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Child care providers prepare for funding shortfall in September

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DETROIT (WXYZ) — Child care providers in Detroit are scrambling as federal relief dollars that have been supporting their centers for the last few years are set to dry up at the end of September.

Centers say they've been using the money to pay teachers and child care assistants livable wages and there's currently no plan to replace that money in the state budget.

The federal funding came by way of the CARES Act and the Coronavirus Relief Fund. Most of the $215 million given to the state was used for grants that went directly to child care centers. The rest of the money was used for child care billing for school-age children during virtual-only learning opportunities and COVID-19 absence hours.

"Most of my children come from the 48234 or 48224 area code in Detroit. Sometimes, it's hard for them to get there. They don't have the means, but they need to work," said Tashawna Hawkins, who has been in business since 2016 at the Antioch Learning Center in Detroit.

Hawkins says before the pandemic, many providers depended on grants to pay workers livable wages. As that became increasingly challenging during the pandemic, providers relied on COVID-19 relief funds to make up for the shortfalls.

"Everything around us has gone up except the wages of teachers. We're not just babysitters, and I tell people I have a learning center. Those funds did help to provide the things that we need and it should go on," Hawkins said.

Providers say without the funding, child care centers will likely have to start turning kids away and cutting the number of kids they currently have because they won't be able to afford the workers necessary to care for them.

day care toys
Toys at a child care center in Detroit on Aug. 9, 2023.

A study from the Century Foundation estimates the end of the federal funding will disrupt child care for 3.2 million kids nationwide and will result in the closure of nearly 70,000 centers.

"As cost of living is going up, I might have my workers quit because at the end of the day, they come to work every day and I'm proud of them for that, but they're not getting a livable wage and they're taking care of children that are at risk," said Nina hodge, who owns the Above and Beyond Child Care Center.

Hodge says in addition to the challenges they are soon to face by the end of COVID-19 funding, they are also under strict regulations from the state about the kinds of workers they can accept and the curriculum they teach.

Hodge says the centers will periodically go through a "validation" process, which is conducted by the Early Childhood Investment Corporation. Hodge says they are rated on a five-star system and the rate of pay they can receive for each child is dependent on the ECIC's evaluation of the center's ability to meet curriculum standards.

Providers say the ECIC standards are not always tailored to the populations they care for, making it challenging to receive full pay for their work.

"Right now, we're in a situation where we're losing funding, we're still being held to these high quality standards and now, we have to offset the price to our parents," said Monique Snyder, who is the owner of Brainiacs Clubhouse Child Development Center.

Gov. Gretchen Whitmer's office says she has been ramping up support for parents and students in early education. Whitmer recently signed an education budget that includes $254.6 million to expand free pre-K for up to 5,600 kids. Her office says she's also working toward Pre-K for All by the end of her second term.

Whitmer was in Detroit Wednesday touring Starfish Marygrove Early Education Center.

"As we look at this federal money coming to a close, we're thinking creatively about how we can help centers like this one and all across the state that are going to deal with some struggles," Whitmer said. "We knew that this was coming and that's why this budget that I just signed into law that goes into effect October 1 is making such a big enhanced investment into education in particular."

Whitmer says she is hopeful there will not be a disruption to care but will be working with child care centers over the coming weeks to make sure they are supporting them in whatever capacity they are able.

Providers say they need support now.

"I want lawmakers to know that we are the experts, we are on the front lines — ask us, listen to us before you make these decisions," said Chavonne McGowan, who owns Seeds of Knowledge Creative Learning Center.