Release of childcare study highlights regional workforce issue 

Access to affordable, high-quality childcare isn't merely a concern for working parents; it's a critical economic issue that impacts the entire community. As a proprietor of multiple family-owned childcare businesses in Nelson County, I've seen firsthand how this pressing issue affects families and employers. My involvement on the Lincoln Trail Workforce Development Board Workforce Crisis Task Force has allowed me to advocate for childcare access to be prioritized alongside discussions on higher education, workforce training and healthcare in the realm of workforce development.

The COVID-19 pandemic starkly highlighted the indispensable nature of childcare access in sustaining a functional economy. Amid restrictions on in-person gatherings, childcare centers received federal stimulus funding, providing a vital lifeline. However, as these funds waned, operational costs have soared, leading many operators to increase service prices. From my perspective, childcare has never been more financially burdensome for local families, and the industry has never been more vulnerable.

In response to this pressing issue, the Lincoln Trail Area Development District (LTADD) recently released a Childcare Economic Impact Report. This report aims to educate employers, stakeholders and elected officials about the profound implications of inadequate childcare on the regional economy's workforce needs. Commissioned by LTADD with support from community partners, the study, conducted by Indianapolis-based Thomas P. Miller & Associates, seeks to illustrate the potential return-on-investment associated with enhancing the affordability of childcare services.

The impending opening of BlueOval SK in Glendale, alongside other economic developments in the region, underscores the urgency of quantifying this problem and identifying solutions. The simple fact is, the fewer childcare options available in a community, the more difficult it becomes to attract workers from outside the area who are seeking opportunities amidst the region's growing job market.

According to the study, Kentucky's labor force participation rate remains below pre-pandemic levels, currently standing at 56.9%, down from 58.8% in December 2019. This shortfall in workers impedes regional economic growth and results in substantial revenue losses for both state and county governments. Many potential workers are parents unable to afford or access childcare for their young children, identified as "work willing" individuals throughout the analysis.

Enabling these parents to reenter the workforce full-time, estimated at 2,035 individuals in the LTADD region and Hart County, could lead to annual earnings ranging between $99.2 million and $126.3 million. These earnings, circulated predominantly within the region, would stimulate local economic activity, generating additional tax revenues and bolstering the Gross Regional Product (GRP) by $164.5 million to $230.6 million, consequently resulting in further revenue gains.

In addition to the immediate figures highlighted in this analysis, it's crucial to recognize that there is another key factor in the enduring impact of quality childcare: kindergarten readiness. As someone with a master’s degree in Early Childhood Education, it is concerning to see data from Kentucky Youth Advocates that shows only 46 percent of kindergarten students were deemed prepared in the 2023-24 school year, down from 51.4 percent in the 2017-18 school year. Ensuring that children in our region are kindergarten-ready lays the foundation for their long-term success in education and, consequently, their career trajectory. This is an investment that will always pay off. 

In addition to providing quantifiable data, the childcare study presents a comprehensive set of recommendations, emphasizing a tailored, community-specific approach and advocating for collaboration and alignment on objectives, metrics, strategies and tactics.

As a member of a newly-formed task force dedicated to addressing these recommendations, I collaborate with regional leaders from government, economic development, healthcare, the nonprofit sector and beyond. During our first meeting in April, we discussed topics such as early childhood career apprenticeships, public advocacy, affordable housing's role in childcare solutions, updates in zoning regulations and childcare business incentive grants and initiatives.

In addressing this massive issue, the burden cannot fall on one entity or organization. It will require community collaborations with government entities, workforce organizations, employers, parents and more. While the task ahead is undoubtedly substantial, it is encouraging to know that the first steps have been taken through the commissioning of this comprehensive study. 

To access the full study, visit ltadd.org/childcare.

Lance Blanford serves as co-chair of the Lincoln Trail Childcare Taskforce. He also serves as Workforce Development Coordinator for Bardstown City Schools and is the owner of Wee Care Learning and Development Centers and Lemonaid Mental Health Services in Bardstown and Danville.