Region searches for solutions to child care shortage

Leaders in both communities realized the impact of this issue and have been working on solutions.

A Center for Rural Policy and Development study found that the sparse populations of rural areas can make it difficult to cover the start-up and operating costs for new child care centers, which rely on larger numbers of children. Family providers — those who care for children in their home — traditionally have been the foundation for child care in rural areas. But since 2000, the number of home-based providers has steadily declined — a net loss of 35,355 providers in Greater Minnesota, according to the Rural Policy and Development study. Established child care centers in rural communities don’t have the capacity to make up for that loss.

The challenge of finding daycare, especially for infants and toddlers, is affecting where young couples feel they can live, and rural areas are losing out.

“Child care is the biggest economic development issue in the whole region,” said Scott Marquardt, president of Southwest Initiative Foundation, whose headquarters is in Hutchinson. “It is one of the barriers for businesses to attract the labor they need. We need to look at child care as an economic issue.”

Marquardt has been with SWIF for 16 years. Before becoming president, he managed economic development programs in SWIF’s 18-county service area, which includes McLeod and Meeker counties, and two Native American nations. Marquardt lives in Montevideo and commutes throughout the 18-county region.

“I like to do business face to face,” he said. “It’s more relationship oriented.”

Rural child care has been one of Marquardt’s focuses during his time at SWIF.

“I was working on early child care initiatives before I became president,” Marquardt said. “I have taken on a more aggressive focus with it in the last six or more years.”

SWIF has taken a more comprehensive approach in looking for ways to help expand child care programs and offerings in the region. The organization has worked with professional development through Ridgewater College, sought and put together child care grants and funding with state and local government and businesses, worked on community planning with chambers of commerce and economic development departments throughout the region, and has helped lobby for policy changes to encourage child care initiatives. SWIF works provides individualized support and guidance aimed at each city’s needs.

“What Hutchinson needs isn’t what another town does,” Marquardt said. “It’s not a one-size-fits-all issue. It’s community led.”

The SWIF region needs more than 4,000 child care slots, Marquardt said, and need keeps growing. Child care capacity equates to a community’s ability — and the region’s as whole — to retain and jobs.

Litchfield and Hutchinson have put together “teams,” which include local government and community members, businesses, hospitals, schools and, of course, the child care community to work on the child care dilemma. The Chamber Serving the Litchfield Area has branched out to include all of Meeker County, as smaller communities in the county didn’t have enough resources to tackle the challenge on their own. The groups consult data and listen to professional presentations.

“No one individual is making a decision for someone else,” Marquardt said.

Working on solutions

Litchfield began contemplating its child care dilemma just before COVID in 2019. Area businesses were concerned about their employee’ difficulty finding child care. Judy Hulterstrum, president of the Chamber of Commerce at the time, reached out to Lisa Graphenteen, director of Housing and Economic Development for Meeker County. Together they contacted SWIF, who put them in touch with First Children’s Finance, a nonprofit organization that helps child care entrepreneurs start and sustain businesses. Meeker County Child Care Team was formed with the city of Litchfield, Meeker County and the businesses. The group applied for a grant through First Children’s Finance.

“Through First Children’s Finance process, we found we were 406 child care slots short,” Hulterstrum said. “We lost eight family daycare businesses in a six-month period — and no one new was starting up. These individuals left for various reason, but a significant one was retiring out.”

The typical in-home child care provide makes about $8 per hour, Hulterstrum said, and raising rates is difficult because “if rates are raised, parents can’t afford their daycare.”

In applying for the First Children’s Finance grant, Graphenteen said, the Meeker County Child Care Team hoped to find ways to “grow providers.” When the group received the grant, it allowed them to develop their own, local grant program which is intended “to bridge the challenges for child care start-ups.”

The grants provide money for individuals who need training and licensing to become a provider, for supplies like a highchair or sleeping mat, or to improve the property to meet code and state regulations — like adding an egress window to a house or a fence in the yard. The drawback is these grants aren’t as readily available for the established family home provider as they usually have these things already in place.

Meeker County region saw four new family child care start-ups thanks to the program, and additional funds are still available. The maximum grant is $3,750, and the money will be available through May.

“If a parent wants to stay home, it’s a way for the family to have additional income,” Graphenteen said.

The Meeker County group is also searching for creative ways to expand child care in the area. One idea is a pod model that is already being done in Stevens County.

“The county purchases attached townhomes,” Graphenteen said. “The providers lease the space from the county. This would allow those who recently graduated with child care associates degrees to begin their business.”

Child care for sick children presents another challenge for the Meeker County.

“Parents have to take off work or recruit a grandparent to be with their child when they’re sick,” Hulterstrum said. “The child isn’t allowed in their regular child care until their fever is normal for 24 hours. We are exploring options for that situation, too.”

Working in crisis mode

Hutchinson business and community leaders had been watching the child care situation for several years before the pandemic. When COVID hit, the Chamber of Commerce moved into crisis mode.

Just when it seemed the group was developing a plan for what child care would look like, Little Lambs Christian Center daycare closed.

“The morning of that closure announcement, I literally text Scott (Marquardt) and said, ‘Call me ASAP,’” Mary Hodson, president of the Hutchinson Chamber of Commerce said. “About 30 seconds later, my phone rang. Scott hadn’t seen my text, but he was reaching out to me (about the closure).”

The two had been talking about child care for some time. They realized the impact the closure would have and that it had to be dealt with immediately.

“That was April 2022,” Hodson said. “By the end of May, we were applying to work with First Children’s Finance and their Rural Child Care Innovation Program.”

Hutchinson, too, found that the best solution to tackle the child care problem was through teamwork.

“We knew as we were applying with First Children’s Finance this would need to be a collaborative effort,” Hodson said.

The core team is the Chamber, Hutchinson Economic Development, the McLeod County child care liscenser, child care providers, Ridgewater College, the schools, United Community Action Partners, private businesses, SWIF and community members.

“Everyone contributes something important,” she said.

Importance of collaboration

Hodson also feels it will take everyone putting their heads and hearts together to make child care in Hutchinson more accessible to those who want and need it. The group has collected donations aimed at helping providers offset supply costs, allowing providers to put more of their revenue toward pay or for emergencies. Donations are accepted at the Hutchinson Chamber office. Businesses can provide additional support with space, dollars and educating themselves on the needs of their employees who use child care.

“We know there are people who would like to provide private family child care but cannot due to the size of their home or family dynamics,” Hodson said. “If someone in the community has a low- or no-cost location they would be willing to provide, we could easily slide a provider in to use that space.”

Miles Seppelt, Hutchinson economic development director, said there is still grant money available for those interested in starting a new in-home child care or a child care center.

The group started with $40,000 and awarded one forgivable loan, which helped Our Savior’s Lutheran Early Learning Center create 12 infant child care slots. The group has $34,914 remaining for funding, which must be used by May 31.

“The key criteria is that new child care slots must be created,” Seppelt said. “According to First Children’s Finance, Hutchinson needs 414 new child care slots.”

While grants can be used for set-up costs, the fund can also be used for training. The area is fortunate that it has Ridgewater Community College, which offers early childhood training online thorugh both its Hutchinson and Willmar campuses.

“We found that the in-person course wasn’t well attended to meet the needs of those interested in training,” Cindy Salfer, instructor of the early childhood training program at Ridegewater. “By having it online, the students can fit the assignments into their schedules.”

The state of Minnesota requires child care centers to have certified child care workers in place before expanding their available slots.

“We have good relationships with the centers in town,” Salfer said. “They encourage their staff to seek out Ridgewater College classes.”

Ridgewater College Foundation has $2,500 scholarships available to perspective students — some more specific for workforce development to address the staffing shortage in daycare centers. SWIF provided a scholarship gift for 10 students to receive training at the 18-credit certificate level (assistant teachers) to quickly get them into the workforce. Some of those students were bumped up to the teacher level.

Hutchinson and Litchfield have identified the child care problem. With SWIF, First Children’s Finance and businesses, funds have been put together to assist providers. It’s also important for the community to appreciate those who have chosen the child care field.

“It’s important to see value with what the child care workforce does for the community,” Salfer said.

Amy Berry, a family child care licensing specialist with McLeod County, agreed.

“The child care profession is hard,” she said. “This lack of it is making people realize how important it is. I wish more people knew how hard it is for child care workers and appreciated them more.”

Both McLeod and Meeker County licensing departments are seeing stable numbers for child provider licensing renewals and new ones.

“The issue is, it’s still not enough,” said Syndi Raiber, Meeker County licensing and intake intake social worker. “We still need more new providers.”

“It’s hard for any family to find care — especially for infants,” said Kirsten Langerman, a Meeker County social work supervisor. “Kids moving around to daycare to daycare is hard.”

“Every established center and family child care have limited numbers,” Berry said. “They can only take so many children. This leaves desperate parents. The issue isn’t just in McLeod County. It’s everywhere in greater Minnesota. There just isn’t enough child care.”

“For every dollar we put into it, child care has a real impact on the economy,” Marquardt says. “We need to acknowledge it is a business ... and we need to support them.”