Access to quality, affordable child care is essential to Virginia’s current and future workforce and the businesses that employ them. Recently, Virginia saw its highest labor force participation rate in more than a decade, with 66.7% of residents age 16 and older employed or actively looking for work. These record-high employment numbers, which exceed the national average by almost four percentage points, are undeniably tied to historic investments in the Commonwealth’s early childhood care and education system, expanding access and choice, meeting family demand, and improving the quality of child care services.
How did we do it? Virginia used temporary federal COVID relief funds in FY23 and FY24 to expand access to quality child care services through the Child Care Subsidy Program and the Mixed Delivery Program. A recent study by the Prenatal-to-3 Impact Center at Vanderbilt University showed an excellent annual return on investment that benefited children, their parents, employers, and the Virginia economy. The study – which looked at the number of additional Virginia children served in FY23 compared to FY19 – found that Virginia’s investment resulted in more than $364.3 million in increased family earnings and disposable income and $30 million in increased state revenue within one year, and more than $778 million in combined cost savings and economic benefits over the lifetime of the additional 11,151 children age 5 and younger who received child care because of the investment. So that’s the great news. The more challenging news is that, unfortunately, nearly $300 million in temporary funds will expire by FY25, potentially impacting more than 35,600 children and their 37,300 working parents. Parents who lose access to child care may be forced to cut back their hours or leave the workforce altogether, impacting employer productivity, profitability, and the operation of businesses and critical industries that Virginians rely on, like healthcare and public education. The Virginia Chamber of Commerce has supported the Virginia Early Childhood Foundation’s effort to launch the Virginia Business Roundtable for Early Education (VBREE) to bring attention to the child care funding cliff and the need to continue investments in early childhood. VBREE is comprised of executives in business/employers, local and regional chambers, and economic development agencies from all regions of the Commonwealth.
Inspired by the belief that Virginia’s prosperity and quality of life are inextricably dependent upon a strong early childhood education system, VBREE’s mission is to enhance Virginia’s child care system to drive significant positive impact on children’s school readiness, families’ workforce participation, a thriving business sector and labor force, and a strong economy in Virginia. VBREE is committed to educating the public, engaging diverse stakeholders, and driving innovation for the crucial role that accessible child care serves in Virginia’s workforce development, and economy, including as a differentiator for Virginia in economic development, site selection and workforce talent attraction and retention.
To sustain the important gains achieved with increased access to child care, VBREE is committed to advocating for state investments of $275 million in FY25 and $325 million in FY26, including innovative ways to engage employers in public private partnerships that bring together all stakeholders in a community to share costs and work together to find child care solutions. VBREE also supports legislation that creates a non-reverting fund to safeguard investments for child care and provides a sustainable funding formula responsive to parent choice that will ensure that Virginia’s labor force can access affordable quality child care.
Recent polling shows strong and broad-based support among Virginians for continuing to invest in early childhood care and education: 76% of Virginians support increased funding for early childhood education. Polling also reveals that 79% of Virginians agree that expanding access to early childhood education will equip students for success in school although locating affordable childcare impacts an astounding one-half of Virginia parents of children under the age of 5, who often have to adjust work hours, take a leave of absence, or leave the labor force altogether to manage child care concerns.
Overwhelmingly Virginians also agree on the benefits for families, working parents, and our communities, as 86% of Virginians believe it is important for the General Assembly to prioritize access to affordable early childhood education. Additionally, two-thirds of Virginians say they support efforts by the General Assembly to increase funding to expand access to affordable child care for low-income and other eligible families, showing that voters believe that it is essential for the General Assembly to prioritize a funding increase during the 2024 General Assembly session.
Governor Youngkin’s recently released budget proposal includes significant funding for early childhood care and education: a commitment of a minimum of $185 million per year in new funding for early childhood services to support the Administration’s intention that no children currently receiving services would lose them as the federal Covid relief dollars expire in the coming months. Key features of the Governor’s proposal include plans to replicate regional public-private partnerships, funding to refurbish space to launch or expand early childhood centers, funding for early childhood educator incentives, and the creation of an innovative child care payment system.
This proposal represents a critical step towards securing the funding needed to continue the progress we have made. Ensuring that all individuals have access to child care and early education is imperative in supporting our talent pipeline, getting parents back into the workforce, attracting new companies to Virginia, and strengthening Virginia’s economy. Together we can continue the progress we have made by making crucial state investments in early childhood care and education programs so that Virginia remains the best state to live, work, and raise a family.
