The Mount Vernon and Lisbon communities are part of 12 communities who can take advantage of funding from the Iowa Department of Health and Human Services and American Rescue Plan Act to benefit childcare solutions in the state of Iowa
Sheri Penney, with Iowa Women’s Foundation, said Mount Vernon and Lisbon were among the 12 communities noted for completing work in addressing childcare solutions and needs by her organization and, because they are doing the work, are eligible for a dollar-to-dollar match by the state.
The catch for the communities is the time crunch for this initial ask.
“The original deadline was they notified us Sept. 1 and the deadline was then Sept. 30,” Penney said. “I told them that turnaround wasn’t attainable for many communities, so they set a deadline of Oct. 30.”
That dollar-to-dollar match will be with ARPA dollars, and communities who take that funding have from Oct. 30 until Sept 2024 to make sure that money is spent on childcare solutions.
Penney explained that Mount Vernon-Lisbon’s childcare solutions group would have been making an ask to the community in either case, but this allows those donation monies to go further.
Penney said the current ask for area businesses is for an annual donation of $150 per employee to help bolster childcare solutions in the communities.
Childcare was one of the largest areas of need identified during a survey by the Iowa Women’s Foundation. In Iowa, 28 percent of childcare seats were lost in the last year, and roughly 56 percent over the last 10 years. Statewide, that has amounted to a shortfall of 346,051 daycare seats for children aged 0 to 12 years of age.
Penney said that the greatest shortfall in spaces has come from staffing in the centers.
Penney notes that childcare issues are a community issue, with significant impact on businesses.
Employees with children will look at leaving for jobs that have more family friendly benefits. Childcare issues also amount to roughly two weeks of absenteeism for employees or $1 billion in lost revenue for businesses.
Replacing an employee costs roughly 60 percent of an employee’s salary as well.
In Iowa, the average cost for childcare needs accounts for 14 percent of a family’s income. Nationally, that average is usually at 7 percent.
“We already have employees in this state paying double the nationwide average, and the daycare centers can only set wages at what is affordable to remain competitive,” Penney said.
In the state of Iowa, the average starting wage for daycare workers is $10.76 per hour.
Penney noted that 40 percent of childcare workers rely on at least one public benefit.
The efforts for a sustainable childcare solution started in Hamilton County, where the childcare centers were 65 percent below capacity before they tried solutions. Their solution was to ask businesses to help with retention and recruitment of childcare workers, which helped curb the issue.
Johnson County is pursuing a similar program, noting their need is increased wages for childcare workers.
For Penney that is the importance of the model being pursued by Mount Vernon and Lisbon – local control to address what the needs are for the childcare solutions in the community and making those efforts sustainable.
“For businesses, this isn’t just a one time ask, this is an annual buy-in and investment in childcare in these communities,” Penney said.
In Hamilton, their efforts raised more than $760,000 to date, increased their daycare center capacities by 150 percent (with three of the four now at 100 percent capacity). They are moving to the next phases, using some of those revenues they have on hand to address needs of childcare businesses or investment in new childcare centers.
When it comes to those matching dollars – Penney noted the contributions that receive the dollar-for-dollar match are from private individuals and business entities, not from city and county governments.
She also noted that some community governments have found ways to help those who are making donations make those investments stretch further – like utilizing TIF funds to match the donation from a business, or utilizing local option sales and service taxes as well.
Penney said the city and county governments will likely get additional asks from these organizations for annual donations.
As of early October, Penney said there has already been upwards of a $1.2 million ask in the dollar-for-dollar matches from the 12 communities.
Pledges are due by Oct. 25 from individuals or businesses to be considered for the dollar-for-dollar match, and any money received will be spent locally.
“We want whatever programs and solutions are established in these communities to remain sustainable,” Penney said.
A participant asked about employees who work in other communities but call Mount Vernon their homes, noting that Mount Vernon and Lisbon are bedroom communities for larger employers in Cedar Rapids and other areas.
“I’d recommend contacting those larger employers and outlining how their help can better help the childcare needs of their employees,” Penney said.
Penney was also asked how schools help some of these programs. She said while general budgets might not allow for contributions financially, there are enterprise funds they can draw on, or the meals provided to the centers.
And even if all the match for the community is $10,000 initially, with the dollar-for-dollar match, that benefits the money received.
“I am confident that this community will raise to this challenge,” said Renee Virlee, one of the community members on the Mount Vernon-Lisbon Childcare Solutions group. “I look forward to what this will look like five years in the future.”
If people have more questions or need a pledge form for a business or individual, contact the Mount Vernon-Lisbon Childcare Solutions group at [email protected].