CHILD CARE WAGES & BENEFITSin St. Joseph County
The Child Care Wage & Benefit Survey was conducted by The Family Connection for the Educare Council of St. Joseph Co., a collaborative initiative of Step Ahead, CONNECT and United Way
For the people who care for children in St. Joseph County, wages are low and benefits are generally poor-if they are available at all. The average teacher salaries in child care programs responding to the survey are less than the salaries of South Bend postal clerks, zoo grounds maintenance workers, meter readers, garbage collectors and Transpo bus drivers. Even child care teachers at the highest paid levels earn less than half of what a beginning teacher in the South Bend Community School Corporation makes per hour. According to the National Association for Young Children, "Compensation for early childhood professionals should be equivalent to that of other professionals with comparable preparation requirements, experience and job responsibilities." This survey clearly shows that the compensation of child care professionals in St. Joseph County does not measure up to this standard.
Child Care Programs: A total of 101 child care programs were surveyed; 38 usable responses were received. Type of program: Licensed centers returned 16 surveys, accounting for 42 percent of surveys returned. Twenty-four percent (9) were from registered ministries, 21 percent (8) were from preschools and 13 percent (5) were from school-age child care programs. Almost three-quarters (27) of the surveys returned were from nonprofit organizations. Of those, 14 (52%), were returned from sponsored/church or religious organizations. Profit organizations returned 10 surveys, 26 percent of the total. Of those, six (60%) were from independently owned/operated centers. Program size: Seventy-one percent (27) of the programs that returned surveys do not have multiple sites. The programs returning surveys were fairly large, with 42 percent (16) serving more than 100 children. An additional 27 percent (10) serve between 51 and 100 children. Location: Four out of five responding programs (31) are located in South Bend or Mishawaka. Five (13%) are located in Granger or Notre Dame. Only 5 percent of respondents are located in Roseland/Osceola, and 5 percent are located in more rural areas of Lakeville/New Carlisle/North Liberty/Walkerton. Families served: Several respondents stated that they had no information concerning family incomes. Of the 33 who answered the question, 21 (64%) serve families with household incomes between $20,000 and $49,999. An additional four (12%) predominately serve families with incomes between $50,000 and $75,000. Eight responding centers (24%) say they mostly serve children from families with household incomes below $20,000. NAEYC accreditation: Only four (11%) of those returning surveys are NAEYC accredited; six (16%) reported that they are in the accreditation process. Twenty-three (61%) are not accredited; five (13%) did not answer this question.
Family Child Care Providers: A total of 273 family child care providers were surveyed; 72 responses were received. Type of provider: Three quarters of the surveys returned came from licensed family child care providers; 25 percent were from unlicensed family child care providers. Size and staff: Respondents care for between one and 21 children, with an average of nine children per provider. However, when broken down by type of provider, there is a difference in the number of children served. An average of 11 children are cared for by licensed providers, while unlicensed providers serve an average of three children. More than half (53%) of respondents said that they do not employ an assistant; 29 per-cent have one assistant, 6 percent have two, and 1 percent has three or more assistants. Location: The majority of the family child care providers returning surveys reside in the urban areas of St. Joseph County. More than four out of five (83%) are located in South Bend/Mishawaka, 8 percent are in Roseland/Osceola, 4 percent are in Lakeville, New Carlisle, North Liberty or Walkerton and 1 percent is located in Granger or Notre Dame. Families served: Forty percent of responding family child care providers said that most of the children they serve live in families with household incomes in the $20,000 to $49,999 range. Thirty-six percent primarily serve families in household incomes below $20,000. Only 14 percent of the providers have children living predominately in families making between $50,000 and $75,000. No home providers responded that they serve a majority of children from families with an annual income above $75,000. NAFCC accreditation: Three family child care providers (4%) have an accreditation from the National Association for Family Child Care.
Child Care Programs Almost all of the programs who responded to the survey (92%) rely on parent fees for at least some of their income, but only three respondents listed parent fees as their only source of income. Close to two-thirds of respondents receive child care vouchers, while almost half hold fund-raising events to supplement their income. Other means of funding include: private donations (32%), in-kind contributions (26%), corporate/organization subsidies (18%), co-pay from parents' employers (13%), Title XX (13%), United Way (11%), and investments (8%). Just under a third of respondents use the Child and Adult Care Food Program (CACFP). Other sources of income that were listed by respondents included grants, CCDBG, SACC, and retail sales.
Family Child Care Providers Most (86%) of the family child care provider respondents have parent fees as a source of income. Fifty-seven percent receive child care vouchers. For 11 percent of providers, vouchers are their only source of income. Forty percent of respondents receive funding through the Child and Adult Care Food Program (CACFP).
Research documents that the highest levels of program quality parallel staff with specific training in early childhood education and child development. "Although hairdressers are required to complete 1,500 hours of training at an accredited school before they get a license, Indiana is one of 40 states that do not require providers who care for children in their homes to have any early childhood training prior to serving children. Indiana is also one of 32 states that allow teachers in child care centers to start work without prior training." (Indiana: Child Care Challenges, CDF, May 1998). Aides/assistants: The majority (64%) of aides/assistants whose educational level was reported have a high school degree or GED as their highest level of education. An additional 30 percent had a higher level degree. However, just 13 percent were reported to have any kind of degree in early childhood education.
In the programs responding, two out of every three aides/assistants have at least three years of experience. Eighteen percent have less than one year; 11 percent have over ten years. Teachers: Almost half (47%) of the teachers whose educational level was provided have at least a college degree. Only one did not graduate from high school. (See figure 2.) Thirty-two percent have some kind of degree in early childhood education (just over half of whom have at least a college degree in early childhood education or a related field).
In the programs responding, close to three out of every five teachers have at least three years of experience. Nine percent have less than one year, 17 percent have over ten years. Teacher-directors: Three fourths (74%) of the teacher-directors whose educational level was provided have at least a college degree. (See figure 3.) Seventy percent have some kind of degree in early childhood education (more than half of whom have a college degree or higher in early childhood education or related field.
In the programs responding, more than four of five (84%) teacher-directors have at least three years of experience. None has less than one year, 25 percent have over ten years. Administrative directors: Four out of every five (79%) of the administrative directors whose education level was reported have at least a college degree. (See figure 4.) Sixty-eight percent have some kind of degree in early childhood education, most with a college degree or higher in early childhood education or a related field.
In the programs responding, nine out of ten administrative directors (89%) have three or more years experience. None has less than one year; over half (56%) have over 10 years. Family child care providers: For just over half of respondents (54%), high school is the highest level of education achieved. Seventeen percent have an associate degree; another 17 percent have a college degree. For 10 percent, some high school is the highest level attained. (See figure 5.) In looking specifically at early childhood training, nine respondents (13%) have a Child Development Associate Credential, seven (10%) have an Early Childhood Certificate, three (4%) have a college degree in early childhood education. Eight percent of the respondents have been home providers for less than a year. Seventy-nine percent have at least three years of experience. Thirty-one percent said that they have been providers for 10 years or more.
Survey responses indicate that most child care staff in St. Joseph County earn below the 1998 US poverty level for a family of three. These findings are consistent with national statistics. Wages are also low compared to salaries of local employees in other positions. On average, teachers in the child care programs responding to the survey (48 percent of whom have a college degree or higher and 91 percent with one or more years experience) earn approximately 65 percent less than a first year classroom teacher in the South Bend Community School Corporation, 30 percent less than the beginning salary of a South Bend postal clerk, 27 percent less than a city garbage collector and a zoo maintenance worker, and 20 percent less than the starting salary of a Transpo bus driver. Any wage comparison also needs to take benefits into consideration. For example, teachers and aides in the SBCSC who work 20 hours or more a week are eligible for health, dental and vision insurance at 20 percent of the monthly premium. They also receive life insurance, as well as sick days, vacation days, paid holidays and retirement benefits. Benefits for child care staff, as reported in a following section, are far less generous-if available at all. HOURLY WAGES IN ST. JOSEPH COUNTY
ESTIMATED AVERAGE ANNUAL EARNINGS OF CHILD CARE TEACHING STAFF
Annual earnings are calculated on 35 hours/week, 50 weeks/year(per findings from the National Child Care Staffing Study on typical work week for child care workers)Aides/assistants: Twenty-nine programs reported on wages for a total of 96 aides/assistants. Most (79%) earn $7.00 or less per hour. The only aide who earns more than $10/hour ($11.78) has been working with the same employer for over 17 years. The average income reported for aides and assistants was approximately $6.58 per hour. This hourly wage is in keeping with (though slightly higher than) the 1996 State Occupational Employment and Wage Data (Bureau of Labor Statistics) which places the average hourly wage of child care workers in Indiana at $6.42. Teachers: Thirty-two programs reported on wages for a total of 164 teachers. Of these employees, most (77%) earn $9.00 or less per hour. Only one teacher earns more than $20 per hour. On average, the income for teachers was reported to be approximately $7.98 per hour. This hourly wage is in keeping with (though slightly higher than) the 1996 State Occupational Employment and Wage Data (Bureau of Labor Statistics) which places the average hourly wage of Indiana preschool teachers at $7.29. Teacher-directors: Nine programs reported wages for a total of 24 teacher-directors. Of these employees, most (88%) earn between $6.01 and $12.00 per hour. Only two teacher-directors earn more than $20/hour. On average, the income for teacher-directors was reported to be $9.94 per hour. If a teacher-director worked a 40-hour week for 50 weeks per year at this rate, the average annual income for teacher-directors would be $19,880. Administrative directors: Twenty-seven programs reported wages for a total of 36 administrative directors. Of these employees, there is a fairly even spread among the 78 percent who earn between $7.01 - $16.00 per hour. Only three administrative directors earn more than $20/hour. On average, the income for administrative directors was reported to be approximately $12.70-almost $10 less per hour than a beginning public school classroom teacher in South Bend. If an administrative director worked a 40-hour week for 50 weeks per year at this rate, the average annual income for administrative directors would be $25,400. Highest vs. lowest wages in child care programs: The wage ranges offered by programs that responded to the survey fluctuate greatly among programs (and sometimes within programs as well). They also give an indication of what child care staff earn at both the lowest and highest wage levels for their position. However, it should be noted that more employees tend to fall nearer the lowest level rather than at some midpoint between highest and lowest. HIGHEST / LOWEST WAGES PER HOUR
**this program did not enter a figure for lowest wagePER HOUR WAGES PAID BY CHILD CARE PROGRAMS as reported by survey respondents
Family child care providers: Respondents were asked for the income and expenses of their child care business in the past week. They were also asked how many hours they worked. An approximate hourly wage was determined for each respondent who provided these figures. Wages ranged from $1.25 to $13.00 per hour, with an average of $6.55 per hour and a median wage of $5.90 per hour (i.e., half of family child care providers made less than this amount, half made more). The number of hours worked each week ranged from 8 to 120 (possibly a child who is spending nights), with an average of 56. Multiplying the median wage of $5.90 times the average hours worked each week gives a weekly wage of $333.20 or an annual wage of $16,548 for 50 weeks. Using the average wage of $6.65, the annual wage computes to $18,620. Among providers for whom wages could be calculated, unlicensed providers had an average wage of $3.76 an hour while licensed providers had an average wage of $6.72. This wage difference can probably be accounted for by the numbers of children cared for in the two settings (an average of three for unlicensed, 11 for licensed). Nineteen respondents with employees answered the question about their assistant's hourly wage. Wages ranged from $5.00 to $8.00 an hour. The average wage for the employees of family child care providers was $6.01 an hour. When interpreting this data it is important to keep in mind that not all payments are received each week. Some providers may have received a large payment that week, while others might be expecting payments in the future. Data must therefore be interpreted as a point in time. In a different week, some providers might have more income, others less.
On the whole, child care providers across the country receive meager benefits, and St. Joseph County is no exception. It's all too common for child care workers to have no health care benefits, no paid legal holidays, no paid sick days, and no retirement plan. PROGRAMS OFFERING HEALTH INSURANCE
Aides/assistants: Among programs responding to the survey, the most common benefit offered to their full-time aides/assistants is child care assistance. Still, only 32 percent provide fully paid child care assistance and 32 percent offer partial assistance. Just over half of the responding programs provide paid sick days, paid legal holidays, and/or paid vacation days to full-time employees. Only 43 percent of programs offer their full-time aides/assistants any health care benefits-most only partially paid. And few programs-just one in four-offer disability insurance, dental insurance, or any kind of retirement plan to their full-time aides/assistants. For the majority of programs who employ part-time aides/assistants, benefits are even fewer. Just one in three offers paid sick days and/or vacation days, and only one in ten offers any form of health insurance or retirement plan. BENEFITS OFFERED TO AIDES / ASSISTANTS
Teachers: Among programs responding to the survey, the most common benefits offered to their full-time teachers are paid legal holidays and paid vacation days. Still, only three out of four programs (74%) said they offer these benefits. Sixty-seven percent of responding programs provide paid sick days to full-time teachers. Just over half offer their full-time teachers any health care benefits-most only partially paid. And few programs-just one in three-offer any kind of retirement plan to their full-time teachers. For the majority of programs that employ part-time teachers, benefits are even fewer. Just 32 percent offer paid sick days or vacation days, only one in ten offers any form of health, life or dental insurance. And only 7 percent provide a partially-paid retirement plan.
BENEFITS OFFERED TO TEACHERS
Teacher-directors: Among programs responding to the survey, the most common benefits offered to their full-time teacher-directors are paid legal holidays and paid sick days. Still, just over half of the programs (53%) said these benefits are available. Less than a third (31%) offer any health care benefits-most only partially paid. And few programs-just 19 percent-provide any kind of retirement plan to their full-time teacher-directors. For the majority of programs who employ part-time teacher-directors, benefits are even fewer. Less than half offer paid sick days; just 40 percent provide paid legal holidays; and fewer than one third give paid vacation days or unpaid leave of absence. No respondents with part time teacher-directors said that they provide any health, life, disability or dental insurance. BENEFITS OFFERED TO TEACHER-DIRECTORS
Administrative Directors. Among programs responding to the survey, the most common benefits offered to their full-time administrative directors are paid legal holidays and paid vacation days. For each of these benefits, 79 percent said they were available. Sixty-two percent of programs offer some form of health care benefits-most only partially paid. Only 38 percent of programs offer some kind of retirement plan to their full-time administrative directors. For the majority of programs who employ part-time administrative directors, benefits appear to be far fewer. Just half offer paid sick days; 57 percent provide paid legal holidays; and 18 percent contribute to a retirement plan. Only 6 percent indicated that they provide any kind of health, dental, life or disability insurance. BENEFITS OFFERED TO ADMINISTRATIVE DIRECTORS
Family Child Care Providers: Few family child care providers receive any benefits through their business. Only 6 percent have health insurance, 4 percent have life insurance, and 3 percent have dental insurance. About half have paid legal holidays; only one in five have paid sick days. Paid vacation days are available to only 15 percent of respondents, while only three include education assistance through their business. Benefits available to assistants working for family child care providers are even more sparse. Among respondents, none provides health, dental, life, or disability insurance to employees. Four percent provide unemployment insurance and 7 percent offer child care assistance. Only 6 percent provide paid sick days. BENEFITS OFFERED TO FAMILY PROVIDERS
THE RELATIONSHIP BETWEEN WAGES AND EDUCATION A college-based education is an important predictor of high performance among teaching staff. When centers pay higher wages, they can attract more highly educated teachers. (Worthy Work, Unlivable Wages, Center for Child Care Workforce 1998) Child Care Programs In the seven programs that pay the highest teacher wages ($10.00 per hour or more), no teacher has high school listed as the highest educational level attained. In four of those seven programs, all of the teaching staff have at least a college degree. In the remaining three programs, between 60 and 83 percent of teachers have at least a college degree. Each of the highest paying programs has at least one teacher with an early childhood related degree. Of 37 teachers in these programs, 29 have a college degree and 27 have a college degree in early childhood or a related field. An additional three teachers have a Masters Degree or higher in an early childhood education related field. The remaining five teachers hold associate degrees in early childhood education. Among the seven centers paying the lowest teacher wage ($6.00 per hour or less), four have 60 percent or more of their teachers with a high school diploma as the highest educational attainment. In six centers there is no more than one teacher with a college degree. Of the 50 teachers working in these centers, two have a college degree in early childhood education or related field, one has a two-year associates degree in early childhood and one has a CDA.
% OF TEACHERS WITH DEGREE IN EARLY CHILDHOOD EDUCATION OR RELATED FIELD (including college, 2-year associate and CDA)
Family Child Care Providers The average wage for family child care providers who responded to this survey also varies with educational level and training: college degree - $10.10 an hour; two-year associates degree - $5.95; high school diploma and no higher - $5.75. For all responding home providers with a Child Development Associate Credential, National Association for Family Child Care accreditation, or an Early Childhood Certificate the average wage is $7.94 an hour.
Young children feel safe and secure when they have a stable and consistent relationship with caregivers. Often these positive relationships are disrupted by high staff turnover rates, which clearly has a negative impact on quality. According to a recent report from Children's Defense Fund, "turnover rates among child care providers are high throughout Indiana." A 1997 national study by the Center for the Child Care Workforce found an average turnover rate of 31 percent for child care staff. Among St. Joseph County child care programs responding to this survey question, turnover of child care employees ranged from zero to 200 percent, with an average of 44 percent and a median of 33 percent. Generally, programs which pay better wages experience less teaching staff turnover. Looking at the nine programs with the lowest turnover (under 20%), six provided information about the lowest and highest wages paid. Four have aides/assistants paid at the highest ranges ($7.50 or more), and three pay teachers at the highest end of the range ($11.95 or more per hour). In the nine programs that have the highest turnover rate (greater than 66%), no aide or teaching position is paid at the highest end of the salary scales.
If programs are to attract and retain qualified employees, the compensation offered is critical. For most programs, however, raising staff wages would be difficult, if not impossible, within their current operating budget, since a high percentage is already allocated to wages. Among survey respondents in child care programs, 63 percent spend three quarters or more of their total operating budget on staff wages. An additional 32 percent spend at least 60 percent on personnel costs. This presents a dilemma. While it is difficult for most child care providers to raise personnel salaries given their current budgets, it is also all but impossible to pass increased personnel costs on to parents. According to a Children's Defense Fund report (May 1998), "many families in Indiana earn too little to be able to afford the quality child care their children need." The National Association for the Education of Young Children agrees. In their 1993 position statement, NAEYC states that "families along cannot be expected to bear the additional costs." |
SUMMARY