Policy Institute Finds Initial Investment of $71 Million in Early Care and Education Needed to Fully Reopen LA Economy
COVID-19 pandemic highlights critical role of early care and education in getting Louisiana back to work
NEW ORLEANS, LA. (May 13, 2020) — This morning, the Louisiana Policy Institute for Children (LPIC) released findings on the funding levels for early care and education (ECE) sector necessary to reopen Louisiana’s economy by facilitating employees’ return to work amid the COVID-19 pandemic. For employees to return to work and the Louisiana economy to fully reopen, an initial investment of $71 million, including $46 million in one-time federal funds and $25 million in ongoing state funds, must be made in early care and education.
“The child care sector, which already operated on thin financial margins, is experiencing serious, negative impacts from COVID-19 that are only continuing to grow. In addition, if the COVID-19 required ratios and group size requirements for providers continue, it will impact enrollment and staffing and substantially increase the costs of early care and education, making it unattainable for many parents,” said LPIC Executive Director Libbie Sonnier, PhD. “As Louisiana recovers from the COVID-19 pandemic and prepares to reopen the economy, any recovery plans must include early care and education.”
During a virtual press conference held this morning, LPIC, Greater New Orleans, Inc., Louisiana Association of Business and Industry and Ewing Timber Co. presented findings and conclusions on the state of the ECE industry in Louisiana and the essential investments necessary to facilitate the reopening of the economy, including:
98 percent of open providers during the latest survey period served children of essential workers, supporting the working parents and employers keeping Louisiana’s citizens healthy and economy moving during the pandemic.
Prior to the COVID-19 pandemic, the state was only serving 15 percent of children ages three and under who are eligible for assistance.
Over one-third of all providers, open or closed, responding to the latest survey expected an extended closure due to the pandemic to force them to close permanently.
70 percent of providers have reported their closure to the Louisiana Department of Education as of the end of April.
Based on these findings, LPIC recommends Louisiana make the following investments, given the current availability of federal aid:
$26 million from one-time, COVID-19 related federal funding to support the reopening of early care and education providers.
$20 million from one-time COVID-19 related federal funding to enable early care and education providers to operate within smaller group size requirements while keeping tuition within reach for working families.
$25 million in state funding for child care assistance in the FY 2020-21 budget to increase access for 4,000 children on an ongoing basis.
“We recognize the importance of reliable, quality child care to Louisiana working parents and the state economy. The results from LPIC’s recent survey further strengthen our belief that child care providers will be a key factor in post-COVID-19 economic recovery efforts,” said President and CEO of Greater New Orleans, Inc., Michael Hecht.
LPIC partnered with Agenda for Children, Childcare Connections for Northeast Louisiana, Louisiana Association of United Ways, On Track by 5 Alliance, Pointe Coupee Early Childhood Education Coalition, United Way of Southeast Louisiana and Volunteers of America to conduct the series of surveys of ECE providers across Louisiana. They conducted the second iteration of the survey April 13-20, 2020 and again, results showed troubling circumstances and difficult decisions facing child care providers in Louisiana as the COVID-19 pandemic continues. The complete “Getting Families Back to Work: Essential Investments in Early Care and Education” two-pager can be found here. For more information on LPIC, please visit: http://www.policyinstitutela.org.