North Carolina Loses More Licensed Child Care Programs, Funding Cliff Approaches
North Carolina has experienced a significant decline in licensed child care programs since the start of the pandemic, with a loss of nearly 4% according to data provided by the NC Child Care Resource and Referral Council (CCR&R) and the NC Division of Child Development and Early Education (DCDEE).
The state saw a net loss of 203 licensed child care programs between February 2020 and the end of 2023, with the number dropping from 5,242 to 5,039.
Unfortunately, the situation is expected to worsen this year.
While federal funding helped stabilize early childhood education in the state during the pandemic, that funding expired in September 2023 and will run out for North Carolina after June 30.
A report from the Century Foundation estimated that without intervention from the state or federal government, 1,178 licensed child care programs in North Carolina will be forced to close.
The lack of significant investment in early childhood education in the state’s approved budget for September 2023 has left licensed child care centers and family child care homes struggling to find a way to remain open beyond the summer funding cliff.
Shay Jackson, a licensed provider of a family child care home in Forsyth County, expressed her concerns about the situation, stating, They may possibly lose a great quality [program], because I am not gonna be able to sustain and I’m trying to think ahead. I’m literally like, updating my LinkedIn account.
At the federal level, the U.S. House of Representatives recently passed an extension of the child tax credit, which could benefit many families. However, it does not directly address the child care crisis in the state.
With the General Assembly’s short session set to begin on April 24, there is limited time for members to implement policies that would prevent North Carolina’s child care system from suffering the worst effects of the funding cliff.
As part of their efforts to track program closures, EdNC is closely monitoring three subgroups of counties: the two counties with high Indigenous populations, the eight counties in the northeastern corner of the state where over half of the population identifies as Black or mixed race, and the 18 counties in the southwestern corner of the state that are the focus area of the Dogwood Health Trust.
The data from the third quarter of the year showed these three subgroups bucking the statewide trend, with each of them experiencing modest net gains in the number of licensed child care sites. However, there were changes in the fourth quarter data.
The Dogwood counties officially have fewer licensed child care sites than before the pandemic, dropping from 386 to 385. The majority-Black counties have seen a slight increase, maintaining an overall number of 204 sites. The counties with high Indigenous populations also saw an overall increase, from 99 to 105 sites.
It is important to note that the data provided reflects licensed child care only and does not include friend, family, and neighbor (FFN) care, which may be preferred by some families for various reasons.
EdNC recently published research on early childhood investment and policy practices from five states, identifying four strategies that could help North Carolina regain its position as a leader in early childhood education. These strategies include advocacy from the business community, grassroots organizing, streamlining governance, and identifying or creating new funding streams.
As the state faces the impending funding cliff, it remains to be seen if local and state policymakers will adopt any of these strategies or other innovative solutions to prevent the dire consequences that could result from the loss of child care programs.
The decline in licensed child care programs puts significant stress on families and communities, impacting the availability and affordability of quality child care. The potential loss of these programs underscores the urgent need for intervention and support to ensure that North Carolina’s youngest learners have access to the care and education they deserve.
