WOOD COUNTY -- Wisconsin faces a looming child care crisis as federal funding that has kept hundreds of providers afloat expired June 30, with new research showing overwhelming public concern and provider warnings of widespread closures without state intervention.
A statewide survey released in June found that 90% of Wisconsinites, including those without children, view finding affordable, high-quality child care as a problem. More than three-quarters support increased state funding to address the crisis.
The findings come as the state's Child Care Counts program — which has supported more than 5,600 providers and enabled care for over 417,000 children — faces elimination without legislative action. Gov. Tony Evers had called for $480 million for the program in his proposed budget earlier this year, but the funds were stripped out.
However, the budget passed by state lawmakers and signed by Gov. Evers on July 3 does include new funding.
According to WisPolitics.com, GOP lawmakers included a commitment to address childcare costs, and the deal calls for $331.6 million in new funding on that front.
The breakdown includes $110 million in direct payments to child care providers to help cover costs as the state winds down the Child Care Counts program, which had been covered by federal COVID-19 funds.
The childcare portion also includes:
The deal also allows some family care centers to serve up to 12 kids and lowers to 16 the minimum age for assistant child care teachers, WisPolitics.com reports. They now must be 18 or 17, depending on the qualifications they meet.
The economic implications extend far beyond families with young children. Among current child care users, approximately half reported missing work or school in the past year due to lack of care, while more than 12% left the workforce entirely, according to the University of Wisconsin Survey Center study.
The survey found that families with children ages 6 and younger were particularly affected, with 57.6% reporting missed work or school due to child care issues in the past 12 months.
"In this economy, almost nobody can afford not to work," said one survey respondent, highlighting how traditional family support systems are no longer viable alternatives to professional child care.
A separate study of Wisconsin child care providers found that 25% said they are at least somewhat likely to close if Child Care Counts funding ends. The research, conducted by the Institute for Research on Poverty, surveyed more than 3,600 providers statewide.
“We are already seeing closures and increased rates in Central Wisconsin,” said Kelly Borchardt, executive director of Childcaring Inc. “The only group child care center in Adams County is closing. Two smaller group centers in Marathon County are also closing (we will lost 55 slots).”
Even more concerning, 37% of providers said they are at least somewhat likely to close classrooms or reduce the total number of children served, while 36% indicated they would reduce hours available for care.
The potential closures would exacerbate existing shortages in communities already struggling with limited child care options, particularly in rural areas and for families needing non-standard hour care.
The cost burden on Wisconsin families is substantial. According to the Department of Children and Families, full-time infant care averages $16,175 annually in center-based programs and $11,479 in family-based programs — representing 21% and 15% respectively of the state's median household income.
Without the Child Care Counts program, costs are expected to rise significantly. Three-quarters of providers indicated they would raise tuition rates for infant care, with 21% expecting to raise weekly rates by at least $25 and 17% planning increases of at least $50, potentially adding $1,300 to $2,600 annually to family budgets.
“Some programs have already increased rates by 20% to account for the reduction in their Child Care Counts funding,” Borchardt said.
Among survey respondents currently using child care, about one-third reported difficulty covering expenses. The challenge is particularly acute for lower-income families, with 56.5% of households earning under $30,000 annually reporting they missed work due to child care issues.
Beyond affordability, the survey revealed concerns about care quality and availability. Nearly half of child care users reported that finding trustworthy, high-quality care was at least somewhat problematic, with the challenge particularly acute for families of color.
Providers anticipate significant staffing challenges if funding ends. Two-thirds of respondents said it is at least somewhat likely that they will reduce compensation and experience increased difficulty hiring new, qualified staff. More than half indicated they would likely reduce benefits and experience increases in staff turnover.
That includes here in Central Wisconsin.
“There continues to be a staffing shortage and centers aren’t able to open all of their classrooms because they don’t have enough teachers,” Borchardt said.
About half of providers said they expect increased difficulty providing high-quality care and additional services such as meals and transportation if the funding program ends.
The consequences of reduced child care funding are already visible. Between May 2023 and November 2024, when Child Care Counts payments were reduced by approximately 50%, providers reported significant impacts.
Over one-third of respondents said their ability to provide competitive compensation decreased during this period, and almost half of group providers reported decreased ability to hire qualified staff. Nearly two-thirds of providers increased tuition during the reduced funding period across all age groups.
"Wisconsin has faced generational problems recruiting and retaining workers. We cannot afford more folks leaving their jobs because they can't access child care," Evers said. "This is an issue that impacts everyone in Wisconsin."
Wisconsin families currently pay over $570 million annually for infants and toddlers under age 3 and over $1 billion for all preschool-aged children under 5, according to state data.
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