State of Affairs with Steve Adubato
The economic impact of rising childcare costs in New Jersey
Clip: Season 9 Episode 14 | 8m 36sVideo has Closed Captions
The economic impact of rising childcare costs in New Jersey
Steve Adubato is joined by Cindy Shields, Senior Policy Analyst for Early Childhood Advocates for Children of New Jersey, to examine the rising cost of childcare and its broader impact on New Jersey's economy.
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State of Affairs with Steve Adubato is a local public television program presented by NJ PBS
State of Affairs with Steve Adubato
The economic impact of rising childcare costs in New Jersey
Clip: Season 9 Episode 14 | 8m 36sVideo has Closed Captions
Steve Adubato is joined by Cindy Shields, Senior Policy Analyst for Early Childhood Advocates for Children of New Jersey, to examine the rising cost of childcare and its broader impact on New Jersey's economy.
Problems playing video? | Closed Captioning Feedback
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Learn Moreabout PBS online sponsorship[INSPRATIONAL MUSIC STING] - We're now joined by Cindy Shields, who is Senior Policy Analyst for Early Childhood...
Excuse me, at Advocates for Children of New Jersey, ACNJ.
Cindy, good to see you.
- Good to see you too, Steve.
Thanks for having me.
- Well, this is part of our ongoing series of programs, looking at the childcare situation in our state, in our nation, but primarily in New Jersey, quality, accessible, affordable childcare.
The website for the First 1000 Days Policy Coalition will come up.
First of all, what's the coalition and what is the role of ACNJ as it relates to the coalition?
- Sure, Steve.
So, the first 1000 Days Policy Coalition was created to ensure that all families in New Jersey have access to affordable childcare options in the setting of their choice with a qualified and stable workforce.
So ACNJ partners in that organization, in that coalition with the Center for Women and Work out of Rutgers, New Jersey Citizen Action, Moms First, and New Jersey Association for the Education of Young Children.
And I think there's a few other organizations in there.
- By the way, check out our website, SteveAdubato.org.
You'll see previous interviews we've done on the subject of childcare.
Cindy, let me ask you this.
There's gonna be a new governor in January, 2026.
If that new governor were truly committed to the cause of childcare, to the childcare crisis, and if not resolving it, improving the situation, what would he or she do?
- They would listen to our stories and they would listen to the families.
You know, we all know that childcare is very costly.
It's not affordable for families.
If we have supports for- - How expensive?
Is it 20% on average of a family's income?
Could it be that- - On average.
So can I give you some quick statistics?
- Please.
Please.
- To qualify for subsidy in New Jersey, families need to earn 185% or less of the federal poverty level.
So in New Jersey, that's $64,300 for a family of four, $42,300 for a single parent with only one child.
Cost of childcare annually is between $18,000 and $20,000 a year for one child.
It surpassed housing costs, even here in New Jersey.
So you're looking at over 20% for a dual income family sometimes and close to half of a single parent's income.
So it's really unaffordable to work and have children.
- What could the governor do?
- The governor can ensure that there's sustained funding.
So we know that ARPA dollars had grants for centers, stabilization grants, and those were very helpful.
But all that money ended a couple years ago.
So centers are struggling again.
They're struggling to retain their workforce.
They're struggling to retain qualified teachers.
There needs to be sustainable funding and it needs to be a priority because we know workforce is an issue in the state for all industries.
- Make it clear to folks, Cindy.
We've been talking about this with a whole range of people and the business community and others.
What is the impact on the economy of the state, on the economic vitality of the state, when families disproportionately parents, women, moms... Men as well, but disproportionately women, can't get affordable, who can't afford childcare?
What's the impact, especially if they can't work?
- They can't work.
So New Jersey alone loses $3.6 billion annually in lost tax revenue, employee productivity, payroll taxes, and quite frankly, just for families to have some extra money to put back into the economy.
Right now, they're making choices between whether they're gonna pay their rent or feed their family.
And that's not a choice any family in New Jersey should make, especially if they're working hard.
- Cindy, what is the role of the federal government as it relates to childcare in the state, meaning there are federal programs, funding of programs, cuts in federal programs that affect state policy and the people in a particular state?
I know that sounds convoluted and complex, but what do you believe the impact of what's going on in Washington has been on childcare in the state of New Jersey?
- It's very complex.
So one of our Head Start offices was shut down.
So we have a large number of Head Start programs that have lost their supports.
They're sending emails into cyberspace and they're not getting any responses.
- Are you mentioning Head Start because that's a federally funded program?
- Federal.
Yeah, it's a federally funded program, but it impacts the greater economy because those parents may not have a place to go to work.
Their funding has been flat.
They're not gonna be able to compete with increases in costs.
We all know our costs are rising every day for everything.
So that impacts the greater good.
- Let me ask you this.
So there're gonna be debates and we're gonna have in-depth interviews with Congresswoman Mikie Sherrill, the Democrat, former state legislator, Jack Ciattarelli, the Republican.
We're gonna have in-depth policy discussions with them and we'll ask them specifically about childcare.
We'll try to do our part and we'll try to have them be as specific as possible as it relates to what kind of governor they would be as it relates to childcare.
But without being too self-serving which I'm not gonna be, what the heck do you think we need to do in the media to raise the profile of the issue of childcare because it doesn't get talked about a lot?
It's not a hot issue.
Please.
- We need to make it a hot issue.
We need to shine a light on it.
You know, like I said, our state loses a lot of money every year.
I feel like if we could bolster childcare and the workforce, make it affordable for families, keep families working, and keep children learning, that would go a long way on return in investment.
- So I wanna be clear on this.
This is a policy issue, but it's an economic issue.
It's a quality of life issue.
It impacts our children.
It impacts our family.
It impacts our overall state.
This is not wonky policy stuff, is it?
- No, nope.
It's data-informed decision making.
- Say that again?
- It's data-informed decision making.
- Translate that.
- We have the data.
We know how much money we lose.
We know what children need to grow and develop at their best and reach their full potential.
And we know what families need to make it affordable.
We know what's broken.
We need to fix it.
- And we also know- Sorry, for interrupting.
We also know that employers face the potential of workforce shortages because the people they need to work don't have childcare.
Boy, this is all connected.
- Yep.
You just put it all together, Steve, right there.
- No, I didn't.
I'm just trying to make sense of it, Cindy.
And Cindy and her colleagues at ACNJ, Advocates for Children of New Jersey are frankly doing everything they can every day.
It's a great not-for-profit organization.
Check out previous interviews we've done with leaders from ACNJ.
And also, one more time, can we put up the website for the First 1000 Days Policy Coalition?
Cindy, thank you so much for joining us.
We appreciate it.
- Thanks a lot, Steve.
Have a great day.
- You too.
Stay with us, we'll be right back.
- [Narrator] State of Affairs with Steve Adubato is a production of the Caucus Educational Corporation.
Funding has been provided by The Turrell Fund, a foundation serving children.
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And by The New Jersey Education Association.
Promotional support provided by CIANJ, and Commerce Magazine.
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- (Narration) Healing is never just about medicine and technology.
It has to go further than that.
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