Child Care Providers’ Rates are Still Not Keeping Pace with Inflation

2022

The pandemic has reminded us of the essential role child care plays in keeping the workforce and economy moving. However, the pandemic has also shed light on and contributed to the instability of operating a child care business. Over the past two years, child care providers have taken on extra expenses to purchase necessary cleaning supplies and protective equipment to keep the children they care for safe. As health guidelines changed, providers struggled with the additional cost and time spent on each new series of  requirements.

Providers also saw the cost of operating their programs increase while the reimbursement rates they were being paid to care for children were based on data from 2014. Although the California State Legislature made improvements in 2021 to adopt the newest data from the 2018 Regional Market Rate, provider reimbursement is still insufficient, resulting in providers leaving the industry.