April 6th, 2024-CLEVELAND, Ohio-Two new studies conducted by Starting Point, a nonprofit aiding in child care provider searches, and Policy Matters Ohio, a progressive think tank, suggest that the current child care business model is failing both parents and providers due to affordability issues. A significant number of child care providers in the Cleveland area report low enrollment, not due to lack of demand, but because parents can’t afford the current prices.
Policy Matters Ohio’s research reveals that child care costs in Ohio are unaffordable for the average family, with infant care costing an average of $9,697 annually. This cost exceeds the affordability threshold recommended by federal guidelines. The thin profit margins and inability to pay competitive wages have resulted in staffing shortages and facility closures, exacerbating the child care crisis. The pandemic further exposed weaknesses in the system, hindering workforce participation for individuals who lack access to affordable child care. Addressing these issues requires a significant increase in public funding for child care.
