FCF Releases Report on Status of MN Child Care Businesses
As one of the nation’s leaders in growing the supply and business sustainability of excellent child care, First Children’s Finance analyzed how the effects of the COVID-19 pandemic affected the sector. FCF-Minnesota conducted surveys of child care business owners in 2021 and 2022 and is pleased to share its analysis of the findings in a new report, The New Normal is Not Enough: Minnesota’s Child Care Providers in Year 2 of the COVID-19 Crisis and Beyond.
FCF partnered with the Federal Reserve Bank of Minneapolis in 2021 to conduct a survey of nearly 800 child care providers from all parts of the state. With results indicating worries as far-ranging as plunging enrollment, heavy use of high-interest financing, austerity measures, and staffing concerns, the survey results painted a concerning picture of a sector struggling to remain afloat despite some government and private sector interventions.
In 2022, FCF undertook another survey to help determine the current state of the child care industry in Minnesota and to help illustrate what steps could be effective to help child care businesses maintain and increase services as economic conditions began to reveal a “new normal.” FCF received over 1,000 responses and the results indicate the important role of public investment, amid increases in costs, rising inflation rates, and crushing workforce shortages.
FCF’s report (available for download below), provides an analysis of the surveys, contextualizing data points amid comments from child care business owners who are keeping Minnesota families working.
The report’s findings can be used to craft solutions for states, territories, and tribes, leveraging real-time feedback from child care business owners regarding the condition of their businesses.
FCF – Minnesota and the Minneapolis Federal Reserve Bank are currently conducting the third year of child care business surveys and will report on the most recent findings during a webinar on April 13, 2023.
For additional information regarding the FCF report, contact Suzanne Pearl, Minnesota Director.