Child care demand goes unmet

March 22--"My next spot is already filled," said Laurie Herbert, who runs a child care business in her Lake City home. "A lot of providers, their next baby spot will be filled before it's even available."

With that kind of demand, you'd think child care businesses would be popping up everywhere. But a study by the Minnesota Center for Rural Policy and Development and a separate study by the Lake City Economic Development Authority tell a different story. Child care is at a premium in Minnesota, and Southeast Minnesota faces a shortage along with the rest of the state.

Often seen as a family issue, child care in Minnesota is seen as an economic development problem due to the shortage, said Lisa Babington, executive director of the Lake City EDA.

"It's definitely a business need," Babington said.

Babington gave a presentation to the Goodhue County Board of Commissioners Tuesday, outlining the Lake City study, showing statistics and and personal stories from providers showing how the child care shortage impacts businesses.

"Is there data underlying that in their employment records?" she asked, rhetorically. "Probably no. But it's clear when you look at the anecdotal evidence."

Learning the numbers

According to the state study, Minnesota lost 3,295 child care providers and 12,012 child care spaces from 2006 to 2015. In Wabasha and Goodhue counties combined, there was a loss of 28 child care providers during the same time period. This is a problem that has 89 percent of the child care providers in town saying there is a need for more businesses like their own in the town of 5,000 people.

In Olmsted County, the numbers are not any better, according to Families First of Minnesota, a nonprofit organization that works as a resource for for parents, child care programs and communities on early childhood issues. In 2012, there were 502 in-home child care centers in the county. That number has dropped to 376 today, though the number of child care centers -- those not run from a home -- has remained the same.

"We hear from providers in our 20-county district that infant spots are filled rapidly, and many have waiting lists of a year or more," said Marlene Jehnke, services director for Families First of Minnesota. "We also hear from parents looking for infant care that they can call as many as 40 or more providers and have no luck finding an opening."

The lack of space in the child care industry leads parents to find whatever care they can piece together regardless of the quality, Jehnke said. Rising costs at child care centers is making them an unaffordable option for many parents, and the declining number of in-home providers further limits many parents' options.

Demanding business

As part of the Lake City study, Babington said she asked 33 residents how long it took to find child care. Nine of them said the search took five months or longer.

That demand has Babington and Lake City looking at ways to solve the problem. One potential solution is for the EDA to help secure grants to help a larger child care center open in town. Babington told the Goodhue commissioners that the EDA was working on a grant from the Southern Minnesota Initiative Foundation that would help an entrepreneur open a new child care center in town.

"We're trying to do an analysis of what it would take to open a new child care center," Babington said, adding there were still several steps in the process before a new center would become a reality. "We'll hear early next week if we're in the running for the grant."

Lake City isn't the only town looking to bring more child care space to its residents. The Stewartville EDA is also considering applying for a SMIF grant in conjunction with its community education department to bring a day care to town. Stewartville would seek for $12,000 from SMIF and contribute $6,000 between the EDA and community education toward a child care center. Like Lake City, Stewartville sees child care as a way to help businesses recruit and retain employees with children.

Peace in Harmony

When Steve Cremer realized he was hiring a lot of younger families at Harmony Enterprises in Harmony, he saw a need developing for child care among his workforce.

"There just weren't good options," he said.

So Cremer's wife, Umbelina Cremer, who ran a day care out of her home for more than two decades, looked into starting a small center for employees.

"She started talking to the schools and found there was a huge need for day care here," Steve said. What was originally planned as a 25-child center soon became a day care for 50 then a capacity of 99 kids, he said.

Since opening last June, the Harmony Kids Learning Center has enrolled 55 preschool children and 12 to 15 school age children for afternoon care, Umbelina said.

"We get a lot of calls," Umbelina said. In the 10 months the day care has been open, the need for more child care has certainly become evident. "We never dreamed there would be such a big need. We have clients from Decorah (Iowa), Chatfield, Spring Valley, Preston. I'm impressed with the enthusiasm we've had in such a short period of time."

The child care center, which is located right next door to Harmony Enterprises, currently serves 55 preschoolers and about 15 youngsters for after-school care, she said.

Harmony Enterprises still helps cover the cost of the child care center. Umbelina said the center would need to bring its preschool numbers up to about 70 or 75 kids to break even. In fact, a few of the child care center's employees are technically on the Harmony Enterprises payroll.

Steve said the investment is worth it. "I think it has definitely helped us attract people," he said. "I don't think we did it so much to retain employees as make their lives better."

One employee -- her first child is an infant at the child care center -- is known to take her breaks and lunches across the road with her baby.

"At Halloween, all the kids walk through our offices on break time in their costumes," he said. "We had Santa at Christmas."

What's the problem?

Chris Reich, who answered questions for the Goodhue County board on Tuesday, said the reasons for the shortage are many.

"Regulations are one of the reasons," she said. "Otherwise I think it's the long hours and being unappreciated, not being seen as a professional."

Herbert, who runs a co-op of in-home child care providers in Lake City, said it takes about 16 hours of training each year for certification. That runs the gamut from first aid and CPR child-development classes. Through the Lake City Child Care Association, the group is able to keep the costs down, she said, but it is still a few hundred dollars a month, plus about $250 for the license.

That, Reich said, does not even cover the costs of food -- most do not take part in food subsidies programs due to the red tape -- high chairs, playpens, and other equipment needed to keep kids safe and happy.

Jehnke said the shortage can be linked to a variety of factors.

"Many family child care providers are retiring, and fewer people are entering the business," she said, but the need -- with the low unemployment rate in Minnesota -- has never been greater. "child care centers have difficulty hiring qualified staff and have begun to pay for staff training that will lead to becoming qualified."

Have some regional news from Houston, Goodhue, Wabasha or Winona County that you'd like to share? Contact Brian at 507-285-7715, or by email at btodd@postbulletin.com.

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