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Child care is on the verge of collapse in the Bay Area. Can parents go back to work? by: Rachel Swan

7/23/2020

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In some senses, Rockridge Little School has not changed since COVID-19 engulfed the Bay Area. Wooden blocks and cubbies still line the shelves. Small jackets still hang from the coat racks. Scraps of butcher paper from an unfinished art project lie scattered across the tables.

But after a three-month closure, the school shrank from 110 students to 30, forcing founder Holly Gold to close one of her three Oakland facilities. She and the teachers divided the remaining kids into pods and set up partitions to keep them from mingling: The red group uses a separate toilet and sink from the blue group, and children follow a trail of masking tape to stay in their contained area each morning.

Meanwhile, Gold is piling up debt from another school she remodeled in North Berkeley, in hopes of opening it this fall. Its future is uncertain.
During an interview Monday, she broke into tears.

“Everything was perfect and ready to go,” she said. “I have the staff, I have the school, I have the philosophy, I have this amazing space. I’m just hoping that September will be a turning point.”

Her financial burdens resemble those of child care programs throughout the state. Some have closed their doors permanently. Others opened reluctantly, fearing that a long-term closure would drive them out of business. Many are on the edge, unable to pay the rent and lacking money to buy snacks or cleaning supplies.

A new report from UC Berkeley’s Center for the Study of Child Care Employment presents the crisis in stark terms. After surveying 953 programs throughout California from June 22 to July 1, it concluded that the state’s attempt to restart the economy “has only escalated the crisis in California child care, exposing providers to the dual threats of health risk and the potential collapse of their programs.”

As the pandemic surges and counties stumble through the start-stop process of reopening, the child care industry — a vital crutch for working parents — is facing financial ruin. The report lays out a grim scene. Roughly a quarter of the programs remain closed, and of those that have opened, 77% have lost income from tuition and 80% now contend with higher cleaning costs.

“Providers are taking on credit card debt, missing rent or mortgage payments, and paying employees but not paying themselves,” said Sean Doocy, co-author of the report.

New social distancing rules have limited most programs to a fraction of their normal capacity, adding to the financial strain and creating a child care shortage just as parents prepare to return to work. Many who relied on public school as a path to child care are now casting about for babysitters, moving back home with grandparents or leaving the workforce altogether. Parents of kindergartners are trying to keep those children in preschool.

Yet the coronavirus has also exposed an unsettling social divide, as wealthy parents shell out for tutors and nannies, and lower-income parents compete for a dwindling number of child care spots or subsidies. The child care industry, a patchwork of small businesses and nonprofits run mostly by underpaid women of color, will now have to fill in for public schools that have closed.

Doocy and other experts are now grappling with the conundrum that child cares are struggling so much, at a time when they’re also desperately needed.

“We know educators in kindergarten through 12th grade are voicing concerns” about health risks of opening schools, he said. “They’re writing op-eds, they’re unionized, they have collective bargaining power not to go back to work.”

His voice fell. “That’s not the case with this workforce. These are economically disadvantaged women of color who live in communities that are more at risk of COVID-19.”

Beatriz Leyva-Cutler sees all sides of the child care puzzle in her role as executive director of the Bay Area Hispano Institute for Advancement, a Berkeley nonprofit that provides bilingual preschool and child care.

“There are different camps of families,” Leyva-Cutler said. “Some have resources. They can (pay for) an in-home nanny or they open their circles to collaborate with other families. Other parents are taking their children to work with them,” she said, noting that many people who work as nannies or caretakers now bring their own children along.

Still others have lost jobs and are now applying for child care subsidies so they can return to the workforce, Leyva-Cutler said. “With the limited (subsidy) slots we have, that means all the child cares will have long waiting lists.”

Kristin Bailey and her wife, Erica Simon, count themselves among the lucky. They live in Berkeley and still have steady jobs — Bailey managing a health care portfolio, Simon as a physician — earning enough to pay for nannies to look after their 3-year-old sons. But COVID-19 still added financial stress. The two moms had made a $2,000 deposit for a preschool, but decided not to send their children for fear of exposure to the coronavirus. They ate the loss and increased their nannies’ wages, which now hover at about $50,000 a year.

“We’re so lucky, and we’re just trying to do the best thing for everyone,” Bailey said. Nonetheless, she worries about what would happen if she got laid off.

“And then we’re doing a major left-hand turn,” she said.

In addition to financial hardships, many child care providers say they are frustrated with the state’s nebulous and inconsistent guidelines, some of which are difficult to implement. Of the programs interviewed for the UC Berkeley study, 34% said they cannot adhere to social distancing guidelines with young children. Twenty-seven percent say the guidelines are unclear. Some say the only way for the government to truly help is to offer more money.

San Mateo County is doing just that. On Tuesday, the Board of Supervisors earmarked $2 million in federal stimulus funds for child care, worried that a scarcity of these programs would prevent parents and caregivers from working.

Gold is contending with a different problem. She’s open for business in an area where families are more affluent, and have the income to hire nannies or babysitters. With fears of shared spaces still omnipresent, Gold is trying to lure them back.

On Tuesday morning, her big school on College Avenue seemed empty, with no one playing with the train set or sitting on the circular rug. But the kids who had come that day were happy, she said. Most were bouncing outside in the playground, behaving just as they had before shelter-in-place orders took hold.

“They’re having a great time,” Gold said. “I don’t think they’ve missed a beat.”
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Rachel Swan is a San Francisco Chronicle staff writer. Email: rswan@sfchronicle.com Twitter: @rachelswan

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Childcare: parents attitudes in COVID-19 pandemic time and their implications for the childcare providers by 1Core Solution

7/15/2020

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The COVID-19 coronavirus pandemic has impacted all walks of life including parents with childcare age children. 1Core Solution partnered with Childcare21, a not-for-profit organization with a mission to provide information and resources to the childcare industry, to conduct an informal survey to better understand the latest mindset of parents and the implications of those attitudes for the childcare providers as the economy gradually reopens.With over 30-million jobless claims, many families particularly those with young children in childcare are severely impacted.  In these uncertain times, childcare providers have extra challenges to bring back the families and keep everyone safe.
 
We contacted families with children in childcare age throughout the United States. Our surveyor conducted a questionnaire with all the parents who agreed to participate. Following is a summary of 11 key points that we learned from the survey:
 
Coping during Shelter In Place
1.     85% of the families we surveyed have at least one parent working from home while the other 15% of the families have parents who had recently lost their jobs due to the pandemic. A majority of those families who lost their jobs recently worked in lower income industries. For these lower income families, the parents told us that they have to choose between childcare or reentering the job market when the economy begins to reopen.
 
2.     40% of the parents told us that they plan to continue to work from home even after the shelter in place order is lifted as they still have concerns regarding the general safety in going back to their regular offices.
 
3.    Over 90% of the parents in the survey found the adjustment to having children home with them at all time to be extremely challenging. This is particularly true for the working parents stuck juggling their professional and childcare responsibilities at home.  The increased workload of keeping the children busy during the day, managing e-learning classes and all of the technical issues that can come with that are quite stressful.  Parents also feel guilty with the increased use of television, tablets and video games to entertain their children as they have to fill the day with activities and get work and household chores done.
 
4.      Only about 12% of the families surveyed are receiving support from their employers. A majority of the families wish they can get more support from their employers and the state and federal government.
 
Attitude about Childcare
5.     While the shelter in place is happening, 70% of families say they are worried about still paying for childcare while their child is not attending or e-learning while 20% were somewhat worried and 10% not worried at all.  It is easier for parents who are still employed. 86% of the parents understand why it is important to keep teachers on and support the school during this difficult time.  42% of the families surveyed, particularly those who lost their jobs are extremely concerned about their ability to pay for childcare.
 
6.   About 33% of families with two working parents are discussing strategy to cope with the scenario of losing their jobs, perhaps with one parent working from home, quitting their job or not looking for a new one if they were laid off so one parent can stay home with the child.
 
7.   When asked how comfortable parents would be sending their children back to childcare when the shelter in place is lifted, most would send the children back to childcare if they have confidence that the center school would do daily health screenings on children and teachers every day, deep clean at night and follow the other CDC guidelines.
 
Expectations from the Childcare Providers
8.   When asked specifically, parents agreed that the adoption of touchless mechanism like touchless sign-in/out, online payment and fully paperless registration with eSignature are very important to them.
 
9.      When asked what else would increase their confidence to send their children back to the childcare centers, 52% of parents like the idea of simple live streaming from  their child classroom. These parents said that this is helpful to give them peace of mind that their children are fine and safe.
 
10.     Another emerging trend noticed from the survey is the request for virtual center tour. 65% of the parents surveyed indicated that in the event that they have to look for childcare away from the centers where their children are currently attending (due to centers permanent closures or safety concerns), they would prefer to do the initial search of possible childcare via virtual center tour.
 
11.    67% of the families surveyed expressed an interest to learn more about virtual preschool. Their responses are more favorable when it was explained to them that virtual preschool includes a turnkey system where it comes with step-by-step instructions on how to setup a room at home for the preschool age child(ren) that is childcare friendly and where the virtual preschool teacher can engage their child while they are working at home. The interest level goes even higher when the parents view the virtual preschool as a more cost-effective option when used as a supplement to regular childcare.
 
All in all, parents, particularly those who are still working, seem eager to get back to their regular schedules and get back to work knowing that they trust their school and their children's teachers that the children will be cared for and measures are in place for them to safely return to school.
 
While no one knows for sure at this time about the long term impact of the pandemic, it is likely that COVID-19 is here to stay like a flu.  We hope this blog post provides useful information to childcare providers as they prepare to reopen but do what they can to pandemic proof their business. 
 
About Us
1Core Solution is a leading cloud-based software provider for the childcare industry for the last 15 years. Our true all-in-one (thus the name 1 Core) solution platform is designed to allow childcare providers to manage all aspects of the childcare business.  Furthermore, our recent COVID responsive features like touchless sign-in/out along with daily health screening and 100% paperless registration with eSign flow have helped our clients to better deal with the new normal.  To learn more, please visit www.1coresolution.com.

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Helpful Tips from us at Eastbaypreschools.com

4/5/2020

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Hello EastBayPreschools,
First, I want to thank everyone for sending us emails, and all the great conversations I have been able to have with so many schools and directors in the last 2 weeks. Thank you!  These last few weeks have been an interesting and tough adventure as we all have been trying to navigate the new world that has been put in front of us. It has been an adventure to say the least!  EastBayPreschools has been busy trying to keep you up to date with the various informational webinars, ECE classes and information from Licensing.
We’ve received a lot of questions about what to do next. A lot of schools are feeling stressed, overwhelmed and under pressure to keep up with and ahead of the learning curve of what’s to come. Below is some basic information that I’ve gathered that can help you in making plans to move forward with the most success for you, your school, and your community.
First, there are a couple things I recommend you think about over the next few days: 
  • How are you functioning right now?
  • Are you keeping detailed records of all money moving within your schools? 
  • Is it better to furlough your staff? In a lot of cases YES! They can get an additional $600 per week, while saving your funds for other costs.
  • Have you called everyone and asked for a pause in service, delay in billing, or discount? 
  • If you’re collecting tuition or fees, check with your bank, it might be hard to show damages. 
  • If you’re an in-home or a small school, there is help for you.
I have gathered some information from the U.S. Chamber of Commerce, SBA.gov and a few banks and have put together a little cheat sheet.  I have also spoken with a few grocery stores, utility companies, and attorneys, so while we might not have a specific answer, we might be able to point you in the right direction for help. Feel free to send an email to Info@eastbaypreschools.com with questions.
While a lot of us struggle with different concerns, we still need to make sound business decisions. You need to make sure you have a school for staff and families to return to when this done.    
All the “loans” (and yes, they are loans) are continuing to change their rules and guidelines and say they will continue to do so over the next few months as they figure out the details. Example, the interest rate went up on part of the CARES ACT this past Friday, two weeks after it passed. 
As all of the loans, grants, and forgiveness programs begin the reconciliation process, “proof” of expenses will be required. One item I noticed on the SBA site is when payroll is being justified, in most cases the numbers are based on 2019 not 2020.  
If you currently have an SBA loan, check with your bank immediately. Depending on the type of loan you have, the government is going to PAY principle and interest for a few months. In the long term this would be better than a Deferral of Payment request.
I understand that there are a lot of different beliefs on how the CARES ACT will function. I have grabbed facts from the SBA.gov site and U.S. Chamber of Commerce. These are the 2 groups tasked with administering the Payroll Protection Plan (PPP) and EIDL Loan and are through your bank so terms may be a little different from bank to bank. 
 
A few things to keep in mind when we consider layoffs/furloughs/wage reductions.
Under the CARES ACT:
  1. Increased Unemployment Benefits:
    1. In addition to unemployment benefits paid by the States, the federal government will pay an additional $600/week thru July 31, 2020.
    2. State unemployment benefits vary widely by state but average $385/week. $600/ week under CARES ACT is in addition to state amounts.
    3. Typically, state unemployment benefits last for 26 weeks. The CARES ACT provides for an additional 13 weeks through December 31, 2020.
    4. CARES ACT allows employees to obtain unemployment benefits immediately without typical waiting periods.
    5. Furloughed workers are eligible to receive unemployment benefits.
  2. CARES ACT Cash Payments: 
    1. Individual making less than $75K = $1,200
    2. Individual payments are reduced by $5 for every $100 over $75K and completely phased out at $99K
    3. Married couples making less than $150K = $2,400
    4. Married payments are reduced by $5 for every $100 over $150K and completely phased out at $198K
    5. Additional $500 payment for each child under the age of 17.
  3. Retirement Account Changes:
    1. The 10% early withdrawal penalty is waived on withdrawals up to $100,000.
    2. Any amount withdrawn can be paid back into retirement account within 3 years without regard to contribution limits.
    3. The amount of available loans has been increased from $50,000 to $100,000.
  4. Homeowners and Renters:
  5. Servicers of federally back mortgages for homeowners must agree to postpone mortgage payments up to 180 days as the request of the borrower if the borrower affirms financial hardship due to COVID-19. 180-day extensions are available.
  6. Landlords with mortgages backed by HUD, Fannie Mae, Freddie Mac or other federal entitles cannot pursue evictions for 120 days.
  7. Student Loans: 
    1. Payments automatically suspended through September 30, 2020 without interest accruing or penalties through period of suspension.
 
I hope that this has helped a little to answer some of your questions.
 www.eastbaypreschools.com/directors--teachers-blog
 
 
Mike Mascaro
CEO, Little Blue Truck inc.
View my profile on LinkedIn
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alameda Health Services: order of the health officer

3/16/2020

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Contra COsta Health Services: order of the health officer

3/16/2020

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SChool Chat

3/15/2020

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