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Should the Child Care Industry Get a Bailout? Should the Child Care Industry Get a Bailout?
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It has become agonizingly clear to parents of young children that the economy cannot fully reopen without child care. Yet a significant number of child care providers have not been able to survive the lockdown.It has become agonizingly clear to parents of young children that the economy cannot fully reopen without child care. Yet a significant number of child care providers have not been able to survive the lockdown.
The sector was already fragile: Unlike public education, the child care industry operates almost entirely on private tuition payments, and most providers are barely profitable. With closings because of the coronavirus, many cannot continue to pay landlords or teachers.The sector was already fragile: Unlike public education, the child care industry operates almost entirely on private tuition payments, and most providers are barely profitable. With closings because of the coronavirus, many cannot continue to pay landlords or teachers.
Now that more states are allowing child care centers to reopen, those that survived face higher expenses because of additional rules about sanitation and new limits, like no more than 10 children per classroom. In some cases, enrollment is down because parents can no longer afford to pay or they’re worried about the health risks.Now that more states are allowing child care centers to reopen, those that survived face higher expenses because of additional rules about sanitation and new limits, like no more than 10 children per classroom. In some cases, enrollment is down because parents can no longer afford to pay or they’re worried about the health risks.
Certain Democrats have long argued that the country should guarantee care and education for children ages 0 to 5 just as it does for those 5 to 18. Now some members of Congress are proposing giving child care the treatment afforded other industries: a bailout.Certain Democrats have long argued that the country should guarantee care and education for children ages 0 to 5 just as it does for those 5 to 18. Now some members of Congress are proposing giving child care the treatment afforded other industries: a bailout.
Congressional Democrats have twin bills that would provide $50 billion to cover operating expenses, new safety measures and tuition relief for families. The House version, whose lead sponsor is Representative Rosa DeLauro of Connecticut, was introduced on Wednesday, with the Senate version expected next week from Senator Patty Murray of Washington.Congressional Democrats have twin bills that would provide $50 billion to cover operating expenses, new safety measures and tuition relief for families. The House version, whose lead sponsor is Representative Rosa DeLauro of Connecticut, was introduced on Wednesday, with the Senate version expected next week from Senator Patty Murray of Washington.
Two Republican senators, Joni Ernst of Iowa and Kelly Loeffler of Georgia, offered a resolution last week that the next coronavirus relief package include $25 billion for child care providers.Two Republican senators, Joni Ernst of Iowa and Kelly Loeffler of Georgia, offered a resolution last week that the next coronavirus relief package include $25 billion for child care providers.
“You really can’t talk about reopening the economy without a conversation about how children are going to be taken care of,” Ms. DeLauro said. “We cannot let this pandemic set back the next generation.”“You really can’t talk about reopening the economy without a conversation about how children are going to be taken care of,” Ms. DeLauro said. “We cannot let this pandemic set back the next generation.”
Jennifer Washburn has run a center for 75 young children in Benton, Ky., for two decades. She laid off 11 staff members, and despite being open for children of essential workers, is spending $20,000 a month more than she earns (in normal times, she earned $2,000 a month in profit). She estimates that when Kentucky allows child care to reopen for everyone in June, her payroll costs will increase 20 percent because of new virus prevention responsibilities, and revenue will be down 20 percent because of class size restrictions and decreased enrollment.Jennifer Washburn has run a center for 75 young children in Benton, Ky., for two decades. She laid off 11 staff members, and despite being open for children of essential workers, is spending $20,000 a month more than she earns (in normal times, she earned $2,000 a month in profit). She estimates that when Kentucky allows child care to reopen for everyone in June, her payroll costs will increase 20 percent because of new virus prevention responsibilities, and revenue will be down 20 percent because of class size restrictions and decreased enrollment.
“We really need to look at how are we going to support us long term, how are we going to say we value early childhood,” Ms. Washburn said.“We really need to look at how are we going to support us long term, how are we going to say we value early childhood,” Ms. Washburn said.
Even before the pandemic, finding affordable, high-quality providers was a struggle for many families.Even before the pandemic, finding affordable, high-quality providers was a struggle for many families.
Now, half the child care supply in the United States is potentially at risk of closing permanently, according to an analysis by the Center for American Progress. It combined the center’s data on child care availability with a March survey of 6,000 providers by the National Association for the Education of Young Children. Seventeen percent said they could not survive any closure without government support; 30 percent said they could not survive more than two weeks; and 16 percent said they could not survive more than a month.Now, half the child care supply in the United States is potentially at risk of closing permanently, according to an analysis by the Center for American Progress. It combined the center’s data on child care availability with a March survey of 6,000 providers by the National Association for the Education of Young Children. Seventeen percent said they could not survive any closure without government support; 30 percent said they could not survive more than two weeks; and 16 percent said they could not survive more than a month.
Some providers received short-term financing from the Paycheck Protection Program or the CARES Act relief package, which gave $3.5 billion to child care. The new bills, echoing recommendations from advocacy groups, go much further, calling for $50 billion.Some providers received short-term financing from the Paycheck Protection Program or the CARES Act relief package, which gave $3.5 billion to child care. The new bills, echoing recommendations from advocacy groups, go much further, calling for $50 billion.
Though many rich countries heavily subsidize early care and education, the United States has long resisted doing so. Lockdowns have shown what happens when child care and education are financed by parents instead of the government. Elementary and high schools are publicly financed, so no one doubts that schools and teachers will still be there when the country fully reopens. There is no such assurance for child care.Though many rich countries heavily subsidize early care and education, the United States has long resisted doing so. Lockdowns have shown what happens when child care and education are financed by parents instead of the government. Elementary and high schools are publicly financed, so no one doubts that schools and teachers will still be there when the country fully reopens. There is no such assurance for child care.
Researchers at Arizona State University found that job postings for early education teachers declined 13 percent in the immediate aftermath of stay-home orders, which equates to the sector losing the capacity to serve 10,000 children each month. But the decreases came only from private programs. The few child care programs that are funded by the government, like Head Start and public pre-K, did not show a decrease, the working paper found.Researchers at Arizona State University found that job postings for early education teachers declined 13 percent in the immediate aftermath of stay-home orders, which equates to the sector losing the capacity to serve 10,000 children each month. But the decreases came only from private programs. The few child care programs that are funded by the government, like Head Start and public pre-K, did not show a decrease, the working paper found.
“If there was ever a time to have a conversation about the fact that we expect parents to pay for care for the first five years of life and we expect government to pay for the next 13, then this is the time,” said Elliot Haspel, an education policy program officer at the Robins Foundation and author of “Crawling Behind: America’s Child Care Crisis and How to Fix It.”“If there was ever a time to have a conversation about the fact that we expect parents to pay for care for the first five years of life and we expect government to pay for the next 13, then this is the time,” said Elliot Haspel, an education policy program officer at the Robins Foundation and author of “Crawling Behind: America’s Child Care Crisis and How to Fix It.”
Kelly Forde, who offers child care from her home in San Francisco, said she and her business partner had gone unpaid since mid-March. She has used her savings to continue to pay four employees and to cover other expenses. She received a Paycheck Protection Program loan to cover some of the payroll, but she said she was able to keep her business only because her husband, a contractor, has continued working.Kelly Forde, who offers child care from her home in San Francisco, said she and her business partner had gone unpaid since mid-March. She has used her savings to continue to pay four employees and to cover other expenses. She received a Paycheck Protection Program loan to cover some of the payroll, but she said she was able to keep her business only because her husband, a contractor, has continued working.
“There is no buffer,” Ms. Forde said. “The margins are extremely small. It’s all quite dismal. Child care needs help immediately before the whole thing implodes.”
Updated June 22, 2020Updated June 22, 2020
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
“There is no buffer,” Ms. Forde said. “The margins are extremely small. It’s all quite dismal. Child care needs help immediately before the whole thing implodes.”
Proponents of subsidized early education have generally made two arguments. One is it’s good for children, especially those from low-income families. Research has shown that high-quality programs improve children’s academic, social and emotional skills and close gaps between rich and poor children. The second is that it’s good for the economy, because it enables parents, particularly mothers, to work.Proponents of subsidized early education have generally made two arguments. One is it’s good for children, especially those from low-income families. Research has shown that high-quality programs improve children’s academic, social and emotional skills and close gaps between rich and poor children. The second is that it’s good for the economy, because it enables parents, particularly mothers, to work.
Proponents say these arguments have gained urgency because of the pandemic. They worry about the effects on children of being isolated for so long, and fear that the learning gaps between children from poor and rich families are widening. And, the economy cannot fully reopen until parents can go to work.Proponents say these arguments have gained urgency because of the pandemic. They worry about the effects on children of being isolated for so long, and fear that the learning gaps between children from poor and rich families are widening. And, the economy cannot fully reopen until parents can go to work.
But now there’s another factor: public health. Parents might prefer to keep children home or with a family or friend — or they might prioritize a small program or one with stringent coronavirus prevention measures — over intellectual or social stimulation.But now there’s another factor: public health. Parents might prefer to keep children home or with a family or friend — or they might prioritize a small program or one with stringent coronavirus prevention measures — over intellectual or social stimulation.
“From a child development perspective, kids hugging each other, sliding down the slide together, playing dress-up together are really important,” said Rhian Evans Allvin, chief executive of the National Association for the Education of Young Children. “But then when you look at it from a public health perspective and the need to socially distance and have strict rules about how to interact, it’s a very difficult situation for parents.”“From a child development perspective, kids hugging each other, sliding down the slide together, playing dress-up together are really important,” said Rhian Evans Allvin, chief executive of the National Association for the Education of Young Children. “But then when you look at it from a public health perspective and the need to socially distance and have strict rules about how to interact, it’s a very difficult situation for parents.”
That could affect which policy interventions are needed, by changing which providers are in demand and which need relief, said Chris Herbst, an associate professor studying public policy at Arizona State and an author of the new paper on child care supply.That could affect which policy interventions are needed, by changing which providers are in demand and which need relief, said Chris Herbst, an associate professor studying public policy at Arizona State and an author of the new paper on child care supply.
“If we end up propping up the wrong set of businesses, that’s inefficient,” he said.“If we end up propping up the wrong set of businesses, that’s inefficient,” he said.
If the new bills became law, the federal government would send states money under the Child Care and Development Block Grant. The $50 billion would cover providers’ operating expenses, whether they were open or closed, to prevent permanent shutdowns. It would also provide parents with tuition relief so families that had a child care spot before March could keep it, and cover new expenses related to the coronavirus.If the new bills became law, the federal government would send states money under the Child Care and Development Block Grant. The $50 billion would cover providers’ operating expenses, whether they were open or closed, to prevent permanent shutdowns. It would also provide parents with tuition relief so families that had a child care spot before March could keep it, and cover new expenses related to the coronavirus.
Other countries have taken similar approaches, as have some U.S. states. Ireland and Australia, for example, have begun financing child care centers to replace parent fees. So has Vermont. Republicans in the Senate, however, have urged restraint in future coronavirus relief spending and have demanded that any legislation be narrowly targeted. It’s unclear whether they will support this level of investment.Other countries have taken similar approaches, as have some U.S. states. Ireland and Australia, for example, have begun financing child care centers to replace parent fees. So has Vermont. Republicans in the Senate, however, have urged restraint in future coronavirus relief spending and have demanded that any legislation be narrowly targeted. It’s unclear whether they will support this level of investment.