The Tribune Democrat, Johnstown, PA

Local News

May 24, 2009

Day care dilemma: Tough economy, loss of subsidies take toll

The trickle-down effect of a brutal economy has seeped into local registered day care facilities, reducing enrollment figures for many.

As employment plummets across the nation, licensed day care centers are feeling the pinch as families are forced to re-evaluate child-care options.

Nationally, many day care facilities are seeing a decline in the number of children registered due to a loss or reduction in family income.

Locally, it’s either feast or famine when it comes to enrollment figures for child-care providers.

The recent closing of three registered day care facilities in the Johns-town vicinity translated into a net gain for many centers, which were able to accommodate displaced clientele.

The three centers recently closed were: Grammy’s Place in Ferndale; Little Lights Daycare, which operated out of The Galleria mall; and the Little People Learning Center, which operated for 27 years at First Presbyterian Church in Johnstown.

Reportedly, the closings were due in part to declining enrollment and increasing operational costs.

The Rev. Ralph Johnson oversees the day care center at St. James Missionary Baptist Church, located at 400 Pine St. in Hornerstown.

“I should have been closed a long time ago,” Johnson said. “We operate in the negative. Many parents are losing their subsidized day care because they have lost their jobs.

“For many of the children who come, this is a chance for two meals a day. We have a caring staff that teach and prepare the kids for kindergarten. That is why we continue, for the children,” he said.

The church’s day care is licensed for 54 children.

On most days, fewer than 10 attend. Not all of those enrolled are attending full time, Johnson said.

The loss of subsidized day care has been a challenge for many centers. Some local providers have reported losing 30 percent to 40 percent of their subsidized care in recent months.

Claudine Markiewiecz, assistant director for the Richland Learning Center, said many parents are taking a closer look at alternatives.

Although The Richland Learning Center’s enrollment remains high, there has been a noticeable difference due to today’s economy.

“If they can find a neighbor or relative for free or at a lower cost than what they are paying for daily services, they are considering it,” Markiewiecz said.

“I think preschool is taking an even bigger hit,” she said.

“Preschool is not mandatory. It certainly is a bonus to help a child prepare for kindergarten, but some parents are cutting back. Many school districts offer free preschool, and many (families) are taking advantage of that.”

Jill Freeman is the director of Day Dreams Daycare Inc. in Richland Township.

The center is fortunate to enjoy a strong clientele, 30 percent of which are subsidized.

Day Dream’s Daycare did receive a slight boost from a local day care closing, but overall its numbers have been consistent.

“We are holding our breath,” Freeman said. “The economy is hitting everyone, but so far our enrollment isn’t the problem. It’s our overhead, snacks, cleaning supplies – that’s where we are noticing the most.”

Escalating problem

Oriana Poruban is the eligibility, resource and referral coordinator for the Child Care Information Service in Ebensburg. She has her finger on the pulse of the day care situation in Cambria County.

“We talk to providers who are struggling daily, in part due to the drop in subsidized care.”

Poruban said this trouble did not happen overnight.

“The problem began for the day cares with the increase in the minimum wage,” she said.

Poruban said that when the minimum wage increase took effect last year, the ceiling rate for the cost of day care did not increase. (The state establishes a pay scale for subsidized care.

In most cases, this serves as a gauge for overall rates.) The facilities’ expenses increased, but their income did not.

“That is when the providers started to struggle,” she said.

Poruban said there is a sliding fee scale for subsidized day care.

Currently, there is a waiting list for many who are eligible for subsidized care. In many cases, the wait has been as long as four to six months.

The average daily rate for day care can range from $20 to $26, depending on the age of the child. The fee can be particularly tough for families who have multiple children.

Ironic twist

Stacey Witalec is the spokeswoman for the Pennsylvania Department of Public Welfare.

During a phone interview from her Harrisburg office, Witalec shared an ironic twist.

During a time of economic concern for many, her office is seeing more people interested in starting new day care centers.

“People are losing their jobs and looking for opportunities,” she said. “What they don’t realize is just how strict Pennsylvania is. We are not trying to make it difficult. We are simply keeping it safe and maintaining the highest quality for our children.”

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