In March 2025, health care employers in Western North Carolina convened at a legislative summit at the University of North Carolina at Asheville to address a pressing issue: the scarcity of child care options. This shortage has significantly impacted the region’s workforce, particularly in the health care sector.
John Bryant, Vice President of Operations and Support Services at UNC Health Pardee in Hendersonville, highlighted the severity of the problem, stating, "What we know in this region, as health care organizations, is that there are highly trained, skilled professionals that are not working." He further emphasized that more than half of these professionals cited child care as the primary reason for their unemployment.
William Hathaway, CEO of the Mountain Area Health Education Center, underscored the need for sustainable solutions, advocating for a "private-public approach that treats child care as an essential infrastructure."
The summit, organized by the WNC Health Policy Initiative, the WNC Early Childhood Coalition, the YMCA of Western North Carolina, and the Verner Center for Early Learning, also featured representatives from Mission Health and AdventHealth Hendersonville. These organizations have been proactive in addressing the child care crisis. For instance, Mission Health has partnered with Bright Horizons, a national child care provider, to offer on-site child care programs for their employees. Renee Klimkiewicz, Human Resources Director at Mission Health, noted that this partnership has been pivotal for many staff members, stating, "But again, then you go out into the region, and now we’re in a child care desert."
The lack of adequate child care options has also affected recruitment and retention efforts. AdventHealth Hendersonville plans to expand its workforce from 1,800 to 2,800 employees within the next 18 months. However, the organization faces challenges in providing flexible child care solutions, especially in rural areas. Victoria Dunkle, Communications Director at AdventHealth Hendersonville, expressed concern over the situation, highlighting the difficulties faced by dual-income families working 12-hour shifts.
To address these challenges, advocates and business leaders have proposed several legislative strategies. Marcia Whitney, President and CEO of the Verner Center for Early Learning, pointed to two key policies:
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Subsidy Floor Rate: This policy aims to support child care providers in rural counties by increasing the amount they receive to participate in the subsidy program, thereby ensuring the sustainability of these essential services.
- Free Child Care for Child Care Teachers: Inspired by a strategy implemented in Kentucky in 2022, this initiative seeks to retain child care workers by offering them free child care services, addressing the issue of low wages in the industry.
Recent data underscores the urgency of these measures. A 2023 study by the Child Care Services Association found that the median starting wage for child care teachers was $14 per hour, with assistant teachers earning a median of $12 per hour. Whitney aptly summarized the situation, stating, "Parents are paying too much for care; teachers are not making enough." She emphasized the need for collaboration among various stakeholders, including public and corporate partners, to address these systemic issues.
The aftermath of Hurricane Helene has further highlighted the fragility of the child care system. Greg Borum, Director of the WNC Early Childhood Coalition, remarked, "Helene recovery is a child care story as well." Despite the storm’s devastation, most licensed programs in the affected counties survived. However, the closure of six programs in the months following the storm underscores the system’s vulnerability.
In response to these challenges, North Carolina lawmakers have introduced Senate Bill 412, which proposes allocating $123.5 million annually to increase subsidy rates statewide, with additional funding for programs in rural counties and those serving infants and toddlers. The bill also includes $8 million to expand child care capacity in counties impacted by Hurricane Helene. As of March 24, 2025, the bill has been assigned to the Senate Appropriations Committee but has not yet been presented.
Other legislative efforts include House Bill 412, introduced on March 17, 2025, which focuses on child care regulatory reforms. Additionally, Governor Josh Stein’s budget proposal allocates approximately $88 million annually for subsidy increases and establishes three refundable tax credits for families.
Long-term solutions are also being considered. Whitney advocates for increasing compensation for child care teachers and incentivizing the expansion of family child care homes. She stated, "We have all the answers. We have all the knowledge. We just need to be in dialogue with each other to formalize them and to systemize them."
The collaboration between health care employers, child care providers, and policymakers in Western North Carolina serves as a model for addressing the complex issue of child care availability. By implementing both immediate and long-term strategies, the region aims to create a sustainable child care infrastructure that supports working families and strengthens the local economy.
what is the impact of the child care crisis on North Carolina’s economy?
Table of Contents
- what is the impact of the child care crisis on North Carolina’s economy?
- Frequently Asked Questions (FAQ)
- What is the current state of child care availability in Western North Carolina?
- How has the child care shortage impacted the health care workforce?
- What legislative measures are being considered to address the child care crisis?
- How has the child care shortage affected the local economy?
- What are the long-term solutions being considered to improve child care availability?
Frequently Asked Questions (FAQ)
What is the current state of child care availability in Western North Carolina?
As of March 2025, Western North Carolina faces a significant shortage of child care options, particularly affecting the health care sector. This scarcity has lead to workforce challenges, with many highly trained professionals unable to work due to the lack of child care services. ([wnchealthpolicy.org](https://www.wnchealthpolicy.org/blog/the-childcare-crunch-wnc-health-policy-podcast-ep-9?utm_source=openai))
How has the child care shortage impacted the health care workforce?
The shortage has resulted in a substantial number of health care professionals being unemployed, with over half citing child care as the primary reason. This has created a pressing need for lasting solutions to support working families in the health care sector. ([wnchealthpolicy.org](https://www.wnchealthpolicy.org/blog/the-childcare-crunch-wnc-health-policy-podcast-ep-9?utm_source=openai))
What legislative measures are being considered to address the child care crisis?
North Carolina lawmakers have introduced Senate Bill 412, proposing $123.5 million annually to increase subsidy rates statewide, with additional funding for programs in rural counties and those serving infants and toddlers. The bill also includes $8 million to expand child care capacity in counties impacted by Hurricane Helene.As of March 24, 2025, the bill has been assigned to the Senate Appropriations Committee but has not yet been presented. ([wnchealthpolicy.org](https://www.wnchealthpolicy.org/blog/the-childcare-crunch-wnc-health-policy-podcast-ep-9?utm_source=openai))
How has the child care shortage affected the local economy?
the lack of adequate child care options has led to an estimated $5.65 billion in lost economic activity annually in North Carolina. This includes costs related to employee turnover, absenteeism, and reduced workforce participation due to child care challenges. ([ncchamber.com](https://ncchamber.com/2024/06/12/child-care-breakdowns-costing-north-carolina-5-65-billion-in-lost-economic-activity-each-year/?utm_source=openai))
What are the long-term solutions being considered to improve child care availability?
Advocates are calling for increased compensation for child care teachers and incentives to expand family child care homes. These measures aim to enhance the quality and availability of child care services, ensuring that working families have reliable options. ([wnchealthpolicy.org](https://www.wnchealthpolicy.org/blog/the-childcare-crunch-wnc-health-policy-podcast-ep-9?utm_source=openai))