the Child Care Workforce in Washington, D.C., concludes that many of the nation's child care workers continue to be underpaid, and that poor compensation is responsible for staff turnover, a key factor affecting child care quality.

At the same time, families are currently paying for 60 percent of the nation's child-care bill, government expenditures account for 39 percent of the tab and the businesses are paying for 1 percent, according to a 1997 publication titled "Financing Child Care in the United States: An Illustrative Catalog of Current Strategies."

Meanwhile, research on brain development is showing that the early years of life are rife with learning opportunities, which can maximize personal potential and provide a lifetime of benefits. But the benefits of high-quality child care can extend beyond individual children and families, to society in general and even to businesses, says Helen Danielson, extension child development specialist at North Dakota State University.

"Studies have shown that when businesses invest in child care, they experience reduced turnover and productivity increases," says Danielson. "So, it appears that investing in child care can positively affect the bottom line."

It appears that some North Dakota businesses feel the same way. A case in point involves the Dakota Kids Daycare in Carrington, which is receiving financial support from the city, the Foster County Commission and area businesses. Initial private-sector funding came from Dakota Growers Pasta Company, with an initial contribution of $5,000 and a promise from general manager Tim Dodd for annual support to the day care.

"Dakota Growers was the big, heavy-hitter lead business, but others are now following suit. We haven't had a door slammed in our face. People have come up with contributions from $100 to $1,000, annually, that they're willing to make," says Julie Gardner, a Carrington resident who served as the center's original director until she returned to NDSU to further her education. She remains on the day care stabilization committee.

The Foster County Commission has committed $8,000 to center's operation this year. And Carrington's annual contribution to Dakota Kids Daycare for the next two years stands at $12,000. Those funds represent a percentage of the revenue being generated by a one-cent city sales tax, levied to aid job development efforts. Gardner says city leaders recognize that child care is a critical concern for working parents, so if the goal is to create more jobs, all the benefits that will attract qualified employees to those jobs have to be in place.

Now three years old, Dakota Kids Daycare has experienced operational problems, primarily related to turnover of directors—a factor that caused enrollment to drop last year. But the stabilization committee has nearly met its budgetary goals with the subsidies coming from the private and public sectors. This was a key goal for attracting a qualified director, who began working on May 4, says Gardner.

The stabilization committee continues to look for ways to ensure the day care's long-term stability. Gardner says the Carrington Youth Center has served as day care administrator during its initial years of operation, but the committee is now looking at linking with the Carrington Health Center. This new association could bring with it many advantages, one of which would be the possibility of employee benefits. Also, affiliation with a nonprofit organization is important in allowing the day care to apply for grants.

"What this effort has been all about is supporting families and children," concludes Gardner. "It shows me that people are willing to accept responsibility. There is shared responsibility for children."

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Sources:

Helen Danielson (701) 231-8289 & Julie Gardner H-(701) 652-3469 W-(701)652-1742

Editor: Dean Hulse (701) 231-6136