Shiawassee Times

Michigan's road to economic recovery from the COVID-19 pandemic will have some roadblocks that must be navigated to ensure prosperity returns to the state.

One roadblock that is beginning to loom larger is the loss of child care facilities during the shutdown. For many parents, the search for quality child care has become more difficult as Michigan has lost over half of its licensed facilities. A survey conducted by Early Childhood Investment Corp. indicated only 2,917 of the 6,000 licensed facilities throughout Michigan are open.

"Even before the pandemic, access to quality child care was one of the main issues facing working Michigan families," Dawne Bell, Early Childhood Investment Corp. CEO, said in a release issued by Bridge. "The No. 1 reason why a family had to leave work or choose not to enter work is because they could not find affordable child care. There is no economic recovery without child care."

Michigan Democrat Gov. Gretchen Whitmer | Michigan.gov

Economic recovery is also suffering a setback due to the costs of child care. The Michigan League for Public Policy estimates the cost of quality child care for a couple with two kids in daycare to be $17,000 annually. 

The rising cost of daycare is also having an impact on the number of children placed in facilities. The state has seen a drop from 67,000 families placing children in care in 2003 to approximately 20,000 in 2019, according to statistics Bridge reported from the Michigan League of Public Policy.

There are smaller daycares available working out of households. Approximately two-thirds of the smaller daycares remain open, although space is at a premium.

A financial boost has been provided in the form of CARES Act funding. Gov. Gretchen Whitmer announced $100 million in April from the Act and an additional $30 million from the state’s child care fund. But despite the funding more than half the state’s licensed providers remain closed. 

There is no quick answer on the road to recovery as the threat of the coronavirus remains present among care providers, particularly on the smaller scale. As costs weigh on recovering families, there is concern the inability to find or afford daycare will slow the state’s economic reopening.

"We’ve got people who didn’t come back to work because they cannot get child care," Chuck Dardas, Alpha USA CEO, said in the Bridge release. "We’ve got people that have come back to work, and they are asking for reduced hours because they cannot afford a whole week’s worth of child care. It can cost $300 or $400 a week and that can be a backbreaker for many of our people."