Graduate Center for the Study of Early Learning

The University of Mississippi School of Education

National Child Care Report: Child Care is Fragmented in America

Posted on: October 17th, 2016 by Cathy Grace

screen-shot-2016-10-17-at-3-39-12-pmA new report issued by New America (and accompanying child care index) provides a detailed look at the condition of child care nationally and state by state. Information specific to the cost of child care in the United States confirms the struggle that families face in securing quality care for their children prior to school entry.

The typical annual cost of full-time child care in centers for children ages 0-4 ($9,589) is more than the average annual cost of in-state college tuition ($9,410). A family earning the national median household income would need to spend one-fifth (18 percent) of its income to cover this cost. For an individual earning minimum wage, the cost is even more daunting—up to 64 percent of his or her total income. When stated another way, it is 85 percent of the monthly, median cost of rent nationwide.

According to the Census ACS 1-year survey, the median household income for Mississippi was $40,593 in 2015, which is the latest data available. The data shows that Mississippi’s median household income is $15,182 lower than national average. If the calculation of 64 percent of income was applied, these families would spend $25,979 a year on child care, leaving a family $14,614 for all other expenses.

This calculation illustrates that many Mississippians cannot afford child care without some additional assistance. The assistance can take many forms including: child care subsidies provided to the state from federal funds that are available to eligible families, a family member who provides care for little or no cost, Head Start participation for income eligible families or a combination of some or all of these options.

A report released in 2015 by the Center on Budget and Policy Priorities reveals that states spend only about a quarter of their state and federal Temporary Assistance for Needy Families (TANF) dollars on child care and work activities combined. The report points to funding child care as a major component of welfare reform. Based on what is currently being reported, states could spend more of the funds on child care rather than on on other components of TANF. According to 2014 figures, Mississippi provided close to 30 percent of funds for child care support. Some states spent as much as 55 percent. Mississippi requires any person who receives TANF funds for child care to be employed or in job training.

Child care workers in Mississippi earn a median salary of $18,140 per year. Salaries typically range from $15,970 to $23,280. These numbers may vary depending on several factors, such as the level of education, amount of experience, type of program and location. This translates to a median hourly wage of $8.72 with hourly wages typically ranging from $7.68 to $11.19.  The majority of child care workers do not receive any benefits such as insurance or retirement. Given the low wage a child care worker makes, the level of education of individuals employed in the positions is often minimal. This presents a problem when examining the quality of early childhood classrooms in centers.

When using research-based standards for high quality programs, the educational level of the teacher is noted as the most important marker when examining the daily activities in the classroom. Lack of a college education or early childhood certification can be addressed in some measure by professional development for teaching staff. Teachers can earn national credentials based on demonstrated competencies if the cost of college is prohibitive. Even with these opportunities, an increase in wages commensurate with additional education will be the driving force in teacher career advancements. Going the extra mile and showing improvement in teaching practices should result in additional compensation, if the center owner expects to “grow” staff and reduce turnover. As we see more early childhood collaborative programs across Mississippi, a brighter light is going to focus on program accountability. A child’s readiness for kindergarten, as measured by a state entrance assessment score, will be used in decisions regarding continued funding if state dollars are involved in the program’s operation.

By Dr. Cathy Grace