Buncombe child care providers face financial crisis when state grants evaporate in June

Child care providers in Buncombe County are facing a financial crisis as millions of dollars in state grants are set to evaporate at the end of June. This funding cut will force many providers to consider raising fees, cutting costs, or even closing their facilities, exacerbating an already existing child care crisis in the area.

Impact of Grant Loss

According to a survey by the N.C. Child Care Resource and Referral Council, 29% of early child care centers in North Carolina are expected to close when the N.C. Child Care Stabilization grants expire, leading to a potential loss of 91,660 child care slots across the state. In Buncombe County alone, which currently has 95 child care facilities serving children up to age five, advocates are concerned that some providers may be forced to shut down or reduce services without the grant funding.

Previous Funding

The grants, which were part of the 2021 American Rescue Plan Act, provided a total of $1.3 billion to North Carolina to support child care providers during the pandemic. However, the General Assembly did not approve a proposed $300 million extension of the grants in last year’s state budget, leading to the upcoming funding gap.

Impact on Providers

Child care centers in Buncombe, such as the Verner Center for Early Learning, Christine W. Avery Learning Center, and the YWCA, have utilized the grant funds to increase wages for workers, provide bonuses, offer additional training and mental health services, and enhance facility equipment. However, with the grants set to expire, these providers anticipate a reduction in staff, leading to classroom closures, fewer available slots, and longer wait times for parents.

Concerns for the Future

Advocates warn that the loss of funding will not only impact child care providers but also place a significant burden on families, especially those of color and low-income households. With the lack of affordable child care options, many parents may struggle to find suitable care for their children, hindering their ability to work and support their families.

Governor’s Budget Proposal

Last month, Gov. Roy Cooper released a recommended budget that includes $745 million in funding for child care and early education. The plan aims to provide $200 million for Child Care Stabilization Grants and $128.5 million for child care subsidies to increase reimbursement rates for providers in rural and low-income communities. However, the General Assembly must approve these measures to prevent further worsening of the child care crisis.

Community Support

Despite the challenges, Buncombe County has established an Early Childhood Education and Development Fund to support local child care educators. The fund, which consists of nearly $4 million and grows annually, aims to address the county’s child care needs and make quality early child care accessible to all families.

Looking Ahead

As the June deadline approaches, child care providers in Buncombe County are bracing for the impact of the grant expiration. With the future of many child care facilities hanging in the balance, the community is calling for continued support and funding to ensure the well-being of both providers and families in need.