Our attentive readers responded to our question: What do you think is causing this significant decline in regulated family child care services?

Here are the seven top reasons our readers thought were contributing to the decline of regulated family child care programs.

1.  More requirements and tighter enforcement
Readers wrote about the new requirements in YoungStar, more regulatory requirements, and more aggressive enforcement of regulations as top reasons for the decline in family child care.  Readers indicated that:
•    The upfront cost to improve quality was more than providers could handle;
•    Compensation was not keeping up with the cost of improving quality under YoungStar;
•    Many family child care providers do not have formal education, and it would be difficult to handle getting college credits, with minimal payoff ;
•    The 5% reduction in Wisconsin Shares payment for 2-star programs was driving family child care out of business
While these factors are undoubtedly having an impact, the decline in family child care was pronounced before many of these requirements were applied.

2.  The economy: unemployment and reduced family income
Readers indicated that loss of jobs and unemployment was reducing the demand for regulated child care for working families. Readers mentioned more stay-at- home parents, greater use of grandparents and relatives, and children being taken out of child care—all of this often because the families couldn’t afford regulated child care due to less income.

3.  Four-year-old Kindergarten
While some Milwaukee readers didn’t think 4K had a strong impact, since 4K has been fairly stable for the last few years, readers from other communities thought that the increase in 4K enrollment has had a negative impact on enrollment in family child care, thereby negatively impacting their businesses.

4.  Alternatives to family child care
Readers thought that publicity about quality early learning and school readiness may have had the effect of parents enrolling more children in center-based care and 4K.  More options for parents may have had a negative impact on family child care programs. This theory is supported by the much less severe drop in the number of group child care centers.

5.  Low wages
Readers also thought that wages for family child care providers remain low, and providers are looking for other work. Agencies helping individuals get employment are steering individuals away from early childhood because “they will never earn a living wage.”

6.  Wisconsin Shares payment policies
Some readers believe that Wisconsin Shares payment policies have had a negative impact on family child care stability, with a policy implemented last year that pays only for days attended. Many family child care providers indicate they cannot maintain stable programs with fluctuating, unpredictable reimbursement that doesn’t cover their costs. One reader said that the attendance policy has led to higher family copays for family child care, and families have moved to group centers where payments are more stable, and copays are lower.

7.  Milwaukee phenomena
The drop in certified family child care providers in Milwaukee from 2001 to 2004 may be exaggerated, according to an alert reader who indicated that after a statewide automated system was in place in 2004, the drop in certified providers was about 600 immediately.  The new automated figure was probably more accurate than the manually calculated figures before, so the actual decline in programs was likely exaggerated.

Another theory was that the big increase in start-up of Milwaukee family child care programs in the mid-2000s, due to the lifting of a housing code, was unsustainable, with many new programs unable to maintain their programs financially.

Another reader thought that the decline in Milwaukee for family child care was much steeper than the decline of group child care centers, and there may have been a significant shift of children into center-based programs.

Comparison with group center trends

Clearly, the decline of regulated family child care programs was much more severe than the drop in group child care centers in the years 2008-2011.  Statewide, the number of group centers dropped only by 4 percent, while licensed family child care dropped by 23 percent, and certified family child care by 38 percent.  In Milwaukee, in the same timeframe, the number of licensed group child care centers dropped 10 percent, while licensed family child care declined by 33 percent, and certified family child care dropped by 20 percent.

Thanks for all the comments. Undoubtedly all these factors have played a role in the recent drop in regulated family child care programs.

Dave Edie