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Childcare workers in North Carolina can face care costs that take a large share of their pay, complicating efforts to recruit and retain staff. A Boone-area initiative has helped 18 employees with 22 children, while some centers cover care directly; a statewide North Carolina program has not been announced.
North Carolina childcare providers are trying different ways to help employees afford care for their own children, as the expense adds pressure to a workforce already facing recruiting and retention challenges. A Boone-area initiative funded by local donors and businesses has assisted 18 childcare employees with 22 children, while one Durham center covers most of its staff’s care costs.
At Kate’s Korner in Durham, owner Kate Goodwin said the center provides employees with free childcare or covers all but one week of care each month for workers who cannot use vouchers. She said the center absorbs most of the expense, accepting slimmer margins as a commitment to its employees. The source report did not specify how many staff members use the benefit or its total cost to the center.
In Watauga County, the Boone Area Chamber of Commerce Foundation launched a childcare assistance initiative last year with $40,000 from local donors and businesses. It provided aid to 18 employees caring for 22 children, averaging $684 per child. The report does not give the program’s full eligibility rules or say whether it will continue at the same funding level.
The benefits are not unusual, but their funding differs. In a survey of about 1,200 childcare providers statewide, 61% of directors said their programs already offered employees a childcare benefit. Some centers pay directly, while the Watauga effort draws on local support. The report describes these efforts as responses to workers’ care costs and providers’ staffing needs, not as a single statewide policy.
Care Costs Add Pressure to Staffing
The expense can affect both workers’ household budgets and centers’ ability to keep classrooms staffed. A study by Appalachian State University found childcare workers earned an average of $30,600 a year, while the median monthly childcare cost was $900. Based on those figures, care for one child would account for about one-third of a worker’s gross annual income, if the worker paid the median monthly amount for a full year.
The report links workforce strain to operational effects at centers, including smaller classrooms, shorter hours and reduced enrollment. Those changes can limit care available to families and make it harder for parents to work. The figures illustrate the pressure; they do not establish that every worker pays the median cost or that childcare benefits alone will solve staffing shortages.
childcare cost assistance for working parents
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Local Aid and a Kentucky Model
The Watauga initiative is part of a broader effort to address childcare workforce shortages and support providers still recovering from the loss of federal funding that helped stabilize the industry, according to the report. North Carolina’s labor force participation rate was described as around 58%, compared with about 61% nationally. Business leaders cited a lack of affordable childcare as one factor in workforce participation; the source does not quantify how much the issue contributes to the difference.
Kentucky has taken a statewide approach. Its Free Child Care for Child Care Workers Program, launched in 2022, subsidizes care for workers employed at least 20 hours a week at a center, regardless of household income. Kate Shanks of the Kentucky Chamber of Commerce said more than 5,300 childcare-worker families benefited over the past year, and lawmakers made the program permanent earlier this year. The Kentucky Chamber says at least nine other states have enacted similar policies.
“As a business owner, I made a decision that my margins will be slimmer than most because I felt like this was the commitment I needed to make.”
— Kate Goodwin, owner of Kate’s Korner
No Statewide NC Plan Announced
The report does not say whether North Carolina lawmakers or state agencies are developing a statewide childcare subsidy for workers. Goodwin supports such a program, but her comments do not indicate that one has been proposed or approved. Details about the Watauga initiative’s future funding, participant selection and longer-term effects on staff retention are also not provided.
The statewide survey’s 61% figure reflects directors who said their programs offered some form of childcare benefit; the report does not break down the benefits’ value, eligibility requirements or how many employees used them. It also does not establish how much these programs change staffing levels or access to care.
Funding and Policy Decisions Ahead
For now, the approaches described are local or center-based: Kate’s Korner covers much of the cost itself, while the Boone-area program uses donations and business support. The report identifies no scheduled decision or next milestone for a North Carolina state program. Whether these efforts continue or expand will depend on funding and decisions by local organizations, employers and policymakers.
Goodwin’s call for a statewide subsidy, and Kentucky’s program, offer policy examples rather than confirmation of a North Carolina proposal. The key questions are whether additional communities will fund assistance, whether the Watauga initiative will receive further support, and whether state officials will consider a broader benefit.
Key Questions
What assistance has childcare staff received in Watauga County?
The Boone Area Chamber of Commerce Foundation initiative used $40,000 in local donations and business funding to assist 18 childcare employees with 22 children. The reported average was $684 per child.
Do North Carolina childcare centers already offer staff childcare benefits?
In a survey of about 1,200 providers, 61% of directors said their programs offered a childcare benefit. The report does not detail how generous or widely used those benefits were.
Has North Carolina approved a statewide childcare subsidy for workers?
The source report does not identify an approved statewide program or a formal proposal. Goodwin expressed support for a state subsidy, but that is not evidence that one is underway.
How does Kentucky’s program work?
Kentucky’s program, launched in 2022, subsidizes care for childcare workers employed at least 20 hours weekly at a center, regardless of household income. The Kentucky Chamber said more than 5,300 families benefited over the past year and that lawmakers made the program permanent earlier this year.
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