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North Carolina childcare workers can struggle to afford the care they provide to other families, adding pressure to an already strained workforce. Some centers cover employees’ childcare costs, and a Watauga County initiative has provided assistance to 18 workers with 22 children; advocates also point to Kentucky’s statewide subsidy as a possible model.
North Carolina childcare providers are trying different ways to help employees pay for care for their own children, as high costs add to the challenge of recruiting and retaining workers. A Watauga County assistance initiative has helped 18 childcare employees with 22 children, while some centers, including Durham’s Kate’s Korner, cover much of the cost directly.
At Kate’s Korner, owner Kate Goodwin says the center provides free childcare to employees as a deliberate investment in its workforce. Some staff use vouchers; for employees who cannot, the center covers all but one week of care each month. Goodwin says the arrangement leaves the business with slimmer margins, but addresses a cost that can make it difficult for childcare workers to access the service they provide to other families.
The report cites a survey of about 1,200 childcare providers across North Carolina. In it, 61% of directors said their programs already offered employees a childcare benefit. The survey figure describes whether programs offered a benefit; it does not establish how much care was covered or how many workers used it.
In Watauga County, the Boone Area Chamber of Commerce Foundation launched an assistance initiative last year with $40,000 from local donors and businesses. The program provided aid to 18 childcare employees with 22 children, averaging $684 per child. The report does not say whether that average represents a monthly amount or a different period, so it should not be treated as a monthly benefit.
Childcare Costs Strain Center Staffing
Childcare costs can affect both workers’ household budgets and providers’ ability to keep classrooms staffed. The report says staffing shortages can lead centers to operate with smaller classrooms, shorter hours or reduced enrollment, limiting the care available to families and potentially affecting parents’ ability to work.
A study by Appalachian State University cited in the report found childcare workers earned an average of $30,600 a year, while the median monthly childcare cost was $900. Using those figures, the report estimates that one child’s care would take about a third of a worker’s gross income. That comparison illustrates the burden but does not describe every worker’s pay, family circumstances or childcare expenses.
Local assistance may give workers another reason to remain in the field, according to David Jackson, president of the Boone Area Chamber of Commerce. The report also places these efforts against the loss of federal funding that had helped stabilize the childcare industry. It does not quantify how much that funding loss has affected North Carolina centers or how many jobs have been lost as a result.
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Local Aid and Kentucky’s Statewide Model
Watauga County’s program relies on local donors and businesses to help cover employees’ childcare bills. Kate Goodwin said Kate’s Korner instead absorbs most of the cost for eligible staff who cannot use vouchers. The approaches differ in who pays, but both aim to make it easier for childcare employees to stay in a sector where wages can be low relative to care costs.
Kentucky launched a statewide program in 2022 that subsidizes care for childcare workers employed at least 20 hours a week, regardless of household income. Kate Shanks of the Kentucky Chamber of Commerce said more than 5,300 families working in childcare benefited over the past year and that lawmakers made the program permanent earlier this year. The Kentucky Chamber says at least nine other states have since enacted similar policies. Those figures and descriptions are attributed to the chamber; the report does not provide an independent assessment of program outcomes.
North Carolina’s labor force participation rate is described in the report as about 58%, compared with roughly 61% nationally. Business leaders cited in the report say affordable childcare is one factor in the state’s workforce participation. The figures provide wider economic context, but do not establish that childcare costs alone explain the difference.
“As a business owner, I made a decision that my margins will be slimmer than most because I felt like this was the commitment I needed to make.”
— Kate Goodwin, owner of Kate’s Korner
North Carolina Policy Remains Undecided
The report describes local benefits and a proposed policy direction, but does not identify a statewide North Carolina program or a legislative plan to create one. It is unclear whether state officials are considering a subsidy, what eligibility rules or funding would look like, and whether the Watauga initiative will continue or expand.
The source also does not give the survey’s field dates or detailed methodology, the duration covered by the $684-per-child average, or the number of workers who could not access existing benefits. It reports that centers face staffing pressures, but does not quantify the effect of employee childcare benefits on retention, vacancies or enrollment.
Whether Local Support Expands
The immediate next step is whether local organizations continue or expand assistance and whether North Carolina policymakers consider a broader subsidy. The report does not announce a decision, timeline or upcoming vote. Any statewide proposal would still need defined eligibility, funding and implementation details.
For now, centers’ employee benefits and Watauga’s locally funded effort offer different approaches to the same affordability problem. The available information does not show whether these measures are sufficient to ease staffing shortages across the state or how their results compare with Kentucky’s program.
Key Questions
What is North Carolina doing to help childcare workers afford care?
Some providers offer employee childcare benefits. Kate’s Korner covers most of the cost for employees who cannot use vouchers, and a Watauga County initiative has provided financial assistance to workers. The report does not describe a statewide North Carolina subsidy.
How many workers did the Watauga County initiative help?
The Boone Area Chamber of Commerce Foundation program assisted 18 childcare employees with 22 children, using $40,000 in funding from local donors and businesses. The report says aid averaged $684 per child but does not specify the period represented by that average.
How common are childcare benefits for center employees?
In a survey of about 1,200 North Carolina childcare providers cited by the report, 61% of directors said their programs offered a childcare benefit. The survey information does not state how much care benefits covered or how many employees used them.
Does North Carolina have a statewide subsidy like Kentucky’s?
The report does not identify a statewide North Carolina program. Kentucky’s program, launched in 2022, subsidizes care for childcare workers employed at least 20 hours a week, regardless of household income.
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