State Sen. Jeff Smith

The childcare crisis in Wisconsin is undeniable and urgent. As childcare centers continue to close across the state, the impact on our families, workforce and economy grows faster. This crisis is not just a result of the pandemic—it’s a symptom of decades of underfunding and unsustainable business models in early childcare and education.

Last year Republicans turned their backs on Wisconsin families by allowing the Joint Finance Committee to give up on the Child Care Counts Program. In response, Gov. Tony Evers directed $170 million in emergency funding to the Wisconsin Department of Children and Families (DCF) to continue the program at current levels through June 2025. With the consequences of inaction too great to ignore, we should address this issue head-on in January at the beginning of a new legislative session.

Child care providers in Wisconsin operate on razor-thin margins. Childcare is labor-intensive and requires highly trained professionals. It’s been stretched to the breaking point. Staffing shortages plague the sector, with many classrooms closing due to a lack of qualified workers. This, in turn, forces parents—especially women—out of the workforce as they struggle to find affordable care for their children.

According to a new report by the UW Institute for Research on Poverty’s Department of Children and Families, the economic toll is staggering. Wisconsin is losing an estimated $1.1 billion per year in lost productivity, earnings and tax revenue due to child care challenges.

For most families in Wisconsin, childcare is simply unaffordable. The average cost of center-based care for an infant is approximately $12,500 per year, or 16% of the median household income. This burden is comparable to the cost of tuition at the University of Wisconsin-Madison. Yet, child care must be paid upfront and in cash, placing a tremendous strain on young families. Even worse, the true cost of providing care—about $33,715 per infant—far exceeds what most providers can charge, leading to inadequate wages for child care workers and an unsustainable business model.

It’s clear that child care providers are being forced to choose between staying afloat and offering affordable, quality care. Teachers in these centers make an average of $13.55 per hour, far below the average wage of $28.34 for Wisconsin workers. Many lack health benefits, further exacerbating turnover and workforce shortages.

Child care providers continue to face rising costs, while too many Wisconsin families remain on waiting lists or are forced to leave the workforce altogether. The problem is systemic, and piecemeal reforms won’t be enough to fix it.

Wisconsin has an opportunity to lead the nation in addressing this crisis by investing directly in child care access, affordability, and workforce support. Before July, we must restore and increase funding to Child Care Counts, ensuring that providers have the financial stability they need to keep their doors open. Additionally, increasing Wisconsin Shares rates and expanding eligibility will make it easier for more families to afford care, particularly during the critical early years of their children’s lives.

We must also address the workforce shortages by offering better wages and benefits to early educators. These professionals are crucial to the development of our children and deserve to be compensated fairly for their work. By increasing scholarships, wage stipends, and professional development opportunities, we can attract more workers to the field and ensure that child care remains a viable career path.

The child care crisis in Wisconsin is an issue that affects us all. Without immediate action, we will continue to lose out on economic productivity, and more importantly, we will fail the families and children who depend on a strong early care system. It’s time for Wisconsin’s leaders to prioritize affordable, accessible child care and support the workers who make it possible. Our future workforce—and the future of our state—depends on it.

Sen. Smith represents District 31 in the Wisconsin State Senate. The 31st Senate District includes all of Buffalo, Pepin and Trempealeau counties and portions of Pierce, Dunn, Eau Claire, Jackson and St. Croix counties.