Good Ideas for Cities: Creative Tactics Cities are Using to Address the Child Care Shortage

Three children holding hands

By Mary Carr Lee, Mayors Innovation Project

Across the country, tens of thousands child care programs were projected to close when the child care stabilization grant program ended in September of 2023. The historic $24 billion in federal investment was part of the $1.9 trillion American Rescue Plan Act. Passed in March 2021, it supported more than 220,000 child care programs, according to the federal Administration for Children & Families.  

Child care in America has long had issues as the costs are steep for both providers and parents. In most US states, child care costs exceed the cost of university tuition.

Cities and local governments recognize the financial strain that child care can place on families and are implementing innovative ways to make it more affordable. Here are examples: 

Businesses, communities, and day care centers are innovating together to address the state’s child care crisis. Despite what you might think, an outlet mall in rural Iowa turns out to be a good place for a child care center! The Williamsburg, Iowa Community Child Care Center was approached about expanding its operations into a new building by a local business, Bayer Crop Science. At first, they initially looked at moving into a former Head Start building in town, but the Williamsburg city administrator steered them toward the outlet mall, thinking it would be more affordable. The public private partnership was able to open a 9,000 square foot space in the corner of the mall, creating capacity for eighty-eight children. Bayer agrees to hold twenty-six child care slots whether the company’s employees have a child there or not and the partnership is also driving local traffic to the mall.

Republicans and Democrats unite and push for Boise Idaho to expand its support for child care and think creatively about how to partner with other organizations. Boise’s urban renewal agency has given priority to development projects that include childcare, such as the child care center at a city-sponsored affordable-housing apartment complex. “We’ve done more than any other city in Idaho to support affordable and accessible childcare for Boise’s families. We streamlined permitting, waived fees, sped up licensing, and provided grants to childcare providers throughout our city,” said Boise Mayor Lauren McLean. “Starting next year, we’ll provide up to $500 in property tax rebate to people who operate licensed in-home childcare in the home they own. We’re doing all of this because it matters to moms and dads, makes a difference for our kids, and helps businesses and our economy thrive.” Boise also used federal COVID relief funds to offer over a thousand child care workers in the city $1500 in ‘incentive pay.’

Child care is infrastructure: City leaders fund child care center with tax district typically used for roads, sewer. By creating a tax increment financing district (TIF) Madison, South Dakota looks to build a child care center to improve local economic development and access to child care services. 

The following are examples of ways cities are promoting equity by providing childcare to students and parents who need more flexible options:

A Fire Station becomes a childcare facility in a community college campus expansion. The City of Madison Wisconsin has agreed to sell the property of Fire Station No. 6 to Madison College, a local community college, for $1, and Madison College will in turn agree to operate the campus expansion for classroom and childcare uses for at least ten years. The childcare facility will be open to students, partners, and the public and it will provide drop-in care. Community leaders say a lack of quality child care is a barrier for students wanting to attend Madison College, yet the skills gained can propel them into family sustaining employment.

After years of debate, a 24/7 daycare opens its doors. In Sheboygan, WI, A Million Dreamz bought a closed-down school back to life. The result is bringing childcare around the clock for families in an area considered to be a child care desert.

New Orleans voters back early childhood education millage in single-issue vote. Voters approved an historic property tax increase which increases the budget of their early childhood fund from $3 million to $21 million – it will help them add over 1,000 child care spots for low income families.

As measures vary from one city to another, it is helpful for families to research local programs and resources to find the best options available in their area. But one thing is true in every city: Finding the right child care solution can be a game-changer for families.

Additional Resources:

*What is behind the US’s worsening child care crisis? The Hill outlines how the pandemic exacerbated challenges faced by an already struggling industry.

*How to fix the crumbling child care infrastructure? Bloomberg shows how US cities and states are starting to think about early childhood facilities the same way they plan for schools and public transportation.

*Mapping America’s Child Care Deserts: The Center for American Progress geographic study of child care markets finds that about half of Americans across 22 states live in areas with an undersupply of child care options.

*Our sister project, ProGov21, published a roadmap on child care which provides tools and policy solutions for local governments in providing and supporting high quality, affordable child care to their communities. 

Photo by Markus Spiske on Unsplash