NY Mag: Daycare is Broken

[Anonymous]

Anonymous wrote:What's broken is an economy that forces a majority of parents to work full-time in order to make ends meet.

Or, those of us with masters degrees in helping professions cannot afford child care. On my income it would have cost me more to work than stay home.

[Anonymous]

Anonymous wrote:I'd like a breakdown of where the money goes. I pay a lot- about 55k a year for my kids. I know salaries aren't very high, however. Is it insurance? And if so, is there anything we can do to fix that? Is it rent?

I pay $45K for two kids, so I get it. But it doesn't seem unreasonable to me. My daycare has 8 spots for under-2s at ~$1000/2 weeks. So that's a total of $208,000 coming in annually. They have 5 teachers for the 0-2yos to cover the full days/administrative stuff. Assuming each staff works 40 hours/week at $15/hour, that's $156,000 annually just to pay the staff, leaving $52,000 for rent, cleaning, stuff, food (my daycare serves food), taxes, etc. Seeing as rent for a 2-bedroom apartment in my area is $36K a year, $52 for a daycare seems pretty low, honestly (this is in a federal building so I assume their rent is lower than market rate but still). I think the PPs who say that centers operate the infant rooms at a loss and make it up with the older kids are probably right.

[Anonymous]

This is a classic case of Millennial navel-gazing. When it was happening to Gen-X parents no one cared. But now that it's happening to millennials it's a huge deal that warrants hand-wringing and media coverage.

[Anonymous]

When and if The government gets more involved in daycare and subsidies, is when you will see a large amount of in-home daycare clothes and centers lose more staff. The government starts to impose more regulations and strings attached to the subsidies. They will want daycare workers to be college educated, not just college but early child care education degrees. Many In-home daycare workers do not have a college degree. They won’t have the time or money to go back to school and will close. In the DC area this will predominantly impact minority women. Many immigrants too.

The last thing parents need is more government into daycare.

[Anonymous]

Anonymous wrote:This is a classic case of Millennial navel-gazing. When it was happening to Gen-X parents no one cared. But now that it's happening to millennials it's a huge deal that warrants hand-wringing and media coverage.

Back in my day we walked uphill both ways to school!

[Anonymous]

Anonymous wrote:When and if The government gets more involved in daycare and subsidies, is when you will see a large amount of in-home daycare clothes and centers lose more staff. The government starts to impose more regulations and strings attached to the subsidies. They will want daycare workers to be college educated, not just college but early child care education degrees. Many In-home daycare workers do not have a college degree. They won’t have the time or money to go back to school and will close. In the DC area this will predominantly impact minority women. Many immigrants too.

The last thing parents need is more government into daycare.

Have you thought about what you said? The government already has lots of regulations and subsidies. Our area has government day care subsidies, head start and more.

I absolutely want government in day care. Better oversight especially with abuse is always a good thing.

[Anonymous]

Anonymous wrote:This is a classic case of Millennial navel-gazing. When it was happening to Gen-X parents no one cared. But now that it's happening to millennials it's a huge deal that warrants hand-wringing and media coverage.

The pandemic just made the problem more visible.

[Anonymous]

Anonymous wrote:This is a classic case of Millennial navel-gazing. When it was happening to Gen-X parents no one cared. But now that it's happening to millennials it's a huge deal that warrants hand-wringing and media coverage.

Oh shut up. You could’ve changed the world but didn’t, Gen X’er.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'd like a breakdown of where the money goes. I pay a lot- about 55k a year for my kids. I know salaries aren't very high, however. Is it insurance? And if so, is there anything we can do to fix that? Is it rent?

Rent and Labor costs are the main expenses for a close in daycare. They aren't getting a discount on the market rate commercial rent.

Which is why so many of us use church-based daycares.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'd like a breakdown of where the money goes. I pay a lot- about 55k a year for my kids. I know salaries aren't very high, however. Is it insurance? And if so, is there anything we can do to fix that? Is it rent?

I pay $45K for two kids, so I get it. But it doesn't seem unreasonable to me. My daycare has 8 spots for under-2s at ~$1000/2 weeks. So that's a total of $208,000 coming in annually. They have 5 teachers for the 0-2yos to cover the full days/administrative stuff. Assuming each staff works 40 hours/week at $15/hour, that's $156,000 annually just to pay the staff, leaving $52,000 for rent, cleaning, stuff, food (my daycare serves food), taxes, etc. Seeing as rent for a 2-bedroom apartment in my area is $36K a year, $52 for a daycare seems pretty low, honestly (this is in a federal building so I assume their rent is lower than market rate but still). I think the PPs who say that centers operate the infant rooms at a loss and make it up with the older kids are probably right.

Do preschools and daycares pay taxes? Are they treated like private schools?

5 teachers for 8 little kids is a lot. I think you are only required 1 per every 4 kids.

My sons preK (private, we’re in Virginia) has 20 kids for 3 teachers. Classroom is incredibly well managed at that ratio (unlike kindergarten…). $400 a week x 20 kids= $8000 a week = $416,000 a year. Surely they can pay the 3 teachers more than 40k?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'd like a breakdown of where the money goes. I pay a lot- about 55k a year for my kids. I know salaries aren't very high, however. Is it insurance? And if so, is there anything we can do to fix that? Is it rent?

Rent and Labor costs are the main expenses for a close in daycare. They aren't getting a discount on the market rate commercial rent.

Insurance is a big piece, too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd like a breakdown of where the money goes. I pay a lot- about 55k a year for my kids. I know salaries aren't very high, however. Is it insurance? And if so, is there anything we can do to fix that? Is it rent?

I pay $45K for two kids, so I get it. But it doesn't seem unreasonable to me. My daycare has 8 spots for under-2s at ~$1000/2 weeks. So that's a total of $208,000 coming in annually. They have 5 teachers for the 0-2yos to cover the full days/administrative stuff. Assuming each staff works 40 hours/week at $15/hour, that's $156,000 annually just to pay the staff, leaving $52,000 for rent, cleaning, stuff, food (my daycare serves food), taxes, etc. Seeing as rent for a 2-bedroom apartment in my area is $36K a year, $52 for a daycare seems pretty low, honestly (this is in a federal building so I assume their rent is lower than market rate but still). I think the PPs who say that centers operate the infant rooms at a loss and make it up with the older kids are probably right.

Do preschools and daycares pay taxes? Are they treated like private schools?

5 teachers for 8 little kids is a lot. I think you are only required 1 per every 4 kids.

My sons preK (private, we’re in Virginia) has 20 kids for 3 teachers. Classroom is incredibly well managed at that ratio (unlike kindergarten…). $400 a week x 20 kids= $8000 a week = $416,000 a year. Surely they can pay the 3 teachers more than 40k?

The thing you're missing is the age ranges. Yes, that's totally reasonable for 3/4s. But the above poster is talking about under 2s, ie, primarily babies and very very young toddlers. That's where you need (at least in DC) a 3:1 ratio at ALL times, which means with 8 kids, you need 4 teachers if one ever wants to go to the bathroom. Factor in admin, and the fact that most daycares are open more than 8 hours a day (so you're staggering shifts a bit) and 5 staff members for 8 babies sounds about right.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd like a breakdown of where the money goes. I pay a lot- about 55k a year for my kids. I know salaries aren't very high, however. Is it insurance? And if so, is there anything we can do to fix that? Is it rent?

I pay $45K for two kids, so I get it. But it doesn't seem unreasonable to me. My daycare has 8 spots for under-2s at ~$1000/2 weeks. So that's a total of $208,000 coming in annually. They have 5 teachers for the 0-2yos to cover the full days/administrative stuff. Assuming each staff works 40 hours/week at $15/hour, that's $156,000 annually just to pay the staff, leaving $52,000 for rent, cleaning, stuff, food (my daycare serves food), taxes, etc. Seeing as rent for a 2-bedroom apartment in my area is $36K a year, $52 for a daycare seems pretty low, honestly (this is in a federal building so I assume their rent is lower than market rate but still). I think the PPs who say that centers operate the infant rooms at a loss and make it up with the older kids are probably right.

Do preschools and daycares pay taxes? Are they treated like private schools?

5 teachers for 8 little kids is a lot. I think you are only required 1 per every 4 kids.

My sons preK (private, we’re in Virginia) has 20 kids for 3 teachers. Classroom is incredibly well managed at that ratio (unlike kindergarten…). $400 a week x 20 kids= $8000 a week = $416,000 a year. Surely they can pay the 3 teachers more than 40k?

Yes, but you have to cover the full day-2 to open and 2 to close (especially if you're in DC where regulations require 2 adults with each group of children at all times.) Plus someone to cover bathroom and lunch breaks. Then if someone is out sick or out on vacation, you need coverage.

[Anonymous]

Anonymous wrote:This is a classic case of Millennial navel-gazing. When it was happening to Gen-X parents no one cared. But now that it's happening to millennials it's a huge deal that warrants hand-wringing and media coverage.

I know wayyyy more Gen X couples who could afford for one parent to stay home than Millennials. The spike in housing costs has been no joke for family planning and budgeting.

[Anonymous]

The fact that 45K for two kids sounds reasonable does not obviate the problem that it’s unaffordable for most. Unless we only want Rich people having kids (and workers earning peanuts) we need a better solution.