Gov. Evers, DCF Announce New Survey Finds a Quarter of Child Care Programs Likely to Close if Legislature Fails to Invest in Continuing the Child Care Counts Program

MADISON — Gov. Tony Evers, together with the Wisconsin Department of Children and Families (DCF), today announced the results of DCF’s Child Care Counts (CCC) Stabilization Survey, which found a quarter of providers across the state are somewhat, very, or extremely likely to close their doors if the Wisconsin State Legislature fails to make critical investments to continue the successful Child Care Counts Program that is set to expire at the end of June. Additionally, if the program ends, costs for infant care are expected to go up, with three-quarters of providers expected to raise weekly tuition rates for care, increasing costs for working families that are already experiencing steep tuition and strained household budgets. Of the 78 percent of providers who reported they will raise tuition for infant care, 21 percent expect to raise weekly rates by at least $25, and 17 percent expect rates to rise by at least $50, adding a whopping $1,300 or $2,600 to families’ household budgets per year, respectively.

“The cost of child care is too darn high, wait lists are too long, and providers are already struggling to keep the lights on, their doors open, and meet demand for child care across our state. The results of this survey are crystal clear: if we don’t make needed investments to support our child care providers and industry, programs will close, wait lists will get even longer, providers will be forced to raise prices, and parents and loved ones who can’t afford for costs to get any higher may have to leave our workforce,” said Gov. Evers. “The clock is ticking. Wisconsin’s working families, our workforce, and our economy cannot afford for legislators to continue sitting by and doing nothing. Republicans and Democrats in the Legislature must get serious about lowering out-of-pocket costs for child care—there are no more excuses, folks.”

“Providers have been sounding the alarm that without a long-term state investment, we face a no-win situation: providers will either close their doors or price families out of care,” said DCF Secretary Jeff Pertl. “This survey data makes it clear that the ripple effects of ending Child Care Counts will be catastrophic for providers, families, employers, and the economy.”

According to a 2023 report released by Forward Analytics, child care costs can consume up to 36 percent of a family’s household income for parents under the age of 25 at the median income and 18 percent for parents between 25 and 44 at the median income. For a typical family with parents under 25 and two children in care, child care costs can reach as high as 70 percent of the household’s income. The report highlights that the cost of child care for two young children in Wisconsin is now more than the average rent or mortgage and exceeds the annual cost of tuition to send two students to the University of Wisconsin-Madison.

In addition to struggling to afford care, parents will also face more challenges in finding care. A quarter of providers reported they will close their doors and over a third of providers reported that they are likely to close classrooms or reduce their operating hours. This will result in longer waitlists and more parents being unable to enter or remain in the workforce. It is estimated that Wisconsin’s economy loses $1.9 billion every year in the form of lost earnings, productivity, and revenue due to the lack of access to affordable child care.

Launched in 2020 via federal relief dollars, the Child Care Counts Program has delivered over $840 million in upstream support to child care providers to increase wages, provide benefits, expand access, and more. It has helped more than 5,600 child care providers keep their doors open, ensuring the employment of 72,720 child care professionals and allowing providers to continue care for more than 417,000 kids.

Unfortunately, due to Republican lawmakers’ refusal to provide funding for Child Care Counts in the 2023-25 biennial budget or in the subsequent special session called by the governor, the program is set to end by the end of June 2025.

“One of the most significant outcomes would be the ability to keep tuition affordable for families. High child care costs often burden parents, forcing many to make difficult decisions about work and education. Permanent funding would allow us to stabilize or even reduce tuition rates, ensuring equitable access to child care services. Lower tuition would directly impact families’ financial well-being and promote economic stability within the community,” said a Wisconsin child care provider.

The survey, conducted in partnership with UW–Madison’s Institute for Research on Poverty, paints a stark picture of what communities will face if Republicans in the Legislature fail to include the over $500 million in Gov. Evers’ 2025-27 Executive Budget aimed at helping lower child care costs, supporting the critical child care industry, and investing in employer-sponsored child care.

The governor’s more than $500 million investment in his 2025-27 Executive Budget to help support child care for working families across the state includes:

• $480 million to continue the successful Child Care Counts Program;
• Over $5.5 million for employer-sponsored child care;
• Over $1 million for the Early Childhood Health Consultation program;
• $500,000 for the Wisconsin Out of School Time Alliance;
• $1 million to fill the gap of unmet child care needs in Tribal areas;
• $4.3 million to defray the cost of training child care workers;
• $506,000 for additional IT funding;
• $4.5 million for software to streamline hiring, recruitment, licensure, and business planning;
• $5.5 million to increase support for new start-ups and existing providers;
• $11.5 million to provide a dedicated fund for out-of-school time programs;
• Over $2.8 million to ensure Wisconsin Shares applicants qualify for up to three months while their application is being reviewed;
• Over $2.5 million for IT costs related to providing 12-month Wisconsin Shares authorizations;
• $21.3 million to re-estimate base costs of Wisconsin Shares and increase affordability;
• $20.5 million to cap child care copayments at seven percent of income as federally required and waive copayments for families below 150 percent of the federal poverty level;
• $7.1 million to ensure clean, safe drinking water at child care centers; and
• Increasing child care licensing staff and creating a framework for community-based 4k.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.