July 2020 - Quarterly Highlights
COVID-19 has upended Preschools and child care programs everywhere. Virtually all are struggling to stay in the black
under new mandatory health and safety requirements. When temporary State help ends, many programs may not be able to remain in business.
Most Montgomery County programs are open. But even though many families haven’t
yet re-enrolled their child, about 85% of programs are filled to the new, severely reduced capacity and have waiting lists. They can care for only about 50% of the number of children they enrolled prior to the pandemic. Meanwhile, new child-to-adult ratios require a similar number of staff. Costs are up — revenue is down significantly!
In addition, many programs are struggling to keep staff because their employees have health concerns for themselves and their families. If a staff member or child tests positive for COVID-19 — a real threat given the virus’ constant presence — they will have to close the affected classroom, representing another financial loss.
To help programs analyze their business options, we are providing free consulting services from Gail Johnson, a Minority Business Consultant with the Greater Dayton Chamber of Commerce. We also are working with Marcus Goodwin, a Toledo entrepreneur who operates a shared services program to help providers stretch their resources.
It’s impossible to know what the new school year will bring, as more families consider sending their children back to Preschool and child care. We’ll keep you posted. But many in the industry are exceedingly concerned about their viability under the pandemic rules.