The childcare crisis is a complex issue with no single remedy. For years, childcare has been a significant financial burden for families, yet those costs have not translated into livable wages for staff. Even before the pandemic, the average wage for a full-time childcare employee was just $11.16 per hour, which is far from sustainable.
The pandemic exacerbated these longstanding issues, leading to unprecedented turnover rates among childcare workers. Subsequently, this workforce reduced the availability of childcare slots, making it even more difficult for families to secure care. Without access to reliable childcare, many parents, largely women, have faced significant barriers to rejoining the workforce.
Building on a Strong Foundation: The Johnson County Childcare Solutions Coalition
Since joining Greater Iowa City, Inc. last October as the Community Development Program Manager, Michael Chen has been dedicated to addressing the ongoing childcare crisis in the community. As a parent, he understands firsthand the challenges childcare centers face in maintaining reliable and consistent staff while providing affordable, high-quality care. This personal connection, combined with the opportunity to collaborate with community leaders, has reinforced his commitment to finding sustainable solutions.
Michael’s work builds upon the foundation laid by the Johnson County Childcare Solutions Coalition, established in 2019. Comprised of community members from various sectors, the coalition was created to tackle a wide range of childcare challenges. Early efforts included addressing a local milk shortage by working with distributors to ensure supply. However, one of its most impactful achievements was drawing inspiration from Hamilton County, Iowa, to develop a solution tailored to Johnson County’s needs: the Wage Enhancement Program (WEP).
The Wage Enhancement Program: Supporting Childcare Staff
The Wage Enhancement Program supports full-time childcare staff in qualifying Johnson County centers by supplementing their wages by an additional $2 per hour. The program also covers associated taxes, ensuring that no additional financial burden falls on staff or employers. The goal is to make employment in the childcare industry more viable and to increase staff retention, which is a critical factor in stabilizing the childcare system. With improved wages, centers can be more selective in hiring, leading to higher quality and more consistent care. Consistency is especially crucial during early childhood, a critical period for brain development.
Funding the Future: The Need for Private Investment
The initial funding for WEP, provided by Johnson County and the City of Iowa City, is set to expire in 2026. To sustain the program beyond that timeframe, private investment is essential. Supporting childcare sustainability is also an investment in workforce stability. Quality childcare enables parents to return to work and thrive, leading to increased productivity, reduced workplace distractions, and long-term economic growth.
Additionally, GreenState Bank, the University of Iowa, and Hills Bank have emerged as key contributors in ensuring the stability of the Wage Enhancement Program. Their support has been instrumental in strengthening the childcare workforce and sustaining momentum for long-term impact.
The Impact: Boosting Morale and Retention
Conversations with local daycare providers confirm that the WEP has significantly improved morale and retention among childcare workers. Directors describe how higher wages have allowed some employees to focus entirely on their jobs without the stress of balancing multiple part-time roles just to make ends meet. Providers report that they are no longer constantly hiring and training new staff year-round.
Employees who previously had to take on second jobs now have the freedom to dedicate themselves to their work in childcare, making a noticeable difference in their energy and engagement. Parents, too, have seen the effects, as their children now have more consistent caregivers who are invested in their development. This sense of stability benefits children, families, and providers alike.
Looking Ahead: Expanding the Conversation
Raising community awareness is the first step toward sustaining the WEP. To that end, Greater Iowa City, Inc. has launched a revamped Childcare Solutions webpage along with this monthly Childcare Corner blog series dedicated to re-introducing and exploring the childcare crisis in greater depth. Future editions will feature topics covering the childcare crisis’s different effects on the workforce, as well as any updates as they come. Through collaboration and investment, the community can work toward a future where every family has access to affordable, high-quality childcare.
