Recession's Effect on Childcare

The recession has created a national trend of low enrollment in traditional childcare as more parents lose jobs, accept reduced hours or have lower paying jobs. The National Association of Child Care Resource and Referral Agencies (NACCRRA) reported that in the last six months of 2008, 65 percent of its providers reported an increase in vacancy rates at childcare centers.

With parents facing job losses or reduced wages, they sometimes can no longer afford licensed childcare, which can run up to $290 per week in Boulder for an infant. (Source:  2008 Status of Children in Boulder County). According to NACCRRA, in 39 states and the District of Columbia, the average annual price of childcare for an infant in a childcare center was higher than a year’s tuition at a four-year public college.

The economic downturn is resulting in many families seeking lower cost alternatives to licensed childcare, which can sometimes lead to using inexperienced providers or leaving children home alone that can jeopardize the health and safety of the children.

Fortunately, area residents have Children’s Alley, which is Boulder County’s only temporary, drop-in childcare center. Childcare fees are based on a sliding fee scale according to household income and fees start as low as $3.30 per hour. Families staying with Boulder Safehouse Progressive Alliance for Nonviolence and Emergency Family Assistance Association may receive up to 10 free visits per month.

While traditional childcare centers experienced a decline in enrollment in 2008, Children’s Alley reported more visits over the previous year. The center has also experienced more parents requesting the lowest rate on the sliding fee scale. As more area families are facing unemployment, many are using the drop-in childcare program to attend job interviews or other job search activities.

While the cost for childcare is high for families, the cost to provide licensed care is also expensive for the childcare provider. The YWCA estimates its cost to provide childcare is $14 per hour per child, or $112 for one full day, but this expense is not passed onto families. Thanks to donations, Children’s Alley provides the sliding fee scale, enabling families to pay what they can afford. Contributions allow Children’s Alley to continue serving nearly 800 children annually. Nearly 50 percent of families served earn a household income of less than $26,000.

During both good and bad economic times, finding quality, affordable childcare will continue to be a challenge for families. Through the financial support of the community, parents have peace of mind knowing they can turn to Children’s Alley for drop-in and temporary childcare. To learn more or to donate, please call (303) 443-0419 or www.ywcaboulder.org. Donations are eligible for the State of Colorado 50% Childcare Tax Credit.