As California’s Budget Crisis threatens to unravel the entire early care and education delivery system, it is important that we follow the state of events in Sacramento. As you are all well aware, the Governor’s Budget Proposal would see huge reductions to funding for early education over the next two years, reductions that would directly impact our families and our staff.
In order to effectively communicate with legislators, community leaders, and yes, even friends and family, about the importance of your work, it is essential that you have information about the economic value of child care to the State of California.
According to a 2011 report by the UC Berkeley Labor Center, Economic Impacts of Early Care and Education in California:
- The “…ECE Industry supports $11.1 billion in economic output in the state…”.
- “Spending on ECE supports between 188,600 and 204,300 jobs…” for providers, suppliers, and local businesses supported by ECE workers.
According to a 2006 study by The Community Development Society, Putting Child Care in the Regional Economy:
- Child care (is) larger than the movie industry in California.
According to a 2002 study by M-cubed, The National Economic Impacts of the Child Care Sector:
- Only 35% of children under the age of 5 years are enrolled in “formal child care arrangements” compared with 55% of children 0-5 in Minnesota.
- The M-cubed study cites the cost, supply, and “subsidy policies” of child care as possible contributing factors to this disparity.
According to a 2001 study by the National Economic Development and Law Center, The Economic Impact of the Child Care Industry in California:
- Child care in California produces approximately the same gross receipts as the vegetable crops and livestock industries (1999).
- Child care direct employment figures (1999) outnumbered those for legal services and accounting services; and was nearly 250% that of the lumber industry and 350% that of the advertising industry.
- It is estimated that “85% of the (California) labor force will consist of parents, and that the number of working women will exceed working men. Many of these employees will be single parents and two-parent families requiring child care.”
- “California’s child care sector is analogous to the state’s transportation system… (an) inadequate child care infrastructure (will) slow workers down and reduce productivity.”