Child Care Crisis in New York City: A Call to Action
The Problem
When families do not have access to safe, reliable, and affordable childcare, it can keep parents from participating in the workforce. According to the city’s 2022 estimate, about 375,000 parents (two-thirds of them women) had chosen to leave their jobs or downshift their careers because of the combined impact of COVID-19 and a lack of affordable childcare. This has a clear negative impact on the city’s economy; in 2022 alone, the city is estimated to have lost $23 billion dollars in economic activity as a result of parents leaving the workforce or downshifting careers to meet these needs.
The Solution
There are many factors at play, including the unfavorable economics of running a child care business, keeping many potential providers from opening or expanding. Their ability to raise revenue is limited, with over 70% of costs going toward personnel and the remainder to facilities, insurance, and basic supplies. To address this issue, the Better Child Care Coalition, a broad coalition of business associations, labor leaders, community groups, and providers, has launched to advocate for common-sense solutions that will help create more child care capacity in the city.
The Coalition’s Policy Agenda
The Coalition’s policy agenda includes:
- Fixing the NYC Child Care Property Tax Credit: Under a new city tax program, property owners who create a new child care site or increase the number of seats at an existing site may be eligible for an abatement covering up to $225,000 of construction costs. The Coalition believes that the state should enable the city to increase the value of each tax credit, which will help create thousands more child care seats.
- Lifting outdated restrictions while ensuring safety: City law only allows infant and toddler child care on the ground floor of buildings, which significantly reduces child care seats. Policymakers can amend this law to allow centers above and below ground floors, while ensuring that such centers continue to operate safely.
- Streamlining the permitting process: Even when child care centers are built, it takes far too long to get them online due to an unnecessarily complicated permitting process that requires three different city agencies. Policymakers can solve this problem by consolidating the process within a single agency and creating a fast track for child care permit approvals.
Conclusion
The bottom line is that New York City does not have enough child care options, and it’s hurting families and stifling our economic growth. These measures alone will not solve all the challenges facing New York City’s child care sector, but they’re a critical piece of the equation to creating more capacity and greater access to benefits for all New Yorkers.
FAQs
Q: What is the current state of the child care system in New York City?
A: The current system is plagued by a lack of affordable and accessible child care options, leading to many parents being forced to leave the workforce or downshift their careers.
Q: What are the main challenges facing child care providers?
A: The main challenges facing child care providers are the unfavorable economics of running a business, with limited revenue and high costs, as well as strict regulatory requirements that drive up the cost of operations.
Q: What is the Better Child Care Coalition?
A: The Better Child Care Coalition is a broad coalition of business associations, labor leaders, community groups, and providers advocating for common-sense solutions to create more child care capacity in the city.
Q: What are the proposed solutions from the Better Child Care Coalition?
A: The Coalition’s proposed solutions include fixing the NYC Child Care Property Tax Credit, lifting outdated restrictions, and streamlining the permitting process.
