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Expensive‌‌and‌‌Inaccessible:‌‌
Childcare‌‌in‌‌Sioux‌‌Falls,‌‌South‌‌
Dakota‌ ‌
August,‌‌16,‌‌2021‌ ‌
─‌‌A‌ ‌‌Beacom‌‌Research‌‌Fellows‌‌Report‌‌|‌‌Augustana‌‌Research‌‌Institute‌ ‌

Commissioned‌‌by‌‌the‌‌Sioux‌‌Falls‌‌Childcare‌‌Collaborative‌ ‌‌
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Annie‌‌Olson‌ ‌
Beacom‌‌Research‌‌Fellow‌ ‌
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Augustana‌‌Research‌‌Institute‌ ‌
Augustana‌‌University‌ ‌
Sioux‌‌Falls,‌‌South‌‌Dakota‌ ‌
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This‌‌report‌‌was‌‌made‌‌possible‌‌by‌‌a‌‌gift‌‌from‌‌Miles‌‌and‌‌Lisa‌‌Beacom‌‌to‌‌support‌‌the‌‌Beacom‌‌
Research‌‌Fellows‌‌Program‌‌at‌‌Augustana‌‌University.‌‌The‌‌Beacom‌‌Research‌‌Fellows‌‌Program‌‌
partners‌‌Augustana‌‌students‌‌with‌‌community‌‌organizations‌‌to‌‌complete‌‌collaborative‌‌research‌‌
projects‌‌on‌‌behalf‌‌of‌‌the‌‌organization.‌‌Fellows‌‌make‌‌rigorous‌‌research,‌‌data‌‌management,‌‌
analysis,‌‌and‌‌reporting‌‌more‌‌broadly‌‌available‌‌to‌‌organizations‌‌in‌‌the‌‌Sioux‌‌Falls‌‌area‌‌that‌‌are‌‌
working‌‌to‌‌improve‌‌the‌‌quality‌‌of‌‌life.‌ ‌
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Table‌‌of‌‌Contents‌ ‌
Table‌‌of‌‌Contents‌ 3‌ ‌

Introduction‌ 5‌ ‌
Significance‌‌of‌‌the‌‌Issue‌ 5‌ ‌
Goals‌‌of‌‌This‌‌Study‌ 7‌ ‌
Executive‌‌Summary‌‌/‌‌Key‌‌Findings‌ 7‌ ‌

Methods‌‌/‌‌Approach‌‌to‌‌the‌‌Problem‌ 9‌ ‌
Survey‌‌of‌‌Providers‌ 9‌ ‌
Survey‌‌of‌‌HR‌‌Representatives‌ 10‌ ‌

Results‌ 10‌ ‌
Childcare‌‌Provider‌‌Survey‌ 10‌ ‌
Summary‌‌of‌‌Results‌ 10‌ ‌
Provider‌‌Data‌ 11‌ ‌
Capacity,‌‌Enrollment,‌‌and‌‌Daily‌‌Attendance‌ 11‌ ‌
Waiting‌‌Lists‌ 13‌ ‌
Hours‌‌of‌‌Care‌‌vs.‌‌Hours‌‌of‌‌Operation‌ 15‌ ‌
Barriers‌‌to‌‌Enrolling‌‌More‌‌Children‌ 17‌ ‌
Cost‌‌of‌‌Childcare‌ 19‌ ‌
Families‌‌Leaving‌‌Childcare‌‌Due‌‌to‌‌Cost‌ 20‌ ‌
Provider’s‌‌Annual‌‌Deficits‌ 21‌ ‌
Provider’s‌‌Mortgage‌‌or‌‌Rent‌‌Payments‌ 22‌ ‌
Staffing‌‌for‌‌Providers‌ 23‌ ‌
Business‌‌Survey‌ 24‌ ‌
Summary‌‌of‌‌Results‌ 24‌ ‌
Size‌‌of‌‌Employers‌ 25‌ ‌
Challenges‌‌of‌‌Accessing‌‌Childcare‌‌Before‌‌COVID-19‌ 26‌ ‌
Challenges‌‌of‌‌Accessing‌‌Childcare‌‌After‌‌COVID-19‌ 27‌ ‌
Obstacles‌‌to‌‌Childcare‌‌for‌‌Parents‌ 27‌ ‌
Cost‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ 29‌ ‌
Full‌‌Providers‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ 30‌ ‌
Location‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ 31‌ ‌
Hours‌‌of‌‌Childcare‌‌Services‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ 32‌ ‌
Quality‌‌of‌‌Care‌‌Concerns‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ 33‌ ‌
Employers‌‌Helping‌‌with‌‌Childcare‌ 33‌ ‌
211‌‌Helpline‌‌Center‌‌Childcare‌‌Data‌ 34‌ ‌

Discussion‌ 36‌ ‌
Gap‌‌#1:‌‌Available‌‌Childcare‌‌Slots‌ 36‌ ‌
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Gap‌‌#2:‌‌The‌‌Cost‌‌of‌‌Childcare‌ 40‌ ‌
Gap‌‌#3:‌‌Provider’s‌‌Revenue‌‌versus‌‌Expenses‌ 43‌ ‌

Potential‌‌Solutions‌ 45‌ ‌

Conclusion‌ 48‌ ‌

References‌ 49‌ ‌

Appendix‌‌A‌ 53‌ ‌

Appendix‌‌B‌ 62‌ ‌

Appendix‌‌C‌ 64‌ ‌

Appendix‌‌D‌ 66‌ ‌

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Introduction‌ ‌
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Significance‌‌of‌‌the‌‌Issue‌ ‌
In‌‌the‌‌past‌‌year,‌‌childcare‌‌in‌‌the‌‌United‌‌States‌‌has‌‌gained‌‌significant‌‌attention;‌‌
however,‌‌childcare‌‌problems‌‌pre-date‌‌the‌‌pandemic.‌‌Sara‌‌Mauskopf,‌‌the‌‌CEO‌‌of‌‌Winnie,‌‌a‌‌
marketplace‌‌that‌‌connects‌‌families‌‌to‌‌childcare‌‌providers,‌‌stated,‌‌“[The‌‌pandemic]‌‌
increased‌‌recognition‌‌for‌‌the‌‌value‌‌of‌‌child‌‌care‌‌with‌‌employers,‌‌who‌‌realized‌‌their‌‌
employees‌‌can’t‌‌perform‌‌without‌‌child‌‌care;‌‌with‌‌parents…‌‌and‌‌with‌‌our‌‌government”‌‌
(Carrazana,‌‌2021).‌‌The‌‌COVID-19‌‌pandemic‌‌has‌‌brought‌‌the‌‌issues‌‌with‌‌childcare‌‌to‌‌light,‌‌
but‌‌they‌‌do‌‌not‌‌originate‌‌with‌‌the‌‌pandemic.‌‌The‌‌childcare‌‌system‌‌has‌‌had‌‌problems‌‌for‌‌
decades‌‌and‌‌is‌‌demonstrably‌‌broken‌‌on‌‌a‌‌national‌‌level.‌‌ ‌
Childcare‌‌is‌‌too‌‌expensive‌‌for‌‌many‌‌parents‌‌to‌‌afford,‌‌which‌‌disproportionately‌‌
affects‌‌poor‌‌families‌‌and‌‌families‌‌of‌‌color‌‌in‌‌the‌‌United‌‌States‌‌(Schochet,‌‌2019).‌‌
Unaffordable‌‌childcare‌‌is‌‌a‌‌challenge‌‌for‌‌working‌‌parents‌‌and‌‌their‌‌employers,‌‌as‌‌childcare‌‌
issues‌‌can‌‌increase‌‌absenteeism,‌‌reduce‌‌productivity,‌‌or‌‌even‌‌force‌‌parents‌‌to‌‌drop‌‌out‌‌of‌‌
the‌‌workforce‌‌entirely‌‌to‌‌care‌‌for‌‌their‌‌children;‌‌every‌‌year,‌‌these‌‌inefficiencies‌‌cost‌‌the‌‌
United‌‌States’‌‌economy‌‌an‌‌estimated‌‌$57‌‌billion‌‌(Jessen-Howard,‌‌Malik,‌‌&‌‌Falgout,‌‌2020).‌‌
Childcare‌‌availability‌‌is‌‌holding‌‌parents‌‌back--especially‌‌mothers--from‌‌reentering‌‌the‌‌
workforce‌‌(Minneapolis‌‌Federal‌‌Reserve,‌‌2020).‌‌A‌‌study‌‌by‌‌the‌‌National‌‌Survey‌‌of‌
Children's‌‌Health‌‌(2016)‌‌found‌‌that‌‌almost‌‌two‌‌million‌‌parents‌‌in‌‌2016‌‌alone‌‌with‌‌children‌‌
under‌‌the‌‌age‌‌of‌‌five‌‌quit‌‌a‌‌job,‌‌did‌‌not‌‌take‌‌a‌‌job,‌‌or‌‌changed‌‌their‌‌job‌‌due‌‌to‌‌childcare‌‌
issues.‌‌Turnover‌‌due‌‌to‌‌employees’‌‌lack‌‌of‌‌childcare‌‌costs‌‌businesses‌‌20%‌‌of‌‌hourly‌‌wage‌‌
employees’‌‌salaries‌‌and‌‌150%‌‌of‌‌a‌‌manager’s,‌‌while‌‌providing‌‌childcare‌‌for‌‌workers‌‌can‌‌
reduce‌‌absences‌‌by‌‌30%‌‌and‌‌turnover‌‌by‌‌60%‌‌(U.S.‌‌Chamber‌‌of‌‌Commerce,‌‌2021).‌‌Almost‌‌
three‌‌fourths‌‌of‌‌working‌‌parents‌‌report‌‌that‌‌their‌‌work‌‌has‌‌been‌‌affected‌‌by‌‌childcare‌‌
issues‌‌in‌‌some‌‌regard‌‌(First‌‌Five‌‌Years‌‌Fund,‌‌2021).‌‌ ‌
Childcare’s‌‌effects‌‌on‌‌the‌‌workforce‌‌are‌‌especially‌‌relevant‌‌in‌‌Sioux‌‌Falls‌‌because‌‌
more‌‌than‌‌75%‌‌of‌‌the‌‌15,116‌‌children‌‌under‌‌age‌‌six‌‌have‌‌all‌‌parents‌‌working,‌‌compared‌‌to‌‌
the‌‌national‌‌average‌‌of‌‌66%‌‌(U.S.‌‌Census‌‌Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌
Estimates,‌‌Table‌‌DP03,‌‌2019).‌‌Of‌‌these‌‌11,386‌‌children‌‌with‌‌working‌‌parents,‌‌only‌‌9,723‌‌
childcare‌‌slots‌‌exist‌‌in‌‌Sioux‌‌Falls‌‌according‌‌to‌‌the‌‌Helpline‌‌Center‌‌and‌‌the‌‌City‌‌of‌‌Sioux‌‌
Falls‌‌Health‌‌department‌‌2021‌‌data;‌‌close‌‌to‌‌2,000‌‌children‌‌do‌‌not‌‌have‌‌childcare‌‌slots‌‌
available‌‌for‌‌them.‌‌Furthermore,‌‌more‌‌than‌‌4,000‌‌Sioux‌‌Falls‌‌parents‌‌are‌‌not‌‌in‌‌the‌‌
workforce‌‌but‌‌potentially‌‌could‌‌be‌‌if‌‌they‌‌had‌‌accessible‌‌and‌‌affordable‌‌childcare‌‌for‌‌their‌‌
children‌‌(U.S.‌‌Census‌‌Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌Estimates,‌‌Table‌‌B23007,‌‌
2019).‌‌ ‌
Based‌‌on‌‌2019‌‌data‌‌in‌‌Sioux‌‌Falls,‌‌mothers‌‌of‌‌young‌‌children‌‌are‌‌less‌‌likely‌‌to‌‌work‌‌
than‌‌mothers‌‌of‌‌school‌‌aged‌‌children:‌‌half‌‌of‌‌stay-at-home‌‌mothers‌‌return‌‌to‌‌work‌‌once‌‌
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their‌‌children‌‌reach‌‌school-age‌‌(U.S.‌‌Census‌‌Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌
Estimates,‌‌Table‌‌S2301,‌‌2019).‌‌Some‌‌mothers‌‌may‌‌choose‌‌to‌‌stay‌‌at‌‌home‌‌when‌‌their‌‌
children‌‌are‌‌young,‌‌but‌‌some‌‌may‌‌return‌‌to‌‌the‌‌workforce‌‌if‌‌they‌‌have‌‌affordable‌‌and‌‌
available‌‌childcare‌‌provided‌‌to‌‌them.‌‌Fathers’‌‌workforce‌‌participation‌‌was‌‌close‌‌to‌‌
unaffected‌‌based‌‌on‌‌the‌‌age‌‌of‌‌their‌‌children,‌‌showing‌‌that‌‌clear‌‌gender‌‌roles‌‌still‌‌exist‌‌of‌‌
women‌‌staying‌‌home‌‌with‌‌children,‌‌which‌‌may‌‌be‌‌potentially‌‌due‌‌to‌‌the‌‌national‌‌pay‌‌gap‌‌
between‌‌men‌‌and‌‌women‌‌(U.S.‌‌Census‌‌Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌
Estimates,‌‌Table‌‌B23007,‌‌2019).‌‌Even‌‌so,‌‌hundreds‌‌of‌‌people‌‌could‌‌be‌‌working‌‌if‌‌they‌‌had‌
affordable‌‌childcare‌‌in‌‌Sioux‌‌Falls.‌ ‌
However,‌‌a‌‌shortage‌‌of‌‌childcare‌‌slots‌‌makes‌‌it‌‌difficult‌‌for‌‌parents‌‌to‌‌find‌‌care.‌‌In‌‌
South‌‌Dakota,‌‌43%‌‌of‌‌residents‌‌live‌‌in‌‌a‌‌childcare‌‌desert,‌‌or‌‌a‌‌census‌‌tract‌‌with‌‌50‌‌or‌‌more‌‌
children‌‌under‌‌the‌‌age‌‌of‌‌five‌‌that‌‌has‌‌no‌‌childcare‌‌providers‌‌or‌‌has‌‌children‌‌
outnumbering‌‌childcare‌‌slots‌‌by‌‌more‌‌than‌‌three‌‌to‌‌one‌‌(Early‌‌Learner‌‌SD,‌‌2021).‌‌A‌‌recent‌‌
state-wide‌‌report‌‌found‌‌that‌‌thousands‌‌of‌‌childcare‌‌slots‌‌were‌‌lost‌‌in‌‌South‌‌Dakota‌‌due‌‌to‌‌
the‌‌pandemic;‌‌however,‌‌Kids‌‌Count,‌‌a‌‌nationwide‌‌data‌‌source‌‌on‌‌children‌‌and‌‌families,‌‌
reveals‌‌that‌‌a‌‌majority‌‌of‌‌these‌‌slots‌‌are‌‌in-home‌‌care‌‌slots‌‌(Ferguson,‌‌2021;‌‌Kids‌‌Count‌‌
Data‌‌Center,‌‌2021).‌‌Conversely,‌‌childcare‌‌centers’‌‌numbers‌‌are‌‌increasing‌‌throughout‌‌the‌‌
state‌‌and‌‌have‌‌been‌‌for‌‌years,‌‌which‌‌may‌‌explain‌‌some‌‌of‌‌the‌‌rising‌‌costs‌‌of‌‌childcare,‌‌as‌‌
centers‌‌are‌‌normally‌‌more‌‌expensive‌‌than‌‌in-home‌‌care.‌‌The‌‌reliability‌‌of‌‌the‌‌estimated‌‌
number‌‌of‌‌care‌‌slots‌‌is‌‌compromised‌‌by‌‌the‌‌use‌‌of‌‌only‌‌licensed‌‌or‌‌registered‌‌childcare‌‌
providers’‌‌data,‌‌excluding‌‌many‌‌unregulated,‌‌in-home‌‌providers‌‌across‌‌the‌‌state.‌‌
According‌‌to‌‌Early‌‌Learner‌‌South‌‌Dakota‌‌(2021),‌‌the‌‌majority‌‌of‌‌childcare‌‌providers‌‌in‌‌
South‌‌Dakota‌‌are‌‌unregulated,‌‌totalling‌‌more‌‌than‌‌2,000‌‌providers.‌‌ ‌
In‌‌addition‌‌to‌‌an‌‌overall‌‌shortage‌‌of‌‌childcare‌‌slots,‌‌childcare‌‌affordability‌‌is‌‌also‌‌a‌‌
challenge‌‌for‌‌parents.‌‌According‌‌to‌‌the‌‌U.S.‌‌Department‌‌of‌‌Health‌‌and‌‌Human‌‌Services‌‌
(HHS)‌‌Child‌‌Care‌‌and‌‌Development‌‌Fund‌‌(CCDF)‌‌Program,‌‌parents‌‌should‌‌pay‌‌no‌‌more‌‌
than‌‌7%‌‌of‌‌their‌‌income‌‌on‌‌childcare‌‌services‌‌to‌‌be‌‌considered‌‌affordable,‌‌and‌‌many‌‌
families‌‌are‌‌paying‌‌considerably‌‌more‌‌than‌‌this‌‌(2015).‌‌This‌‌study‌‌discovered‌‌that‌‌the‌‌
average‌‌cost‌‌of‌‌childcare‌‌for‌‌one‌‌child‌‌birth‌‌to‌‌age‌‌five‌‌in‌‌Sioux‌‌Falls‌‌is‌‌close‌‌to‌‌$10,000‌‌per‌‌
year,‌‌while‌‌the‌‌median‌‌annual‌‌wage‌‌for‌‌a‌‌Sioux‌‌Falls‌‌resident‌‌is‌‌around‌‌$39,000‌‌(U.S.‌‌
Bureau‌‌of‌‌Labor‌‌Statistics,‌‌2020).‌‌In‌‌other‌‌words,‌‌the‌‌typical‌‌worker‌‌in‌‌Sioux‌‌Falls‌‌would‌‌
need‌‌to‌‌spend‌‌about‌‌one-fourth‌‌of‌‌their‌‌earnings‌‌for‌‌childcare‌‌fees,‌‌far‌‌above‌‌the‌‌7%‌‌
recommended‌‌amount.‌1 ‌Overall,‌‌childcare‌‌for‌‌a‌‌single‌‌child‌‌is‌‌unaffordable‌‌at‌‌the‌‌median‌‌
wage‌‌earnings‌‌level‌‌across‌‌all‌‌occupations‌‌in‌‌Sioux‌‌Falls‌‌(U.S.‌‌Bureau‌‌of‌‌Labor‌‌Statistics,‌‌
2020).‌‌ ‌
At‌‌the‌‌same‌‌time‌‌that‌‌parents‌‌struggle‌‌to‌‌find‌‌affordable‌‌care,‌‌childcare‌‌providers‌‌
operate‌‌on‌‌slim‌‌margins;‌‌fees‌‌for‌‌services‌‌rarely‌‌cover‌‌childcare‌‌providers’‌‌costs.‌‌Many‌‌
childcare‌‌providers‌‌struggle‌‌to‌‌make‌‌ends‌‌meet‌‌every‌‌year‌‌due‌‌to‌‌large‌‌annual‌‌deficits.‌‌The‌‌

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This‌‌family‌‌would‌‌not‌‌receive‌‌any‌‌state‌‌childcare‌‌assistance‌‌at‌‌their‌‌family‌‌size‌‌and‌‌income‌‌level.‌ ‌
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extremely‌‌low‌‌wages‌‌that‌‌childcare‌‌workers‌‌are‌‌paid‌‌may‌‌be‌‌one‌‌of‌‌the‌‌only‌‌reasons‌‌
providers‌‌are‌‌continuing‌‌to‌‌operate:‌‌the‌‌average‌‌salary‌‌for‌‌South‌‌Dakota‌‌childcare‌‌workers‌‌
is‌‌$21,943‌‌per‌‌year‌‌(South‌‌Dakota‌‌Department‌‌of‌‌Labor‌‌&‌‌Regulation,‌‌2021).‌‌Even‌‌so,‌‌the‌‌
low‌‌income‌‌of‌‌childcare‌‌workers‌‌is‌‌an‌‌impediment‌‌to‌‌recruitment‌‌and‌‌retention‌‌and‌‌thus‌‌
to‌‌combating‌‌childcare‌‌deserts.‌ ‌
At‌‌the‌‌national‌‌level,‌‌lawmakers‌‌have‌‌recognized‌‌that‌‌the‌‌current‌‌childcare‌‌system‌‌is‌‌
ineffective.‌‌Congress‌‌is‌‌debating‌‌a‌‌trillion‌‌dollar‌‌bill‌‌to‌‌help‌‌improve‌‌childcare‌‌by‌‌
introducing‌‌universal‌‌preschool,‌‌increasing‌‌funding‌‌for‌‌affordable‌‌childcare,‌‌and‌‌offering‌‌
paid‌‌family‌‌leave.‌‌However,‌‌the‌‌outcome‌‌of‌‌this‌‌debate‌‌remains‌‌uncertain,‌‌as‌‌do‌‌its‌‌
implications‌‌for‌‌Sioux‌‌Falls‌‌families.‌‌In‌‌the‌‌meantime,‌‌local‌‌businesses‌‌and‌‌policymakers‌‌
face‌‌a‌‌challenge‌‌in‌‌confronting‌‌childcare‌‌availability.‌‌This‌‌report‌‌provides‌‌local‌‌data‌‌about‌‌
childcare‌‌availability‌‌and‌‌workforce‌‌impacts‌‌in‌‌order‌‌to‌‌inform‌‌local‌‌decision‌‌making.‌ ‌
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Goals‌‌of‌‌This‌‌Study‌ ‌
Childcare‌‌deserts‌‌have‌‌been‌‌documented‌‌at‌‌a‌‌statewide‌‌level,‌‌and‌‌workforce‌‌
implications‌‌have‌‌been‌‌measured‌‌nationally,‌‌but‌‌the‌‌existence‌‌or‌‌extent‌‌of‌‌local‌‌childcare‌‌
gaps‌‌has‌‌yet‌‌to‌‌be‌‌demonstrated‌‌at‌‌a‌‌local‌‌level‌‌in‌‌Sioux‌‌Falls,‌‌South‌‌Dakota.‌‌In‌‌conjunction‌‌
with‌‌the‌‌Sioux‌‌Falls‌‌Childcare‌‌Collaborative‌‌(which‌‌is‌‌facilitated‌‌by‌‌Sioux‌‌Falls‌‌Thrive)‌‌and‌‌
the‌‌Beacom‌‌Research‌‌Fellows‌‌Program‌‌at‌‌Augustana‌‌University,‌‌this‌‌study‌‌set‌‌out‌‌to‌‌
research‌‌childcare‌‌locally‌‌by‌‌distributing‌‌two‌‌surveys:‌‌one‌‌to‌‌state-licensed‌‌childcare‌‌
centers‌‌and‌‌a‌‌second‌‌to‌‌local‌‌employers‌‌to‌‌understand‌‌each‌‌of‌‌their‌‌perspectives.‌‌
Recognizing‌‌the‌‌specific‌‌childcare‌‌problems‌‌at‌‌a‌‌local‌‌level‌‌will‌‌help‌‌to‌‌measure‌‌the‌‌extent‌‌
of‌‌any‌‌gaps‌‌and‌‌understand‌‌how‌‌to‌‌close‌‌them‌‌in‌‌order‌‌to‌‌support‌‌Sioux‌‌Falls‌‌families.‌ ‌
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Executive‌‌Summary‌‌/‌‌Key‌‌Findings‌ ‌
In‌‌Sioux‌‌Falls,‌‌childcare‌‌is‌‌in‌‌a‌‌double‌‌bind‌‌because‌‌childcare‌‌is‌‌too‌‌expensive‌‌for‌‌parents,‌‌
but‌‌providers‌‌are‌‌not‌‌making‌‌enough‌‌money‌‌from‌‌parent‌‌fees‌‌for‌‌financial‌‌sustainability.‌‌
Employers‌‌are‌‌feeling‌‌the‌‌effects--even‌‌more‌‌so‌‌since‌‌the‌‌beginning‌‌of‌‌the‌‌COVID-19‌‌
pandemic.‌‌The‌‌system‌‌as‌‌it‌‌currently‌‌exists‌‌is‌‌failing‌‌to‌‌meet‌‌the‌‌needs‌‌of‌‌families‌‌and‌‌
employers.‌ ‌
1. Sioux‌‌Falls‌‌has‌‌a‌‌shortage‌‌of‌‌childcare‌‌slots.‌ ‌
● More‌‌than‌‌75%‌‌of‌‌children‌‌under‌‌age‌‌six‌‌in‌‌Sioux‌‌Falls‌‌have‌‌all‌‌of‌‌their‌‌
parents‌‌in‌‌the‌‌labor‌‌force,‌‌compared‌‌to‌‌66%‌‌nationally.‌ ‌
● There‌‌are‌‌not‌‌enough‌‌childcare‌‌spots‌‌in‌‌Sioux‌‌Falls:‌‌close‌‌to‌‌1,000‌‌families‌‌
are‌‌on‌‌waiting‌‌lists‌‌for‌‌Sioux‌‌Falls‌‌childcare‌‌centers‌‌(see‌‌waiting‌‌lists).‌‌ ‌
● According‌‌to‌‌the‌‌survey‌‌results,‌‌the‌‌biggest‌‌barrier‌‌to‌‌amending‌‌this‌‌gap‌‌is‌‌
staffing‌‌issues‌‌because‌‌this‌‌is‌‌the‌‌biggest‌‌barrier‌‌to‌‌adding‌‌childcare‌‌spots‌‌
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(75%‌‌of‌‌childcare‌‌providers‌‌rank‌‌hiring/retaining‌‌staff‌‌as‌‌their‌‌number‌‌one‌‌or‌‌
number‌‌two‌‌barrier‌‌to‌‌enrolling‌‌more‌‌children).‌ ‌
2. Childcare‌‌in‌‌Sioux‌‌Falls‌‌is‌‌unaffordable‌‌for‌‌many‌‌working‌‌parents,‌‌and‌‌
employers‌‌feel‌‌the‌‌squeeze.‌ ‌
● The‌‌average‌‌cost‌‌of‌‌childcare‌‌in‌‌Sioux‌‌Falls‌‌amounts‌‌to‌‌almost‌‌$10,000‌‌a‌‌year‌‌
for‌‌one‌‌child,‌‌which‌‌for‌‌most‌‌workers‌‌is‌‌far‌‌above‌‌the‌‌recommended‌‌
threshold‌‌for‌‌affordable‌‌childcare‌‌(7%‌‌or‌‌less‌‌of‌‌a‌‌family’s‌‌income).‌‌By‌‌
comparison,‌‌7%‌‌of‌‌the‌‌Sioux‌‌Falls‌‌median‌‌wage‌‌is‌‌about‌‌$2,700‌‌a‌‌year--a‌‌gap‌‌
of‌‌$7,300‌‌between‌‌what‌‌the‌‌typical‌‌parent‌‌can‌‌afford‌‌and‌‌the‌‌market‌‌rate‌‌for‌‌
childcare.‌‌ ‌
● The‌‌average‌‌worker‌‌in‌‌Sioux‌‌Falls,‌w ‌ ho‌‌brings‌‌home‌‌roughly‌‌$39,000‌‌a‌‌year,‌‌
cannot‌‌afford‌‌childcare,‌‌which‌‌at‌‌$10,000‌‌per‌‌child‌‌amounts‌‌to‌‌about‌‌
one-fourth‌‌of‌‌their‌‌earnings.‌2 ‌
● Cost‌‌is‌‌the‌‌number‌‌one‌‌barrier‌‌for‌‌employees‌‌when‌‌finding‌‌childcare:‌‌68%‌‌of‌‌
employers‌‌rank‌‌it‌‌as‌‌being‌‌heard‌‌somewhat‌‌or‌‌very‌‌frequently‌‌from‌‌
employees.‌ ‌
● A‌‌total‌‌of‌‌12‌‌Sioux‌‌Falls‌‌employers--representing‌‌8,680‌‌employees--reported‌‌
that,‌‌after‌‌COVID-19,‌‌accessing‌‌childcare‌‌has‌‌become‌‌moderately‌‌or‌‌highly‌‌
challenging.‌ ‌
● Even‌‌before‌‌the‌‌pandemic,‌‌large‌‌employers‌‌were‌‌already‌‌seeing‌‌childcare‌‌
challenges;‌‌as‌‌a‌‌result,‌‌they‌‌saw‌‌less‌‌of‌‌a‌‌difference‌‌in‌‌childcare‌‌challenges‌‌
for‌‌their‌‌employees‌‌after‌‌the‌‌pandemic‌‌occurred,‌‌while‌‌most‌‌small‌‌
employers‌‌did‌‌not‌‌notice‌‌this‌‌effect.‌‌Large‌‌employers‌‌generally‌‌were‌‌more‌‌
aware‌‌of‌‌childcare‌‌issues‌‌than‌‌small‌‌employers‌‌were.‌ ‌
● As‌‌of‌‌2016,‌‌only‌‌2%‌‌of‌‌employers‌‌across‌‌all‌‌industries‌‌in‌‌South‌‌Dakota‌‌
offered‌‌some‌‌type‌‌of‌‌childcare‌‌benefits‌‌to‌‌their‌‌employees;‌‌this‌‌is‌‌the‌‌least‌‌
common‌‌benefit‌‌out‌‌of‌‌any‌‌recorded‌‌by‌‌the‌‌South‌‌Dakota‌‌Department‌‌of‌‌
Labor‌‌&‌‌Regulation‌‌in‌‌2016.‌‌Childcare‌‌assistance‌‌is‌‌yet‌‌to‌‌be‌‌a‌‌top‌‌priority‌‌for‌‌
employers.‌‌ ‌
3. Sioux‌‌Falls‌‌childcare‌‌providers‌‌operate‌‌on‌‌slim‌‌margins,‌‌so‌‌outside‌‌support‌‌
may‌‌be‌‌necessary‌‌to‌‌increase‌‌affordability.‌ ‌
● Providers‌‌cannot‌‌cut‌‌costs‌‌any‌‌further:‌‌most‌‌centers‌‌run‌‌a‌‌deficit,‌‌and‌‌they‌‌
struggle‌‌to‌‌meet‌‌staffing‌‌needs‌‌as‌‌is.‌ ‌
● Survey‌‌results‌‌find‌‌that‌‌the‌‌largest‌‌expense‌‌that‌‌providers‌‌have‌‌is‌‌staffing,‌‌
yet‌‌childcare‌‌workers‌‌only‌‌make‌‌around‌‌$22,000‌‌a‌‌year‌‌in‌‌South‌‌Dakota‌‌
(South‌‌Dakota‌‌Department‌‌of‌‌Labor‌‌&‌‌Regulation,‌‌2021).‌ ‌

2
‌For‌‌simplicity‌‌and‌‌comparability,‌‌a‌‌single‌‌earner’s‌‌income‌‌is‌‌compared‌‌to‌‌the‌‌cost‌‌of‌‌having‌‌a‌‌single‌‌
child‌‌in‌‌childcare.‌‌Many‌‌families‌‌in‌‌Sioux‌‌Falls‌‌have‌‌two‌‌earners‌‌and‌‌multiple‌‌children‌‌in‌‌childcare.‌‌
State‌‌childcare‌‌assistance‌‌is‌‌available‌‌to‌‌very‌‌low‌‌income‌‌families,‌‌but‌‌at‌‌this‌‌income‌‌level‌‌($39,000),‌‌
a‌‌family‌‌with‌‌one‌‌child‌‌in‌‌childcare‌‌would‌‌not‌‌qualify‌‌for‌‌assistance.‌‌Additional‌‌detail‌‌is‌‌provided‌‌in‌‌
the‌‌discussion.‌ ‌
 ‌9‌ ‌
‌

Methods‌‌/‌‌Approach‌‌to‌‌the‌‌Problem‌ ‌
‌
Survey‌‌of‌‌Providers‌ ‌
A‌‌survey‌‌of‌‌providers‌‌was‌‌sent‌‌out‌‌to‌‌52‌‌state-licensed‌‌childcare‌‌centers‌‌and‌‌67‌‌
individual‌‌sites‌‌in‌‌Sioux‌‌Falls,‌‌South‌‌Dakota,‌‌including‌‌both‌‌for-profit‌‌and‌‌nonprofit‌‌
providers.‌‌This‌‌survey‌‌was‌‌in‌‌the‌‌field‌‌for‌‌one‌‌month‌‌from‌‌5/25/2021‌‌to‌‌6/25/2021.‌‌Contact‌‌
lists‌‌from‌‌these‌‌childcare‌‌providers‌‌were‌‌received‌‌from‌‌the‌‌publicly‌‌available‌‌211‌‌Helpline‌‌
Center‌‌childcare‌‌database‌‌list.‌‌The‌‌purpose‌‌of‌‌the‌‌survey‌‌was‌‌to‌‌measure‌‌provider‌‌
capacity,‌‌enrollment,‌‌affordability,‌‌and‌‌financial‌‌sustainability,‌‌as‌‌well‌‌as‌‌to‌‌collect‌‌
providers’‌‌perceptions‌‌of‌‌barriers‌‌to‌‌increasing‌‌the‌‌availability‌‌and‌‌affordability‌‌of‌‌
childcare.‌‌ ‌
One‌‌of‌‌the‌‌goals‌‌of‌‌this‌‌survey‌‌was‌‌to‌‌ascertain‌‌the‌‌extent‌‌to‌‌which‌‌fees‌‌charged‌‌for‌‌
childcare‌‌services‌‌cover‌‌the‌‌actual‌‌cost‌‌to‌‌childcare‌‌providers‌‌and‌‌make‌‌an‌‌estimate‌‌of‌‌that‌‌
financial‌‌gap,‌‌if‌‌one‌‌exists.‌‌The‌‌financial‌‌gap‌‌for‌‌Sioux‌‌Falls‌‌providers‌‌was‌‌calculated‌‌by‌‌
asking‌‌providers‌‌whether‌‌fees‌‌for‌‌services‌‌cover‌‌their‌‌annual‌‌expenses,‌‌and‌‌if‌‌not,‌‌what‌‌
their‌‌annual‌‌deficits‌‌are.‌‌This‌‌information‌‌was‌‌contextualized‌‌by‌‌a‌‌review‌‌of‌‌childcare‌‌
providers’‌‌capacity,‌‌enrollment,‌‌and‌‌daily‌‌attendance‌‌to‌‌discern‌‌whether‌‌providers‌‌had‌‌the‌‌
capacity‌‌to‌‌increase‌‌enrollment‌‌(and‌‌fee‌‌revenue)‌‌given‌‌current‌‌licensing.‌‌Hours‌‌of‌‌
operation‌‌and‌‌hours‌‌of‌‌care‌‌provided‌‌per‌‌child‌‌were‌‌examined‌‌to‌‌see‌‌whether‌‌there‌‌was‌‌a‌‌
difference‌‌between‌‌the‌‌two‌‌that‌‌might‌‌also‌‌indicate‌‌capacity‌‌to‌‌increase‌‌enrollment‌‌and‌‌
fee‌‌revenue.‌‌Also,‌‌providers‌‌were‌‌asked‌‌about‌‌their‌‌current‌‌rates‌‌per‌‌child,‌‌if‌‌they‌‌had‌‌
children‌‌unable‌‌to‌‌enroll‌‌or‌‌leave‌‌childcare‌‌because‌‌of‌‌cost‌‌(and‌‌how‌‌many),‌‌and‌‌their‌‌
number‌‌of‌‌part-‌‌and‌‌full-time‌‌staff‌‌to‌‌understand‌‌providers’‌‌financial‌‌information‌‌and‌‌
affordability.‌‌The‌‌amount‌‌of‌‌full-time‌‌care--defined‌‌as‌‌a‌‌child‌‌attending‌‌childcare‌‌40‌‌hours‌‌
per‌‌week--was‌‌collected‌‌per‌‌provider.‌‌A‌‌few‌‌providers‌‌offer‌‌scholarships‌‌or‌‌discounted‌‌
rates‌‌for‌‌families‌‌with‌‌lower‌‌income;‌‌when‌‌calculating‌‌overall‌‌affordability‌‌of‌‌rates,‌‌these‌‌
discounted‌‌rates‌‌were‌‌excluded‌‌in‌‌order‌‌to‌‌determine‌‌the‌‌average‌‌market‌‌rate‌‌and‌‌
unassisted‌‌cost‌‌of‌‌center-based‌‌childcare‌‌in‌‌Sioux‌‌Falls.‌ ‌
Providers‌‌were‌‌asked‌‌about‌‌their‌‌waiting‌‌lists‌‌to‌‌understand‌‌the‌‌local‌‌demand‌‌for‌‌
childcare.‌‌In‌‌addition,‌‌data‌‌was‌‌collected‌‌about‌‌obstacles‌‌childcare‌‌providers‌‌face‌‌when‌‌
they‌‌wish‌‌to‌‌expand‌‌their‌‌services.‌‌The‌‌survey‌‌offered‌‌a‌‌list‌‌of‌‌potential‌‌barriers‌‌for‌‌
providers‌‌to‌‌rank‌‌from‌‌one‌‌to‌‌six--one‌‌being‌‌the‌‌most‌‌important‌‌and‌‌six‌‌being‌‌the‌‌least‌‌
important--to‌‌enrolling‌‌more‌‌children.‌‌The‌‌options‌‌included‌‌operating‌‌at‌‌full‌‌capacity,‌‌
inability‌‌to‌‌hire‌‌and/or‌‌retain‌‌personnel,‌‌not‌‌enough‌‌children‌‌wanting‌‌to‌‌enroll,‌‌location‌‌or‌‌
lack‌‌of‌‌demand‌‌for‌‌services‌‌in‌‌the‌‌area,‌‌cost‌‌of‌‌services‌‌exceeding‌‌families’‌‌ability‌‌to‌‌pay,‌‌
and‌‌“other”.‌‌If‌‌there‌‌were‌‌other‌‌barriers‌‌not‌‌listed,‌‌childcare‌‌providers‌‌could‌‌rank‌‌and‌‌
describe‌‌them,‌‌and‌‌if‌‌barriers‌‌were‌‌different‌‌depending‌‌on‌‌age‌‌group,‌‌they‌‌could‌‌also‌‌
explain‌‌this.‌‌See‌A ‌ ppendix‌‌A‌f‌ or‌‌the‌‌childcare‌‌provider‌‌survey‌‌questions.‌ ‌
 ‌10‌ ‌
‌

Survey‌‌of‌‌HR‌‌Representatives‌ ‌
A‌‌second‌‌survey‌‌was‌‌sent‌‌out‌‌to‌‌Human‌‌Resource‌‌(HR)‌‌representatives‌‌of‌‌Sioux‌‌
Falls‌‌employers.‌‌This‌‌survey‌‌was‌‌in‌‌the‌‌field‌‌for‌‌one‌‌month‌‌from‌‌5/25/2021‌‌to‌‌6/25/2021.‌‌
The‌‌contact‌‌list‌‌of‌‌Sioux‌‌Falls‌‌employers‌‌was‌‌compiled‌‌through‌‌an‌‌internet‌‌search‌‌of‌‌a‌‌
variety‌‌of‌‌large‌‌and‌‌small‌‌businesses‌‌from‌‌different‌‌industries,‌‌as‌‌this‌‌study‌‌aimed‌‌to‌
discover‌‌the‌‌extent‌‌in‌‌which‌‌the‌‌overall‌‌business‌‌community‌‌is‌‌affected‌‌by‌‌unmet‌‌childcare‌‌
needs.‌‌HR‌‌representatives‌‌were‌‌asked‌‌about‌‌the‌‌primary‌‌challenges‌‌and‌‌the‌‌degree‌‌of‌‌
difficulty‌‌their‌‌employees‌‌have‌‌experienced‌‌in‌‌accessing‌‌childcare,‌‌both‌‌before‌‌and‌‌after‌‌
the‌‌pandemic,‌‌to‌‌determine‌‌whether‌‌businesses‌‌only‌‌saw‌‌challenges‌‌for‌‌their‌‌employees‌‌
because‌‌of‌‌the‌‌pandemic‌‌or‌‌whether‌‌there‌‌had‌‌been‌‌issues‌‌prior‌‌to‌‌it.‌‌Additionally,‌‌HR‌‌
representatives‌‌were‌‌asked‌‌how‌‌frequently‌‌they‌‌believed‌‌their‌‌employees‌‌confronted‌‌
certain‌‌obstacles‌‌in‌‌finding‌‌and‌‌retaining‌‌childcare‌‌services‌‌in‌‌general.‌‌Obstacles‌‌included‌‌
cost,‌‌location,‌‌hours‌‌of‌‌childcare‌‌services,‌‌providers‌‌at‌‌full‌‌capacity,‌‌and‌‌concerns‌‌about‌‌the‌‌
quality‌‌of‌‌care‌‌provided.‌‌Lastly,‌‌the‌‌survey‌‌asked‌‌employers‌‌what--if‌‌any--subsidies‌‌they‌‌
provided‌‌to‌‌employees‌‌for‌‌childcare‌‌and‌‌whether‌‌they‌‌would‌‌consider‌‌providing‌‌a‌‌subsidy,‌‌
if‌‌they‌‌do‌‌not‌‌currently.‌‌Based‌‌on‌‌the‌‌responses‌‌to‌‌these‌‌questions,‌‌a‌‌new‌‌perspective‌‌on‌‌
the‌‌childcare‌‌system‌‌was‌‌gained‌‌from‌‌employers‌‌in‌‌Sioux‌‌Falls.‌‌See‌A ‌ ppendix‌‌B‌f‌ or‌‌
business‌‌survey‌‌questions.‌ ‌
‌

Results‌ ‌
‌
Childcare‌‌Provider‌‌Survey‌ ‌
Summary‌‌of‌‌Results‌‌ ‌
Overall,‌‌of‌‌the‌‌67‌‌state-licensed‌‌center-based‌‌childcare‌‌providers‌‌in‌‌Sioux‌‌Falls‌‌who‌‌
were‌‌invited‌‌to‌‌take‌‌the‌‌survey,‌‌40‌‌took‌‌the‌‌time‌‌to‌‌give‌‌their‌‌perspective‌‌on‌‌childcare‌‌with‌‌
this‌‌survey.‌‌The‌‌average‌‌licensed‌‌capacity‌‌for‌‌providers‌‌was‌‌about‌‌123‌‌children‌‌for‌‌birth‌‌to‌‌
age‌‌five‌‌children,‌‌and‌‌the‌‌average‌‌daily‌‌attendance‌‌was‌‌about‌‌103,‌‌revealing‌‌a‌‌gap‌‌of‌‌20‌‌
children‌‌between‌‌the‌‌space‌‌that‌‌could‌‌be‌‌used‌‌for‌‌childcare‌‌but‌‌is‌‌not.‌‌Waiting‌‌lists‌‌are‌‌
common:‌‌a‌‌majority‌‌of‌‌the‌‌40‌‌providers‌‌had‌‌waiting‌‌lists‌‌for‌‌birth‌‌to‌‌age‌‌five‌‌programs.‌‌
Taken‌‌together,‌‌these‌‌waiting‌‌lists‌‌totaled‌‌913‌‌families‌‌seeking‌‌care.‌‌On‌‌average,‌‌childcare‌‌
centers‌‌provided‌‌33.6‌‌hours‌‌of‌‌care‌‌per‌‌week‌‌per‌‌licensed‌‌slot,‌‌yet‌‌providers‌‌were‌‌open‌‌for‌‌
57.2‌‌hours‌‌per‌‌week.‌‌This‌‌suggests‌‌unused‌‌capacity‌‌of‌‌more‌‌than‌‌20‌‌hours,‌‌about‌‌
two-thirds‌‌of‌‌currently‌‌used‌‌capacity.‌‌ ‌
The‌‌largest‌‌barrier‌‌for‌‌childcare‌‌providers‌‌to‌‌enrolling‌‌more‌‌children‌‌was‌‌staffing‌
issues,‌‌which‌‌may‌‌be‌‌due‌‌to‌‌childcare‌‌workers’‌‌low‌‌salary‌‌and‌‌the‌‌large‌‌number‌‌of‌‌
part-time‌‌workers‌‌in‌‌this‌‌occupation.‌‌The‌‌second‌‌most‌‌common‌‌barrier‌‌to‌‌enrolling‌‌more‌‌
children‌‌was‌‌providers‌‌already‌‌operating‌‌at‌‌full‌‌capacity.‌‌ ‌
 ‌11‌ ‌
‌

Results‌‌of‌‌the‌‌provider‌‌survey‌‌also‌‌demonstrate‌‌the‌‌unaffordability‌‌of‌‌childcare.‌‌A‌‌
majority‌‌of‌‌providers‌‌reported‌‌that,‌‌every‌‌year,‌‌they‌‌have‌‌families‌‌whose‌‌children‌‌are‌‌
unable‌‌to‌‌enroll‌‌or‌‌leave‌‌the‌‌center‌‌because‌‌of‌‌its‌‌cost.‌‌Among‌‌providers‌‌surveyed,‌‌the‌‌
average‌‌cost‌‌for‌‌a‌‌child‌‌from‌‌birth‌‌to‌‌age‌‌five‌‌is‌‌$184‌‌per‌‌week,‌‌nearly‌‌$10,000‌‌per‌‌year.‌‌
Despite‌‌this‌‌high‌‌cost‌‌of‌‌childcare‌‌for‌‌parents,‌‌most‌‌providers‌‌reported‌‌an‌‌annual‌‌deficit‌‌
that‌‌ranged‌‌from‌‌less‌‌than‌‌$100,000‌‌to‌‌more‌‌than‌‌$500,000‌‌every‌‌year.‌‌Childcare‌‌providers‌‌
and‌‌parents‌‌are‌‌both‌‌struggling‌‌to‌‌get‌‌by‌‌with‌‌the‌‌current‌‌state‌‌of‌‌childcare.‌‌ ‌
‌
Provider‌‌Data‌‌ ‌
Childcare‌‌providers‌‌differ‌‌widely‌‌in‌‌their‌‌size,‌‌location,‌‌licensing,‌‌and‌‌ages‌‌of‌‌
children‌‌served,‌‌among‌‌other‌‌factors.‌‌Directors‌‌of‌‌state-licensed‌‌childcare‌‌centers‌‌in‌‌Sioux‌‌
Falls--including‌‌52‌‌childcare‌‌providers‌‌and‌‌67‌‌individual‌‌sites--were‌‌asked‌‌to‌‌complete‌‌the‌‌
provider‌‌survey.‌‌This‌‌survey‌‌was‌‌administered‌‌to‌‌determine‌‌whether‌‌fees‌‌for‌‌services‌‌
cover‌‌the‌‌actual‌‌cost‌‌for‌‌providers‌‌and‌‌calculate‌‌what‌‌the‌‌financial‌‌gap‌‌is--if‌‌there‌‌is‌‌
one--along‌‌with‌‌gaining‌‌an‌‌understanding‌‌of‌‌what‌‌barriers‌‌providers‌‌face‌‌to‌‌expansion‌‌of‌‌
services.‌‌In‌‌total,‌‌40‌‌providers‌‌responded‌‌to‌‌the‌‌survey.‌‌Each‌‌provider’s‌‌data‌‌was‌‌split‌‌into‌‌
two‌‌categories:‌‌infants,‌‌toddlers,‌‌and‌‌two‌‌year‌‌olds‌‌(children‌‌aged‌‌zero‌‌to‌‌two)‌‌and‌‌children‌‌
aged‌‌three‌‌to‌‌five.‌‌The‌‌following‌‌results‌‌are‌‌broken‌‌down‌‌into‌‌these‌‌categories.‌‌ ‌
‌
Capacity,‌‌Enrollment,‌‌and‌‌Daily‌‌Attendance‌ ‌
Providers‌‌reported‌‌an‌‌average‌‌licensed‌‌capacity‌‌of‌‌66‌‌for‌‌children‌‌aged‌‌zero‌‌to‌‌two‌‌
and‌‌60‌‌for‌‌children‌‌aged‌‌three‌‌to‌‌five.‌‌If‌‌providers‌‌supplied‌‌services‌‌for‌‌both‌‌age‌‌groups,‌‌
which‌‌a‌‌majority‌‌do,‌‌then‌‌their‌‌average‌‌overall‌‌capacity‌‌was‌‌about‌‌123‌‌children;‌‌this‌‌
showcases‌‌the‌‌rather‌‌large‌‌nature‌‌of‌‌most‌‌centers‌‌in‌‌Sioux‌‌Falls.‌‌ ‌
Centers’‌‌typical‌‌enrollment‌‌and‌‌average‌‌daily‌‌attendance‌‌are‌‌lower‌‌than‌‌their‌‌
licensed‌‌capacity.‌‌For‌‌the‌‌younger‌‌age‌‌group,‌‌centers‌‌have‌‌an‌‌average‌‌licensed‌‌capacity‌‌of‌‌
66‌‌but‌‌typically‌‌enroll‌‌61‌‌and‌‌have‌‌an‌‌average‌‌daily‌‌attendance‌‌of‌‌54,‌‌for‌‌an‌‌average‌‌daily‌‌
attendance‌‌of‌‌about‌‌82%‌‌of‌‌licensed‌‌capacity.‌‌For‌‌the‌‌older‌‌age‌‌group,‌‌centers‌‌have‌‌an‌‌
average‌‌licensed‌‌capacity‌‌of‌‌60‌‌but‌‌typically‌‌enroll‌‌55‌‌and‌‌have‌‌an‌‌average‌‌daily‌‌attendance‌‌
of‌‌50,‌‌for‌‌an‌‌average‌‌daily‌‌attendance‌‌of‌‌about‌‌83%‌‌of‌‌licensed‌‌capacity.‌‌The‌‌results‌‌for‌‌this‌‌
data‌‌are‌‌shown‌‌in‌‌the‌‌following‌‌two‌‌figures.‌ ‌
‌
 ‌12‌ ‌
‌

‌
 ‌13‌ ‌
‌

Waiting‌‌Lists‌‌ ‌
A‌‌majority‌‌of‌‌state-licensed‌‌childcare‌‌centers‌‌in‌‌Sioux‌‌Falls‌‌do‌‌not‌‌have‌‌enough‌‌
room‌‌to‌‌care‌‌for‌‌all‌‌of‌‌the‌‌families‌‌that‌‌need‌‌it.‌‌Most‌‌Sioux‌‌Falls‌‌providers‌‌reported‌‌waiting‌‌
lists‌‌for‌‌both‌‌age‌‌groups,‌‌with‌‌an‌‌average‌‌of‌‌26‌‌children‌‌aged‌‌zero‌‌to‌‌two‌‌and‌‌13‌‌children‌‌
aged‌‌three‌‌to‌‌five‌‌on‌‌each‌‌list.‌‌ ‌
Two-thirds‌‌of‌‌childcare‌‌providers‌‌had‌‌waiting‌‌lists‌‌for‌‌children‌‌aged‌‌zero‌‌to‌‌two.‌‌

There‌‌was‌‌an‌‌average‌‌of‌‌26‌‌children‌‌aged‌‌zero‌‌to‌‌two‌‌on‌‌waiting‌‌lists,‌‌with‌‌the‌‌smallest‌‌
waiting‌‌list‌‌having‌‌four‌‌children‌‌and‌‌the‌‌largest‌‌having‌‌101.‌‌Overall,‌‌625‌‌families‌‌were‌‌on‌‌a‌‌
childcare‌‌providers’‌‌waiting‌‌list‌‌for‌‌children‌‌aged‌‌zero‌‌to‌‌two‌‌in‌‌Sioux‌‌Falls.‌‌The‌‌results‌‌for‌‌
the‌‌67%‌‌of‌‌providers‌‌with‌‌waiting‌‌lists‌‌are‌‌shown‌‌below.‌‌ ‌

‌
‌
‌
 ‌14‌ ‌
‌

Nearly‌‌three‌‌fifths‌‌of‌‌providers‌‌also‌‌had‌‌a‌‌waiting‌‌list‌‌for‌‌children‌‌aged‌‌three‌‌to‌‌five.‌ ‌

‌ ven‌‌though‌‌this‌‌number‌‌is‌‌smaller‌‌than‌‌the‌‌number‌‌of‌‌providers‌‌who‌‌had‌‌waiting‌‌
E
lists‌‌for‌‌children‌‌aged‌‌zero‌‌to‌‌two,‌‌a‌‌majority‌‌of‌‌providers‌‌still‌‌had‌‌waiting‌‌lists‌‌for‌‌children‌‌
aged‌‌three‌‌to‌‌five.‌‌There‌‌was‌‌an‌‌average‌‌of‌‌13‌‌children‌‌on‌‌these‌‌waiting‌‌lists,‌‌with‌‌the‌‌
smallest‌‌having‌‌three‌‌children‌‌and‌‌the‌‌largest‌‌having‌‌35.‌‌For‌‌children‌‌aged‌‌three‌‌to‌‌five‌‌in‌‌
Sioux‌‌Falls,‌‌288‌‌families‌‌were‌‌on‌‌waiting‌‌lists‌‌for‌‌childcare‌‌providers.‌‌Results‌‌for‌‌these‌‌58%‌‌
of‌‌providers‌‌with‌‌waiting‌‌lists‌‌are‌‌shown‌‌below.‌ ‌
‌
‌
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‌
‌
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 ‌15‌ ‌
‌

Hours‌‌of‌‌Care‌‌vs.‌‌Hours‌‌of‌‌Operation‌‌ ‌
Childcare‌‌providers‌‌were‌‌open‌‌57.2‌‌hours‌‌per‌‌week‌‌on‌‌average‌‌to‌‌provide‌‌care‌‌for‌‌
children,‌‌with‌‌the‌‌fewest‌‌hours‌‌being‌‌30‌‌and‌‌the‌‌most‌‌being‌‌63.8‌‌per‌‌week.‌‌Centers‌‌were‌‌
open‌‌anywhere‌‌from‌‌5:30‌‌a.m.‌‌to‌‌6:30‌‌p.m.‌‌Monday‌‌through‌‌Friday.‌‌No‌‌centers‌‌reported‌‌
any‌‌available‌‌weekend‌‌or‌‌evening‌‌hours.‌ ‌
On‌‌average,‌‌childcare‌‌centers‌‌provided‌‌3,583‌‌hours‌‌of‌‌childcare‌‌per‌‌week,‌‌with‌‌a‌‌
minimum‌‌of‌‌150‌‌hours‌‌of‌‌care‌‌and‌‌a‌‌maximum‌‌of‌‌8,950‌‌hours‌‌of‌‌care.‌‌Childcare‌‌centers‌‌
provided‌‌these‌‌numbers,‌‌and‌‌they‌‌were‌‌calculated‌‌by‌‌multiplying‌‌the‌‌number‌‌of‌‌children‌‌
they‌‌care‌‌for‌‌in‌‌a‌‌typical‌‌week‌‌by‌‌the‌‌number‌‌of‌‌hours‌‌they‌‌care‌‌for‌‌each‌‌of‌‌these‌‌children.‌‌
For‌‌example,‌‌if‌‌a‌‌provider‌‌cared‌‌for‌‌five‌‌children‌‌who‌‌each‌‌spent‌‌40‌‌hours‌‌in‌‌childcare‌‌in‌‌a‌‌
week,‌‌their‌‌typical‌‌hours‌‌of‌‌care‌‌per‌‌week‌‌would‌‌be‌‌200‌‌hours.‌‌This‌‌was‌‌asked‌‌to‌‌
determine‌‌how‌‌many‌‌hours‌‌of‌‌care‌‌each‌‌child‌‌receives‌‌per‌‌week‌‌compared‌‌to‌‌the‌‌
provider’s‌‌total‌‌hours‌‌of‌‌operation‌‌in‌‌a‌‌week.‌‌The‌‌results‌‌for‌‌this‌‌are‌‌shown‌‌below.‌ ‌
‌
‌
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‌
‌
‌
‌
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‌
‌
‌
‌
‌
‌
‌
‌
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 ‌16‌ ‌
‌

Per‌‌licensed‌‌slot,‌‌centers‌‌provided‌‌an‌‌average‌‌of‌‌33.6‌‌hours‌‌of‌‌care‌‌per‌‌week‌‌per‌
licensed‌‌slot.‌‌Hours‌‌of‌‌care‌‌varied‌‌from‌‌a‌‌minimum‌‌of‌‌six‌‌to‌‌a‌‌maximum‌‌of‌‌61.7‌‌hours‌‌per‌‌
week.‌‌The‌‌results‌‌for‌‌hours‌‌of‌‌childcare‌‌provided‌‌per‌‌week‌‌per‌‌slot‌‌are‌‌displayed‌‌below.‌ ‌
‌
‌
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 ‌17‌ ‌
‌

Barriers‌‌to‌‌Enrolling‌‌More‌‌Children‌ ‌
Providers‌‌reported‌‌that‌‌the‌‌biggest‌‌barriers‌‌to‌‌enrolling‌‌more‌‌children‌‌were‌‌staffing,‌‌
capacity‌‌limits,‌‌and‌‌families’‌‌ability‌‌to‌‌pay.‌‌The‌‌largest‌‌barrier‌‌by‌‌far‌‌for‌‌providers‌‌was‌‌the‌‌
inability‌‌to‌‌hire‌‌and‌‌retain‌‌personnel,‌‌with‌‌75%‌‌of‌‌providers‌‌ranking‌‌it‌‌as‌‌their‌‌number‌‌one‌‌
or‌‌number‌‌two‌‌barrier‌‌to‌‌enrolling‌‌more‌‌children.‌‌The‌‌next‌‌most‌‌frequently‌‌indicated‌‌
response‌‌was‌‌that‌‌providers‌‌are‌‌already‌‌operating‌‌at‌‌full‌‌capacity,‌‌with‌‌47%‌‌ranking‌‌it‌‌
number‌‌one‌‌or‌‌two.‌‌Another‌‌common‌‌obstacle‌‌providers‌‌indicated‌‌they‌‌face‌‌in‌‌enrolling‌‌
more‌‌children‌‌is‌‌the‌‌cost‌‌of‌‌services‌‌exceeding‌‌families’‌‌ability‌‌to‌‌pay:‌‌28%‌‌of‌‌respondents‌‌
ranked‌‌this‌‌as‌‌the‌‌number‌‌one‌‌or‌‌number‌‌two‌‌barrier.‌‌Location‌‌or‌‌lack‌‌of‌‌demand‌‌for‌‌
services‌‌in‌‌the‌‌area‌‌and‌‌not‌‌enough‌‌children‌‌wanting‌‌to‌‌enroll‌‌were‌‌least‌‌frequently‌‌ranked‌‌
as‌‌providers’‌‌number‌‌one‌‌or‌‌number‌‌two‌‌barriers‌‌to‌‌increasing‌‌enrollment.‌‌ ‌
Few‌‌providers‌‌volunteered‌‌other‌‌barriers‌‌to‌‌enrollment‌‌not‌‌offered‌‌in‌‌the‌‌survey.‌‌If‌‌
providers‌‌had‌‌other‌‌barriers‌‌to‌‌enrolling‌‌more‌‌children,‌‌or‌‌if‌‌barriers‌‌differed‌‌depending‌‌
on‌‌the‌‌age‌‌group,‌‌they‌‌were‌‌asked‌‌to‌‌describe‌‌these‌‌in‌‌a‌‌comments‌‌section‌‌(see‌‌‌Appendix‌‌
C‌‌‌for‌‌comments).‌‌Other‌‌barriers‌‌that‌‌providers‌‌described‌‌include‌‌cost‌‌of‌‌operations‌‌for‌‌
centers‌‌who‌‌only‌‌provide‌‌care‌‌for‌‌infants,‌‌providers‌‌only‌‌offering‌‌care‌‌starting‌‌at‌‌age‌‌two,‌‌
and‌‌the‌‌effect‌‌of‌‌the‌‌pandemic‌‌on‌‌enrollment.‌‌Some‌‌common‌‌barriers‌‌to‌‌enrolling‌‌more‌‌
children‌‌that‌‌were‌‌different‌‌based‌‌on‌‌ages‌‌for‌‌providers‌‌were‌‌only‌‌caring‌‌for‌‌certain‌‌age‌‌
groups‌‌and‌‌having‌‌unequal‌‌demand‌‌for‌‌different‌‌age‌‌groups.‌‌Outcomes‌‌for‌‌barriers‌‌to‌‌
enrolling‌‌more‌‌children‌‌are‌‌shown‌‌here.‌ ‌
‌

‌
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 ‌18‌ ‌
‌

Table‌‌1‌ ‌
Barriers‌‌to‌‌Enrolling‌‌More‌‌Children‌‌for‌‌Childcare‌‌Providers‌‌(n‌‌=‌‌33)‌‌ ‌
‌ Ranking‌ ‌

Barrier‌ ‌ #1‌ #2‌ #3‌ #4‌ #5‌ #6‌ Unranked‌

Operating‌‌at‌‌ 9‌ 5‌ 2‌ 2‌ 2‌ 0‌ 10‌
full‌‌capacity‌ ‌

Inability‌‌to‌‌ 14‌ 10‌ 3‌ 1‌ 0‌ 0‌ 4‌

hire/retain‌‌
personnel‌ ‌

Not‌‌enough‌‌ 1‌ 2‌ 4‌ 4‌ 3‌ 2‌ 13‌
kids‌‌wanting‌‌
to‌‌enroll‌ ‌

Location‌‌or‌‌ 1‌ 2‌ 1‌ 5‌ 5‌ 1‌ 13‌
lack‌‌of‌‌
demand‌‌for‌‌
services‌ ‌

Cost‌‌exceeds‌‌ 4‌ 4‌ 7‌ 5‌ 2‌ 0‌ 7‌
families’‌‌
ability‌‌to‌‌pay‌

Other‌ ‌ 2‌ 1‌ 1‌ 1‌ 1‌ 4‌ 14‌

‌
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 ‌19‌ ‌
‌

Cost‌‌of‌‌Childcare‌ ‌
Overall,‌‌it‌‌costs‌‌$10,105‌‌a‌‌year‌‌on‌‌average‌‌for‌‌a‌‌zero‌‌to‌‌two‌‌year‌‌old‌‌to‌‌attend‌‌
childcare‌‌full‌‌time‌‌in‌‌Sioux‌‌Falls‌‌and‌‌$9,031‌‌for‌‌a‌‌three‌‌to‌‌five‌‌year‌‌old.‌3 ‌Most‌‌providers‌‌set‌‌
similar‌‌fees‌‌for‌‌children‌‌within‌‌each‌‌of‌‌these‌‌two‌‌age‌‌groups,‌‌but‌‌fees‌‌vary‌‌slightly‌‌by‌‌age‌‌
even‌‌within‌‌these‌‌groups.‌‌Among‌‌the‌‌zero‌‌to‌‌two‌‌year‌‌olds,‌‌the‌‌lowest‌‌overall‌‌cost‌‌of‌‌
childcare‌‌per‌‌week‌‌was‌‌$150‌‌and‌‌the‌‌highest‌‌was‌‌$224‌‌per‌‌week.‌‌The‌‌average‌‌cost‌‌per‌‌
week‌‌for‌‌infants‌‌was‌‌$197,‌‌for‌‌one‌‌year‌‌olds‌‌was‌‌$194,‌‌and‌‌for‌‌two‌‌year‌‌olds‌‌was‌‌$192.‌‌For‌‌
three‌‌to‌‌five‌‌year‌‌olds,‌‌the‌‌lowest‌‌cost‌‌per‌‌week‌‌was‌‌$135‌‌and‌‌the‌‌highest‌‌was‌‌$200.‌‌
Average‌‌cost‌‌was‌‌roughly‌‌equal‌‌across‌‌ages:‌‌$174‌‌was‌‌the‌‌average‌‌cost‌‌for‌‌three‌‌year‌‌olds,‌‌
$173‌‌for‌‌four‌‌year‌‌olds,‌‌and‌‌$174‌‌for‌‌five‌‌year‌‌olds.‌‌Results‌‌for‌‌this‌‌data‌‌are‌‌displayed‌‌in‌‌
the‌‌following‌‌figure.‌ ‌

‌
‌
‌
‌
‌
‌
‌
3
‌The‌‌childcare‌‌industry‌‌typically‌‌designates‌‌these‌‌two‌‌categories‌‌of‌‌children‌‌by‌‌their‌‌cost‌‌differences‌‌
based‌‌on‌‌different‌‌ratio‌‌requirements,‌‌as‌‌younger‌‌children‌‌need‌‌more‌‌supervision‌‌by‌‌staff.‌ ‌
 ‌20‌ ‌
‌

Families‌‌Leaving‌‌Childcare‌‌Due‌‌to‌‌Cost‌ ‌
Almost‌‌two-thirds‌‌of‌‌providers‌‌reported‌‌that,‌‌in‌‌a‌‌typical‌‌year,‌‌they‌‌have‌‌children‌‌
leave‌‌childcare‌‌or‌‌not‌‌enroll‌‌entirely‌‌because‌‌of‌‌an‌‌inability‌‌to‌‌pay.‌ ‌

On‌‌average,‌‌providers‌‌reported‌‌six‌‌children‌‌left‌‌or‌‌could‌‌not‌‌enroll‌‌in‌‌childcare‌‌per‌‌
year,‌‌with‌‌the‌‌lowest‌‌number‌‌being‌‌one‌‌and‌‌the‌‌highest‌‌number‌‌being‌‌20.‌‌Results‌‌below‌‌
describe‌‌data‌‌from‌‌the‌‌63%‌‌of‌‌providers‌‌who‌‌reported‌‌children‌‌leaving‌‌or‌‌being‌‌unable‌‌to‌‌
enroll‌‌in‌‌childcare‌‌because‌‌of‌‌the‌‌inability‌‌to‌‌pay.‌ ‌

‌
‌
‌
‌
‌
‌
 ‌21‌ ‌
‌

Provider’s‌‌Annual‌‌Deficits‌ ‌
Fees‌‌for‌‌services,‌‌including‌‌parent‌‌fees‌‌and‌‌other‌‌subsidies,‌‌do‌‌not‌‌cover‌‌a‌‌majority‌‌
of‌‌childcare‌‌providers‌‌in‌‌Sioux‌‌Falls’‌‌annual‌‌expenses.‌‌Close‌‌to‌‌two-thirds‌‌of‌‌the‌‌
state-licensed‌‌childcare‌‌providers‌‌that‌‌were‌‌surveyed‌‌reported‌‌annual‌‌deficits‌‌for‌‌their‌‌
birth‌‌to‌‌age‌‌five‌‌program.‌ ‌

Most‌‌providers’‌‌deficits‌‌were‌‌under‌‌$100,000‌‌(74%),‌‌but‌‌21%‌‌of‌‌providers‌‌had‌‌
deficits‌‌from‌‌$100,001‌‌to‌‌$200,000,‌‌and‌‌one‌‌reported‌‌an‌‌annual‌‌deficit‌‌of‌‌over‌‌$500,000.‌‌
Childcare‌‌providers‌‌who‌‌had‌‌annual‌‌deficits‌‌and‌‌listed‌‌the‌‌amount‌‌are‌‌shown‌‌below.‌ ‌

‌
‌
‌
‌
‌
‌
 ‌22‌ ‌
‌

Provider’s‌‌Mortgage‌‌or‌‌Rent‌‌Payments‌ ‌
Coincidentally,‌‌the‌‌same‌‌percent‌‌of‌‌providers‌‌who‌‌have‌‌annual‌‌deficits‌‌also‌‌make‌‌
mortgage‌‌or‌‌rent‌‌payments‌‌for‌‌the‌‌space‌‌used‌‌for‌‌their‌‌birth‌‌to‌‌age‌‌five‌‌program.‌ ‌

Providers‌‌were‌‌also‌‌asked‌‌how‌‌much‌‌they‌‌pay‌‌in‌‌annual‌‌mortgage‌‌or‌‌rent‌‌payments‌‌
for‌‌their‌‌space,‌‌and‌‌they‌‌paid‌‌$72,161‌‌per‌‌year‌‌on‌‌average.‌‌The‌‌lowest‌‌payment‌‌was‌‌$2,800‌‌
and‌‌the‌‌highest‌‌payment‌‌was‌‌$415,000.‌‌Having‌‌to‌‌pay‌‌mortgage‌‌or‌‌rent‌‌could‌‌contribute‌‌to‌‌
deficits:‌‌about‌‌three-fifths‌‌of‌‌providers‌‌with‌‌an‌‌annual‌‌deficit‌‌also‌‌said‌‌they‌‌make‌‌mortgage‌‌
or‌‌rent‌‌payments.‌‌Mortgage‌‌and‌‌rent‌‌payment‌‌data‌‌for‌‌these‌‌with‌‌these‌‌payments‌‌is‌‌
displayed‌‌here.‌ ‌

‌
‌
‌
‌
‌
‌
 ‌23‌ ‌
‌

Staffing‌‌for‌‌Providers‌ ‌
Surveyed‌‌providers‌‌averaged‌‌21‌‌full-time‌‌employees,‌‌ranging‌‌from‌‌zero‌‌to‌‌35.‌‌The‌‌
percentage‌‌of‌‌full-time‌‌workers‌‌per‌‌center‌‌is‌‌61%,‌‌with‌‌a‌‌minimum‌‌of‌‌0%‌‌(no‌‌full-time‌‌
employees)‌‌and‌‌a‌‌maximum‌‌of‌‌100%‌‌(only‌‌full-time‌‌employees).‌‌Results‌‌are‌‌shown‌‌here.‌ ‌
‌

Part-time‌‌employees‌‌are‌‌common‌‌in‌‌childcare‌‌settings,‌‌and‌‌this‌‌survey‌‌found‌‌an‌‌
average‌‌of‌‌13‌‌part-time‌‌employees‌‌per‌‌center,‌‌ranging‌‌from‌‌zero‌‌to‌‌40.‌‌More‌‌than‌‌
one-third‌‌(38%)‌‌of‌‌employees‌‌at‌‌childcare‌‌sites‌‌are‌‌part-time.‌‌The‌‌average‌‌percentage‌‌of‌‌
part-time‌‌employees‌‌per‌‌center‌‌is‌‌39%,‌‌with‌‌a‌‌minimum‌‌of‌‌0%‌‌(no‌‌part-time‌‌employees)‌‌
and‌‌a‌‌maximum‌‌of‌‌100%‌‌(only‌‌part-time‌‌employees).‌‌These‌‌results‌‌are‌‌shown‌‌below.‌ ‌
‌
‌
 ‌24‌ ‌
‌

Business‌‌Survey‌ ‌
Summary‌‌of‌‌Results‌ ‌
Overall,‌‌29‌‌Sioux‌‌Falls‌‌employers‌‌responded‌‌to‌‌this‌‌survey‌‌about‌‌the‌‌needs‌‌of‌‌
childcare‌‌among‌‌their‌‌employees.‌‌Five‌‌large‌‌employers‌‌(500‌‌or‌‌more‌‌employees)‌‌and‌‌24‌‌
small‌‌employers‌‌(less‌‌than‌‌500‌‌employees)‌‌that‌‌ranged‌‌in‌‌size‌‌from‌‌three‌‌to‌‌3,600‌‌took‌‌the‌‌
time‌‌to‌‌answer‌‌questions‌‌about‌‌how‌‌their‌‌business‌‌is‌‌affected‌‌by‌‌unmet‌‌childcare‌‌needs.‌ ‌
Employers‌‌were‌‌asked‌‌about‌‌the‌‌challenge‌‌of‌‌childcare‌‌for‌‌their‌‌employees‌‌before‌‌
and‌‌after‌‌COVID-19‌‌in‌‌order‌‌to‌‌understand‌‌their‌‌perspective‌‌on‌‌the‌‌state‌‌of‌‌childcare‌‌with‌‌
and‌‌without‌‌the‌‌pandemic’s‌‌effect.‌‌More‌‌than‌‌one-third‌‌of‌‌employers‌‌(38%)‌‌reported‌‌
childcare‌‌being‌‌a‌‌bigger‌‌challenge‌‌after‌‌the‌‌pandemic,‌‌but‌‌some‌‌businesses‌‌(17%),‌‌
especially‌‌large‌‌ones,‌‌still‌‌considered‌‌it‌‌at‌‌least‌‌a‌‌moderate‌‌challenge‌‌even‌‌before‌‌the‌‌
pandemic.‌‌Additionally,‌‌a‌‌majority‌‌(75%)‌‌of‌‌large‌‌employers‌‌recognized‌‌barriers‌‌to‌‌
childcare‌‌for‌‌their‌‌employees,‌‌compared‌‌to‌‌just‌‌less‌‌than‌‌half‌‌(46%)‌‌of‌‌small‌‌employers.‌‌
This‌‌could‌‌showcase‌‌the‌‌true‌‌struggle‌‌that‌‌parents‌‌face‌‌in‌‌Sioux‌‌Falls‌‌because‌‌large‌‌
businesses‌‌have‌‌more‌‌employees‌‌to‌‌hear‌‌about‌‌these‌‌concerns‌‌from.‌‌ ‌
According‌‌to‌‌HR‌‌representatives,‌‌the‌‌largest‌‌barrier‌‌to‌‌accessing‌‌childcare‌‌for‌‌
employees‌‌was‌‌cost,‌‌and‌‌the‌‌second‌‌most‌‌common‌‌barrier‌‌was‌‌a‌‌lack‌‌of‌‌available‌‌space‌‌at‌‌
childcare‌‌providers.‌‌Respondents‌‌also‌‌reported‌‌hearing‌‌frequent‌‌concerns‌‌with‌‌location,‌‌
hours‌‌of‌‌childcare‌‌services,‌‌and‌‌the‌‌quality‌‌of‌‌care.‌‌
Finally,‌‌employers‌‌were‌‌asked‌‌whether‌‌they‌‌offered‌‌a‌‌subsidy‌‌to‌‌employees‌‌for‌‌
childcare.‌‌Of‌‌the‌‌29‌‌employers‌‌surveyed,‌‌none‌‌provided‌‌a‌‌subsidy,‌‌and‌‌just‌‌three‌‌said‌‌that‌‌
they‌‌would‌‌consider‌‌providing‌‌one.‌‌ ‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
 ‌25‌ ‌
‌

Size‌‌of‌‌Employers‌‌ ‌
Human‌‌Resource‌‌(HR)‌‌representatives‌‌of‌‌53‌‌Sioux‌‌Falls‌‌employers‌‌of‌‌varying‌‌sizes‌‌
were‌‌asked‌‌to‌‌complete‌‌a‌‌survey‌‌about‌‌how‌‌their‌‌business‌‌is‌‌affected‌‌by‌‌unmet‌‌childcare‌‌
service‌‌demands.‌‌Of‌‌those‌‌53‌‌employers,‌‌29‌‌responded,‌‌including‌‌five‌‌large‌‌and‌‌24‌‌small‌‌
businesses.‌‌Large‌‌businesses‌‌had‌‌500‌‌or‌‌more‌‌employees,‌‌and‌‌small‌‌businesses‌‌had‌‌less‌‌
than‌‌500‌‌employees.‌‌The‌‌following‌‌figures‌‌for‌‌the‌‌employer‌‌survey‌‌are‌‌split‌‌up‌‌based‌‌on‌‌
the‌‌employers’‌‌size.‌‌Data‌‌on‌‌their‌‌sizes‌‌are‌‌as‌‌follows.‌ ‌
Table‌‌2‌ ‌
Average‌‌Employer‌‌Size‌‌in‌‌Sioux‌‌Falls‌‌(n‌‌=‌‌29)‌ ‌
Average‌‌
Employer‌‌ Mean‌ ‌ Median‌‌ ‌ Mode‌ ‌ Minimum‌ ‌ Maximum‌ ‌
Size‌‌Data‌ ‌

‌ 460‌ ‌ 100‌ ‌ 250‌ ‌ 3‌ ‌ 3,600‌ ‌

‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
 ‌26‌ ‌
‌

Challenges‌‌of‌‌Accessing‌‌Childcare‌‌Before‌‌COVID-19‌‌ ‌
Half‌‌(50%)‌‌of‌‌small‌‌employers‌‌stated‌‌that‌‌accessing‌‌childcare‌‌was‌‌not‌‌at‌‌all‌‌a‌‌
challenge‌‌for‌‌their‌‌employees‌‌before‌‌COVID-19,‌‌while‌‌over‌‌one-third‌‌(37.5%)‌‌said‌‌it‌‌was‌‌a‌‌
small‌‌challenge‌‌and‌‌one‌‌in‌‌eight‌‌(12.5%)‌‌said‌‌it‌‌was‌‌a‌‌medium‌‌challenge.‌‌All‌‌five‌‌large‌‌
businesses‌‌reported‌‌that‌‌accessing‌‌childcare‌‌was‌‌at‌‌least‌‌a‌‌small‌‌challenge,‌‌including‌‌two‌‌
that‌‌reported‌‌it‌‌was‌‌challenging‌‌to‌‌a‌‌moderate‌‌degree.‌‌In‌‌total,‌‌five‌‌Sioux‌‌Falls‌‌
employers--representing‌‌5,718‌‌employees--reported‌‌that,‌‌even‌‌before‌‌COVID-19,‌‌accessing‌‌
childcare‌‌was‌‌moderately‌‌challenging‌‌for‌‌employees.‌‌ ‌
Large‌‌employers‌‌may‌‌have‌‌perceived‌‌higher‌‌degrees‌‌of‌‌challenge‌‌with‌‌childcare‌‌
because‌‌they‌‌have‌‌a‌‌greater‌‌number‌‌of‌‌employees‌‌who‌‌can‌‌approach‌‌HR‌‌representatives‌‌
about‌‌childcare‌‌challenges,‌‌so‌‌they‌‌may‌‌have‌‌a‌‌more‌‌representative‌‌viewpoint‌‌of‌‌the‌‌state‌‌
of‌‌childcare‌‌in‌‌Sioux‌‌Falls.‌‌ ‌
None‌‌of‌‌the‌‌employers‌‌who‌‌were‌‌surveyed‌‌stated‌‌that‌‌the‌‌degree‌‌of‌‌accessing‌‌
childcare‌‌was‌‌highly‌‌challenging‌‌before‌‌COVID-19,‌‌which‌‌suggests‌‌either‌‌that‌‌childcare‌‌was‌‌
not‌‌a‌‌large‌‌issue‌‌before‌‌the‌‌pandemic,‌‌or‌‌employees‌‌did‌‌not‌‌approach‌‌HR‌‌representatives‌‌
with‌‌childcare‌‌issues.‌‌If‌‌the‌‌former‌‌is‌‌true,‌‌then‌‌childcare‌‌challenges‌‌may‌‌improve‌‌
considerably‌‌after‌‌the‌‌pandemic.‌‌But‌‌if‌‌the‌‌latter‌‌is‌‌true,‌‌then‌‌the‌‌childcare‌‌system‌‌most‌‌
likely‌‌has‌‌been‌‌an‌‌issue‌‌for‌‌a‌‌stretch‌‌of‌‌time‌‌with‌‌parents‌‌having‌‌few‌‌resources‌‌to‌‌support‌‌
them.‌‌The‌‌graphical‌‌results‌‌prior‌‌to‌‌the‌‌pandemic‌‌are‌‌shown‌‌below.‌‌See‌A ‌ ppendix‌‌D‌‌for‌‌
comments‌‌from‌‌HR‌‌representatives‌‌about‌‌common‌‌issues‌‌their‌‌employees‌‌faced‌‌before‌‌
COVID-19.‌ ‌
 ‌27‌ ‌
‌

Challenges‌‌of‌‌Accessing‌‌Childcare‌‌After‌‌COVID-19‌ ‌
Asked‌‌about‌‌childcare‌‌access‌‌since‌‌the‌‌beginning‌‌of‌‌the‌‌COVID-19‌‌pandemic,‌‌more‌‌
employers‌‌described‌‌a‌‌moderate‌‌or‌‌high‌‌degree‌‌of‌‌challenge;‌‌the‌‌pandemic‌‌had‌‌a‌‌negative‌‌
effect‌‌on‌‌the‌‌state‌‌of‌‌childcare‌‌from‌‌employers’‌‌perspectives.‌‌ ‌
Large‌‌employers‌‌reported‌‌higher‌‌levels‌‌of‌‌challenge:‌‌80%‌‌indicated‌‌accessing‌‌
childcare‌‌was‌‌moderately‌‌or‌‌highly‌‌challenging‌‌since‌‌the‌‌beginning‌‌of‌‌the‌‌pandemic.‌‌
Including‌‌both‌‌small‌‌and‌‌large‌‌employers,‌‌a‌‌total‌‌of‌‌12‌‌employers--representing‌‌8,680‌‌
employees--reported‌‌that,‌‌since‌‌the‌‌onset‌‌of‌‌COVID-19,‌‌accessing‌‌childcare‌‌has‌‌become‌‌
moderately‌‌or‌‌highly‌‌challenging.‌‌Again,‌‌no‌‌large‌‌employers‌‌stated‌‌that‌‌access‌‌to‌‌childcare‌‌
was‌‌not‌‌at‌‌all‌‌an‌‌issue‌‌for‌‌employees‌‌after‌‌COVID-19,‌‌and‌‌only‌‌one-third‌‌of‌‌small‌‌
employers‌‌reported‌‌this‌‌as‌‌well‌‌(compared‌‌to‌‌50%‌‌pre-pandemic).‌‌Results‌‌are‌‌shown‌‌
below.‌‌See‌A ‌ ppendix‌‌D‌‌for‌‌comments‌‌from‌‌HR‌‌representatives‌‌about‌‌common‌‌issues‌‌their‌‌
employees‌‌faced‌‌after‌‌the‌‌onset‌‌of‌‌COVID-19.‌ ‌

Obstacles‌‌to‌‌Childcare‌‌for‌‌Parents‌ ‌
The‌‌business‌‌survey‌‌presented‌‌HR‌‌representatives‌‌with‌‌a‌‌list‌‌of‌‌barriers‌‌employees‌‌
might‌‌face‌‌in‌‌accessing‌‌childcare,‌‌including‌‌cost,‌‌location,‌‌hours‌‌of‌‌childcare‌‌services,‌‌
childcare‌‌providers‌‌being‌‌full,‌‌and‌‌concerns‌‌about‌‌the‌‌quality‌‌of‌‌care‌‌being‌‌provided.‌‌
Respondents‌‌were‌‌asked‌‌to‌‌rate‌‌how‌‌frequently‌‌their‌‌employees‌‌confronted‌‌each‌‌barrier‌‌
based‌‌on‌‌their‌‌perceptions.‌‌Overall,‌‌every‌‌barrier‌‌listed‌‌had‌‌at‌‌least‌‌some‌‌relevance‌‌for‌‌
local‌‌employees.‌‌The‌‌following‌‌figure‌‌presents‌‌these‌‌obstacles‌‌together‌‌for‌‌comparison,‌‌
 ‌28‌ ‌
‌

showing‌‌for‌‌each‌‌barrier‌‌the‌‌percentage‌‌of‌‌employers‌‌who‌‌indicated‌‌they‌‌heard‌‌concerns‌‌
about‌‌this‌‌barrier‌‌from‌‌their‌‌employees‌‌either‌‌somewhat‌‌or‌‌very‌‌frequently.‌‌ ‌
In‌‌this‌‌regard,‌‌cost‌‌is‌‌the‌‌most‌‌significant‌‌barrier‌‌to‌‌accessing‌‌childcare‌‌for‌‌
employees‌‌in‌‌Sioux‌‌Falls:‌‌more‌‌than‌‌two-thirds‌‌(68%)‌‌of‌‌employers‌‌stated‌‌that‌‌they‌‌heard‌‌
cost‌‌concerns‌‌somewhat‌‌or‌‌very‌‌frequently.‌‌Childcare‌‌providers‌‌being‌‌full‌‌is‌‌the‌‌second‌‌
most‌‌significant‌‌obstacle‌‌to‌‌finding‌‌childcare‌‌services:‌‌more‌‌than‌‌half‌‌(54%)‌‌of‌‌employers‌‌
heard‌‌this‌‌somewhat‌‌or‌‌very‌‌frequently‌‌from‌‌employees.‌‌The‌‌last‌‌three‌‌barriers--location,‌‌
hours‌‌of‌‌childcare‌‌services,‌‌and‌‌concerns‌‌about‌‌the‌‌quality‌‌of‌‌care--all‌‌came‌‌in‌‌with‌‌43%‌‌of‌‌
employers‌‌hearing‌‌these‌‌concerns‌‌from‌‌employees‌‌somewhat‌‌or‌‌very‌‌frequently.‌‌ ‌
Survey‌‌results‌‌are‌‌based‌‌on‌‌HR‌‌representatives’‌‌perceptions‌‌of‌‌the‌‌barriers‌‌
employees‌‌confront,‌‌not‌‌on‌‌direct‌‌reports‌‌from‌‌parents‌‌themselves.‌‌These‌‌numbers‌‌
nevertheless‌‌suggest‌‌a‌‌large‌‌portion‌‌of‌‌working‌‌parents‌‌are‌‌unsatisfied‌‌with‌‌how‌‌childcare‌‌
is‌‌functioning‌‌in‌‌Sioux‌‌Falls,‌‌and‌‌it‌‌is‌‌impacting‌‌their‌‌work‌‌life‌‌enough‌‌to‌‌communicate‌‌their‌‌
concerns‌‌to‌‌their‌‌employers.‌‌Furthermore,‌‌these‌‌numbers‌‌may‌‌underestimate‌‌the‌‌true‌‌
extent‌‌of‌‌barriers‌‌in‌‌the‌‌community‌‌because‌‌this‌‌assumes‌‌that‌‌all‌‌employees‌‌are‌‌
approaching‌‌their‌‌HR‌‌representatives‌‌with‌‌concerns‌‌about‌‌childcare.‌‌In‌‌reality,‌‌this‌‌may‌‌not‌‌
be‌‌the‌‌case‌‌because‌‌employees‌‌must‌‌be‌‌comfortable‌‌enough‌‌to‌‌approach‌‌their‌‌HR‌‌
representatives,‌‌or‌‌the‌‌situation‌‌must‌‌be‌‌severe‌‌enough‌‌to‌‌do‌‌so,‌‌so‌‌many‌‌employers‌‌may‌‌
not‌‌be‌‌fully‌‌aware‌‌of‌‌childcare‌‌issues.‌‌Additionally,‌‌these‌‌results‌‌do‌‌not‌‌speak‌‌to‌‌the‌‌
experiences‌‌of‌‌parents‌‌who‌‌are‌‌not‌‌currently‌‌employed‌‌because‌‌of‌‌childcare‌‌barriers‌‌they‌‌
face.‌‌The‌‌overall‌‌results‌‌of‌‌employers’‌‌perception‌‌of‌‌barriers‌‌for‌‌parents‌‌to‌‌finding‌‌and‌‌
retaining‌‌childcare‌‌in‌‌Sioux‌‌Falls‌‌is‌‌shown‌‌below.‌ ‌
‌
‌
 ‌29‌ ‌
‌

Cost‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ ‌
Based‌‌on‌‌this‌‌study’s‌‌data‌‌mentioned‌‌on‌‌page‌‌19,‌‌the‌‌average‌‌cost‌‌of‌‌childcare‌‌in‌‌
Sioux‌‌Falls‌‌amounts‌‌to‌‌almost‌‌$10,000‌‌a‌‌year‌‌for‌‌one‌‌birth‌‌to‌‌age‌‌five‌‌child.‌‌Survey‌‌results‌‌
suggest‌‌the‌‌cost‌‌of‌‌childcare‌‌is‌‌the‌‌biggest‌‌obstacle‌‌that‌‌working‌‌parents‌‌face‌‌with‌‌
childcare‌‌in‌‌Sioux‌‌Falls.‌‌Cost‌‌ranked‌‌number‌‌one‌‌among‌‌barriers,‌‌with‌‌68%‌‌of‌‌employers‌‌
indicating‌‌they‌‌heard‌‌cost‌‌concerns‌‌somewhat‌‌or‌‌very‌‌frequently.‌‌Overall,‌‌all‌‌large‌‌
employers‌‌reported‌‌that‌‌cost‌‌was‌‌either‌‌somewhat‌‌or‌‌very‌‌frequently‌‌confronted‌‌for‌‌
employees,‌‌while‌‌small‌‌employer’s‌‌perceptions‌‌were‌‌across‌‌the‌‌board‌‌with‌‌somewhat‌‌
frequently‌‌being‌‌the‌‌most‌‌common‌‌answer.‌‌The‌‌results‌‌for‌‌this‌‌obstacle‌‌are‌‌shown‌‌below.‌ ‌

‌
‌
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‌
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 ‌30‌ ‌
‌

Full‌‌Providers‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ ‌
More‌‌than‌‌half‌‌of‌‌employers‌‌(54%)‌‌reported‌‌hearing‌‌concerns‌‌about‌‌full‌‌or‌‌at‌‌
capacity‌‌childcare‌‌providers‌‌somewhat‌‌or‌‌very‌‌frequently,‌‌with‌‌large‌‌employers‌‌seeing‌‌it‌‌as‌‌
more‌‌of‌‌a‌‌concern.‌‌The‌‌following‌‌graphic‌‌exhibits‌‌employers’‌‌perceptions‌‌of‌‌how‌‌
frequently‌‌employees‌‌face‌‌full‌‌childcare‌‌providers‌‌as‌‌a‌‌barrier‌‌to‌‌childcare.‌ ‌

‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
 ‌31‌ ‌
‌

Location‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ ‌
Most‌‌employers‌‌stated‌‌that‌‌location‌‌of‌‌childcare‌‌providers‌‌was‌‌rarely/never‌‌an‌‌
obstacle,‌‌with‌‌some‌‌reporting‌‌they‌‌heard‌‌this‌‌concern‌‌from‌‌employees‌‌somewhat‌‌
frequently.‌‌Few‌‌employers‌‌stated‌‌that‌‌this‌‌came‌‌up‌‌very‌‌frequently‌‌for‌‌their‌‌employees.‌‌
Transportation‌‌is‌‌not‌‌equally‌‌accessible‌‌for‌‌everyone,‌‌so‌‌location‌‌may‌‌be‌‌an‌‌obstacle‌‌for‌‌
some‌‌families‌‌more‌‌than‌‌others.‌‌Even‌‌so,‌‌this‌‌barrier‌‌was‌‌not‌‌the‌‌most‌‌common‌‌one‌‌that‌‌
employees‌‌faced.‌‌Results‌‌for‌‌this‌‌question‌‌are‌‌shown‌‌here.‌‌ ‌
‌

‌
‌
‌
‌
‌
‌
‌
‌
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‌
 ‌32‌ ‌
‌

Hours‌‌of‌‌Childcare‌‌Services‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ ‌
Almost‌‌half‌‌(43%)‌‌of‌‌all‌‌employers‌‌heard‌‌about‌‌hours‌‌of‌‌childcare‌‌services‌‌as‌‌a‌‌
barrier‌‌somewhat‌‌or‌‌very‌‌frequently.‌‌Results‌‌showed‌‌that‌‌large‌‌employers‌‌were‌‌more‌‌likely‌‌
to‌‌rank‌‌hours‌‌of‌‌childcare‌‌services‌‌as‌‌somewhat‌‌or‌‌very‌‌frequently‌‌a‌‌barrier‌‌for‌‌employees.‌‌
The‌‌results‌‌for‌‌this‌‌information‌‌are‌‌shown‌‌below.‌ ‌

‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
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‌
 ‌33‌ ‌
‌

Quality‌‌of‌‌Care‌‌Concerns‌‌as‌‌an‌‌Obstacle‌‌to‌‌Childcare‌ ‌
Most‌‌employers‌‌did‌‌not‌‌see‌‌concerns‌‌about‌‌the‌‌quality‌‌of‌‌care‌‌as‌‌a‌‌large‌‌concern,‌‌
but‌‌close‌‌to‌‌half‌‌(43%)‌‌had‌‌somewhat‌‌or‌‌very‌‌frequently‌‌heard‌‌about‌‌this‌‌barrier.‌‌The‌‌
following‌‌figure‌‌displays‌‌these‌‌results.‌‌ ‌

Employers‌‌Helping‌‌with‌‌Childcare‌ ‌
None‌‌of‌‌the‌‌29‌‌employers‌‌surveyed‌‌offered‌‌a‌‌subsidy‌‌for‌‌childcare‌‌assistance‌‌for‌‌
their‌‌employees.‌ ‌

Additionally,‌‌most‌‌employers‌‌who‌‌were‌‌surveyed‌‌are‌‌not‌‌actively‌‌considering‌‌adding‌‌a‌‌
subsidy.‌4 ‌About‌‌10%‌‌of‌‌surveyed‌‌employers‌‌(three‌‌of‌‌29)‌‌stated‌‌that‌‌they‌‌would‌‌consider‌‌
providing‌‌a‌‌subsidy‌‌for‌‌their‌‌employees’‌‌childcare.‌ ‌

4
‌One‌‌employer‌‌mentioned‌‌that‌‌they‌‌offered‌‌a‌‌Flexible‌‌Spending‌‌Account‌‌(FSA)‌‌for‌‌employees’‌‌
childcare,‌‌but‌‌this‌‌is‌‌not‌‌a‌‌direct‌‌subsidy.‌‌The‌‌survey‌‌did‌‌not‌‌specifically‌‌ask‌‌about‌‌FSAs,‌‌only‌‌about‌‌
subsidies.‌‌No‌‌other‌‌employers‌‌volunteered‌‌information‌‌about‌‌FSA‌‌availability.‌ ‌
 ‌34‌ ‌
‌

Based‌‌on‌‌a‌‌2016‌‌survey‌‌by‌‌the‌‌South‌‌Dakota‌‌Department‌‌of‌‌Labor‌‌&‌‌Regulation,‌‌only‌‌2%‌‌of‌‌
employers‌‌across‌‌all‌‌industries‌‌in‌‌the‌‌state‌‌offer‌‌some‌‌type‌‌of‌‌childcare‌‌benefits‌‌to‌‌their‌‌
employees,‌‌which‌‌is‌‌the‌‌least‌‌offered‌‌benefit‌‌out‌‌of‌‌any‌‌recorded‌‌in‌‌2016.‌‌Survey‌‌results‌‌
indicate‌‌low‌‌levels‌‌of‌‌employer‌‌support‌‌for‌‌childcare‌‌are‌‌still‌‌the‌‌norm‌‌in‌‌Sioux‌‌Falls.‌‌
Childcare‌‌assistance‌‌is‌‌yet‌‌to‌‌be‌‌a‌‌top‌‌priority‌‌for‌‌employers.‌ ‌
‌
211‌‌Helpline‌‌Center‌‌Childcare‌‌Data‌ ‌
The‌‌211‌‌Helpline‌‌Center,‌‌an‌‌information‌‌and‌‌support‌‌call‌‌center‌‌in‌‌Sioux‌‌Falls,‌‌
maintains‌‌a‌‌database‌‌of‌‌childcare‌‌providers‌‌in‌‌Sioux‌‌Falls‌‌for‌‌infants‌‌to‌‌18-year-olds.‌‌
Providers‌‌voluntarily‌‌submit‌‌information‌‌to‌‌be‌‌included‌‌in‌‌the‌‌database,‌‌which‌‌is‌‌available‌‌
for‌‌parents‌‌to‌‌search.‌‌ ‌
As‌‌of‌‌July‌‌2021,‌‌for‌‌the‌‌city‌‌of‌‌Sioux‌‌Falls,‌‌the‌‌Helpline‌‌Center’s‌‌childcare‌‌database‌‌
has‌‌51‌‌childcare‌‌centers‌‌and‌‌156‌‌in-home‌‌childcare‌‌providers‌‌listed.‌‌Of‌‌the‌‌156‌‌in-home‌‌
providers‌‌that‌‌supplied‌‌data,‌‌19‌‌set‌‌desired‌‌capacity‌‌limits‌‌below‌‌their‌‌licensed‌‌capacity.‌‌
Providers‌‌do‌‌this‌‌for‌‌many‌‌reasons,‌‌including‌‌accounting‌‌for‌‌unexpected‌‌staff‌‌shortages‌‌
that‌‌would‌‌not‌‌allow‌‌them‌‌to‌‌care‌‌for‌‌the‌‌maximum‌‌number‌‌of‌‌children.‌‌The‌‌total‌‌licensed‌‌
capacity‌‌slots‌‌for‌‌in-home‌‌providers‌‌in‌‌Sioux‌‌Falls‌‌is‌‌1,841,‌‌and‌‌the‌‌desired‌‌capacity‌‌is‌‌
1,750.‌5 ‌The‌‌average‌‌licensed‌‌capacity‌‌for‌‌in-home‌‌providers‌‌is‌‌almost‌‌12,‌‌and‌‌the‌‌average‌‌
desired‌‌capacity‌‌is‌‌about‌‌11.‌‌In-home‌‌providers‌‌thus‌‌operate‌‌at‌‌95.1%‌‌of‌‌licensed‌‌capacity.‌‌
The‌‌City‌‌of‌‌Sioux‌‌Falls‌‌Health‌‌Department‌‌also‌‌provided‌‌information‌‌on‌‌in-home‌‌childcare‌‌
providers‌‌in‌‌Sioux‌‌Falls‌‌who‌‌are‌‌registered‌‌with‌‌the‌‌city.‌‌City‌‌registration‌‌is‌‌mandatory‌‌for‌‌
in-home‌‌providers.‌‌The‌‌city‌‌list‌‌included‌‌267‌‌providers‌‌with‌‌12‌‌licensed‌‌slots‌‌per‌‌home‌‌for‌‌
a‌‌total‌‌of‌‌3,204‌‌licensed‌‌capacity‌‌slots.‌‌City‌‌registration‌‌numbers‌‌were‌‌used‌‌to‌‌estimate‌‌
total‌‌available‌‌slots‌‌because‌‌they‌‌are‌‌a‌‌more‌‌accurate‌‌number‌‌than‌‌the‌‌Helpline‌‌Center’s‌‌
voluntary‌‌system.‌‌Despite‌‌this,‌‌the‌‌Helpline‌‌Center‌‌database‌‌gave‌‌additional‌‌information‌‌
about‌‌desired‌‌capacity‌‌that‌‌the‌‌Health‌‌Department‌‌did‌‌not‌‌provide,‌‌so‌‌these‌‌Helpline‌‌
Center‌‌numbers‌‌were‌‌used‌‌to‌‌estimate‌‌the‌‌total‌‌desired‌‌capacity‌‌numbers‌‌in‌‌Sioux‌‌Falls‌‌for‌‌
in-home‌‌providers.‌‌ ‌
For‌‌centers,‌‌six‌‌out‌‌of‌‌the‌‌51‌‌set‌‌desired‌‌capacity‌‌limits‌‌below‌‌their‌‌licensed‌‌
capacity.‌‌The‌‌total‌‌licensed‌‌capacity‌‌slots‌‌for‌‌childcare‌‌centers‌‌is‌‌6,929,‌‌and‌‌the‌‌desired‌‌
capacity‌‌is‌‌6,677.‌‌The‌‌average‌‌licensed‌‌capacity‌‌is‌‌about‌‌139,‌‌and‌‌the‌‌average‌‌desired‌‌

5
‌30‌‌in-home‌‌providers‌‌and‌‌seven‌‌centers‌‌did‌‌not‌‌provide‌‌numbers‌‌on‌‌their‌‌desired‌‌capacity‌‌in‌‌the‌‌
Helpline‌‌Center‌‌database.‌‌Their‌‌desired‌‌capacity‌‌was‌‌assumed‌‌to‌‌be‌‌the‌‌same‌‌as‌‌their‌‌licensed‌‌
capacity‌‌in‌‌these‌‌calculations.‌‌ ‌
 ‌35‌ ‌
‌

capacity‌‌is‌‌close‌‌to‌‌134.‌‌This‌‌means‌‌that‌‌96.4%‌‌of‌‌official‌‌slots‌‌for‌‌centers‌‌are‌‌available‌‌for‌‌
children,‌‌and‌‌there‌‌is‌‌a‌‌difference‌‌of‌‌five‌‌children‌‌between‌‌licensed‌‌and‌‌desired‌‌capacity‌‌
numbers‌‌for‌‌childcare‌‌centers‌‌in‌‌Sioux‌‌Falls.‌‌These‌‌figures‌‌are‌‌consistent‌‌with‌‌the‌‌results‌‌of‌‌
the‌‌provider‌‌survey‌‌done‌‌for‌‌this‌‌study,‌‌which‌‌found‌‌that‌‌the‌‌average‌‌licensed‌‌capacity‌‌for‌‌
surveyed‌‌childcare‌‌centers‌‌was‌‌about‌‌123‌‌slots,‌‌compared‌‌to‌‌typical‌‌enrollment‌‌of‌‌about‌‌
110,‌‌or‌‌roughly‌‌94.4%‌‌of‌‌licensed‌‌slots.‌‌ ‌
Overall,‌‌between‌‌centers‌‌and‌‌in-home‌‌providers,‌‌Sioux‌‌Falls‌‌has‌‌an‌‌estimated‌‌96.0%‌‌
of‌‌licensed‌‌slots‌‌actually‌‌available‌‌for‌‌childcare.‌‌This‌‌means‌‌that‌‌only‌‌looking‌‌at‌‌childcare‌‌
provider’s‌‌licensed‌‌capacity‌‌overestimates‌‌the‌‌availability‌‌of‌‌childcare.‌‌Reference‌‌Table‌‌3‌‌
for‌‌this‌‌information.‌6 ‌
Table‌‌3‌ ‌
Childcare‌‌Slots‌‌in‌‌Sioux‌‌Falls‌ ‌
Provider‌‌Type‌ ‌ Licensed‌‌Capacity‌‌ Desired‌‌Capacity‌‌ %‌‌of‌‌Licensed‌‌
(total)‌ ‌ (total)‌ ‌ Capacity‌‌Slots‌‌
Actually‌‌Available‌ ‌

Center‌ ‌ 6,929‌ 6,677‌ 96.4%‌

In-Home‌ ‌ 3,204‌ 3,046‌ 95.1%‌

Total‌ ‌ 10,133‌ ‌9,723‌ 96.0%‌

Note:‌‌The‌‌number‌‌of‌‌in-home‌‌providers‌‌is‌‌based‌‌on‌‌the‌‌number‌‌of‌‌registrations‌‌with‌‌the‌‌
City‌‌of‌‌Sioux‌‌Falls‌‌Health‌‌Department‌‌reported‌‌as‌‌of‌‌August‌‌2021.‌P‌ ercent‌‌of‌‌licensed‌‌
capacity‌‌slots‌‌actually‌‌available‌‌was‌‌calculated‌‌based‌‌on‌‌the‌‌licensed‌‌and‌‌desired‌‌capacity‌‌
reported‌‌by‌‌1,841‌‌in-home‌‌providers‌‌who‌‌were‌‌in‌‌the‌‌Helpline‌‌Center‌‌database.‌‌It‌‌may‌
misestimate‌‌actual‌‌desired‌‌capacity‌‌among‌‌all‌‌3,204‌‌registered‌‌providers‌‌in‌‌the‌‌city.‌ ‌
‌
‌
‌
‌
‌

6
‌The‌‌Helpline‌‌Center‌‌database,‌‌and‌‌the‌‌capacity‌‌estimates‌‌derived‌‌from‌‌it,‌‌include‌‌school-age‌‌
childcare.‌‌Therefore,‌‌the‌‌number‌‌of‌‌childcare‌‌slots‌‌reported‌‌in‌‌the‌‌tables‌‌is‌‌more‌‌than‌‌the‌‌number‌‌
actually‌‌available‌‌for‌‌birth-to-age-five‌‌children.‌‌In‌‌order‌‌to‌‌estimate‌‌the‌‌number‌‌of‌‌slots‌‌strictly‌‌
available‌‌to‌‌children‌‌under‌‌six,‌‌capacity‌‌for‌‌providers‌‌serving‌‌both‌‌under‌‌six‌‌and‌‌school-age‌‌can‌‌be‌‌
pro-rated,‌‌assuming‌‌63%‌‌of‌‌total‌‌slots‌‌are‌‌for‌‌birth-to-age-five.‌‌The‌‌63%‌‌pro-ration‌‌is‌‌based‌‌on‌‌the‌‌
proportion‌‌of‌‌under-six‌‌slots‌‌among‌‌surveyed‌‌providers.‌‌Assuming‌‌this‌‌proportion‌‌is‌‌consistent,‌‌
about‌‌6,401‌‌of‌‌the‌‌10,133‌‌licensed‌‌spots‌‌and‌‌about‌‌6,142‌‌of‌‌the‌‌9,723‌‌desired‌‌capacity‌‌slots‌‌are‌‌
available‌‌for‌‌birth-to-age-five‌‌children.‌ ‌
 ‌36‌ ‌
‌

In‌‌the‌‌Sioux‌‌Falls‌‌metropolitan‌‌area,‌‌2.2%‌‌of‌‌total‌‌licensed‌‌capacity‌‌for‌‌childcare‌‌
centers‌‌in‌‌the‌‌211‌‌Helpline‌‌Center‌‌database‌‌are‌‌vacant,‌‌which‌‌amounts‌‌to‌‌154‌‌vacancies.‌‌
For‌‌in-home‌‌providers,‌‌11.6%‌‌of‌‌total‌‌capacity‌‌is‌‌vacant,‌‌which‌‌is‌‌214‌‌slots.‌‌Thus,‌‌there‌‌are‌‌
more‌‌in-home‌‌childcare‌‌slots‌‌available‌‌than‌‌center‌‌slots.‌‌See‌‌Table‌‌4‌‌for‌‌this‌‌information.‌7 ‌
Table‌‌4‌ ‌
Childcare‌‌Vacancies‌‌in‌‌Sioux‌‌Falls‌ ‌
Provider‌‌Type‌ ‌ Vacancies‌ ‌ Vacancy‌‌Rate‌‌(per‌‌
licensed‌‌capacity)‌ ‌

Center‌ ‌ 154‌ 2.2%‌

In-Home‌ ‌ 214‌ 11.6%‌

Total‌ ‌ 368‌ 4.2%‌

Note:‌‌Vacancies‌‌are‌‌voluntarily‌‌reported‌‌from‌‌providers‌‌across‌‌the‌‌Sioux‌‌Falls‌‌metropolitan‌‌
area,‌‌not‌‌limited‌‌to‌‌the‌‌city‌‌of‌‌Sioux‌‌Falls.‌‌This‌‌is‌‌from‌‌the‌‌Helpline‌‌Center’s‌‌database,‌‌which‌‌
includes‌‌1,841‌‌in-home‌‌providers‌‌slots,‌‌compared‌‌to‌‌3,204‌‌slots‌‌based‌‌on‌‌city‌‌registrations.‌‌
The‌‌count‌‌of‌‌vacancies‌‌does‌‌not‌‌include‌‌unreported‌‌vacancies‌‌or‌‌vacancies‌‌with‌‌providers‌‌
outside‌‌of‌‌the‌‌Helpline‌‌Center‌‌database.‌‌If‌‌the‌‌11.6%‌‌vacancy‌‌rate‌‌is‌‌true‌‌for‌‌all‌‌city‌‌
registered‌‌in-home‌‌providers,‌‌then‌‌the‌‌likely‌‌number‌‌of‌‌in-home‌‌vacancies‌‌is‌‌371‌‌slots.‌ ‌
Based‌‌on‌‌information‌‌in‌‌the‌‌Helpline‌‌Center’s‌‌database,‌‌46‌‌of‌‌51‌‌childcare‌‌centers‌‌
in‌‌the‌‌city‌‌of‌‌Sioux‌‌Falls‌‌accept‌‌financial‌‌assistance.‌‌Of‌‌the‌‌in-home‌‌providers‌‌that‌‌provided‌‌
information‌‌to‌‌the‌‌Helpline‌‌Center,‌‌92‌‌are‌‌state‌‌registered,‌‌and‌‌60‌‌are‌‌only‌‌registered‌‌by‌‌
the‌‌city.‌‌Of‌‌the‌‌92‌‌state-registered‌‌in-home‌‌providers,‌‌72‌‌accept‌‌financial‌‌assistance,‌‌while‌
only‌‌four‌‌out‌‌of‌‌the‌‌60‌‌city-registered‌‌providers‌‌accept‌‌financial‌‌assistance.‌ ‌

‌
Discussion‌ ‌
The‌‌results‌‌of‌‌this‌‌survey,‌‌compared‌‌with‌‌local‌‌demographic‌‌and‌‌economic‌‌data,‌‌
suggest‌‌three‌‌gaps‌‌in‌‌the‌‌childcare‌‌system:‌‌a‌‌gap‌‌between‌‌the‌‌demand‌‌for‌‌childcare‌‌and‌‌
the‌‌number‌‌of‌‌available‌‌slots,‌‌a‌‌gap‌‌between‌‌what‌‌parents‌‌can‌‌afford‌‌to‌‌pay‌‌and‌‌the‌‌cost‌‌
of‌‌childcare,‌‌and‌‌a‌‌gap‌‌between‌‌provider’s‌‌revenue‌‌generated‌‌from‌‌fees‌‌and‌‌the‌‌cost‌‌to‌‌
provide‌‌quality‌‌care.‌ ‌
‌
Gap‌‌#1:‌‌Available‌‌Childcare‌‌Slots‌ ‌
I‌n‌‌Sioux‌‌Falls,‌‌75.3%‌‌of‌‌children‌‌under‌‌age‌‌six--11,386‌‌children--have‌‌all‌‌of‌‌their‌‌
parents‌‌in‌‌the‌‌workforce,‌‌compared‌‌to‌‌the‌‌national‌‌average‌‌of‌‌66.2%,‌‌showcasing‌‌that‌‌

7
‌Using‌‌63%‌‌of‌‌these‌‌slots‌‌for‌‌birth‌‌to‌‌age‌‌five‌‌slots,‌‌only‌‌232‌‌total‌‌vacancies‌‌are‌‌open‌‌for‌‌children‌‌
under‌‌five‌‌in‌‌Sioux‌‌Falls.‌‌ ‌
 ‌37‌ ‌
‌

most‌‌parents‌‌with‌‌young‌‌children‌‌are‌‌in‌‌
the‌‌workforce‌‌(U.S.‌‌Census‌‌Bureau‌‌
American‌‌Community‌‌Survey‌‌5-Year‌‌
Estimates,‌‌Table‌‌DP03,‌‌2019).‌‌This‌‌statistic‌‌
demonstrates‌‌how‌‌11,386‌‌children‌‌under‌‌
six‌‌in‌‌Sioux‌‌Falls‌‌need‌‌childcare‌‌because‌‌all‌‌
parents‌‌are‌‌working.‌‌In‌‌some‌‌cases,‌‌
parents‌‌may‌‌work‌‌split‌‌shifts‌‌or‌‌have‌‌
friends‌‌or‌‌relatives‌‌who‌‌provide‌‌childcare.‌‌
In‌‌other‌‌situations,‌‌families‌‌must‌‌find‌‌
available,‌‌affordable‌‌childcare‌‌from‌‌a‌‌
center‌‌or‌‌in-home‌‌provider.‌ ‌
‌ he‌‌Helpline‌‌Center‌‌and‌‌the‌‌City‌‌of‌‌Sioux‌‌Falls‌‌Health‌‌Department‌‌record‌‌a‌‌total‌‌of‌‌
T
only‌‌10,133‌‌licensed‌‌slots‌‌across‌‌both‌‌center‌‌and‌‌in-home‌‌providers‌‌in‌‌the‌‌city‌‌(2021).‌‌The‌‌
total‌‌desired‌‌capacity‌‌slots‌‌for‌‌these‌‌providers‌‌is‌‌even‌‌less‌‌at‌‌9,723‌‌slots‌‌available‌‌for‌‌
children,‌‌which‌‌is‌‌most‌‌likely‌‌due‌‌to‌‌staffing‌‌issues.‌‌On‌‌one‌‌hand,‌‌this‌‌figure‌‌overestimates‌‌
the‌‌number‌‌of‌‌slots‌‌available‌‌to‌‌children‌‌under‌‌6‌‌since‌‌it‌‌includes‌‌school-age‌‌providers.‌‌On‌‌
the‌‌other‌‌hand,‌‌these‌‌slot‌‌numbers‌‌are‌‌only‌‌those‌‌listed‌‌in‌‌the‌‌city‌‌of‌‌Sioux‌‌Falls;‌‌they‌‌do‌‌
not‌‌include‌‌childcare‌‌options‌‌outside‌‌of‌‌Sioux‌‌Falls.‌‌But‌‌compared‌‌to‌‌official‌‌state‌‌licensing‌‌
numbers,‌‌the‌‌Helpline‌‌Center‌‌data‌‌and‌‌city‌‌registrations‌‌have‌‌the‌‌advantage‌‌of‌‌including‌‌
in-home‌‌providers‌‌who‌‌are‌‌not‌‌state‌‌licensed.‌ ‌
Overall,‌‌the‌‌number‌‌of‌‌available‌‌slots‌‌(9,723)‌‌is‌‌less‌‌than‌‌the‌‌number‌‌of‌‌children‌‌
under‌‌6‌‌with‌‌all‌‌parents‌‌in‌‌the‌‌labor‌‌force‌‌(11,386);‌‌as‌‌a‌‌result,‌‌there‌‌are‌‌an‌‌estimated‌‌1,663‌‌
children‌‌under‌‌6‌‌in‌‌Sioux‌‌Falls‌‌who‌‌need‌‌care,‌‌but‌‌a‌‌provider-based‌‌slot‌‌is‌‌not‌‌available‌‌to‌‌
them.‌‌ ‌
The‌‌short‌‌supply‌‌of‌‌childcare‌‌slots‌‌has‌‌workforce‌‌implications.‌‌Among‌‌married‌‌
couples‌‌in‌‌Sioux‌‌Falls‌‌with‌‌children‌‌under‌‌18‌‌years‌‌old,‌‌3,034‌‌adults--which‌‌includes‌‌
stay-at-home‌‌parents--are‌‌not‌‌in‌‌the‌‌workforce,‌‌and‌‌an‌‌additional‌‌775‌‌single‌‌mothers‌‌and‌‌
69‌‌single‌‌fathers--844‌‌individuals---are‌‌also‌‌not‌‌working‌‌and‌‌could‌‌potentially‌‌do‌‌so‌‌if‌‌they‌‌
had‌‌childcare‌‌(U.S.‌‌Census‌‌Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌Estimates,‌‌Table‌‌
B23007,‌‌2019).‌‌Although‌‌some‌‌of‌‌these‌‌parents‌‌may‌‌be‌‌out‌‌of‌‌the‌‌labor‌‌force‌‌for‌‌a‌‌variety‌‌
of‌‌other‌‌reasons,‌‌a‌‌portion‌‌of‌‌them‌‌have‌‌likely‌‌chosen‌‌to‌‌stay‌‌home‌‌because‌‌of‌‌a‌‌lack‌‌of‌‌
available‌‌and‌‌affordable‌‌childcare.‌‌Businesses‌‌could‌‌benefit‌‌from‌‌these‌‌individuals‌‌
entering‌‌the‌‌workforce‌‌because‌‌it‌‌would‌‌fill‌‌vacant‌‌positions‌‌as‌‌Sioux‌‌Falls‌‌grows‌‌and‌‌
attracts‌‌larger‌‌employers.‌‌ ‌
Comparing‌‌labor‌‌force‌‌participation‌‌of‌‌mothers‌‌and‌‌fathers‌‌is‌‌one‌‌way‌‌to‌‌get‌‌at‌‌the‌‌
workforce‌‌impacts‌‌of‌‌childcare‌‌gaps.‌‌In‌‌Sioux‌‌Falls,‌‌and‌‌nationally,‌‌mothers--especially‌‌
mothers‌‌of‌‌young‌‌children--have‌‌lower‌‌labor‌‌force‌‌participation‌‌rates‌‌than‌‌fathers.‌‌In‌‌Sioux‌‌
Falls,‌‌labor‌‌force‌‌participation‌‌for‌‌fathers‌‌is‌‌96.4%,‌‌compared‌‌to‌‌83.2%‌‌for‌‌mothers‌‌(U.S.‌‌
 ‌38‌ ‌
‌

Census‌‌Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌Estimates,‌‌Table‌‌B23007,‌‌2019).‌‌Yet‌‌for‌‌
men‌‌and‌‌women‌‌without‌‌children,‌‌labor‌‌workforce‌‌participation‌‌rates‌‌are‌‌similar‌‌at‌‌69.6%‌‌
and‌‌66.8%,‌‌respectively‌‌(including‌‌retirement-age‌‌individuals).‌‌ ‌
Because‌‌of‌‌withstanding‌‌cultural‌‌norms‌‌and‌‌the‌‌national‌‌pay‌‌gap‌‌between‌‌men‌‌and‌‌
women,‌‌women‌‌are‌‌more‌‌likely‌‌to‌‌stay‌‌home‌‌in‌‌the‌‌absence‌‌of‌‌external‌‌childcare,‌‌further‌‌
damaging‌‌their‌‌position‌‌in‌‌the‌‌workforce--and‌‌demonstrating‌‌the‌‌significant‌‌way‌‌in‌‌which‌‌
the‌‌availability‌‌of‌‌childcare‌‌influences‌‌family‌‌decisions‌‌about‌‌whether‌‌to‌‌work‌‌(Wade‌‌&‌‌
Marx‌‌Ferree,‌‌2019).‌‌Families‌‌trying‌‌to‌‌balance‌‌the‌‌cost‌‌of‌‌childcare‌‌with‌‌earnings‌‌may‌‌
decide‌‌the‌‌additional‌‌earnings‌‌from‌‌a‌‌parent‌‌returning‌‌to‌‌work‌‌are‌‌not‌‌worth‌‌the‌‌added‌‌
cost‌‌of‌‌childcare,‌‌especially‌‌if‌‌that‌‌parent’s‌‌earnings‌‌are‌‌likely‌‌to‌‌be‌‌low.‌‌In‌‌2019,‌‌the‌‌
national‌‌pay‌‌gap‌‌amounted‌‌to‌‌a‌‌difference‌‌of‌‌more‌‌than‌‌$10,000‌‌in‌‌median‌‌earnings:‌‌men‌‌
earned‌‌a‌‌median‌‌salary‌‌of‌‌about‌‌$53,000‌‌while‌‌women‌‌earned‌‌a‌‌median‌‌salary‌‌of‌‌around‌‌
$43,000,‌‌which‌‌is‌‌about‌‌81%‌‌of‌‌men’s‌‌median‌‌earnings‌‌(U.S.‌‌Census‌‌Bureau‌‌American‌‌
Community‌‌Survey‌‌5-Year‌‌Estimates,‌‌Table‌‌S2002,‌‌2019).‌‌If‌‌childcare‌‌were‌‌equally‌‌
accessible‌‌and‌‌affordable‌‌to‌‌all,‌‌potentially‌‌hundreds‌‌of‌‌women‌‌would‌‌return‌‌to‌‌work.‌‌ ‌
About‌‌half‌‌of‌‌stay-at-home‌‌mothers‌‌return‌‌to‌‌work‌‌when‌‌their‌‌children‌‌reach‌‌
school-age.‌‌In‌‌2019,‌‌72.6%‌‌of‌‌Sioux‌‌Falls‌‌mothers‌‌who‌‌had‌‌an‌‌infant‌‌in‌‌the‌‌past‌‌year‌‌were‌‌
still‌‌working,‌‌compared‌‌to‌‌84.7%‌‌labor‌‌force‌‌participation‌‌of‌‌women‌‌who‌‌did‌‌not‌‌have‌‌an‌‌
infant‌‌in‌‌the‌‌past‌‌year‌‌(U.S.‌‌Census‌‌Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌Estimates,‌‌
Table‌‌B13012,‌‌2019).‌‌Women‌‌who‌‌only‌‌have‌‌children‌‌under‌‌six‌‌have‌‌a‌‌workforce‌‌
participation‌‌rate‌‌of‌‌77.3%,‌‌but‌‌this‌‌jumps‌‌to‌‌89.0%‌‌for‌‌women‌‌with‌‌children‌‌ages‌‌6‌‌to‌‌17‌‌
years‌‌old‌‌(U.S.‌‌Census‌‌Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌Estimates,‌‌Table‌‌S2301,‌‌
2019).‌‌The‌‌roughly‌‌11%‌‌of‌‌women‌‌who‌‌leave‌‌the‌‌labor‌‌force‌‌when‌‌their‌‌children‌‌are‌‌young‌‌
and‌‌return‌‌to‌‌work‌‌after‌‌their‌‌children‌‌reach‌‌school-age‌‌represent‌‌a‌‌potential‌‌575‌‌
additional‌‌employees‌‌in‌‌the‌‌Sioux‌‌Falls‌‌workforce‌‌population.‌‌For‌‌perspective,‌‌this‌‌number‌‌
of‌‌individuals‌‌is‌‌equivalent‌‌to‌‌more‌‌than‌‌one-third‌‌(36.6%)‌‌of‌‌people‌‌employed‌‌in‌‌the‌‌
Architecture‌‌and‌‌Engineering‌‌Occupations‌‌in‌‌Sioux‌‌Falls‌‌(U.S.‌‌Bureau‌‌of‌‌Labor‌‌Statistics,‌‌
2020).‌‌ ‌
The‌‌results‌‌presented‌‌in‌‌this‌‌study‌‌suggest‌‌that‌‌the‌‌shortage‌‌of‌‌childcare‌‌slots‌‌is‌‌
due‌‌in‌‌part‌‌to‌‌childcare‌‌providers’‌‌staffing‌‌difficulties.‌‌The‌‌percent‌‌of‌‌official‌‌slots‌‌that‌‌are‌‌
actually‌‌made‌‌available‌‌for‌‌childcare‌‌is‌‌91%‌‌for‌‌children‌‌aged‌‌zero‌‌to‌‌two‌‌and‌‌90%‌‌for‌‌
children‌‌aged‌‌three‌‌to‌‌five,‌‌and‌‌providers‌‌
report‌‌that‌‌the‌‌biggest‌‌barrier‌‌they‌‌face‌‌in‌‌
increasing‌‌enrollment‌‌is‌‌staffing‌‌issues.‌‌ ‌
The‌‌majority‌‌of‌‌surveyed‌‌Sioux‌‌Falls‌‌
providers‌‌reported‌‌waiting‌‌lists‌‌for‌‌their‌‌
center.‌‌Some‌‌providers‌‌reported‌‌waiting‌‌lists‌‌
with‌‌over‌‌100‌‌children‌‌on‌‌them.‌‌In‌‌total,‌‌
survey‌‌respondents‌‌reported‌‌913‌‌families‌‌on‌‌
 ‌39‌ ‌
‌

waiting‌‌lists.‌‌These‌‌staggering‌‌numbers‌‌reveal‌‌that‌‌most‌‌state-licensed‌‌childcare‌‌centers‌‌in‌‌
Sioux‌‌Falls‌‌do‌‌not‌‌have‌‌enough‌‌room‌‌to‌‌care‌‌for‌‌all‌‌of‌‌the‌‌families‌‌that‌‌need‌‌it.‌‌It‌‌is‌‌
important‌‌to‌‌remember‌‌that‌‌these‌‌numbers‌‌only‌‌encompass‌‌the‌‌40‌‌state-licensed‌‌
childcare‌‌centers‌‌that‌‌responded‌‌to‌‌this‌‌survey,‌‌so‌‌it‌‌likely‌‌undercounts‌‌the‌‌total‌‌number‌‌of‌‌
children‌‌on‌‌waiting‌‌lists‌‌in‌‌Sioux‌‌Falls.‌‌It‌‌should‌‌also‌‌be‌‌noted‌‌that‌‌there‌‌may‌‌be‌‌duplication‌‌
across‌‌waiting‌‌lists,‌‌since‌‌some‌‌families‌‌may‌‌be‌‌on‌‌multiple‌‌waiting‌‌lists.‌‌ ‌
Almost‌‌half‌‌(47%)‌‌of‌‌providers‌‌operate‌‌at‌‌full‌‌capacity‌‌in‌‌Sioux‌‌Falls,‌‌and‌‌after‌‌
staffing,‌‌lack‌‌of‌‌capacity‌‌ranks‌‌as‌‌the‌‌second‌‌
most‌‌prominent‌‌barrier‌‌to‌‌increasing‌‌
enrollment.‌‌Further,‌‌among‌‌employers,‌‌more‌‌
than‌‌half‌‌of‌‌those‌‌surveyed‌‌(54%)‌‌saw‌‌the‌‌
barrier‌‌of‌‌childcare‌‌providers‌‌being‌‌full‌‌or‌‌at‌‌
capacity‌‌as‌‌a‌‌somewhat‌‌or‌‌very‌‌frequent‌‌
concern‌‌for‌‌their‌‌employees,‌‌with‌‌large‌‌
employers‌‌seeing‌‌it‌‌as‌‌more‌‌of‌‌a‌‌concern.‌‌This‌‌
then‌‌leads‌‌to‌‌these‌‌long‌‌waiting‌‌lists‌‌for‌‌
childcare‌‌providers‌‌and‌‌parents‌‌to‌‌manage.‌‌A‌‌
study‌‌done‌‌in‌‌Brookings‌‌County‌‌discovered‌‌that‌‌
a‌‌majority‌‌of‌‌parents‌‌had‌‌to‌‌contact‌‌at‌‌least‌‌
three‌‌childcare‌‌providers‌‌before‌‌finding‌‌a‌‌spot‌‌
for‌‌their‌‌child,‌‌a‌‌process‌‌which‌‌28%‌‌of‌‌
respondents‌‌stated‌‌took‌‌more‌‌than‌‌two‌‌months‌‌(Brookings‌‌Economic‌‌Development‌‌
Corporation,‌‌2020).‌‌It‌‌is‌‌a‌‌wonder‌‌how‌‌parents‌‌end‌‌up‌‌finding‌‌quality‌‌childcare‌‌if‌‌a‌‌majority‌‌
of‌‌providers‌‌have‌‌a‌‌waiting‌‌list,‌‌or‌‌they‌‌cannot‌‌afford‌‌the‌‌rates‌‌providers‌‌ask.‌‌The‌‌lack‌‌of‌‌
spots‌‌for‌‌children‌‌in‌‌licensed‌‌childcare‌‌centers‌‌leads‌‌to‌‌many‌‌issues‌‌for‌‌parents,‌‌providers,‌‌
and‌‌employers‌‌as‌‌well.‌‌If‌‌parents‌‌cannot‌‌find‌‌childcare‌‌for‌‌their‌‌children,‌‌they‌‌cannot‌‌
return‌‌to‌‌the‌‌workforce‌‌in‌‌the‌‌high‌‌numbers‌‌that‌‌South‌‌Dakota‌‌parents‌‌have.‌‌This‌‌has‌‌
implications‌‌beyond‌‌childcare‌‌because‌‌it‌‌affects‌‌Sioux‌‌Falls‌‌and‌‌the‌‌state‌‌as‌‌a‌‌whole.‌‌One‌‌
surveyed‌‌employer‌‌stated:‌ ‌

Sioux‌‌Falls‌‌providers‌‌may‌‌not‌‌be‌‌able‌‌to‌‌run‌‌at‌‌full‌‌capacity‌‌and‌‌maximize‌‌the‌‌
childcare‌‌space‌‌they‌‌have‌‌because‌‌the‌‌biggest‌‌barrier‌‌to‌‌enrolling‌‌more‌‌children‌‌is‌‌the‌‌
inability‌‌to‌‌hire‌‌and‌‌retain‌‌personnel:‌‌75%‌‌of‌‌providers‌‌ranked‌‌it‌‌as‌‌their‌‌number‌‌one‌‌or‌‌
number‌‌two‌‌barrier‌‌to‌‌enrolling‌‌more‌‌children.‌‌This‌‌may‌‌be‌‌because‌‌of‌‌the‌‌low‌‌wages‌‌that‌‌
childcare‌‌workers‌‌receive,‌‌considering‌‌the‌‌average‌‌annual‌‌salary‌‌for‌‌childcare‌‌workers‌‌in‌‌
 ‌40‌ ‌
‌

South‌‌Dakota‌‌is‌‌$21,943,‌‌yet‌‌providers‌‌generally‌‌cannot‌‌afford‌‌to‌‌increase‌‌this‌‌salary‌‌due‌‌
to‌‌their‌‌annual‌‌deficits‌‌(South‌‌Dakota‌‌
Department‌‌of‌‌Labor‌‌&‌‌Regulation,‌‌
2021).‌‌Again,‌‌this‌‌reiterates‌‌why‌‌the‌‌
largest‌‌barrier‌‌to‌‌enrolling‌‌more‌‌
children‌‌is‌‌staffing‌‌because‌‌it‌‌is‌‌difficult‌‌
to‌‌attract‌‌and‌‌retain‌‌staff‌‌if‌‌wages‌‌are‌‌
extremely‌‌low,‌‌especially‌‌for‌‌full-time‌‌
employees.‌‌More‌‌than‌‌one-third‌‌(38%)‌‌
of‌‌employees‌‌at‌‌childcare‌‌sites‌‌are‌‌
part-time,‌‌which‌‌may‌‌be‌‌another‌‌reason‌‌
why‌‌a‌‌multitude‌‌of‌‌childcare‌‌providers‌
cannot‌‌retain‌‌their‌‌staff.‌‌There‌‌are‌‌
normally‌‌no‌‌benefits‌‌with‌‌part-time‌‌
positions,‌‌the‌‌pay‌‌is‌‌generally‌‌lower‌‌than‌‌full-time‌‌employees,‌‌and‌‌part-time‌‌workers‌‌tend‌
to‌‌be‌‌younger‌‌and‌‌move‌‌between‌‌jobs‌‌more‌‌frequently.‌‌This‌‌all‌‌culminates‌‌into‌‌providers‌
having‌‌difficulty‌‌keeping‌‌their‌‌sites‌‌staffed‌‌for‌‌the‌‌children‌‌they‌‌provide‌‌care‌‌for.‌‌Without‌‌
enough‌‌workers,‌‌they‌‌cannot‌‌enroll‌‌more‌‌children,‌‌and‌‌this‌‌has‌‌led‌‌to‌‌the‌‌dilemma‌‌that‌‌
Sioux‌‌Falls‌‌is‌‌facing‌‌with‌‌providers‌‌who‌‌cannot‌‌enroll‌‌more‌‌children‌‌mainly‌‌because‌‌of‌‌
staffing‌‌challenges.‌ ‌
‌
Gap‌‌#2:‌‌The‌‌Cost‌‌of‌‌Childcare‌ ‌
A‌‌Washington‌‌Post‌‌poll‌‌(2015)‌‌found‌‌that‌‌more‌‌than‌‌three-fourths‌‌of‌‌mothers‌‌and‌‌
half‌‌of‌‌fathers‌‌in‌‌the‌‌United‌‌States‌‌have‌‌
either‌‌declined‌‌new‌‌career‌‌
opportunities,‌‌switched‌‌jobs,‌‌or‌‌left‌‌the‌‌
workforce‌‌entirely‌‌to‌‌take‌‌care‌‌of‌‌their‌‌
children‌‌at‌‌some‌‌point‌‌in‌‌their‌‌career.‌‌
Furthermore,‌‌another‌‌study‌‌found‌‌that‌‌
this‌‌number‌‌amounted‌‌to‌‌close‌‌to‌‌two‌‌
million‌‌parents‌‌in‌‌2016‌‌alone‌‌(National‌‌
Survey‌‌of‌‌Children's‌‌Health,‌‌2016).‌‌The‌‌
cost‌‌of‌‌childcare‌‌is‌‌a‌‌big‌‌factor‌‌in‌‌
parents‌‌struggling‌‌to‌‌balance‌‌work‌‌and‌‌
family,‌‌as‌‌the‌‌cost‌‌of‌‌childcare‌‌in‌‌the‌‌
past‌‌two‌‌decades‌‌has‌‌more‌‌than‌‌
doubled,‌‌which‌‌disproportionately‌‌
affects‌‌low-income‌‌families‌‌and‌‌
families‌‌of‌‌color‌‌(U.S.‌‌Bureau‌‌of‌‌Labor‌‌
Statistics,‌‌2021;‌‌Schochet,‌‌2019).‌‌ ‌
 ‌41‌ ‌
‌

In‌‌Sioux‌‌Falls,‌‌it‌‌costs‌‌$10,105‌‌a‌‌year‌‌on‌‌
average‌‌for‌‌a‌‌zero-‌‌to‌‌two-year-old‌‌to‌‌
attend‌‌childcare‌‌full‌‌time‌‌in‌‌Sioux‌‌Falls‌‌
and‌‌$9,031‌‌for‌‌a‌‌three-‌‌to‌‌five-year-old.‌‌
Childcare‌‌thus‌‌costs‌‌close‌‌to‌‌$10,000‌‌per‌‌
child,‌‌which‌‌is‌‌equivalent‌‌to‌‌national‌‌
averages‌‌of‌‌center-based‌‌childcare‌‌
(Child‌‌Care‌‌of‌‌America,‌‌2018).‌‌In‌‌order‌‌to‌‌
afford‌‌childcare‌‌at‌‌less‌‌than‌‌7%‌‌of‌‌their‌‌
income,‌‌a‌‌family‌‌with‌‌just‌‌one‌‌child‌‌
would‌‌need‌‌to‌‌earn‌‌at‌‌least‌‌$142,857.‌‌
This‌‌is‌‌unrealistic‌‌for‌‌most‌‌families,‌‌as‌‌
the‌‌median‌‌income‌‌for‌‌a‌‌married‌‌couple‌‌
with‌‌children‌‌in‌‌Sioux‌‌Falls‌‌is‌‌$101,069‌‌a‌‌
year,‌‌according‌‌to‌‌the‌‌2019‌‌U.S.‌‌Census‌‌
Bureau‌‌American‌‌Community‌‌Survey‌‌
5-Year‌‌Estimates‌‌(Table‌‌S1903).‌‌In‌‌Sioux‌‌
Falls,‌‌only‌‌14.8%‌‌of‌‌families‌‌have‌‌
incomes‌‌of‌‌$150,000‌‌or‌‌more‌‌(U.S.‌‌Census‌‌Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌
Estimates,‌‌Table‌‌S1901,‌‌2019).‌‌The‌‌price‌‌of‌‌childcare‌‌in‌‌Sioux‌‌Falls,‌‌especially‌‌for‌‌single‌‌
parents‌‌or‌‌for‌‌families‌‌with‌‌more‌‌than‌‌
one‌‌child,‌‌is‌‌not‌‌affordable.‌‌Almost‌‌
two-thirds‌‌of‌‌surveyed‌‌childcare‌‌
providers‌‌have‌‌had‌‌children‌‌leave‌‌
childcare‌‌or‌‌not‌‌enroll‌‌at‌‌all‌‌because‌‌of‌‌
an‌‌inability‌‌to‌‌pay‌‌for‌‌childcare‌‌in‌‌a‌‌
single‌‌year.‌‌Per‌‌center,‌‌an‌‌estimated‌‌
average‌‌of‌‌six‌‌children‌‌left‌‌or‌‌could‌‌not‌‌
enroll‌‌in‌‌childcare‌‌per‌‌year‌‌from‌‌
surveyed‌‌childcare‌‌providers,‌‌with‌‌the‌‌
highest‌‌number‌‌being‌‌20‌‌children‌‌at‌‌one‌‌
site.‌ ‌
Table‌‌5‌‌shows‌‌median‌‌wages‌‌
across‌‌occupations‌‌in‌‌Sioux‌‌Falls,‌‌and‌‌
every‌‌occupation‌‌would‌‌require‌‌an‌‌
employee‌‌earning‌‌the‌‌median‌‌wage‌‌to‌‌
pay‌‌more‌‌than‌‌7%‌‌of‌‌their‌‌income‌‌on‌‌
childcare.‌‌Childcare‌‌is‌‌not‌‌affordable‌‌for‌‌
the‌‌average‌‌person‌‌in‌‌any‌‌career.‌ ‌
‌
 ‌42‌ ‌
‌

Table‌‌5‌ ‌
Employment‌‌by‌‌Occupational‌‌Group,‌‌Sioux‌‌Falls‌‌MSA,‌‌May‌‌2020‌ ‌
Childcare‌‌
Cost‌‌as‌‌%‌‌of‌‌
Median‌‌Wage‌
Annual‌‌Median‌‌ ($184/week‌‌=‌
Occupation‌ ‌ Employment‌ Wage‌ ‌ $9568/year)‌ ‌
All‌‌Occupations‌ ‌ 153,530‌ $39,050‌ 25%‌
Office‌‌and‌‌Administrative‌‌Support‌‌Occupations‌ ‌ 22,690‌ $35,390‌ 27%‌
Sales‌‌and‌‌Related‌‌Occupations‌ ‌ 15,580‌ $35,640‌ 27%‌
Healthcare‌‌Practitioners‌‌and‌‌Technical‌‌Occupations‌ ‌ 14,960‌ $59,320‌ 16%‌
Transportation‌‌and‌‌Material‌‌Moving‌‌Occupations‌ ‌ 12,570‌ $33,020‌ 29%‌
Food‌‌Preparation‌‌and‌‌Serving‌‌Related‌‌Occupations‌ ‌ 12,300‌ $23,080‌ 41%‌
Production‌‌Occupations‌ ‌ 10,160‌ $36,220‌ 26%‌
Business‌‌and‌‌Financial‌‌Operations‌‌Occupations‌ ‌ 9,860‌ $64,150‌ 15%‌
Construction‌‌and‌‌Extraction‌‌Occupations‌ ‌ 7,980‌ $41,370‌ 23%‌
Installation,‌‌Maintenance,‌‌and‌‌Repair‌‌Occupations‌ ‌ 6,580‌ $47,810‌ 20%‌
Educational‌‌Instruction‌‌and‌‌Library‌‌Occupations‌ ‌ 6,300‌ $42,830‌ 22%‌
Healthcare‌‌Support‌‌Occupations‌ ‌ 5,230‌ $29,670‌ 32%‌
Computer‌‌and‌‌Mathematical‌‌Occupations‌ ‌ 5,190‌ $68,780‌ 14%‌
Building‌‌and‌‌Grounds‌‌Cleaning‌‌and‌‌Maintenance‌‌
Occupations‌ ‌ 4,890‌ $28,000‌ 34%‌
Management‌‌Occupations‌ ‌ 4,760‌ $106,880‌ 9%‌
Personal‌‌Care‌‌and‌‌Service‌‌Occupations‌ ‌ 4,150‌ $26,180‌ 37%‌
Community‌‌and‌‌Social‌‌Service‌‌Occupations‌ ‌ 2,580‌ $42,450‌ 23%‌
Protective‌‌Service‌‌Occupations‌ ‌ 2,310‌ $42,830‌ 22%‌
Arts,‌‌Design,‌‌Entertainment,‌‌Sports,‌‌and‌‌Media‌‌
Occupations‌ ‌ 2,060‌ $41,870‌ 23%‌
Architecture‌‌and‌‌Engineering‌‌Occupations‌ ‌ 1,570‌ $68,750‌ 14%‌
Life,‌‌Physical,‌‌and‌‌Social‌‌Science‌‌Occupations‌ ‌ 980‌ $62,640‌ 15%‌
Legal‌‌Occupations‌ ‌ 690‌ $74,400‌ 13%‌
Farming,‌‌Fishing,‌‌and‌‌Forestry‌‌Occupations‌ ‌ 140‌ $31,230‌ 31%‌
Source:‌B
‌ ureau‌o
‌ f‌L
‌ abor‌S
‌ tatistics,‌O
‌ ccupational‌E
‌ mployment‌S ‌ tatistics,‌M
‌ ay‌2
‌ 020‌M
‌ etropolitan‌a ‌ nd‌‌
Nonmetropolitan‌A ‌ rea‌O
‌ ccupational‌E ‌ mployment‌a ‌ nd‌W
‌ age‌E
‌ stimates;‌c‌ alculations‌b‌ y‌a
‌ uthor‌ ‌

‌
 ‌43‌ ‌
‌

According‌‌to‌‌HR‌‌representatives‌‌surveyed‌‌for‌‌this‌‌report,‌‌the‌‌cost‌‌of‌‌childcare‌‌is‌‌the‌‌
most‌‌significant‌‌obstacle‌‌that‌‌employees‌‌face‌‌to‌‌accessing‌‌childcare‌‌in‌‌Sioux‌‌Falls.‌‌More‌‌
than‌‌two-thirds‌‌(68%)‌‌of‌‌employers‌‌ranked‌‌cost‌‌as‌‌the‌‌number‌‌one‌‌barrier‌‌for‌‌being‌‌heard‌‌
from‌‌employees‌‌somewhat‌‌or‌‌very‌‌frequently,‌‌and‌‌this‌‌included‌‌all‌‌large‌‌employers‌‌that‌‌
were‌‌surveyed‌‌reporting‌‌it‌‌as‌‌the‌‌number‌‌one‌‌barrier‌‌to‌‌accessing‌‌childcare.‌ ‌
A‌‌reason‌‌why‌‌parents‌‌may‌‌not‌‌be‌‌able‌‌to‌‌afford‌‌childcare‌‌is‌‌because‌‌none‌‌of‌‌the‌‌29‌‌
Sioux‌‌Falls‌‌employers‌‌surveyed‌‌offered‌‌a‌‌subsidy‌‌for‌‌their‌‌employees’‌‌childcare.‌‌Hence,‌‌
based‌‌on‌‌this‌‌study,‌‌employees‌‌are‌‌not‌‌finding‌‌assistance‌‌from‌‌their‌‌employers‌‌in‌‌regards‌‌
to‌‌childcare.‌‌About‌‌10%‌‌of‌‌surveyed‌‌employers‌‌stated‌‌that‌‌they‌‌would‌‌consider‌‌providing‌‌a‌‌
subsidy‌‌for‌‌their‌‌employees’‌‌childcare‌‌if‌‌they‌‌did‌‌not‌‌offer‌‌one‌‌already.‌‌Based‌‌on‌‌the‌‌2016‌‌
survey‌‌by‌‌the‌‌South‌‌Dakota‌‌Department‌‌of‌‌Labor‌‌&‌‌Regulation,‌‌only‌‌2%‌‌of‌‌employers‌‌
across‌‌all‌‌industries‌‌in‌‌the‌‌state‌‌offer‌‌some‌‌type‌‌of‌‌childcare‌‌benefit‌‌to‌‌their‌‌employees,‌‌
which‌‌is‌‌the‌‌least‌‌offered‌‌benefit‌‌out‌‌of‌‌any‌‌recorded‌‌as‌‌of‌‌2016.‌‌Most‌‌employers‌‌do‌‌not‌‌
see‌‌the‌‌benefit‌‌of‌‌offering‌‌subsidies‌‌to‌‌their‌‌employees‌‌for‌‌childcare:‌‌this‌‌is‌‌another‌‌
potential‌‌area‌‌of‌‌immense‌‌growth‌‌for‌‌businesses‌‌in‌‌Sioux‌‌Falls.‌‌ ‌
‌
Gap‌‌#3:‌‌Provider’s‌‌Revenue‌‌versus‌‌Expenses‌ ‌
Close‌‌to‌‌two-thirds‌‌of‌‌the‌‌40‌‌state-licensed‌‌childcare‌‌providers‌‌in‌‌Sioux‌‌Falls‌‌that‌‌
were‌‌surveyed‌‌had‌‌annual‌‌deficits‌‌for‌‌their‌‌birth‌‌to‌‌age‌‌five‌‌program.‌‌Even‌‌though‌‌most‌‌
providers‌‌have‌‌families‌‌that‌‌drop‌‌out‌‌or‌‌do‌‌
not‌‌enroll‌‌in‌‌childcare‌‌because‌‌they‌‌cannot‌‌
afford‌‌it,‌‌providers‌‌cannot‌‌lower‌‌their‌‌rates‌‌
because‌‌they‌‌are‌‌already‌‌struggling‌‌to‌‌
cover‌‌their‌‌annual‌‌expenses.‌‌Fees‌‌for‌‌
services,‌‌including‌‌parent‌‌fees‌‌and‌‌other‌‌
subsidies,‌‌do‌‌not‌‌cover‌‌all‌‌of‌‌a‌‌majority‌‌of‌‌
Sioux‌‌Falls‌‌childcare‌‌providers’‌‌annual‌‌
expenses.‌‌Most‌‌providers’‌‌deficits‌‌were‌‌
under‌‌$100,000‌‌(74%),‌‌but‌‌one‌‌provider‌‌had‌‌a‌‌deficit‌‌of‌‌over‌‌$500,000.‌‌An‌‌alarming‌‌
number‌‌of‌‌childcare‌‌providers‌‌are‌‌not‌‌breaking‌‌even‌‌or‌‌making‌‌a‌‌profit,‌‌which‌‌poses‌‌the‌‌
question‌‌of‌‌how‌‌these‌‌providers‌‌are‌‌still‌‌functioning.‌‌Coincidentally,‌‌the‌‌same‌‌percent‌‌of‌‌
providers‌‌who‌‌have‌‌annual‌‌deficits‌‌also‌‌make‌‌rent‌‌or‌‌mortgage‌‌payments‌‌for‌‌the‌‌space‌‌
used‌‌for‌‌their‌‌birth‌‌to‌‌age‌‌five‌‌program,‌‌which‌‌exhibits‌‌how‌‌these‌‌payments‌‌may‌‌be‌‌a‌‌
factor‌‌in‌‌why‌‌so‌‌many‌‌childcare‌‌providers‌‌have‌‌deficits:‌‌about‌‌three-fifths‌‌of‌‌providers‌‌with‌‌
an‌‌annual‌‌deficit‌‌also‌‌said‌‌they‌‌make‌‌mortgage‌‌or‌‌rent‌‌payments.‌‌Providers‌‌paid‌‌on‌‌
average‌‌$72,161‌‌in‌‌mortgage‌‌or‌‌rent‌‌payments‌‌per‌‌year,‌‌with‌‌the‌‌highest‌‌payment‌‌being‌‌
$415,000.‌‌Large‌‌employers‌‌with‌‌available‌‌space‌‌could‌‌indirectly‌‌support‌‌childcare‌‌by‌‌
providing‌‌rent-free‌‌facilities‌‌for‌‌childcare‌‌providers.‌‌ ‌
 ‌44‌ ‌
‌

The‌‌largest‌‌expense‌‌that‌‌childcare‌‌providers‌‌have‌‌is‌‌staffing,‌‌which‌‌accounts‌‌for‌‌
about‌‌70%‌‌of‌‌a‌‌provider’s‌‌budget,‌‌and‌‌there‌‌is‌‌very‌‌little‌‌wiggle‌‌room‌‌in‌‌this‌‌area‌‌to‌‌cut‌‌
expenses‌‌(Workman,‌‌2018).‌‌The‌‌average‌‌salary‌‌for‌‌childcare‌‌workers‌‌in‌‌South‌‌Dakota‌‌is‌‌
$21,943‌‌per‌‌year,‌‌and‌‌this‌‌is‌‌much‌‌lower‌‌than‌‌the‌‌median‌‌salary‌‌across‌‌all‌‌South‌‌Dakota‌‌
occupations‌‌at‌‌$39,050‌‌(South‌‌Dakota‌‌Department‌‌of‌‌Labor‌‌&‌‌Regulation,‌‌2021;‌‌U.S.‌‌
Bureau‌‌of‌‌Labor‌‌Statistics,‌‌2020).‌‌Providers‌‌cannot‌‌cut‌‌wages‌‌to‌‌potentially‌‌lower‌‌childcare‌‌
rates‌‌because‌‌childcare‌‌work‌‌is‌‌one‌‌of‌‌the‌‌lowest‌‌paying‌‌jobs‌‌in‌‌the‌‌state.‌‌More‌‌than‌‌
one-third‌‌(38%)‌‌of‌‌employees‌‌at‌‌childcare‌‌sites‌‌are‌‌part-time,‌‌which‌‌shows‌‌how‌‌providers‌‌
are‌‌already‌‌attempting‌‌to‌‌keep‌‌their‌‌staff‌‌expenses‌‌low‌‌because‌‌there‌‌are‌‌normally‌‌no‌‌
benefits‌‌with‌‌part-time‌‌jobs,‌‌and‌‌the‌‌pay‌‌is‌‌even‌‌lower‌‌than‌‌that‌‌of‌‌full-time‌‌staff.‌‌This‌‌then‌‌
feeds‌‌into‌‌gap‌‌#1‌‌because‌‌consistent‌‌staffing‌‌is‌‌one‌‌of‌‌the‌‌biggest‌‌barriers‌‌childcare‌‌
providers‌‌face‌‌to‌‌enrolling‌‌more‌‌children.‌ ‌
Some‌‌may‌‌posit‌‌that‌‌providers‌‌could‌‌cut‌‌their‌‌costs‌‌through‌‌their‌‌hours‌‌of‌‌
operation,‌‌as‌‌most‌‌providers‌‌are‌‌open‌‌Monday‌‌through‌‌Friday‌‌from‌‌early‌‌in‌‌the‌‌morning‌‌to‌‌
early‌‌in‌‌the‌‌evening.‌‌Surveyed‌‌childcare‌‌providers‌‌were‌‌open‌‌on‌‌average‌‌57.2‌‌hours‌‌per‌‌
week,‌‌and‌‌the‌‌average‌‌number‌‌of‌‌childcare‌‌provided‌‌by‌‌childcare‌‌centers‌‌was‌‌33.6‌‌hours‌‌
of‌‌care‌‌per‌‌week‌‌per‌‌licensed‌‌slot.‌‌Children‌‌are‌‌spending‌‌less‌‌than‌‌full‌‌time‌‌in‌‌childcare,‌
but‌‌centers‌‌are‌‌open‌‌for‌‌more‌‌than‌‌20‌‌extra‌‌hours‌‌than‌‌they‌‌are‌‌providing‌‌care‌‌for.‌‌This‌‌
could‌‌be‌‌a‌‌reason‌‌why‌‌some‌‌childcare‌‌providers‌‌have‌‌deficits,‌‌as‌‌they‌‌are‌‌open‌‌and‌‌
operating‌‌for‌‌close‌‌to‌‌60‌‌hours‌‌per‌‌week‌‌when‌‌the‌‌average‌‌child‌‌spends‌‌less‌‌than‌‌35‌‌hours‌‌
in‌‌childcare.‌‌This‌‌also‌‌could‌‌be‌‌the‌‌result‌‌of‌‌children‌‌who‌‌are‌‌enrolled‌‌but‌‌do‌‌not‌‌attend‌‌
childcare‌‌everyday,‌‌which‌‌is‌‌generally‌‌not‌‌in‌‌providers’‌‌control.‌‌Some‌‌of‌‌this‌‌time‌‌may‌‌also‌‌
be‌‌necessary‌‌for‌‌providers‌‌outside‌‌of‌‌caring‌‌for‌‌children.‌‌Despite‌‌this,‌‌43%‌‌of‌‌surveyed‌‌
employers‌‌heard‌‌concerns‌‌of‌‌hours‌‌of‌‌childcare‌‌services‌‌as‌‌a‌‌barrier‌‌for‌‌employees‌‌to‌‌
accessing‌‌childcare‌‌somewhat‌‌or‌‌very‌‌frequently,‌‌with‌‌this‌‌more‌‌likely‌‌to‌‌be‌‌reported‌‌by‌‌
large‌‌employers.‌‌Most‌‌surveyed‌‌centers‌‌
were‌‌open‌‌at‌‌the‌‌earliest‌‌6‌‌a.m.‌‌and‌‌the‌‌
latest‌‌6:30‌‌p.m,‌‌Monday‌‌through‌‌Friday.‌‌
Only‌‌three‌‌centers‌‌were‌‌open‌‌before‌‌
6am‌‌and‌‌none‌‌were‌‌open‌‌past‌‌6:30‌‌pm.‌‌
This‌‌does‌‌not‌‌offer‌‌flexibility‌‌for‌‌those‌‌
who‌‌have‌‌occupations‌‌outside‌‌of‌‌these‌‌
hours,‌‌such‌‌as‌‌the‌‌food‌‌industry‌‌that‌‌
employs‌‌over‌‌12,000‌‌workers‌‌and‌‌is‌‌one‌‌
of‌‌the‌‌top‌‌five‌‌occupations‌‌in‌‌Sioux‌‌Falls‌‌
(U.S.‌‌Bureau‌‌of‌‌Labor‌‌Statistics,‌‌2020).‌‌
Out‌‌of‌‌the‌‌five‌‌food‌‌industry‌‌employers‌‌
surveyed‌‌in‌‌this‌‌study,‌‌80%‌‌perceived‌‌that‌‌their‌‌employees‌‌saw‌‌hours‌‌of‌‌childcare‌‌services‌‌
as‌‌an‌‌obstacle‌‌to‌‌childcare‌‌somewhat‌‌or‌‌very‌‌frequently.‌‌This‌‌is‌‌likely‌‌because‌‌staff‌‌at‌‌these‌‌
employers‌‌cannot‌‌find‌‌childcare‌‌in‌‌the‌‌varying‌‌times‌‌that‌‌they‌‌work‌‌and‌‌thus‌‌struggle‌‌to‌‌
 ‌45‌ ‌
‌

find‌‌and‌‌retain‌‌it.‌‌This‌‌exhibits‌‌how‌‌much‌‌of‌‌an‌‌impact‌‌that‌‌childcare‌‌has‌‌on‌‌the‌‌workforce‌‌
and‌‌Sioux‌‌Falls‌‌as‌‌a‌‌whole.‌‌It‌‌would‌‌be‌‌difficult‌‌for‌‌providers‌‌to‌‌cut‌‌their‌‌costs‌‌by‌‌
decreasing‌‌their‌‌hours‌‌of‌‌operation‌‌because‌‌many‌‌employees‌‌already‌‌struggle‌‌to‌‌find‌‌care‌‌
for‌‌their‌‌children‌‌during‌‌most‌‌centers’‌‌hours‌‌of‌‌operation‌‌and‌‌want‌‌providers‌‌to‌‌expand‌‌
their‌‌hours,‌‌not‌‌cut‌‌them.‌‌One‌‌surveyed‌‌employer‌‌stated‌‌in‌‌regards‌‌to‌‌their‌‌staff‌‌finding‌‌
childcare:‌ ‌

A‌‌majority‌‌of‌‌Sioux‌‌Falls‌‌childcare‌‌providers‌‌have‌‌annual‌‌deficits‌‌with‌‌few‌‌places‌‌to‌‌
cut‌‌costs,‌‌staff‌‌wages‌‌that‌‌are‌‌much‌‌lower‌‌than‌‌the‌‌average‌‌Sioux‌‌Falls‌‌salary,‌‌and‌‌
providers‌‌who‌‌cannot‌‌serve‌‌more‌‌families‌‌to‌‌combat‌‌long‌‌waiting‌‌lists‌‌because‌‌they‌‌
struggle‌‌to‌‌hire‌‌and‌‌retain‌‌staff.‌‌Families‌‌cannot‌‌afford‌‌childcare‌‌as‌‌it‌‌is,‌‌yet‌‌most‌‌
employers‌‌are‌‌not‌‌offering‌‌any‌‌assistance‌‌even‌‌though‌‌some‌‌parents‌‌drop‌‌out‌‌of‌‌the‌‌
workforce‌‌to‌‌take‌‌care‌‌of‌‌their‌‌children.‌‌This‌‌is‌‌a‌‌clear‌‌dilemma‌‌illustrating‌‌how‌‌the‌‌Sioux‌‌
Falls‌‌childcare‌‌system‌‌is‌‌broken.‌ ‌
‌

Potential‌‌Solutions‌ ‌
Childcare‌‌is‌‌an‌‌issue‌‌that‌‌affects‌‌more‌‌than‌‌just‌‌parents‌‌and‌‌childcare‌‌providers;‌‌the‌‌
effects‌‌of‌‌childcare‌‌extend‌‌to‌‌employers‌‌and‌‌the‌‌entire‌‌community.‌‌Childcare‌‌cannot‌‌be‌‌a‌‌
concern‌‌of‌‌only‌‌those‌‌who‌‌have‌‌direct‌‌contact‌‌with‌‌it.‌‌It‌‌must‌‌be‌‌addressed‌‌by‌‌everyone‌‌on‌‌
a‌‌local,‌‌state,‌‌and‌‌national‌‌level.‌‌The‌‌childcare‌‌industry's‌‌economic‌‌impact‌‌of‌‌$279‌‌million‌‌
dollars‌‌in‌‌South‌‌Dakota‌‌alone‌‌demonstrates‌‌this‌‌industry's‌‌importance‌‌through‌‌its‌‌large‌‌
influence‌‌on‌‌the‌‌economy‌‌(First‌‌Five‌‌Years‌‌Fund,‌‌2021).‌‌Here‌‌in‌‌Sioux‌‌Falls,‌‌the‌‌focus‌‌needs‌‌
to‌‌be‌‌on‌‌local‌‌efforts‌‌that‌‌will‌‌help‌‌the‌‌state‌‌of‌‌childcare‌‌on‌‌all‌‌accounts.‌ ‌
First,‌‌families‌‌need‌‌more‌‌financial‌‌support‌‌for‌‌childcare.‌‌While‌‌the‌‌South‌‌Dakota‌‌
Department‌‌of‌‌Social‌‌Services‌‌does‌‌offer‌‌childcare‌‌assistance‌‌for‌‌some‌‌very‌‌low-income‌‌
families,‌‌the‌‌current‌‌income‌‌guidelines‌‌mean‌‌that‌‌many‌‌families‌‌are‌‌not‌‌eligible‌‌for‌‌any‌‌
assistance,‌‌and‌‌many‌‌of‌‌those‌‌who‌‌are‌‌eligible‌‌are‌‌still‌‌not‌‌receiving‌‌assistance.‌‌In‌‌2019,‌‌
1,350‌‌families‌‌received‌‌childcare‌‌assistance‌‌in‌‌Minnehaha‌‌County‌‌(Kids‌‌Count‌‌Data‌‌Center,‌‌
2019).‌‌Across‌‌the‌‌state,‌‌the‌‌number‌‌of‌‌families‌‌receiving‌‌assistance‌‌in‌‌2019‌‌dropped‌‌by‌‌
34%‌‌since‌‌2010,‌‌and‌‌similar‌‌trends‌‌were‌‌seen‌‌in‌‌Minnehaha‌‌County‌‌(Early‌‌Learner‌‌SD,‌‌
2021).‌‌Those‌‌families‌‌are‌‌also‌‌limited‌‌in‌‌where‌‌they‌‌can‌‌receive‌‌childcare‌‌because‌‌not‌‌all‌‌
providers‌‌accept‌‌financial‌‌assistance‌‌in‌‌the‌‌first‌‌place‌‌(see‌‌211‌‌Helpline‌‌Center‌‌data‌‌
section).‌‌Families‌‌who‌‌are‌‌not‌‌in‌‌poverty‌‌but‌‌still‌‌pay‌‌more‌‌than‌‌7%‌‌of‌‌their‌‌income‌‌in‌‌
childcare‌‌often‌‌are‌‌left‌‌without‌‌any‌‌help,‌‌and‌‌these‌‌numbers‌‌are‌‌rising‌‌with‌‌fewer‌‌families‌‌
receiving‌‌assistance‌‌(see‌‌pages‌‌40‌‌and‌‌41‌‌for‌‌examples).‌‌When‌‌parents‌‌cannot‌‌find‌‌reliable,‌‌
affordable‌‌childcare,‌‌they‌‌generally‌‌cannot‌‌contribute‌‌to‌‌the‌‌workforce.‌‌Many‌‌parents‌‌
become‌‌unreliable‌‌workers‌‌or‌‌are‌‌forced‌‌to‌‌drop‌‌out‌‌of‌‌the‌‌workforce‌‌entirely‌‌because‌‌of‌‌
 ‌46‌ ‌
‌

childcare‌‌issues.‌‌The‌‌United‌‌States’‌‌economy‌‌loses‌‌an‌‌estimated‌‌$57‌‌billion‌‌every‌‌year‌‌from‌‌
problems‌‌with‌‌the‌‌childcare‌‌system‌‌(Jessen-Howard,‌‌Malik,‌‌&‌‌Falgout,‌‌2020).‌‌ ‌
Paying‌‌close‌‌to‌‌$10,000‌‌for‌‌any‌‌child‌‌under‌‌age‌‌five‌‌to‌‌attend‌‌childcare‌‌full-time‌‌is‌‌
simply‌‌unattainable‌‌for‌‌many‌‌Sioux‌‌Falls‌‌families.‌‌Cost‌‌is‌‌the‌‌number‌‌one‌‌issue‌‌families‌‌
face‌‌when‌‌finding‌‌and‌‌retaining‌‌childcare,‌‌and‌‌providers‌‌similarly‌‌found‌‌that‌‌high‌‌childcare‌‌
costs‌‌for‌‌parents‌‌was‌‌the‌‌number‌‌three‌‌issue‌‌as‌‌to‌‌why‌‌they‌‌could‌‌not‌‌enroll‌‌more‌‌
children.‌‌Even‌‌so,‌‌childcare‌‌providers‌‌cannot‌‌afford‌‌to‌‌lower‌‌their‌‌rates‌‌because‌‌a‌‌majority‌‌
of‌‌providers‌‌have‌‌annual‌‌deficits.‌‌Beyond‌‌any‌‌doubt,‌‌the‌‌lack‌‌of‌‌available‌‌childcare‌‌in‌‌Sioux‌‌
Falls‌‌is‌‌a‌‌noticeable‌‌concern‌‌that‌‌many‌‌families‌‌face.‌‌ ‌
Employers‌‌have‌‌a‌‌stake‌‌in‌‌ensuring‌‌their‌‌employees‌‌can‌‌find‌‌available,‌‌affordable‌‌
childcare.‌‌An‌‌estimated‌‌20%‌‌of‌‌hourly‌‌wage‌‌employees’‌‌salaries‌‌and‌‌150%‌‌of‌‌a‌‌manager’s‌‌
salary‌‌is‌‌cost‌‌to‌‌businesses‌‌from‌‌turnover‌‌due‌‌to‌‌employees’‌‌lack‌‌of‌‌childcare,‌‌while‌‌
providing‌‌childcare‌‌for‌‌workers‌‌can‌‌reduce‌‌absences‌‌by‌‌30%‌‌and‌‌turnover‌‌by‌‌60%‌‌(U.S.‌‌
Chamber‌‌of‌‌Commerce,‌‌2021).‌‌Close‌‌to‌‌three‌‌in‌‌four‌‌working‌‌parents‌‌have‌‌reported‌‌that‌‌
their‌‌work‌‌has‌‌been‌‌affected‌‌by‌‌childcare‌‌issues‌‌in‌‌some‌‌way‌‌(First‌‌Five‌‌Years‌‌Fund,‌‌2021).‌‌
It‌‌is‌‌long‌‌overdue‌‌for‌‌businesses‌‌to‌‌consider‌‌family‌‌responsibilities‌‌for‌‌their‌‌employees‌‌a‌‌
top‌‌priority‌‌(Seyler,‌‌Monroe,‌‌&‌‌Garand,‌‌1995).‌ ‌ ‌
To‌‌support‌‌employees‌‌in‌‌securing‌‌childcare,‌‌the‌‌U.S.‌‌Chamber‌‌of‌‌Commerce‌‌
recommends‌‌that‌‌employers‌‌provide‌‌flexible‌‌work‌‌
arrangements,‌‌educate‌‌employees‌‌about‌‌their‌‌tax‌‌
and‌‌subsidy‌‌options,‌‌generate‌‌a‌‌Flexible‌‌Spending‌‌
Account‌‌(FSA)‌‌for‌‌workers,‌‌subsidize‌‌up‌‌to‌‌$5,000‌‌per‌‌
employee’s‌‌child‌‌for‌‌childcare‌‌before‌‌taxes,‌‌offer‌‌
access‌‌to‌‌a‌‌care‌‌resource‌‌or‌‌marketplace‌‌for‌‌
employees,‌‌and‌‌provide‌‌backup‌‌and/or‌‌on-site‌‌
childcare‌‌(U.S.‌‌Chamber‌‌of‌‌Commerce,‌‌2021).‌‌ ‌
Based‌‌on‌‌survey‌‌results,‌‌at‌‌least‌‌one‌‌employer‌‌
in‌‌Sioux‌‌Falls‌‌uses‌‌an‌‌FSA‌‌to‌‌support‌‌their‌‌employees‌‌
financially.‌‌Nationally,‌‌several‌‌businesses‌‌offer‌‌examples‌‌of‌‌what‌‌is‌‌possible:‌‌Target‌‌is‌‌
expanding‌‌backup‌‌childcare‌‌for‌‌employees‌‌so‌‌that‌‌they‌‌can‌‌still‌‌make‌‌it‌‌to‌‌work‌‌when‌‌their‌‌
regular‌‌childcare‌‌system‌‌fails,‌‌along‌‌with‌‌increasing‌‌their‌‌paid‌‌family‌‌leave‌‌time‌‌(“Target’s‌‌
Offering‌‌Team”,‌‌2019).‌‌Home‌‌Depot‌‌in‌‌Atlanta‌‌has‌‌taken‌‌advantage‌‌of‌‌having‌‌an‌‌on-site‌‌
childcare‌‌center‌‌for‌‌employees‌‌(U.S.‌‌Chamber‌‌of‌‌Commerce,‌‌2021).‌‌This‌‌has‌‌allowed‌‌Home‌‌
Depot‌‌to‌‌tailor‌‌the‌‌center‌‌to‌‌their‌‌employees’‌‌needs,‌‌including‌‌the‌‌location,‌‌hours,‌‌capacity,‌‌
and‌‌cost.‌‌Employees‌‌have‌‌the‌‌peace‌‌of‌‌mind‌‌knowing‌‌that‌‌their‌‌child‌‌is‌‌being‌‌cared‌‌for,‌‌
and‌‌young‌‌children‌‌know‌‌that‌‌their‌‌parent‌‌is‌‌not‌‌too‌‌far‌‌away.‌‌Home‌‌Depot‌‌also‌‌offers‌‌
backup‌‌care,‌‌an‌‌FSA,‌‌and‌‌a‌‌care‌‌marketplace‌‌for‌‌employees‌‌to‌‌utilize.‌‌One‌‌benefit‌‌from‌‌the‌‌
COVID-19‌‌pandemic‌‌may‌‌be‌‌the‌‌option‌‌that‌‌many‌‌employers‌‌give‌‌to‌‌work‌‌from‌‌home.‌‌
Large‌‌employers‌‌like‌‌Facebook,‌‌Amazon,‌‌and‌‌Microsoft‌‌are‌‌allowing‌‌more‌‌employees‌‌to‌‌
 ‌47‌ ‌
‌

work‌‌from‌‌home‌‌after‌‌the‌‌pandemic‌‌and‌‌into‌‌the‌‌future‌‌(Gurchiek,‌‌2020).‌‌This‌‌could‌‌be‌‌a‌‌
benefit‌‌for‌‌parents‌‌who‌‌are‌‌in‌‌between‌‌childcare‌‌settings‌‌or‌‌have‌‌a‌‌child‌‌who‌‌is‌‌home‌‌sick‌‌
and‌‌could‌‌greatly‌‌reduce‌‌the‌‌number‌‌of‌‌sick‌‌days‌‌taken‌‌by‌‌parents‌‌for‌‌childcare-related‌‌
reasons.‌‌Employers‌‌could‌‌work‌‌with‌‌local‌‌childcare‌‌providers‌‌in‌‌order‌‌to‌‌negotiate‌‌what‌‌
would‌‌work‌‌best‌‌for‌‌their‌‌workers‌‌too.‌‌Altogether,‌‌there‌‌are‌‌many‌‌ways‌‌employers‌‌could‌‌
assist‌‌their‌‌employees‌‌with‌‌childcare.‌‌ ‌
Additionally,‌‌childcare‌‌providers‌‌need‌‌assistance‌‌for‌‌their‌‌birth‌‌to‌‌age‌‌five‌‌programs‌‌
to‌‌continue‌‌functioning‌‌successfully.‌‌Cost‌‌is‌‌the‌‌top‌‌barrier‌‌to‌‌accessing‌‌childcare‌‌for‌‌
families‌‌and‌‌barrier‌‌number‌‌three‌‌for‌‌providers‌‌who‌‌wish‌‌to‌‌expand‌‌their‌‌services,‌‌yet‌‌
providers‌‌usually‌‌cannot‌‌lower‌‌their‌‌rates‌‌due‌‌to‌‌their‌‌annual‌‌deficits.‌‌Some‌‌providers‌‌offer‌‌
financial‌‌assistance‌‌or‌‌scholarship‌‌spots‌‌for‌‌low-income‌‌families,‌‌but‌‌they‌‌most‌‌likely‌‌rely‌‌
on‌‌funding‌‌from‌‌external‌‌sources‌‌in‌‌order‌‌to‌‌do‌‌this.‌‌Providers‌‌who‌‌offer‌‌financial‌‌
assistance‌‌to‌‌families‌‌should‌‌be‌‌expanded‌‌locally‌‌in‌‌order‌‌to‌‌benefit‌‌parents,‌‌but‌‌childcare‌‌
providers‌‌themselves‌‌need‌‌more‌‌financial‌‌assistance‌‌before‌‌that‌‌will‌‌likely‌‌happen.‌‌Results‌‌
from‌‌this‌‌study‌‌revealed‌‌that‌‌almost‌‌two-thirds‌‌of‌‌providers‌‌had‌‌annual‌‌deficits‌‌of‌‌up‌‌to‌‌
more‌‌than‌‌$500,000.‌‌Thus,‌‌many‌‌childcare‌‌providers‌‌are‌‌not‌‌able‌‌to‌‌break‌‌even‌‌every‌‌year.‌‌
One‌‌of‌‌the‌‌only‌‌reasons‌‌that‌‌providers‌‌may‌‌be‌‌surviving‌‌is‌‌the‌‌low‌‌wages‌‌that‌‌childcare‌‌
workers‌‌receive‌‌in‌‌South‌‌Dakota.‌‌The‌‌inability‌‌to‌‌hire‌‌and‌‌retain‌‌personnel‌‌was‌‌the‌‌number‌‌
one‌‌reason‌‌providers‌‌could‌‌not‌‌enroll‌‌more‌‌children‌‌(and‌‌fee‌‌revenue),‌‌and‌‌their‌‌low‌‌
wages‌‌is‌‌likely‌‌one‌‌of‌‌the‌‌reasons‌‌why.‌‌Childcare‌‌providers‌‌need‌‌more‌‌financial‌‌assistance‌‌
to‌‌pay‌‌their‌‌staff‌‌competitive‌‌wages,‌‌especially‌‌as‌‌the‌‌number‌‌of‌‌working‌‌parents‌‌increases‌‌
every‌‌year.‌ ‌
In‌‌South‌‌Dakota,‌‌close‌‌to‌‌74%‌‌of‌‌kids‌‌under‌‌age‌‌six‌‌have‌‌all‌‌of‌‌their‌‌parents‌‌in‌‌the‌‌
labor‌‌force,‌‌one‌‌of‌‌the‌‌top‌‌states‌‌in‌‌the‌‌nation,‌‌compared‌‌to‌‌66%‌‌nationally‌‌(U.S.‌‌Census‌‌
Bureau‌‌American‌‌Community‌‌Survey‌‌5-Year‌‌Estimates,‌‌Table‌‌DP03,‌‌2019).‌‌Sioux‌‌Falls‌‌itself‌‌
has‌‌more‌‌than‌‌75%‌‌of‌‌children‌‌under‌‌age‌‌six‌‌with‌‌working‌‌parents;‌‌therefore,‌‌the‌‌need‌‌for‌‌
childcare‌‌has‌‌never‌‌been‌‌as‌‌essential‌‌as‌‌it‌‌is‌‌now.‌‌In‌‌turn,‌‌this‌‌has‌‌led‌‌to‌‌many‌‌children‌‌
needing‌‌reliable‌‌childcare,‌‌as‌‌most‌‌parents‌‌are‌‌working,‌‌but‌‌there‌‌is‌‌not‌‌enough‌‌space‌‌for‌‌
children‌‌to‌‌go.‌‌With‌‌more‌‌than‌‌half‌‌of‌‌Sioux‌‌Falls‌‌childcare‌‌providers‌‌having‌‌waiting‌‌lists,‌‌
this‌‌poses‌‌the‌‌question‌‌of‌‌how‌‌parents‌‌are‌‌finding‌‌quality‌‌childcare‌‌in‌‌these‌‌situations.‌‌
Even‌‌so,‌‌the‌‌second‌‌reason‌‌that‌‌providers‌‌gave‌‌for‌‌not‌‌being‌‌able‌‌to‌‌enroll‌‌more‌‌children‌‌
was‌‌that‌‌they‌‌were‌‌already‌‌at‌‌full‌‌capacity.‌‌This‌‌demonstrates‌‌the‌‌clear‌‌need‌‌of‌‌more‌‌
childcare‌‌providers‌‌in‌‌Sioux‌‌Falls‌‌to‌‌offer‌‌services‌‌for‌‌families.‌‌Providers’‌‌waiting‌‌lists‌‌are‌‌
another‌‌indication‌‌of‌‌this:‌‌a‌‌majority‌‌of‌‌childcare‌‌providers‌‌have‌‌waiting‌‌lists‌‌of‌‌up‌‌to‌‌more‌‌
than‌‌100‌‌children.‌‌A‌‌total‌‌of‌‌913‌‌families‌‌were‌‌on‌‌waiting‌‌lists,‌‌and‌‌that‌‌does‌‌not‌‌even‌‌
encompass‌‌all‌‌of‌‌the‌‌providers‌‌in‌‌Sioux‌‌Falls.‌‌Sioux‌‌Falls‌‌simply‌‌needs‌‌more‌‌childcare‌‌
options‌‌than‌‌it‌‌currently‌‌has,‌‌especially‌‌with‌‌its‌‌growing‌‌population,‌‌and‌‌the‌‌current‌‌
providers‌‌need‌‌more‌‌support‌‌in‌‌order‌‌to‌‌stay‌‌profitable.‌‌This‌‌support‌‌could‌‌come‌‌
financially‌‌to‌‌give‌‌providers‌‌more‌‌funds‌‌for‌‌their‌‌operations‌‌in‌‌order‌‌to‌‌pay‌‌their‌‌staff‌‌
better.‌‌It‌‌could‌‌also‌‌come‌‌in‌‌the‌‌form‌‌of‌‌business‌‌mentoring‌‌whereby‌‌childcare‌‌providers‌‌
 ‌48‌ ‌
‌

are‌‌offered‌‌free‌‌education‌‌on‌‌how‌‌to‌‌successfully‌‌run‌‌a‌‌business.‌‌All‌‌things‌‌considered,‌‌
childcare‌‌providers‌‌and‌‌parents‌‌need‌‌more‌‌support‌‌than‌‌they‌‌are‌‌getting‌‌right‌‌now‌‌for‌‌
childcare.‌‌ ‌
‌

Conclusion‌ ‌
Overall,‌‌the‌‌childcare‌‌system‌‌in‌‌Sioux‌‌Falls‌‌is‌‌broken‌‌on‌‌many‌‌levels.‌‌The‌‌cost‌‌of‌‌
childcare‌‌is‌‌astronomical‌‌relative‌‌to‌‌parents’‌‌incomes,‌‌making‌‌it‌‌unaffordable‌‌for‌‌many‌‌
families‌‌in‌‌Sioux‌‌Falls,‌‌which‌‌leads‌‌to‌‌some‌‌parents‌‌dropping‌‌out‌‌of‌‌the‌‌workforce.‌‌
Extremely‌‌long‌‌waiting‌‌lists‌‌for‌‌childcare‌‌providers‌‌gives‌‌families‌‌few‌‌places‌‌to‌‌go.‌‌Families‌‌
should‌‌not‌‌have‌‌to‌‌undergo‌‌these‌‌circumstances‌‌as‌‌a‌‌clear‌‌dilemma‌‌exists‌‌that‌‌no‌‌parent‌‌
should‌‌have‌‌to‌‌face,‌‌especially‌‌for‌‌those‌‌who‌‌cannot‌‌afford‌‌childcare‌‌and‌‌also‌‌do‌‌not‌‌
qualify‌‌for‌‌government‌‌assistance.‌‌ ‌
To‌‌address‌‌this‌‌gap‌‌in‌‌the‌‌childcare‌‌system,‌‌parents‌‌and‌‌providers‌‌need‌‌to‌‌be‌‌
supported‌‌more‌‌financially.‌‌Employers‌‌must‌‌be‌‌educated‌‌about‌‌the‌‌impact‌‌that‌‌childcare‌‌
has‌‌on‌‌their‌‌employees‌‌and‌‌the‌‌entire‌‌community‌‌to‌‌gain‌‌their‌‌support‌‌and‌‌make‌‌family‌‌
considerations‌‌a‌‌top‌‌priority.‌‌This‌‌could‌‌take‌‌the‌‌form‌‌of‌‌subsidies‌‌for‌‌childcare,‌‌
connections‌‌to‌‌local‌‌childcare‌‌centers,‌‌and‌‌the‌‌option‌‌to‌‌work‌‌from‌‌home,‌‌among‌‌other‌‌
possibilities.‌‌Childcare‌‌providers‌‌are‌‌lacking‌‌adequate‌‌support‌‌and‌‌are‌‌struggling‌‌to‌‌make‌‌
ends‌‌meet‌‌every‌‌year.‌‌They‌‌need‌‌more‌‌financial‌‌support‌‌and‌‌business‌‌mentoring‌‌to‌‌
continue‌‌operating‌‌for‌‌families‌‌who‌‌need‌‌it.‌‌ ‌
Families‌‌struggle‌‌enough‌‌to‌‌balance‌‌work‌‌and‌‌family‌‌demands‌‌without‌‌needing‌‌to‌‌
know‌‌whether‌‌they‌‌can‌‌afford‌‌to‌‌place‌‌their‌‌child‌‌in‌‌affordable,‌‌safe,‌‌and‌‌quality‌‌childcare‌‌
every‌‌day.‌‌They‌‌should‌‌not‌‌need‌‌to‌‌worry‌‌about‌‌spending‌‌more‌‌than‌‌7%‌‌of‌‌their‌‌income‌‌on‌‌
finding‌‌care‌‌for‌‌their‌‌child‌‌while‌‌they‌‌work‌‌to‌‌support‌‌them.‌‌Childcare‌‌providers‌‌fight‌‌to‌‌
survive‌‌every‌‌year,‌‌and‌‌some‌‌still‌‌do‌‌not.‌‌They‌‌should‌‌not‌‌need‌‌to‌‌worry‌‌about‌‌how‌‌they‌‌
are‌‌going‌‌to‌‌stay‌‌afloat‌‌while‌‌striving‌‌to‌‌offer‌‌the‌‌best‌‌quality‌‌of‌‌care‌‌for‌‌the‌‌lowest‌‌price‌‌to‌‌
parents.‌‌This‌‌visibly‌‌broken‌‌childcare‌‌system‌‌deserves‌‌to‌‌be‌‌fixed‌‌and‌‌funded,‌‌to‌‌the‌‌
benefit‌‌of‌‌Sioux‌‌Falls‌‌families,‌‌employers,‌‌and‌‌the‌‌community‌‌as‌‌a‌‌whole.‌ ‌
‌
‌
‌
‌
‌
‌
‌
‌
 ‌49‌ ‌
‌

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guide-to-topics-and-questions‌ ‌

Paquette,‌D
‌ .,‌&
‌ ‌C
‌ raighill,‌P
‌ .‌M‌ .‌(‌ 2015,‌A ‌ ugust‌6 ‌ ).‌T‌ he‌s‌ urprising‌n
‌ umber‌o
‌ f‌p
‌ arents‌
scaling‌b ‌ ack‌a‌ t‌w
‌ ork‌t‌ o‌c‌ are‌f‌ or‌k‌ ids.‌‌T
‌ he‌W
‌ ashington‌P ‌ ost.‌‌
www.washingtonpost.com/business/economy/the-surprising-number-of-mo‌
ms-and-dads-scaling-back-at-work-to-care-for-their-kids/2015/08/06/c7134c5‌
0-3ab7-11e5-b3ac-8a79bc44e5e2_story.html‌ ‌

Schochet,‌L
‌ .‌(‌ 2019,‌M
‌ arch‌2
‌ 8).‌T‌ he‌c‌ hild‌c‌ are‌c‌ risis‌i‌s‌k‌ eeping‌w
‌ omen‌o
‌ ut‌o
‌ f‌t‌ he‌‌
workforce.‌‌Center‌f‌ or‌A ‌ merican‌P ‌ rogress.‌‌
www.americanprogress.org/issues/early-childhood/reports/2019/03/28/4674‌
88/child-care-crisis-keeping-women-workforce/‌ ‌

Seyler,‌D
‌ .‌L
‌ .,‌M
‌ onroe,‌P ‌ .‌A
‌ .,‌&
‌ ‌G
‌ arand,‌J‌.‌C
‌ .‌(‌ 1995,‌M
‌ arch‌1
‌ ).‌B
‌ alancing‌w
‌ ork‌a‌ nd‌‌
family:‌T ‌ he‌r‌ ole‌o
‌ f‌e
‌ mployer-supported‌c‌ hild‌c‌ are‌b ‌ enefits.‌‌Journal‌o
‌ f‌F‌ amily‌‌
Issues‌,‌1 ‌ 6(2),‌1‌ 70–193.‌h ‌ ttps://doi.org/10.1177/019251395016002003‌‌ ‌

South‌D
‌ akota‌D
‌ epartment‌o
‌ f‌L
‌ abor‌&
‌ ‌R
‌ egulation.‌(‌ 2021).‌E
‌ mployment‌w
‌ age‌s‌ tatistics.‌‌
https://www.southdakotaworks.org/vosnet/Default.aspx‌ ‌

South‌D
‌ akota‌D
‌ epartment‌o ‌ f‌L
‌ abor‌a
‌ nd‌R
‌ egulation.‌(‌ 2016).‌L‌ abor‌m
‌ arket‌‌
information‌c‌ enter‌e‌ mployee‌b ‌ enefits‌s‌ urvey.‌‌
https://dlr.sd.gov/lmic/menu_employee_benefits.aspx‌ ‌
 ‌51‌ ‌
‌

Support‌f‌ or‌w
‌ orking‌f‌ amilies.‌‌(‌ 2021).‌F
‌ irst‌F
‌ ive‌Y
‌ ears‌F
‌ und.‌‌
https://www.ffyf.org/why-it-matters/support-working-families/‌ ‌

Target’s‌o
‌ ffering‌t‌ eam‌m
‌ embers‌e‌ xciting‌n ‌ ew‌f‌ amily‌c‌ are‌b
‌ enefits‌o
‌ n‌t‌ op‌o
‌ f‌o
‌ ur‌‌
industry-leading‌p ‌ ay.‌(‌ 2019,‌J‌une‌1
‌ 0).‌T
‌ arget‌C ‌ orporate.‌‌
https://corporate.target.com/article/2019/06/target-benefits-family-leave‌ ‌

U.S.‌B
‌ ureau‌o
‌ f‌L
‌ abor‌S
‌ tatistics.‌(‌ 2020,‌M
‌ ay).‌M ‌ etropolitan‌a
‌ nd‌n
‌ onmetropolitan‌a
‌ rea‌‌
occupational‌e‌ mployment‌a ‌ nd‌w
‌ age‌e‌ stimates.‌‌
https://www.bls.gov/oes/current/oessrcma.htm‌ ‌

U.S.‌B
‌ ureau‌o ‌ f‌L ‌ abor‌S‌ tatistics‌(‌ 2021).‌B
‌ LS‌d
‌ ata‌v‌ iewer:‌C
‌ hild‌c‌ are‌a
‌ nd‌n
‌ ursery‌s‌ chool‌‌
in‌U
‌ .S.‌c‌ ity‌a‌ verage,‌a
‌ ll‌u
‌ rban‌c‌ onsumers,‌s‌ easonally‌a ‌ djusted.‌‌
beta.bls.gov/dataViewer/view/timeseries/CUSR0000SEEB03‌ ‌

U.S.‌C
‌ ensus‌B
‌ ureau:‌A‌ merican‌C‌ ommunity‌S ‌ urvey,‌2
‌ 019‌A
‌ merican‌C
‌ ommunity‌‌
Survey‌5
‌ -Year‌E
‌ stimates,‌T
‌ able‌B
‌ 13012‌ ‌

U.S.‌C
‌ ensus‌B
‌ ureau:‌A‌ merican‌C‌ ommunity‌S ‌ urvey,‌2
‌ 019‌A
‌ merican‌C
‌ ommunity‌‌
Survey‌5
‌ -Year‌E
‌ stimates,‌T
‌ able‌B
‌ 23007‌ ‌

U.S.‌C
‌ ensus‌B
‌ ureau:‌A‌ merican‌C‌ ommunity‌S ‌ urvey,‌2
‌ 019‌A
‌ merican‌C
‌ ommunity‌‌
Survey‌5
‌ -Year‌E
‌ stimates,‌T
‌ able‌D
‌ P03‌ ‌

U.S.‌C
‌ ensus‌B
‌ ureau:‌A‌ merican‌C‌ ommunity‌S ‌ urvey,‌2
‌ 019‌A
‌ merican‌C
‌ ommunity‌‌
Survey‌5
‌ -Year‌E
‌ stimates,‌T
‌ able‌S
‌ 1901‌ ‌

U.S.‌C
‌ ensus‌B
‌ ureau:‌A‌ merican‌C‌ ommunity‌S ‌ urvey,‌2
‌ 019‌A
‌ merican‌C
‌ ommunity‌‌
Survey‌5
‌ -Year‌E
‌ stimates,‌T
‌ able‌S
‌ 1903‌ ‌

U.S.‌C
‌ ensus‌B
‌ ureau:‌A‌ merican‌C‌ ommunity‌S ‌ urvey,‌2
‌ 019‌A
‌ merican‌C
‌ ommunity‌‌
Survey‌5
‌ -Year‌E
‌ stimates,‌T
‌ able‌S
‌ 2002‌ ‌

U.S.‌C
‌ ensus‌B
‌ ureau:‌A‌ merican‌C‌ ommunity‌S ‌ urvey,‌2
‌ 019‌A
‌ merican‌C
‌ ommunity‌‌
Survey‌5
‌ -Year‌E
‌ stimates,‌T
‌ able‌S
‌ 2301‌ ‌

U.S.‌C
‌ hamber‌o‌ f‌C
‌ ommerce‌F ‌ oundation.‌(‌ 2021,‌F ‌ ebruary‌9
‌ ).‌‌T‌ he‌b
‌ edrock‌o
‌ f‌A
‌ merican‌‌
business:‌H
‌ igh-quality‌e‌ arly‌c‌ hildhood‌e‌ ducation.‌‌
https://www.uschamberfoundation.org/early-childhood-education/the-busin‌
ess-case‌
 ‌52‌ ‌
‌

U.S.‌D
‌ epartment‌o‌ f‌H
‌ ealth‌a
‌ nd‌H
‌ uman‌S‌ ervices.‌(‌ 2015,‌D
‌ ecember‌2 ‌ 4).‌C
‌ hild‌C
‌ are‌‌
and‌D
‌ evelopment‌F‌ und‌(‌CCDF)‌P
‌ rogram;‌P‌ roposed‌R ‌ ule.‌‌8
‌ 0‌F
‌ ed.‌R
‌ eg.‌‌
https://www.govinfo.gov/content/pkg/FR-2013-05-20/pdf/2013-11673.pdf‌ ‌

Wade,‌L
‌ .‌&
‌ ‌F
‌ erree,‌M
‌ .‌M
‌ .‌(‌ 2019).‌G
‌ ender:‌I‌deas,‌i‌nteractions,‌i‌nstitutions‌.‌W
‌ .‌W
‌ ‌.‌N
‌ orton‌‌
&‌C ‌ ompany.‌ ‌ ‌

Workman,‌S ‌ imon.‌(‌ 2018,‌F

‌ ebruary‌1
‌ 4).‌W
‌ here‌d
‌ oes‌y‌ our‌c‌ hild‌c‌ are‌d
‌ ollar‌g
‌ o?‌C
‌ enter‌‌
for‌A
‌ merican‌P ‌ rogress.‌‌
www.americanprogress.org/issues/early-childhood/reports/2018/02/14/4463‌
30/child-care-dollar-go/‌ ‌

‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
 ‌53‌ ‌
‌

Appendix‌‌A‌ ‌
Childcare‌p
‌ rovider‌s‌ urvey‌ ‌
 ‌54‌ ‌
‌

‌
‌
 ‌55‌ ‌
‌

‌
‌
 ‌56‌ ‌
‌

‌
‌
 ‌57‌ ‌
‌

‌
‌
 ‌58‌ ‌
‌

‌
‌
 ‌59‌ ‌
‌

‌
‌
 ‌60‌ ‌
‌

‌
‌
 ‌61‌ ‌
‌

Note‌o
‌ n‌S
‌ urvey‌A
‌ dministration‌ ‌
Skip‌‌logic‌‌was‌‌used‌‌for‌‌the‌‌childcare‌‌provider‌‌survey.‌‌Questions‌‌5‌‌and‌‌6‌‌were‌‌asked‌‌
of‌‌providers‌‌who‌‌only‌‌cared‌‌for‌‌infants,‌‌toddlers,‌‌and‌‌two-year-olds.‌‌Questions‌‌7‌‌and‌‌8‌‌
were‌‌asked‌‌of‌‌providers‌‌who‌‌only‌‌cared‌‌for‌‌children‌‌aged‌‌three‌‌to‌‌five.‌‌If‌‌providers‌‌cared‌‌
for‌‌both‌‌age‌‌groups,‌‌they‌‌were‌‌only‌‌asked‌‌questions‌‌9,‌‌10,‌‌11,‌‌and‌‌12.‌ ‌
‌

‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌

‌
‌
 ‌62‌ ‌
‌

Appendix‌‌B‌ ‌
Business‌s‌ urvey‌
‌63‌ ‌
‌

‌
 ‌64‌ ‌
‌

Appendix‌‌C‌ ‌
Childcare‌p ‌ rovider‌c ‌ omments‌ ‌
‌
Other‌b ‌ arriers‌t‌ o‌e ‌ nrollment‌‌ ‌
This‌s‌ ection‌l‌ists‌t‌ he‌c‌ omments‌f‌ rom‌d ‌ irectors‌o ‌ f‌c‌ hildcare‌p ‌ roviders‌o ‌ n‌o ‌ ther‌‌
barriers‌t‌ hat‌p ‌ roviders‌f‌ ace‌t‌ o‌e ‌ nrolling‌m ‌ ore‌c‌ hildren.‌T ‌ hese‌b ‌ arriers‌w ‌ ere‌‌
different‌f‌ rom‌t‌ he‌o ‌ nes‌l‌isted‌i‌n‌t‌ he‌s‌ urvey,‌w ‌ hich‌i‌ncluded‌o ‌ perating‌a ‌ t‌f‌ ull‌‌
capacity,‌i‌nability‌t‌ o‌h ‌ ire/retain‌p ‌ ersonnel,‌n ‌ ot‌e ‌ nough‌c‌ hildren‌w ‌ anting‌t‌ o‌e ‌ nroll,‌‌
not‌e ‌ nough‌s‌ pace‌t‌ o‌a ‌ dd‌m ‌ ore‌c‌ hildren,‌l‌ocation/lack‌o ‌ f‌d
‌ emand‌f‌ or‌s‌ ervices‌i‌n‌t‌ his‌‌
area,‌a ‌ nd‌c‌ ost‌o ‌ f‌s‌ ervices‌e ‌ xceeds‌f‌ amilies’‌a ‌ bility‌t‌ o‌p ‌ ay.‌A‌ ‌c‌ omment‌s‌ ection‌i‌n‌t‌ he‌‌
survey‌l‌et‌p ‌ roviders‌s‌ tate‌i‌f‌t‌ here‌w ‌ ere‌o ‌ ther‌b ‌ arriers‌h ‌ ere.‌‌ ‌
‌
“Covid‌h ‌ it‌u
‌ s‌p ‌ retty‌h ‌ ard‌i‌n‌t‌ he‌u ‌ nder‌3 ‌ ‌a
‌ ges‌b ‌ ut‌n ‌ umbers‌a ‌ re‌l‌ooking‌u ‌ p‌f‌ or‌t‌ he‌F ‌ all‌‌
Semester.‌W ‌ e‌o ‌ nly‌a ‌ ccept‌[‌ a‌l‌imited‌p ‌ opulation]‌-‌ -‌s‌ o‌l‌imited‌e ‌ nrollment”‌ ‌
‌
“The‌p ‌ andemic‌l‌ast‌y ‌ ear‌c‌ aused‌p ‌ arents‌t‌ o‌t‌ ake‌o ‌ ne-year-olds‌a ‌ nd‌t‌ wo-year-olds‌‌
out‌o ‌ f‌t‌ he‌c‌ enter‌t‌ o‌b ‌ e‌w ‌ ith‌p ‌ arents‌w ‌ orking‌f‌ rom‌h ‌ ome.‌T ‌ hose‌c‌ hildren‌g ‌ rew‌i‌nto‌‌
the‌p ‌ reschool,‌b ‌ ut‌i‌t‌w ‌ as‌h ‌ ard‌t‌ o‌fi ‌ nd‌t‌ he‌y ‌ ounger‌g ‌ roup‌r‌ eady‌t‌ o‌e ‌ nroll.‌W ‌ e‌w ‌ ere‌a ‌ t‌‌
full‌c‌ apacity‌u ‌ ntil‌M‌ arch‌1 ‌ 3th.”‌ ‌
‌
“We‌s‌ tart‌a ‌ t‌a ‌ ge‌2 ‌ .”‌ ‌
‌
“Cost‌o ‌ f‌o‌ perations”‌ ‌
‌
‌
Barriers‌t‌ o‌e ‌ nrollment‌d ‌ iffered‌d ‌ epending‌o ‌ n‌t‌ he‌a ‌ ge‌g ‌ roup‌ ‌
This‌s‌ ection‌l‌ists‌t‌ he‌c‌ omments‌f‌ rom‌d ‌ irectors‌o ‌ f‌c‌ hildcare‌p ‌ roviders‌o ‌ n‌b ‌ arriers‌‌
that‌p ‌ roviders‌f‌ ace‌t‌ o‌e ‌ nrolling‌m ‌ ore‌c‌ hildren‌t‌ hat‌d ‌ iffer‌d‌ epending‌o ‌ n‌a ‌ ge‌g ‌ roup.‌‌
Most‌p ‌ roviders‌s‌ plit‌t‌ heir‌b ‌ irth‌t‌ o‌a ‌ ge‌fi ‌ ve‌p ‌ rograms‌i‌nto‌i‌nfant,‌t‌ oddlers,‌a ‌ nd‌t‌ wo‌‌
year‌o ‌ lds‌a ‌ nd‌t‌ hree‌t‌ o‌fi ‌ ve‌y ‌ ear‌o ‌ lds.‌T ‌ he‌n ‌ eeds‌o ‌ f‌t‌ hese‌s‌ eparate‌a ‌ ge‌g ‌ roups‌a ‌ re‌‌
different,‌s‌ o‌b ‌ arriers‌m ‌ ay‌b ‌ e‌d‌ ifferent‌d ‌ epending‌o ‌ n‌t‌ he‌a‌ ge‌g ‌ roup.‌A ‌ ‌c‌ omment‌‌
section‌i‌n‌t‌ he‌s‌ urvey‌l‌et‌p ‌ roviders‌s‌ tate‌i‌f‌t‌ here‌w ‌ ere‌d ‌ ifferences‌h ‌ ere.‌‌ ‌
‌
“We‌t‌ ry‌n ‌ ot‌t‌ o‌a ‌ dd‌a ‌ ny‌c‌ hildren‌i‌n‌t‌ he‌m ‌ iddle‌o ‌ f‌t‌ he‌y ‌ ear‌f‌ or‌o ‌ ur‌p ‌ reschool‌c‌ lasses‌‌
(3-5)‌s‌ o‌t‌ hey‌s‌ ometimes‌w ‌ ill‌h ‌ ave‌t‌ o‌w ‌ ait‌t‌ ill‌t‌ he‌f‌ ollowing‌y ‌ ear‌f‌ or‌a ‌ ‌s‌ pot‌i‌n‌‌
preschool”‌ ‌
‌
“We‌h ‌ ave‌a ‌ ‌l‌ot‌o ‌ f‌d
‌ emand‌f‌ or‌s‌ chool‌a ‌ ged‌c‌ are‌d ‌ uring‌t‌ he‌s‌ ummer.‌O ‌ ur‌i‌nfant‌a ‌ ge‌‌
group‌h ‌ as‌h ‌ ad‌t‌ he‌l‌east‌a ‌ mount‌o ‌ f‌e
‌ nrollment.”‌ ‌
 ‌65‌ ‌
‌

“If‌w
‌ e‌w
‌ anted‌t‌ o‌e ‌ xpand‌t‌ he‌o ‌ nly‌b ‌ arrier‌w ‌ ould‌b ‌ e‌h‌ iring‌a ‌ t‌t‌ his‌t‌ ime.‌N‌ ot‌l‌ooking‌t‌ o‌‌
expand‌s‌ ince‌w ‌ e‌a ‌ lso‌h ‌ ave‌a ‌ ‌l‌arger‌a ‌ fter-school‌p ‌ rogram”‌ ‌
‌
“We‌h ‌ ave‌a ‌ ‌l‌arge‌n ‌ umber‌o ‌ f‌p
‌ eople‌r‌ equesting‌i‌nfant‌c‌ are‌a ‌ nd‌i‌ncreasing‌n ‌ eed‌f‌ or‌‌
care‌f‌ or‌1
‌ 's‌&‌ ‌2 ‌ 's.‌A‌ ll‌o
‌ f‌o‌ ur‌c‌ lassrooms‌a ‌ re‌f‌ ull‌a‌ nd‌w ‌ e‌n‌ eed‌t‌ o‌b ‌ uild‌m ‌ ore‌r‌ ooms.”‌ ‌
‌
“We‌d ‌ o‌n
‌ ot‌o ‌ ffer‌i‌nfant‌c‌ are,‌b ‌ ut‌t‌ his‌s‌ ummer‌w ‌ e‌c‌ ould‌h ‌ ave‌fi ‌ lled‌o ‌ ur‌e‌ ntire‌c‌ enter‌‌
with‌s‌ chool‌a ‌ ged‌c‌ hildren.”‌ ‌
‌
“The‌l‌argest‌b ‌ arrier‌i‌s‌fi ‌ nding‌q ‌ ualified‌s‌ taff‌w ‌ ith‌t‌ he‌p ‌ ay‌p ‌ arameters‌i‌n‌t‌ oday's‌‌
employment‌m ‌ arket‌a ‌ s‌w‌ ell‌a‌ s‌t‌ he‌d ‌ rive‌t‌ o‌e‌ ven‌w ‌ ork.”‌ ‌
‌
“Our‌c‌ enter‌h ‌ as‌a ‌ ll‌1
‌ :5‌r‌ atio.‌T ‌ his‌m ‌ akes‌i‌t‌n ‌ ext‌t‌ o‌i‌mpossible‌t‌ o‌m ‌ ake‌a ‌ ‌p
‌ rofit.”‌ ‌
‌
“We‌d ‌ on't‌h ‌ ave‌a ‌ n‌i‌nfant‌p ‌ rogram‌a ‌ nd‌s‌ tart‌a ‌ t‌1‌ ‌y‌ ear‌o‌ ld.‌S ‌ ome‌t‌ imes‌w ‌ e‌h‌ ave‌a ‌ ‌‌
hard‌t‌ ime‌k ‌ eeping‌t‌ he‌1 ‌ ‌y
‌ ear‌o ‌ ld‌r‌ oom‌f‌ ull‌a ‌ s‌p‌ eople‌a ‌ ren't‌a ‌ lways‌i‌nterested‌i‌n‌‌
changing‌a ‌ fter‌a ‌ ‌y
‌ ear.”‌ ‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
‌
 ‌66‌ ‌
‌

Appendix‌‌D‌ ‌
Human‌R
‌ esource‌r‌ epresentative‌c
‌ omments‌‌ ‌
‌
Common‌c ‌ hildcare‌i‌ ssues‌b ‌ efore‌t‌ he‌p ‌ andemic‌ ‌
This‌s‌ ection‌l‌ists‌t‌ he‌c‌ omments‌f‌ rom‌H ‌ uman‌R ‌ esource‌(‌ HR)‌r‌ epresentatives‌o ‌ n‌‌
what‌a ‌ ccess‌i‌ssues‌t‌ hey‌m ‌ ost‌c‌ ommonly‌h ‌ eard‌a ‌ bout‌b ‌ efore‌t‌ he‌C ‌ OVID-19‌‌
pandemic.‌T ‌ hey‌w ‌ ere‌a ‌ sked‌t‌ o‌c‌ omment‌a ‌ bout‌w ‌ hat‌i‌ssues‌t‌ hey‌h ‌ eard‌b ‌ efore‌t‌ he‌‌
pandemic‌i‌n‌o ‌ rder‌t‌ o‌u ‌ nderstand‌i‌f‌c‌ hildcare‌h ‌ ad‌i‌ssues‌b ‌ efore‌t‌ he‌p ‌ andemic.‌ ‌
‌
“Availability‌o ‌ f‌e‌ arly‌h ‌ ours‌d ‌ ay‌c‌ are.‌O ‌ ur‌p ‌ lant‌e ‌ mployees‌s‌ tart‌a ‌ t‌6
‌ :00‌a ‌ m.“‌ ‌
‌
“The‌m ‌ ain‌i‌ssue‌[‌ for‌e ‌ mployees‌a ‌ ccessing‌c‌ hildcare]‌w ‌ as‌p ‌ eople‌fi ‌ nding‌o ‌ penings‌a ‌ t‌‌
daycare‌c‌ enters.‌A ‌ ‌l‌ot‌o ‌ f‌p‌ eople‌s‌ tart‌l‌ooking‌t‌ he‌m ‌ inute‌t‌ hey‌fi ‌ nd‌o ‌ ut‌t‌ hey‌a ‌ re‌‌
pregnant.‌C ‌ enters‌a ‌ re‌b ‌ ooked‌a ‌ nd‌o ‌ ften‌h ‌ ave‌a ‌ ‌w
‌ aiting‌l‌ist.“‌ ‌
‌
“most‌o ‌ f‌o ‌ ur‌e ‌ mployees‌h ‌ ave‌t‌ heir‌s‌ chedule‌w ‌ orked‌o ‌ ut‌s‌ o‌t‌ hat‌t‌ hey‌h ‌ ave‌d ‌ aycare‌‌
with‌a‌ ‌s‌ et‌s‌ chedule‌ ‌
Some‌w ‌ ere‌o ‌ n‌a ‌ ‌w
‌ aitlist‌f‌ or‌c‌ ertain‌p ‌ roviders‌b ‌ ut‌o ‌ therwise‌n ‌ o‌l‌arge‌i‌ssues.“‌ ‌
‌
“We‌h‌ ave‌2 ‌ 4/7‌s‌ taff‌n ‌ ot‌a ‌ ll‌s‌ taff‌c‌ an‌fi‌ nd‌c‌ overage‌o ‌ r‌a
‌ t‌a‌ ny‌a ‌ ffordable‌p ‌ rice.“‌ ‌
‌
“Cost‌o ‌ f‌c‌ hildcare‌f‌ or‌y ‌ ounger‌c‌ hildren“‌ ‌
‌
“Long‌w ‌ aiting‌l‌ists‌a ‌ t‌c‌ enters,‌f‌ orcing‌t‌ hem‌t‌ o‌k ‌ eep‌l‌ooking.“‌ ‌
‌
“Cost,‌a ‌ vailable‌e ‌ arly‌m ‌ orning‌a ‌ nd‌l‌ater‌a ‌ fternoon.‌(‌ Note:‌i‌n‌c‌ onstruction,‌o ‌ ur‌‌
employees‌w ‌ ork‌6 ‌ ‌A‌ M‌o ‌ r‌7‌ AM‌t‌ o‌5 ‌ ‌P
‌ M,‌s‌ o‌t‌ hey‌w ‌ ork‌l‌ong‌d ‌ ays‌e ‌ specially‌i‌n‌t‌ he‌‌
Spring‌-‌ ‌F ‌ all‌m ‌ onths).“‌ ‌
‌
“Primarily‌c‌ ost‌o ‌ f‌c‌ are‌a ‌ nd‌fl ‌ exibility‌i‌n‌w ‌ ork‌s‌ chedule‌t‌ o‌t‌ ransport‌t‌ he‌c‌ hildren.“‌ ‌
‌
“Only‌a ‌ ‌f‌ ew‌i‌llness‌r‌ estrictions“‌ ‌
‌
“Difficulty‌fi ‌ nding‌c‌ hild‌c‌ are‌f‌ or‌n ‌ ewborns‌o ‌ r‌f‌ or‌c‌ hildren‌w ‌ ith‌s‌ pecial‌n ‌ eeds“‌ ‌
‌
“Lack‌o ‌ f‌a ‌ ccess‌t‌ o‌t‌ hose‌w ‌ orking‌s‌ econd‌s‌ hifts‌(‌ start‌t‌ imes‌a ‌ round‌3 ‌ :30‌p ‌ .m.).‌N ‌ ot‌
enough‌p ‌ laces‌o ‌ pen‌e ‌ arly‌e ‌ nough‌t‌ o‌a ‌ ccommodate‌o ‌ ur‌e ‌ arly‌m ‌ orning‌s‌ hifts,‌w ‌ hich‌‌
start‌a‌ s‌e ‌ arly‌a ‌ s‌6‌ ‌a‌ .m.“‌ ‌
“Having‌e ‌ nough‌p ‌ roviders‌a ‌ vailable.“‌ ‌
 ‌67‌ ‌
‌

Common‌c ‌ hildcare‌i‌ ssues‌d ‌ uring‌t‌ he‌p ‌ andemic‌‌ ‌

This‌s‌ ection‌l‌ists‌t‌ he‌c‌ omments‌f‌ rom‌H ‌ R‌r‌ epresentatives‌o ‌ n‌w‌ hat‌a ‌ ccess‌i‌ssues‌t‌ hey‌‌
most‌c‌ ommonly‌h ‌ eard‌a ‌ bout‌a ‌ fter‌t‌ he‌o ‌ nset‌o ‌ f‌t‌ he‌C ‌ OVID-19‌p ‌ andemic.‌T ‌ hey‌w ‌ ere‌‌
asked‌t‌ o‌c‌ omment‌a ‌ bout‌w ‌ hat‌i‌ssues‌t‌ hey‌h ‌ eard‌d ‌ uring‌t‌ he‌p ‌ andemic‌i‌n‌o ‌ rder‌t‌ o‌‌
understand‌i‌f‌c‌ hildcare‌e ‌ mployers‌b ‌ ecame‌a ‌ ware‌o ‌ f‌i‌ssues‌p ‌ urely‌b ‌ ecause‌o ‌ f‌t‌ he‌‌
pandemic‌o ‌ r‌i‌f‌i‌ts‌e‌ ffect‌w ‌ as‌c‌ ompounded‌a ‌ fter‌t‌ he‌p ‌ andemic.‌ ‌
‌
“Same‌a ‌ s‌a ‌ bove‌[‌ regarding‌e ‌ arly‌h ‌ ours‌o ‌ f‌c‌ are‌b ‌ efore‌6 ‌ :00‌a ‌ m.]”‌ ‌
‌
”COVID‌c‌ losings‌o ‌ bviously‌m ‌ ade‌c‌ hildcare‌d ‌ ifficult‌f‌ or‌e ‌ veryone.‌I‌‌w ‌ ould‌j‌ust‌e ‌ cho‌‌
what‌I‌‌s‌ aid‌a ‌ bove.‌D ‌ ue‌t‌ o‌[‌ childcare‌c‌ enters‌b ‌ eing‌f‌ ull‌w ‌ ith‌l‌ong‌w ‌ aitlists],‌t‌ here‌i‌sn't‌‌
a‌l‌ot‌o ‌ f‌"‌ back‌u ‌ p"‌c‌ hild‌c‌ are‌a ‌ vailable.”‌ ‌
‌
”Daycare‌c‌ losed‌b ‌ ecause‌o ‌ f‌C‌ OVID‌q ‌ uarantine.”‌ ‌
‌
”If‌a
‌ ‌f‌ acility‌w ‌ as‌c‌ losed‌d ‌ ue‌t‌ o‌C ‌ OVID‌r‌ easons,‌e ‌ mployees‌h ‌ ad‌t‌ o‌k‌ eep‌t‌ heir‌k ‌ ids‌a ‌ t‌‌
home,‌w ‌ hich‌w ‌ as‌a ‌ ‌c‌ hallenge”‌ ‌
‌
”more‌o ‌ f‌t‌ he‌i‌ssue‌w ‌ as‌w ‌ hen‌t‌ he‌s‌ chool‌w ‌ as‌c‌ losed‌f‌ or‌d ‌ istance‌l‌earning”‌ ‌
‌
”Nothing‌w ‌ as‌o ‌ pen.‌A ‌ ll‌k
‌ ids‌w ‌ ere‌a ‌ t‌h
‌ ome‌b ‌ /c‌s‌ chools‌a ‌ nd‌d ‌ aycares‌w ‌ ere‌s‌ hut‌‌
down.”‌ ‌
‌
”We‌h ‌ ad‌a ‌ ‌h‌ andful‌o ‌ f‌s‌ taff‌w ‌ ho‌h ‌ ad‌n ‌ ewborns‌d ‌ uring‌t‌ his‌t‌ imeframe‌a ‌ nd‌s‌ ome‌h ‌ ad‌‌
difficulty‌s‌ ecuring‌c‌ hildcare.‌N ‌ ot‌e ‌ nough‌o ‌ penings,‌p ‌ ut‌o ‌ n‌a‌ ‌w
‌ aitlist‌f‌ or‌p ‌ referred‌‌
provider,‌c‌ hildcare‌c‌ enter‌c‌ losures‌d ‌ ue‌t‌ o‌C ‌ OVID-19‌e ‌ xposures,‌e ‌ tc.”‌ ‌
‌
”Employees‌h ‌ ad‌c‌ oncerns‌a ‌ bout‌s‌ afety,‌h ‌ ealth‌e ‌ tc‌o‌ f‌t‌ he‌f‌ acilities.”‌ ‌
‌
”Long‌w ‌ aiting‌l‌ists‌a ‌ t‌c‌ enters,‌f‌ orcing‌t‌ hem‌t‌ o‌k ‌ eep‌l‌ooking.”‌ ‌
‌
”Mostly‌j‌ust‌s‌ trict‌q ‌ uarantine‌r‌ ules.‌K ‌ ids‌c‌ ouldn't‌e ‌ ven‌c‌ ough‌w ‌ ithout‌b ‌ eing‌s‌ ent‌‌
home.”‌ ‌
‌
”Daycare‌C ‌ losures.‌R ‌ equired‌i‌solation‌p ‌ eriods‌d ‌ ue‌t‌ o‌C ‌ OVID-19.‌H ‌ ealth‌a ‌ nd‌s‌ afety‌‌
concerns.”‌ ‌
‌
”I‌d
‌ on't‌h ‌ ave‌e ‌ vidence,‌e ‌ ven‌a ‌ necdotally,‌t‌ hat‌t‌ he‌s‌ tatus‌o ‌ f‌fi
‌ nding‌d ‌ aycare‌h ‌ as‌‌
changed‌f‌ or‌[‌ our]‌s‌ taff.”‌ ‌
 ‌68‌ ‌
‌

‌
”Because‌w ‌ e‌h
‌ ad‌s‌ uch‌a
‌ ‌h
‌ igh-profile‌c‌ ovid‌e ‌ xperience,‌c‌ aregivers‌w ‌ ould‌n
‌ ot‌a
‌ ccept‌‌
children‌w ‌ hose‌p‌ arents‌w ‌ orked‌[‌ here].‌D ‌ aycares‌c‌ losed,‌l‌eaving‌p‌ arents‌w‌ ithout‌‌
access‌t‌ o‌a
‌ dequate‌c‌ are.‌L ‌ ack‌o‌ f‌p‌ roviders‌a‌ vailable.”‌ ‌
‌
”Hours‌o ‌ f‌o
‌ peration,‌q‌ uality‌o‌ f‌c‌ are,‌a
‌ nd‌n
‌ umber‌o ‌ f‌p
‌ roviders.”‌ ‌
‌
‌
‌
‌