Ten Iowa regions have launched a “wage enhancement program” for childcare workers. It was financed with $3 million in federal pandemic relief money and Sheri Penney of the Iowa Women’s Foundation says Iowa businesses in those areas committed $1.5 million in matching funds.
“We’ve had so much success in this,” Penney says. “We’ve had over 110 children in these 10 piloted communities in just six months time be able to be taken off of wait lists.”
The program has helped existing child care centers hire and retain employees, plus it’s helping other centers get started.
“In Cerro Gordo County for example, we had a provider opening and they received over 18 quality applications because of this wage and incentive program that we have,” she says.
Officials in Cerro Gordo County, along with Allamakee, Hamilton, Howard, Johnson, Mitchell and Story Counties have each established the incentives for child care workers in their areas. The program’s operating in the cities of Dubuque and Knoxville as well as the two Linn County cities of Mount Vernon and Lisbon. The federal money for the programs must be spent by the end of September. Penney is encouraging the cities and counties involved to set up “child care solutions” funds with public-private funds to continue the effort.
“Once we have providers in the doors, earning livable wages, maybe the next need is going to be for capital to expand because now we have fully staffed centers, we still have long wait lists….we need to add an addition…into our child care centers,” Penney says. “The next step after that maybe it’s helping provide insurance premiums…because we know that’s hard for some of our child care providers.”
Penney’s job at the Iowa Women’s Foundation is to expand child care availability throughout the state and her work is being financed by grants from two state agencies. “I am now working with over 180 communities, 170 business leaders and over 40 economic development chambers in just two years,” Penney says. “That tells you the need is there.”
Penney made her comments at the recent National Childcare Innovation Summit hosted by the U.S. Chamber of Commerce.
