New survey: Pandemic could force 52% of day care providers in Colorado, U.S., out of business by end of year
COLORADO SPRINGS, Colo. (KRDO) -- A survey of 5,000 day care providers across the country paints a bleak future because of the COVID-10 Pandemic.
According to the survey conducted by the National Association for the Education of Young Children, 52% of providers said they'll be of business by the end of the year, and 40% fear going under sooner than that without more federal financial assistance.
The CARES Act allocated $3.5 billion to day care providers during the pandemic, but it hasn't been enough and the money is running out for many.
According to the survey, 73% expect -- or already have made -- pay cuts, furloughs or layoffs for employees. Another 18% have yet to reopen after closing at the start of the pandemic.
Providers said their enrollment is down 67%, which lowers revenue at a time when other expenses are due, and there now are additional costs for cleaning and protective equipment required for the virus.
Day care providers said the situation makes preparing for the future difficult because they don't know how many schools will return to in-classroom learning, how many parents will want to put kids in day care, and what their revenues will be.
"Money-wise, it's hard to distinguish where you're going to be from month to month," said Kimberly McCoy, who has been owner and director of the McCoy/Littlejohn Child Care Center since 2004.
"I didn't take any of the federal assistance," she said. "I'm trying to maintain on my own. But it's stressful. Our enrollment has fallen from 120 to 88. I love my job because I like helping kids grow. But if the state shuts down again, I'm worried about what will happen."
The situation has led some experts to call for reform in the day care industry, to give providers more protection against unexpected situations such as the pandemic.
"Whether that should be state funding or federal funding, I don't know," said Stacey Buzbee, who has operated home day care for nearly 20 years and is also vice president of the Colorado Association of Family Child Care.
"There are so many requirements we have to meet," she said. "And even under normal conditions, every day is different for us. But with the virus, one minute we think we're open and the next minute, a parent or family member has tested positive and is taking a child out of day care. How we handle that determines whether we stay in business."
Buzbee said at the start of the pandemic in El Paso County, many parents quit their jobs to stay at home with their kids -- which affected families financially if both parents were working.
"If we lose half of our day cares, where will families find options?" she said. "And how will families find enough quality day care that's best for their kids? It'll really affect our economy."
