State budget investment in early childhood education would be gamechanger for families and economy

In communities across Wisconsin, and certainly in Milwaukee, working parents share a similar story: High quality early childhood education is hard to find and even harder to afford.

Meanwhile, providers of early care and education frequently tell us that the cost of providing services, coupled with the challenge of attracting staff, make staying open for business an ongoing struggle.

Both experiences are simultaneously true, and these uphill climbs have become unbearably steep in the wake of the pandemic. While community partners rallied to help direct federal COVID-19 relief dollars to the early childhood education sector to limit the growing crisis, we are approaching a perilous crossroads with the exhaustion of those funds imminent.

For years, the Greater Milwaukee Foundation and our communitywide education partnership, Milwaukee Succeeds, have collaborated with providers, parents and other stakeholders to amplify their voices and demonstrate how early childhood education is essential to a Milwaukee for all. We’ve backed that up by investing nearly $8.5 million in early childhood education since 2020. But philanthropy can’t do it alone. Through the expertise and leadership of the Milwaukee Succeeds-led MKE Early Childhood Education Coalition, we’re proud to have worked with the city and state to help federal resources have the greatest impact. Now, we’re calling on state leaders to coinvest with us to strengthen and sustain a sector that is as important to our economy as it is our children’s futures.

Our request? A $300 million investment in the 2023-25 state budget to continue the Child Care Counts program once federal funds run out in January 2024.

Far-reaching benefits

It is well-documented that participation in high-quality early childhood education increases K-12 success, employment and health outcomes while reducing risk of such negative social outcomes as addiction and arrest.

As the workforce behind the workforce, early childhood education’s impact on the economy is undeniable, as it enables parents of young children to work or pursue further education as well as help businesses attract and retain talent.

Recognizing this essential role, the state launched Child Care Counts in 2020 to support early childhood education providers using federal pandemic relief funding. In Milwaukee to date, more than 1,550 providers have received over $105 million through the program.

Research by Milwaukee Succeeds shows that providers are using these funds for basic needs such as rent or mortgage; food; supplies; staff recruitment, retention and development; and to reduce costs for families.

We also learned that 28 percent of Milwaukee providers responding to a survey from the National Association for the Education of Young Children reported they would have closed permanently without this support. If Child Care Counts funding runs out, 42 percent of surveyed Milwaukee providers say they’d have to raise rates for families, and 30 percent would have to cut wages for staff. 

The opportunity to act is now.

By coinvesting, we are greater together

A $300 million statewide investment in Child Care Counts would bring an additional $54 million to Milwaukee early childhood education providers during the biennium. This, together with recent, significant investment from other public and private sources including the city of Milwaukee, the state Department of Workforce Development and Wisconsin Economic Development Corporation, and the Foundation, would provide greater stability for the sector, the workforce and families in every community.

This is a family issue – Child care for one infant costs, on average, 26 percent of the average household income in Milwaukee. The national benchmark for affordability is 7 percent.

This is a workforce issue – Despite three out of every four early educators in Milwaukee having either a degree or some college education, programs can only afford to pay them an average of $13 per hour.

This is an equity issue – 99 percent of early educators are women, and two-thirds are women of color.

This is both a Milwaukee and a Wisconsin issue – I commend Milwaukee Succeeds and the MKE Early Childhood Education Coalition, which has been leading the charge locally on support and advocacy for the sector. Their further partnership with the statewide Raising Wisconsin Coalition is a prime example of communities coming together for positive systems change.

Anyone can help move the needle on this issue.

  • Support the work of the MKE Early Childhood Education Coalition through a philanthropic gift to the Early Childhood Education Fund, part of the Foundation’s Greater Together Campaign. I am grateful for the many Foundation donors whose passionate gifts of time, talent, treasure and ties have increased our collective impact so far.

  • Contact your state representatives to let them know you support a $300 million investment through the upcoming state budget. Raising Wisconsin offers letter templates for parents, providers and business leaders.
  • Advocate to the legislature’s budget-writing Joint Finance Committee by attending a budget hearing or emailing them directly to share why state investment in early childhood education matters to you. 

The Foundation remains committed to supporting high-quality, affordable and accessible early childhood education in our region. Let’s come together as a statewide community to ensure our youngest learners as well as our current and future workforce thrive.

Ellen M. Gilligan
President & CEO
Greater Milwaukee Foundation

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