Bankruptcy Crisis Hits Florida: Thousands of Preschools Expected to Close

Bankruptcy Crisis Hits Florida Thousands of Preschools Expected to Close

MJP –

The gleaming lights of the Aunt Dolores Child Care Center illuminated the room, contrasting with the looming dark clouds outside. Vibrant and playful paintings adorned the walls of the building, standing out against the ominous weather of an impending summer storm.

Within the confines of his preschool, Chad Chernet observed the lobby and discussed a separate storm that he claimed was already descending upon the Sunshine State.

After years of battling with slim profit margins, he mentioned that preschools were going out of business. It’s a phenomenon known as the “childcare cliff.”

Chernet mentioned that there are preschools that have already shut down. I doubt it has caught the eye of our authorities yet, but I predict that within the next half-year, a significant number of schools will begin to shut down.

Take note: Assistance from family and friends can aid students in managing their anxiety about returning to school.

The worries of Chernet were not merely based on personal stories. According to a study conducted in June 2023 by The Century Foundation, it was projected that 2,196 daycares and preschools in Florida would shut down starting later in the year, impacting a total of 212,721 children.

Bankruptcy Crisis Hits Florida Thousands of Preschools Expected to Close

The surge is occurring because childcare programs have been receiving financial support from the American Rescue Plan implemented by the Biden administration. This funding has enabled preschools to address overdue maintenance tasks and increase the wages of their employees to levels above the minimum wage.

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The financial dynamics of a daycare and a preschool are distinctive because these establishments are unable to boost their earnings in the same manner as other sectors. If an airline company wishes to avoid raising its fares, its executives can explore options to boost its capacity, like incorporating additional seating arrangements.

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Preschools cannot do so because of mandatory ratios, which dictate that one teacher must be present for every six children under the facility’s supervision.

Simultaneously, families facing the challenges of inflation frequently find themselves unable to cover the elevated costs, which currently range from $1,200 to $1,500 monthly.

Chernet mentioned that it was hindering the state’s economy by preventing certain capable adults from entering the workforce.

He mentioned that if you earn $30,000 to $40,000 annually and are spending around $15,000 to $16,000 on childcare expenses, it wouldn’t be worth it for you to go to work.

The challenge for centers to stay open is particularly difficult now, as numerous families are facing financial difficulties and relying on any source of income they can find. A large part of Florida is already known as a barren land for child care, lacking sufficient choices and with waiting lists extending for a year and a half or more.

In the aftermath of the Biden-Trump debate, Chernet, who was interviewed shortly after, voiced his disappointment that childcare was not a more prominent issue in the political discussion and that neither candidate provided a meaningful response to the single question asked.

He proposed that Florida, or ideally the federal government, should start covering some of the expenses of early childhood education, or even advocate for a universal preschool program.

The concept is not too outlandish. Research indicates that by 2050, Florida could see a return on investment of eight to nine times the initial amount through a program that leads to economic advantages such as reduced incarceration rates, increased salaries, and a larger labor force.

Chernet listed the sectors that receive subsidies: oil, energy, automotive, and pharmaceuticals. How come the most affluent nation on the planet is unable to provide financial support for early childhood education?

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