Child-care providers doing all right

By Tanner Kent
The Free Press

MANKATO January 09, 2009 11:03 pm

— For months, Marsha Madigan has been hearing about the failing economy.
And for months, she’s been bracing for its impact on Bethlehem Childcare Center where she serves as director.
But now, Madigan’s tired of waiting for the big depression — especially when business is booming.
“I get asked all the time about the economy,” Madigan said. “But, for some reason, we haven’t seen many of the effects.
The center is actually opening a new preschool room Monday.
In Mankato, child-care providers seem to be somewhat insulated from the economic crunch because of the city’s rapid expansion.
Because of its recent population growth, Mankato is now officially designated as a Metropolitan Statistical Area. The school district is building a new elementary this spring to accommodate a sharp rise in preschool-age children, and just a month ago, officials forecasted the district’s first-ever class of 700.
For center-based facilities, the added demand means being able to keep healthy waiting lists, which act as insurance when a family drops or reduces service because of financial trouble. For home providers, the added demand creates added competition.
“A lot of the women who have been laid off are going into child care,” said Catherine Richardson, operator of Cat’s Kids Child Care in North Mankato. “It’s getting harder to fill spots.”
The economy, providers seem to agree, hits parents much harder.
In Nicollet and Blue Earth counties, the annual average cost of full-time, infant or toddler child care exceeds $6,000. Very few providers offer flexible rates, which often leaves parents paying full-time prices for part-time needs.
Richardson, who is licensed for 14 children, said she’s had a few of her families approach her about how to decrease their day-care costs. In those instances, Richardson said, she tries to compromise with families.
“One thing I promised myself when I got into this business was to never forget what it felt like to pay for child care,” Richardson said. “It’s a give and take. I try to work with families and help out however I can.”
Anna Parkman gave birth to a healthy baby boy Nov. 3. Within 24 hours, she said, the worries about day care had crept in.
Knowing her husband’s salary as a welder is not enough to support their family through the year, Parkman is planning to return to work this spring. But she knows that any part-time income she generates will likely be negated by child-care costs.
“I just don’t think we can afford it,” said the 22-year-old, “even with me working part time. When the time comes, we’ll probably have to just rely on friends and family.”
Irene DeJong runs a home-based facility in Mankato and said the economy also has begun affecting the day-care industry in more indirect ways.
Grant funding, which helps many providers maintain stable rates, is getting tougher to secure. And variances, which are issued by the county so providers can bypass regulations for age and capacity in special circumstances, will likely be unavailable in the coming year because of staffing cuts to local government agencies.
“There is not a lot of support,” said DeJong, whose day care caters to families requiring part-time service, “especially for younger providers who haven’t built a reputation yet.”

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