Study: Child care a big industry

Wednesday, March 01, 2006 • BY SUSAN K. LIVIO • Star-Ledger Staff

Public preschools and the child care industry pumped $2.55 billion into the state's economy last year, according to a study released yesterday that urged lawmakers and business owners to make services better and more affordable.

The New Jersey Child Care Economic Impact Council, comprised of day care providers, advocates and business and community leaders, produced the first analysis of the industry in an effort to call attention to its contributions and needs.

Child care centers, preschools and after-school programs have created 65,300 full-time jobs, making it a bigger employer than other major industries in the state -- including transportation, warehousing and telecommunications.

"Many people felt that the child care community was more like baby-sitting services and not really an industry," said Ana Berdecia, council co-chairwoman. "It needs to be paid attention to by policymakers throughout the state."

Families and employers would be better served by the industry if there were more quality infant and toddler programs, and better-paid and -qualified administrators, teachers and providers, the study said. It noted the average child care worker earned only $16,900 in 2000, below the poverty line for nearly all families.

The study recommends government and private industry collaborate to create an agency that could establish quality standards, provide training for people working in the field, and identify ways to make services more accessible and affordable to working parents.

"The child care industry still faces a number of challenges in meeting the needs of families, children and employers in the state," the report said. "If New Jersey addresses these challenges, it can increase the bottom line returns for New Jersey employers and public returns on government investments."

The demand for affordable child care among working poor families will only rise, given the federal government's decision to start demanding more parents on welfare work for their benefits, said Deputy Human Services Commissioner Jennifer Velez, who participated in a forum in Trenton where the council released its report.

"If the federal government is going to require more people work, we've got to step up with the support," Velez said. "This report could not be more timely."

The welfare program provides day care services to welfare clients' children. New Jersey currently has about 378,000 day care slots, of which only 36,000 are subsidized. At least another 4,800 more openings are needed to eliminate the waiting list, the study said.

Besides money, the industry also needs political will and attention, said Cecilia Zalkind, executive director of the Association for Children of New Jersey, a family advocacy group. "We need an entity -- an office of early learning in the governor's policy office -- that says this is a priority issue," Zalkind said.

The study was paid for by the John S. Watson Institute for Public Policy at Thomas Edison State College, the state Department of Human Services, the Hispanic Directors Association of New Jersey and Children's Futures, a private-public program benefiting preschool-age children in Trenton.


The study may be found online at www.tesc.edu/aboutus/watson. The Associated Press contributed to this story.
© 2006 The Star-Ledger. Used by NJ.com with permission.

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