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09-04-24 - Economic Vitality Board - Agendas & Packet Materials
A. Call to Order - 6:00 PM B. Disclosures C. Changes to the Agenda D. Public Service Announcements E. Approval of Minutes E.1 Approve the June 6, 2024 Economic Vitality Board Meeting Minutes (DiTommaso) F. Public Comments on Non-agenda Items Falling within the Purview and Jurisdiction of the Board THE ECONOMIC VITALITY BOARD OF BOZEMAN, MONTANA EVB AGENDA Wednesday, September 4, 2024 General information about the Economic Vitality Board is available in our Laserfiche repository. If you are interested in commenting in writing on items on the agenda please send an email to comments@bozeman.net or by visiting the Public Comment Page prior to 12:00pm on the day of the meeting. At the direction of the City Commission, anonymous public comments are not distributed to the Board or staff. Public comments will also be accepted in-person and through Video Conference during the appropriate agenda items. As always, the meeting will be streamed through the Commission's video page and available in the City on cable channel 190. For more information please contact Brit Fontenot, bfontenot@bozeman.net This meeting will be held both in-person and also using an online videoconferencing system. You can join this meeting: Via Video Conference: Click the Register link, enter the required information, and click submit. Click Join Now to enter the meeting. Via Phone: This is for listening only if you cannot watch the stream, channel 190, or attend in- person United States Toll +1 253 205 0468 Access code: 984 4147 6350 Approve the June 6, 2024 Economic Vitality Board meeting minutes. This is the time to comment on any non-agenda matter falling within the scope of the Economic Vitality Board. There will also be time in conjunction with each agenda item for public comment relating to that item but you may only speak once per topic. Please note, the Board cannot take 1 G. FYI/Discussion G.1 Market Report Discussion with Economic and Planning Systems (DiTommaso) G.2 Economic Vitality Board Update on the 2023 Economic Vitality Strategy and the 2 year (2024 - 2025) Work plan.(Fontenot/DiTommaso) H. Adjournment action on any item which does not appear on the agenda. All persons addressing the Board shall speak in a civil and courteous manner and members of the audience shall be respectful of others. Please state your name, and state whether you are a resident of the city or a property owner within the city in an audible tone of voice for the record and limit your comments to three minutes. General public comments to the Board can be found in their Laserfiche repository folder. This board generally meets the first Wednesday of the month from 6:00 pm to 8:00 pm. City Board meetings are open to all members of the public. If you have a disability and require assistance, please contact the Acting ADA Coordinator, Max Ziegler, at 406.582.2439 2 Memorandum REPORT TO:Economic Vitality Board FROM:Jesse DiTommaso, Economic Development Specialist Brit Fontenot, Economic Development Director SUBJECT:Approve the June 6, 2024 Economic Vitality Board Meeting Minutes MEETING DATE:September 4, 2024 AGENDA ITEM TYPE:Minutes RECOMMENDATION:Approve the June 6, 2024 Economic Vitality Board meeting minutes. STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:In accordance with Commission Resolution 5323 and the City of Bozeman's Citizen Advisory Board Manual, all boards must have minutes taken and approved. Prepared minutes will be provided for approval by the board at the next regularly scheduled meeting. Staff will make any corrections identified to the minutes before submitting to the City Clerk's Office. UNRESOLVED ISSUES:None. ALTERNATIVES:As recommended by the Board. FISCAL EFFECTS:None. Attachments: 080724 EVB Minutes.pdf Report compiled on: August 23, 2024 3 Bozeman Economic Vitality Board Meeting Minutes, August 7, 2024 Page 1 of 2 THE CITY COMMMISSION MEETING OF BOZEMAN, MONTANA MINUTES August 7, 2024 General information about the Economic Vitality Board is available in our Laserfiche repository. Present: Katy Osterloth, Danielle Rogers, Craig Ogilvie, Sara Savage, Malory Peterson Absent: John Carey, Mona Schwartz A) 00:10:17 Call to Order - 6:00 PM B) 00:10:57 Disclosures C) 00:11:20 Changes to the Agenda • Chair Osterloth noted Items F1 and F2 will be switched to allow for time for discussion on the Affordable Housing Ordinance. If time does not allow, Item F1 will be discussed in September. D) 00:11:54 Approval of Minutes D.1 00:11:59 Approve the June 6, 2024 Economic Vitality Board Meeting Minutes 060524 EVB Minutes.pdf 00:12:02 Motion Approval of Minutes Sara Savage: Motion Danielle Rogers: 2nd 00:12:06 Vote on the Motion to Approve Minutes. The motion carried 5-0 E) 00:12:28 Public Comments • There were no public comments. F) 00:13:46 FYI/Discussion F.2 00:13:51 Affordable Housing Ordinance (AHO) Work Session • David Fine, Economic Development Manager, provided the presentation and asked the board for observations, questions, comments and recommendations. 00:50:06 Questions from the Board 4 Bozeman Economic Vitality Board Meeting Minutes, August 7, 2024 Page 2 of 2 01:38:55 Public Comment 01:39:03 Alison Sweeny, Public Comment • Alison Sweeny commented on the affordable housing ordinance. 01:43:17 Daniel Carty, Public Comment • Daniel Carty commented on the affordable housing ordinance. 01:46:16 Board Discussion and Recommendations F.1 02:18:21 Economic Vitality Board Update on the 2023 Economic Vitality Strategy and the 2 year (2024 - 2025) Work plan. 2023 Economic Vitality Strategy and 2024-2025 Work Plan FINAL 7-31-24.pdf EV Board 2 year workplan 2024 - 2025 v 2 1-12-23.pdf January 3 March 6 and April 18 2024 EV Board Packet Material.pdf Action Matrix- Bozeman Economic Vitality Strategy.pdf Child Task Force Strategic Plan 2024.pdf 02:18:21 Chair Osterloth noted Item F1 will move to the September meeting. G) 02:18:35 Adjournment 5 Memorandum REPORT TO:Economic Vitality Board FROM:Jesse DiTommaso, Economic Development Specialist Brit Fontenot, Economic Development Director SUBJECT:Market Report Discussion with Economic and Planning Systems MEETING DATE:September 4, 2024 AGENDA ITEM TYPE:Plan/Report/Study RECOMMENDATION:Listen, learn, discuss STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. BACKGROUND:Economic and Planning Systems (EPS), a land economics consulting firm, has created a Market Report for the City of Bozeman since 2022. The report is focused on the housing market, but includes other economic data and trends. Firm principal, Brian Duffany, will discuss the 2024 draft report (attached). UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:None. Attachments: 233073_Bozeman MT_8-8.pdf Report compiled on: August 23, 2024 6 Economic & Planning Systems, Inc. The Economics of Land Use Prepared by:Prepared for: City of Bozeman, MT Economic Development Department Report Bozeman 2024 Economic and Market Update August 2024 EPS #233070 7 ii Bozeman 2024 Economic and Market Update Table of Contents 2 3 4 1 City Snapshot and Summary 1 City Snapshot 1 Economy 7 Economic Trends 7 Wages 10 Economic Drivers 12 Commercial Real Estate 13 Office Market Trends 13 Industrial/Flex Market 17 Retail Market 20 Housing 25 Construction 25 Housing Prices 26 Apartment Market 27 Affordability 30 Housing Demand 32 8 Economic & Planning Systems, Inc iii Table of Contents TablesFiguresTable 1 Population and Housing Units, 2010-2024 2 Table 2 MSU Enrollment, 2001-2023 3 Table 3 Peer City Summary 6 Table 4 Job and Wage Growth, Top Sectors, Gallatin County, 2018-2023 10 Table 5 Changes in Jobs and Wages for Key Sectors, Gallatin County, 2020-2023 10 Table 6 Population 25+ by Educational Attainment, Bozeman, 2023 12 Table 7 Office Summary , 2010-2024 Q2 14 Table 8 Recent Office Development, Bozeman 15 Table 9 Industrial/Flex Summary, 2010-2024 Q2 17 Table 10 Recent Industrial/Flex Projects, Bozeman 18 Table 11 Retail Summary, 2010-2024 Q2 20 Table 12 Recent Retail Projects, Bozeman 21 Table 13 Bozeman Building Permit Unit Trends 25 Table 14 Home Price Trends, 2019-2024 Q2 26 Table 15 Multifamily Summary, 2010-2024 Q2 27 Table 16 Recent Multifamily Development, Bozeman 29 Table 17 Required Annual Income to Afford Median Home Price, 2019-2024 Q2 30 Table 18 Bozeman Housing Demand Projection 32 Table 19 Bozeman Housing Unit Projection 32 Figure 1 Gallatin Valley Region 2 Figure 2 Private Wage and Salary Employment, Bozeman and Gallatin County, 2023 7 Figure 3 Private Employment Growth, Bozeman and Gallatin County, 2018-2023 8 Figure 4 Annual Change in Private Employment, 2018-2023 8 Figure 5 Unemployment Rate, 2010-2024 9 Figure 6 Change in Employment by Wage Quartile, Gallatin County, 2018-2023 11 Figure 7 Office Deliveries, 2010-2024 Q2 14 Figure 8 Industrial Deliveries, 2010-2024 Q2 18 Figure 9 Retail Deliveries, 2010-2024 Q2 21 Figure 10 Multifamily Deliveries, 2010-2024 Q2 28 Figure 11 Income Gap to Afford Median Priced Home, Bozeman, 2019 31 Figure 12 Income Gap to Afford Median Priced Home, Bozeman, 2024 31 9 This report details the economic landscape of Bozeman and Gallatin County, Montana, focusing on key growth trends, commercial real estate development, and housing market dynamics Designed for economic developers, real estate developers, and investors, lenders, and policymakers, the report aims to deliver crucial insights into regional growth patterns, industry-specific economic advancements, wage trends, and housing demand and affordability The purpose is to assist the community in tracking progress, identifying trends, and recognizing potential challenges This 2024 edition is part of an annual series that monitors and updates market conditions within the City and County City Snapshot Bozeman, home to 60,425 residents (Table 1), is located in Gallatin County (pop 132,441) Bozeman is notable for its diverse economy, highly educated workforce, and exceptional quality of life; a unique blend rarely found in small cities Montana State University (MSU) is an anchor in the community and a strong research institution with nearly 17,000 enrolled students and 3,600 faculty and staff The area has excellent access to year-round outdoor recreation activities and uncrowded spaces The combination of these factors has supported strong job and wage growth and a related demand for more housing One of the most pressing issues for the City and greater Bozeman area, is increasing the housing supply, as the median home price is currently $784,500 up from $770,000 in 2024 Bozeman is one of the fastest growing cities in the U S , adding an estimated 24,000 residents since 2010 or an average of 1,713 residents per year This translates to a 3 7 percent growth rate, well above the statewide average of 1 0 percent 1. City Snapshot and Summary Economic & Planning Systems, Inc 1 10 Table 1. Population and Housing Units, 2010-2024 2010-2023 Description 2010 2015 2020 2023 Total Ann. #Ann. % Population Bozeman 36,440 40,319 53,293 60,425 23,985 1,713 3.7% Belgrade 7,281 7,738 10,460 12,060 4,779 341 3.7% Manhattan 1,396 1,191 2,086 2,243 847 61 3.4% Other/Uninc.44,541 51,491 53,121 57,713 13,172 941 1.9% Gallatin County 89,658 100,739 118,960 132,441 42,783 3,056 2.8% Bozeman % of County Pop.40.6%40.0%44.8%45.6%56.1% Housing Units Bozeman 16,761 18,293 23,535 27,130 10,369 741 3.5% Belgrade 3,154 3,308 4,339 5,029 1,875 134 3.4% Manhattan 574 653 872 924 350 25 3.5% Other/Uninc.20,841 23,715 24,089 25,893 5,052 361 1.6% Gallatin County 41,330 45,969 52,835 58,976 17,646 1,260 2.6% Bozeman % of County (HU)40.6%39.8%44.5%46%58.8% Source: US Census; ESRI Business Analyst; Economic & Planning Systems The majority of County residents live in an area along the I-90 corridor including and surrounding Bozeman known as Gallatin Valley, also includes Manhattan, Belgrade, and the Four Corners and Gallatin Gateway portions of unincorporated Gallatin County The most urbanized area of the County is the “Triangle” area that includes Belgrade, Bozeman, and Four Corners (Figure 1) Figure 1. Gallatin Valley Region 2 Bozeman 2024 Economic and Market Update 11 The Bozeman economy has eight key segments that distinguish it from other midsized cities and recreation or resort-oriented mountain communities •Higher Education – In 2023, Montana State University (MSU) had 16,978 students enrolled and roughly 3,600 faculty and staff MSU is one of 131 R1 research institutions with “very high research activity” within the Carnegie Classification of Institutions of Higher Education (Indiana University) Table 2. MSU Enrollment, 2001-2023 2001-2023 Enrollment Trends 2001 2010 2015 2023 Total Ann. % Undergraduate 10,538 11, 579 13,707 14,885 4,347 1.6% Graduate 1,208 1,986 1,981 2,093 885 2.5% Total 11,746 13,565 15,688 16,978 5,232 1.7% Source: Montana State University; Economic & Planning Systems •Tourism and Recreation – Bozeman serves as a “gateway community” to some of the finest outdoor recreation spots in the world, including the Bridger Bowl and Big Sky ski areas, pristine rivers and streams, and the iconic Yellowstone and Glacier National Parks The Bozeman Yellowstone International Airport (BZN) plays a crucial role, having handled over 2 5 million passengers in 2023 Yellowstone National Park alone attracted 4 5 million visitors that year, marking the second-highest attendance on record Many of these travelers pass through BZN and Bozeman on route to Yellowstone, cementing the area’s status as an international destination During peak seasons, the streets and restaurants of Bozeman become a vibrant mosaic of cultures, with numerous foreign languages echoing through the air •Health Care – Bozeman Health is a key healthcare hub in Southwest Montana, employing approximately 2,400 people The recent redevelopment of the Gallatin Valley Mall into the Gallatin Crossing campus has added new medical facilities, including Intermountain Health and Ortho Montana This state-of-the-art facility spans over 45,000 square feet and houses a team of 17 surgeons Additionally, there are numerous other clinics and medical offices both surrounding the hospital and scattered throughout Bozeman •Technology – Bozeman is a hub for technology and research and development companies that have both started in or moved to Montana Major employers range from companies focusing on software development to photonics R&D and manufacturing Photonics and optical technology are an important technological cluster, as are technology firms such as Oracle, Workiva, Aurora, Hyundai, Zoot Enterprises, and numerous startups The new MonArk Quantum Foundry, a partnership between MSU and the University of Arkansas, is advancing quantum technologies (using the quantum states of subatomic particles in computing) It is funded with more than $20 million in grants through a program designed to make the United States a leader in the next quantum revolution as part of the National Science Foundation’s “10 Big Ideas ” •Manufacturing – There are numerous manufacturing firms in Greater Bozeman ranging from outdoor companies (Simms Fishing, Mystery Ranch) to optical technology, materials science, electronics, and aerospace, and even a Gibson Guitar factory Economic & Planning Systems, Inc 3 12 •Retail and Hospitality – Bozeman retailers serve at least a 50-mile trade area, making it the premier retail, services, and health care hub in Southwest Montana Downtown Bozeman is a vibrant main street with independent shops, restaurants, and breweries serving locals and visitors •Creative Arts – The City has many businesses that provide goods and services based on intellectual property and individual creativity These businesses include publishing, film, TV, media, design, technology, performing arts, and museums and galleries •Montana State University Innovation Campus – The MSUIC hosts the only SCIF (Secure Compartmental Information Facility) in the State of Montana and facilitates classified research for both government agencies and the private sector Bozeman Yellowstone International Airport In 2023, Bozeman Yellowstone International Airport (BZN) handled a record-breaking 2,464,325 passengers, marking an 8 8% increase from the previous year’s record of 2,264,424 BZN served as the choice for an estimated 43% of air travelers to or out of Montana in 2023, solidifying its position as a crucial transportation hub in the state BZN also plays a significant role in supporting the region’s tourism and recreation economy, providing services to various guide companies and the Big Sky and Bridger Bowl ski areas Additionally, BZN offers direct flights to numerous metropolitan destinations 4 Bozeman 2024 Economic and Market Update 13 Comparison Cities The presence of a major university, close proximity to outdoor recreation, significant population growth in recent years, and a high quality of life make Bozeman comparable to several other western cities, such as Missoula, MT; Fort Collins, CO; Boulder, CO; Bend, OR and Billings, MT (Table 3) While the median ages in these cities are relatively young, a trend consistent with the presence of major universities, Bozeman has the lowest median age, at 29 Despite this, household incomes in Bozeman remain high and are comparable to those in other cities Bozeman’s median household income is currently $74,113, which is higher than in Billings and Missoula but lower than in Bend, Fort Collins, and Boulder When examining only incomes of homeowners, and removing those of renters which presumably eliminates most of the student population, Bozeman’s household income rises to $104,824 This is higher than in Billings, Missoula and Bend, but still below incomes in Fort Collins and Boulder; this is expected given the high cost of living in Colorado In each community, the number of students as a percentage of population is significant In Bozeman, students equate to an estimated 28 1 percent of the population similar to Boulder In Fort Collins, the largest of the comparison cities, the student population equates to about 19 5 percent of the population The large student population has an impact on the rental housing supply and Bozeman is interested in additional multifamily and student housing Economic & Planning Systems, Inc 5 14 Table 3. Peer City Summary Description Bozeman, MT Billings, MT Missoula, MT Fort Collins, CO Boulder, CO Bend, OR Demographics Population 60,425 122,177 77,256 172,581 107,656 108,598 Median Age 29 39 36 33 31 40 % Renter Households 51.7%35.2%49.6%46.3%51.2%35.0% Median Household Income Owner $104,824 $86,396 $93,281 $119,910 $141,693 $104,026 Renter $56,715 $43,396 $42,479 $52,473 $45,189 $61,203 All Households $74,113 $69,692 $59,783 $78,977 $80,243 $82,671 Employment1 # of Jobs (2023)61,935 77,621 55,049 136,098 165,027 81,940 Top 3 Sectors #1 Hotel/ Restaurant Health Care Health Care Retail Prof. and Tech. Svcs.Health Care #2 Retail Wholesale Trade Retail Hotel/ Restaurant Health Care Retail #3 Construction Hotel/ Restaurant Hotel/ Restaurant Health Care Manufacturing Hotel/ Restaurant Top 3 Growth Sectors (‘18-’23) #1 Hotel/ Restaurant Hotel/ Restaurant Prof. and Tech. Svcs. Prof. and Tech. Svcs. Prof. and Tech. Svcs.Health Care #2 Health Care Health Care Health Care Health Care Manufacturing Prof. and Tech. Svcs. #3 Construction Construction Construction Wholesale Trade Wholesale Trade Construction Higher Education Major Colleges/Universities Montana State University Montana State University Billings University of Montana Colorado State University University of Colorado Oregon State University- Cascades Enrollment (Fall 2023)16,976 4,092 9,995 33,648 37,153 1,313 % of Total Population 28.1%3.3%12.9%19.5%34.5%1.2% Source: U.S. Census ACS 2022 5-year, QCEW, Economic & Planning Systems 1 Employment data is at the county level 6 Bozeman 2024 Economic and Market Update 15 Economic Trends Bozeman and Gallatin County have a diverse economy driven by key segments that distinguish it from other midsize cities While retail trade and hotels and restaurants are large sectors, Bozeman and Gallatin County also have significant numbers of jobs in construction, health care, professional and technical services, manufacturing, finance and insurance, and business services (admin /waste mgt services) (Figure 2) The largest employers in Bozeman, include Montana State University and Bozeman Health Deaconess Regional Medical Center Per the Bureau of Economic Analysis (BEA), there were approximately 73,303 private wage and salary jobs in the County and at least 105,000 total jobs including proprietors and government (including MSU), in 2022 Over half of the jobs in the County are within the City of Bozeman A key industry cluster in Bozeman is photonics with over 1,000 workers spanning multiple industries (approximately 0 3 percent of the U S photonics industry1) 1 https://www.montanaphotonics.org/ Figure 2. Private Wage and Salary Employment, Bozeman and Gallatin County, 2023 10,380 9,338 7,436 7,261 5,479 3,731 2,718 2,711 2,304 2,095 1,928 1,769 1,412 977 913 776 296 208 118 85 5,720 6,329 2,437 5,953 3,144 1,662 1,106 1,723 755 901 1,259 484 504 508 116 472 257 0 2,000 4,000 6,000 8,000 10,000 Hotel/ Restaurant Retail Construction Health Care Prof. & Tech. Services Manufacturing Admin/ Waste Mgmt Other Wholesale Trade Arts/ Rec Finance Real Estate Transportation Education Ag./ Forest/ Hunting Information Management Mining/ Oil Utilities Unclassified Total Jobs Private Wage and Salary Employment, Bozeman and Gallatin County, 2023 Gallatin Bozeman Source: Montana DLI, BLS QCEW, Economic& Planning Systems Z:\Shared\Projects\DEN\233070 Bozeman 2023 Market Update\Data\[233070 -Employment.xlsx]C -Emp 2. Economy Economic & Planning Systems, Inc 7 16 Between 2018 and 2023, Gallatin County added 11,741 private wage and salary jobs (4 3 percent per year), with Bozeman capturing approximately 42 percent of the growth Employment growth in the county was driven by the following industries: Hotels & Restaurants, Construction, Health Care, and Retail (Figure 3) Within Bozeman, the job sectors that have added the most jobs since 2018 are Retail, Health Care, and Hotel & Restaurants Figure 3. Private Employment Growth, Bozeman and Gallatin County, 2018-2023 2473 1599 1312 1200 1057 662 586 560 455 397 359 327 218 182 105 72 69 65 31 12 928 689 917 647 668 267 -57 212 -45 174 60 275 151 21 -27 7 46 -200 300 800 1300 1800 2300 2800 Hotel/ Restaurant Construction Health Care Retail Prof. & Tech. Services Arts/ Rec Real Estate Admin/ Waste Mgmt Wholesale Trade Finance Ag./ Forest/ Hunting Other Manufacturing Education Transportation Unclassified Information Management Mining/ Oil Utilities Total Jobs Private Employment Growth, Bozeman and Gallatin County, 2018 -2023 Gallatin Bozeman Source: Montana DLI, BLS QCEW, Economic& Planning Systems Z:\Shared\Projects\DEN\233070 Bozeman 2023 Market Update\Data\[233070 -Employment.xlsx]C -Emp Growth Bozeman and Gallatin County experienced only minor job impacts from the COVID-19 pandemic From 2019-2020, the data recorded a small increase in jobs in the County as a whole, and a loss of 1,460 jobs in Bozeman There has been a strong recovery since the Pandemic and since 2021, Gallatin County has added roughly 11,200 jobs, 47 3 percent of which were located in Bozeman Figure 4. Annual Change in Private Employment, 2018-2023 -2,000 -1,000 0 1,000 2,000 3,000 4,000 5,000 2018-19 2019-20 2020-21 2021-22 2022-23 Change inEmployment Annual Change in Private Employment, 2018-2023 Gallatin Bozeman Source: QCEW, Montana DLI, Economic& Planning Systems Z:\Shared\Projects\DEN\233070 Bozeman 2023 Market Update\Data\[233070 -Employment.xlsx]C-Yearly Emp Growth 8 Bozeman 2024 Economic and Market Update 17 Unemployment rates in Bozeman and Gallatin County have steadily decreased since 2010, with a notable spike in 2020 due to COVID-19 (Figure 5) Since then, the rates have rebounded, with current figures at 2 3 percent for Gallatin County and 2 2 percent for Bozeman Although these rates have risen from the historical lows of 1 9 percent in the County and 1 8 percent in Bozeman in 2022, this modest increase is beneficial Extremely low unemployment can lead to adverse effects such as inflation, labor shortages, and decreased productivity Figure 5. Unemployment Rate, 2010-2024 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD Unemployment Rate Unemployment Rate, 2010-2024 Montana Gallatin Bozeman Source: BLS,LAUS,Economic& Planning Systems Z:\Shared\Projects\DEN\233070 Bozeman 2023 Market Update\Data\[233070 -Employment.xlsx]C-Unemployment Rate GALLATIN COUNTY TOP PRIVATE EMPLOYERS, 2023 DESCRIPTION INDUSTRY/ EMPLOYMENT TYPE NUMBER OF EMPLOYEES Bozeman Deaconess Hospital Health Care 1,000 and over Big Sky Resort Ski Resort 500 to 999 Town & Country Foods Retail Trade 500 to 999 Bozeman Health Medical Group Health Care 250 to 499 Bridger Bowl Ski Resort 250 to 499 Costco Retail Trade 250 to 499 Kenyon Noble Lumber & Hardware Retail Trade 250 to 499 Lone Mountain Land Company Construction 250 to 499 Montage Big Sky Hotel/ Restaurant 250 to 499 Oracle America Technology 250 to 499 Ressler Motors Retail Trade 250 to 499 Town Pump Retail Trade 250 to 499 Wal Mart Retail Trade 250 to 499 Albertsons Retail Trade 100 to 249 Community Food Co-Op Retail Trade 100 to 249 Gibson Brands Manufacturing 100 to 249 Glacier Bancorp Finance/ Insurance 100 to 249 McDonalds Restaurant 100 to 249 Murdoch's Ranch & Home Supply Retail Trade 100 to 249 Williams Plumbing & Heating Construction 100 to 249 Zoot Enterprises Technology 100 to 249 Source: Montana Department of Labor and Employment, Economic & Planning Systems Economic & Planning Systems, Inc 9 18 Wages The region continues to experience strong wage growth Average annual wages in Gallatin County increased at a rate of 7 5 percent per year between 2018 and 2023 (Table 4) The fastest growing sectors in Gallatin County are Hospitality (including hotels and restaurants), Construction, and Healthcare Since 2018, Hotels & Restaurants have expanded significantly, adding 2,473 jobs In 2023, the average annual wage in this sector reached $33,619, marking a 9 3 percent increase in the past five years Construction also saw substantial growth, with 1,599 new jobs and an average wage of $74,839, an increase of 6 4 percent over the same period Meanwhile, the Healthcare sector added 1,312 jobs, with an average wage of $62,386, reflecting a 5 0 percent increase since 2018 These trends highlight the dynamic economic development in Gallatin County, driven by increased demand for services and infrastructure as the area continues to grow and attract new residents The rising wages in these sectors not only indicate economic vitality but also suggest a positive outlook for future employment opportunities in the region Table 4. Job and Wage Growth, Top Sectors, Gallatin County, 2018-2023 2018-2023 Job Growth 2018 Avg. Wage 2023 Avg. Wage Annual Wage Growth Description All Jobs/Sectors 11,749 $43,572 $62,429 7.5% Hotel/ Restaurant 2,473 $21,522 $33,619 9.3% Construction 1,599 $54,990 $74,839 6.4% Health Care 1,312 $48,894 $62,386 5.0% Retail 1,200 $32,698 $45,997 7.1% Prof. & Tech. Services 1,057 $72,413 $115,317 9.8% Arts/ Recreation 662 $24,484 $32,536 5.9% Source: Bureau of Labor Statistics QCEW; Economic & Planning Systems Table 5. Changes in Jobs and Wages for Key Sectors, Gallatin County, 2020-2023 Employment 2020-2021 Wage Employment 2021-2022 Wage Employment 2022-2023 WagesDescription Actual Change All Jobs/ Sectors 4,730 $3,701 3,079 $3,844 3,453 $3,783 Hotel/ Restaurant 1,328 $3,868 686 $2,331 1,455 $3,091 Construction 382 $5,287 173 $6,492 480 $3,137 Health Care 561 -$1,918 347 $6,528 360 $1,714 Retail 624 $3,247 287 $3,282 237 $1,480 Prof. & Tech. Services 281 $770 163 $9,363 207 $17,777 Arts/ Recreation 190 $1,616 215 $2,481 233 -$112 Percentage Change All Jobs/ Sectors 9.3%7.2%5.6%7.0%5.9%6.5% Hotel/ Restaurant 19.2%15.9%8.3%8.3%16.3%10.1% Construction 6.0%8.8%2.6%10.0%6.9%4.4% Health Care 9.4%-3.4%5.3%12.1%5.2%2.8% Retail 7.6%8.5%3.3%8.0%2.6%3.3% Prof. & Tech. Services 5.8%0.9%3.2%10.6%3.9%18.2% Arts/ Recreation 13.0%5.7%13.1%8.2%12.5%-0.3% Source: Bureau of Labor Statistics QCEW; Economic & Planning Systems 10 Bozeman 2024 Economic and Market Update 19 Given that Hotels & Restaurants is the fastest-growing job sector in Gallatin County, it is expected that the first wage quartile (the lowest 25 percent of earners) would see substantial growth Of the 11,741 jobs added between 2018 and 2023, 4,844, or 41 percent, were in this quartile, with annual wages at or below approximately $52,000, equivalent to $25 per hour (Figure 6) The second quartile, representing the next 25 percent of wage earners with annual salaries between $53,000 and $65,000, accounts for 22 percent of the jobs added This wage bracket typically includes positions in Manufacturing, Administrative Services, Healthcare or Social Services, and Agriculture The third quartile, covering the 50th to 75th percentile with salaries ranging from $65,000 to $91,000, contributed 24 percent of the new jobs, with roles in sectors such as Mining, Management, Construction, and Real Estate The fourth quartile, which includes the highest wage earners earning over $91,000 annually, added the fewest jobs, comprising 13 percent of the total This quartile typically includes positions in Information Technology, Professional and Technical Services, Utilities, and Finance Figure 6. Change in Employment by Wage Quartile, Gallatin County, 2018-2023 41% 4,844 22%2,559 24%2,777 13% 1,569 0 1,000 2,000 3,000 4,000 5,000 0-25% ($0-$52,461)25-50% ($52,461-$64,560)50-75% ($64,560-$90,862)75-100% ($90,852-$130,882) Change in Employment Change in Employment by Wage Quartile in Gallatin County, 2018 -2023 Source: BLS QCEW, Economic & Planning Systems Z:\Shared\Projects\DEN\233070 Bozeman 2023 Market Update\Data\[233070 -Employment.xlsx]C-Wage Quartiles GC Economic & Planning Systems, Inc 11 20 Economic Drivers The regional workforce is highly skilled and well educated Approximately 63 3 percent of Bozeman’s workforce has a bachelor’s degree or higher (Table 6) Of its peer cities, only Boulder, CO exceeds Bozeman in this ranking, with 79 2 percent of its population having a bachelor’s degree or higher The presence of MSU and the high concentration of professional and high skill jobs—such as technology and health care—are drivers of the highly educated local workforce Places with a high quality of life are also able to attract skilled labor as highly educated skilled workers have more choices and flexibility in where they choose to work and live Table 6. Population 25+ by Educational Attainment, Bozeman, 2023 Education Level Bozeman Billings Boulder Bend Fort Collins Missoula Population 25+37,126 85,044 66,313 78,297 112,463 53,942 High School or Less, No Diploma 2.3%4.3%2.4%3.7%2.7%3.7% High School Graduate or Equivalent 12.9%28.9%5.7%16.1%13.9%18.4% Some College, No Degree 15.1%20.3%8.4%19.4%14.1%18.5% Associate's Degree 6.4%8.5%4.3%10.7%8.7%8.7% Bachelor's Degree 39.5%26.2%39.4%30.0%36.1%32.0% Graduate/ Professional Degree 23.8%11.7%39.8%20.1%24.6%18.8% Total 100%100%100%100%100%100% Bachelor’s Degree or Higher 63.3%37.9%79.2%50.1%60.7%50.7% Source: U.S. Census; ESRI Business Analyst; Economic & Planning Systems 12 Bozeman 2024 Economic and Market Update 21 This chapter provides an overview of the commercial real estate trends and conditions in Bozeman and Gallatin County This analysis includes a summary of the total inventory, rental rates, vacancy rates, and deliveries Commercial real estate data comes from CoStar, a subscription real estate database and market information service In Montana, a nondisclosure state, CoStar relies more heavily on broker-reported data and local surveys as opposed to public records As a result, they frequently update their information, and historical data may change as more detailed information becomes available Office Market Trends From 2010 to the second quarter of 2024, Gallatin County’s total office space grew by approximately 1 03 million square feet, averaging roughly 76,000 square feet annually This growth trend has continued recently, with an estimated 184,000 square feet added from 2020 Net inventory growth is calculated by subtracting demolitions or conversions from new construction (Table 7) Bozeman is the central hub for office space with Gallatin County, holding 80 3 percent of the entire county’s current office inventory Since 2010 Bozeman has captured 74 4 percent of new office construction in Gallatin County, and 88 1 percent of the new office construction in the county since 2020 Average office lease rates in Bozeman have more than doubled since 2010, rising from $11 71 to $26 25 per square foot, reflecting a 6 2 percent annual increase Over the past decade, office vacancy rates in Gallatin County and Bozeman have consistently stayed below 4 0 percent Currently, vacancy rates are 3 2 percent in Bozeman and 3 0 percent in Gallatin County This combination of rising lease rates and low vacancy rates underscores the strong demand for office space in the area, indicating a thriving and expanding commercial real estate market Data on office construction, or “deliveries,” can offer more detailed insights into market activity From 2010 to Q2 2024, 74 0 percent of all new office space in Gallatin County was delivered within Bozeman’s city limits Since 2020, this figure has risen to 84 2 percent (Figure 7) This concentration of new office development highlights Bozeman’s growing role as the primary center for office space in the county, reflecting its increasing economic vitality and appeal to businesses 3. Commercial Real Estate Economic & Planning Systems, Inc 13 22 Table 7. Office Summary , 2010-2024 Q2 Description 2010 2015 2020 2024 Q2 Inventory Bozeman 2,434,168 2,521,758 3,038,994 3,201,088 Gallatin County 2,955,324 3,110,334 3,801,987 3,986,069 Bozeman as Pct. of County 82.4%81.1%79.9%80.3% Avg. Rent Bozeman $11.71 $15.25 $21.61 $26.25 Gallatin County $11.78 $14.72 $20.98 $25.69 Avg. Vacancy Bozeman 3.0%3.8%2.7%3.2% Gallatin County 2.8%3.2%2.4%3.0% Figure 7. Office Deliveries, 2010-2024 Q2 0 50,000 100,000 150,000 200,000 250,000 300,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 sq. ft. Office Deliveries, 2010 -Q2 2024 Bozeman Rest of Gallatin County Source: Costar; Economic& Planning Systems [link to source][link to source][link to source][link to source][link to source][link to source] Change 2010-2024 Q2 Change 2020-2024 Q2 Description Total Ann. #Ann. %Total Ann. #Ann. % Inventory Bozeman 766,920 56,809 2.0%162,094 46,313 1.5% Gallatin County 1,030,745 76,351 2.2%184,082 52,595 1.4% Pct. of County 74.4%88.1% Avg. Rent Bozeman $14.55 $1.08 6.2%$4.64 $1.33 5.7% Gallatin County $13.91 $1.03 5.9%$4.71 $1.35 6.0% Source: CoStar; Economic & Planning Systems 14 Bozeman 2024 Economic and Market Update 23 Some notable office and office/mixed use projects built since 2022 are listed below (Table 8) These newer buildings have higher rents averaging almost $32 per square foot, which is higher than the market average of $26 per square foot Table 8. Recent Office Development, Bozeman Description Address Year Built RBA Avg Rent per sq. ft. Notable Deliveries Aspen Crossing 505 W Aspen St 2022 64,000 --- DA Davidson, VA Clinic 1101 E Main St 2022 33,213 $30.00 Security Title Building 1160 29 2022 12,000 $31.00 155 Mill Town Loop Unit A 155 Mill Town Loop Unit A 2022 1,390 $29.46 The Oz 2952 Technology Blvd W 2023 15,610 $32.60 1450 Twin Lakes Ave - Building I 1450 Twin Lakes Ave 2023 24,000 $40.59 4351 Fallon St 4351 Fallon St 2024 6,000 $27.00 Total/Average 156,213 $31.77 Source: CoStar; Economic & Planning Systems Other notable and proposed office and mixed-use developments are listed and described below The BG Mill Project – Situated at the site of the former grain mill in downtown Bozeman, occupies the corner of Mendenhall and Wallace at 714 E Mendenhall Approved by the City, this development will feature a 5-story mixed- use building comprising 19 condos, along with office and commercial spaces Although construction has not yet started, the condos are already on the market, with prices starting at just over $2 million Photo Courtesy: Bozeman Real Estate Group Economic & Planning Systems, Inc 15 24 Mendenhall Flats – A new six-story building has been approved at 240 East Mendenhall, replacing the current parking lot situated behind the Pour House and Bar IX, between Bozeman and Rouse Avenue This mixed-use structure will offer 47,000 square feet of space, encompassing commercial, office, and residential areas, and include underground parking The residential component will feature 13 condos, each with two to three bedrooms and balconies Mountain View – Located at the intersection of N Tracy and W Lamme Street, in the North Central Development area of Downtown Bozeman, Mountain View will feature up to 100,000 square feet of new Class A office space and 15,000 square feet of ground-floor retail Additionally, the upper floors will have 30 residential, for sale units, including a mix of 1- and 2-bedroom condos Photo Courtesy: CoStar Photo Courtesy: CoStar 16 Bozeman 2024 Economic and Market Update 25 Industrial/Flex Market Between 2010 and Q2 2024, industrial space in Gallatin County grew by roughly 970,000 square feet, averaging 72,000 square feet per year (Table 9) Bozeman contributed only 3 3 percent of this growth, with industrial expansion there slowing significantly Since 2020, Bozeman has added roughly 4,280 square feet of new industrial or flex space, averaging about 1,200 square feet per year In contrast, the rest of the county added 333,500 square feet during the same period, with Bozeman’s market share of this growth at just 1 3 percent Lower land costs outside Bozeman, particularly in Four Corners and Belgrade, are driving industrial growth in these areas Nevertheless, Bozeman remains a key location for higher-value industrial uses and flex/R&D space due to its strategic location and robust infrastructure Since 2010, Gallatin County’s rental rates have risen by 4 6% annually, while Bozeman’s rates have declined by 1 3% per year As of Q2 2024, CoStar reports industrial rents in Bozeman at $9 00 per square foot, compared to $13 18 in the rest of the county Despite these differences, both Bozeman and the county have maintained low vacancy rates, currently 0 9% in Bozeman and 2 3% in the county, suggesting demand for more industrial and flex space Table 9. Industrial/Flex Summary, 2010-2024 Q2 Description 2010 2015 2020 2024 Q2 Inventory Bozeman 967,192 985,102 995,386 999,666 Gallatin County 3,395,253 3,488,154 4,031,339 4,364,839 Bozeman as Pct. of County 28.5%28.2%24.7%22.9% Avg. Rent Bozeman $10.67 $10.15 $17.44 $9.00 Gallatin County $7.20 $6.59 $12.73 $13.18 Avg. Vacancy Bozeman 1.2%2.9%2.0%0.9% Gallatin County 2.6%2.9%1.4%2.3% Change 2010-2024 Q2 Change 2020-2024 Q2 Description Total Ann. #Ann. %Total Ann. #Ann. % Inventory Bozeman 32,474 2,405 0.2%4,280 1,223 0.1% Gallatin County 969,586 71,821 1.9%333,500 95,286 2.3% Pct. of County 3.3%1.3% Avg. Rent Bozeman -$1.67 -$0.12 -1.3%-$8.44 -$2.41 -17.2% Gallatin County $5.98 $0.44 4.6%$0.45 $0.13 1.0% Source: CoStar; Economic & Planning Systems Economic & Planning Systems, Inc 17 26 In Gallatin County, 804,315 square feet of industrial space were delivered since 2010 (Figure 8) Of these deliveries, 7 1 percent were built in Bozeman Figure 8. Industrial Deliveries, 2010-2024 Q2 0 50,000 100,000 150,000 200,000 250,000 300,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 sq. ft. Industrial Deliveries, 2010 -2024 Q2 Bozeman Rest of Gallatin County Source: Costar; Economic& Planning Systems [link to source] Source: CoStar; Economic& Planning Systems [link to source] Source: CoStar; Economic& Planning Systems [link to source] Source: Costar; Economic& Planning Systems [link to source] Source: CoStar; Economic& Planning Systems [link to source] Source: CoStar; Economic& Planning Systems [link to source] Source: Costar; Economic& Planning Systems [link to source] Source: CoStar; Economic& Planning Systems [link to source] Source: CoStar; Economic& Planning Systems [link to source] Source: Costar; Economic& Planning Systems [link to source] Source: CoStar; Economic& Planning Systems [link to source] Source: CoStar; Economic& Planning Systems [link to source] The majority of recent industrial and flex construction in the area has been outside the city in the Four Corners area of Gallatin County (Table 10) Table 10. Recent Industrial/Flex Projects, Bozeman Description Address Year Built RBA Avg Rent per sq. ft. Notable Deliveries BZ Materials 125-127 Ginger Bear Ln 2022 6,109 $6.64 Revive Salon, Aurore Bakery, Hybrid Motion, LLC 141 Baxter Lane West 2023 34,000 $6.24 Swiss Plaza Condo 2994-3016 N 27th Ave 2023 2,494 $5.78 7401 Shedhorn Flex/Warehousing 7401 Shedhorn Dr 2024 18,830 $18.00 Total 61,433 $9.17 Source: CoStar; Economic & Planning Systems 18 Bozeman 2024 Economic and Market Update 27 Notable Projects North Loop Industrial Park – A 250-acre area in north Bozeman, located east of I-90 and west of Frontage Road, is undergoing significant development The Phase I infrastructure is now complete, with three parcels officially closed These parcels will house a large-scale building supply company and a Wyndham ECHO economy extended- stay hotel Additional planned uses include a 520-unit workforce housing community, a 150,000-square-foot modular manufacturing facility, and three Class A industrial warehouse/distribution buildings totaling 287,000 square feet Phase II consists of three tracts totaling 36 11 acres, zoned for rail-served industrial use Nelson Meadows Business Park – This master planned commercial subdivision located in northwest Bozeman, at the corner of Nelson Road and Frontage Road, is currently under construction The site is comprised of 27 building lots that vary in size from 0 7 acres to 5 27 acres This prime location for businesses will connect Bozeman to Yellowstone International Airport, offering unparalleled visibility from I-90 and Frontage Road, just west of the 19th Ave interchange, and will be serviced by city utilities Economic & Planning Systems, Inc 19 28 Retail Market Bozeman is the regional trade hub for Gallatin County and serves a roughly 50-mile radius Gallatin County has an estimated 6 5 million square feet of retail inventory, 71 8 percent or 4 67 million square feet of which is located within Bozeman (Table 11) Average retail rents are similar in both the City and County at approximately $19 59 per square foot, and $20 67 per square foot respectively Retail rents grew slowly at about 2 6 percent per year in Gallatin County, and by only 0 8 percent per year in Bozeman from 2010 to present day Vacancy rates for retail space in Bozeman and Gallatin County have been notably low since 2010 and are currently 1 9 and 1 5 percent respectively Table 11. Retail Summary, 2010-2024 Q2 Description 2010 2015 2022 2023 2024 Q2 Inventory Bozeman 4,231,243 4,447,422 4,643,626 4,665,626 4,665,626 Gallatin County 5,841,515 6,158,523 6,416,848 6,502,103 6,502,103 Bozeman as Pct. of County 72.4%72.2%72.4%71.8%71.8% Avg. Rent Bozeman $17.57 $10.05 $21.32 $20.01 $19.59 Gallatin County $14.63 $10.03 $21.23 $19.83 $20.67 Avg. Vacancy Bozeman 1.8%4.2%1.5%1.3%1.9% Gallatin County 2.0%4.2%1.2%1.1%1.5% Change 2010-2024 Q2 Change 2020-2024 Q2 Description Total Ann. #Ann. %Total Ann. #Ann. % Inventory Bozeman 434,383 32,177 0.7%124,718 35,634 0.8% Gallatin County 660,588 48,932 0.8%187,973 53,707 0.8% Pct. of County 65.8%66.3% Avg. Rent Bozeman $2.03 $0.15 0.8%-$0.75 -$0.22 -1.1% Gallatin County $6.04 $0.45 2.6%$0.45 $0.13 0.6% Source: CoStar; Economic & Planning Systems 20 Bozeman 2024 Economic and Market Update 29 Between 2010 and Q2 2024, Bozeman delivered roughly 631,000 square feet of retail space (Figure 9) or 52,578 square feet per year Just over 200,000 square feet of this was in 2011 when two large car dealerships were built on S Cottonwood Bozeman continues to have 79 percent market share in new retail construction Recent new retail projects include the first Whole Foods and a new WinCo Foods supermarket Figure 9. Retail Deliveries, 2010-2024 Q2 0 50,000 100,000 150,000 200,000 250,000 300,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 sq. ft. Retail Deliveries, 2010-2024 Q2 Bozeman Rest of Gallatin County Source: Costar; Economic& Planning Systems [link to source][link to source][link to source][link to source][link to source][link to source] Table 12. Recent Retail Projects, Bozeman Description Address Year Built RBA Avg Rent per sq. ft. Notable Deliveries WinCo Foods 2913 Max Ave 2021 75,000 --- 7401 Shedhorn Flex/Warehousing 2905 W Main St 2022 31,718 $24.36 Total/Average 106,718 $24.36 Source: CoStar; Economic & Planning Systems Economic & Planning Systems, Inc 21 30 Bozeman’s retail inventory is comprised of a wide variety of national grocery chains, big box retailers, and smaller local stores There are 10 full-service supermarkets in Bozeman (including the Walmart Supercenter) plus several smaller specialty food stores and independent grocers such as the Community Food Co-op Bozeman also has several national general merchandise and home improvement anchor retailers including Costco, Target, Home Depot, Lowes, Kohls, and Macy’s BOZEMAN RETAIL INVENTORY DESCRIPTION STORE TYPE AVG. SQ.FT. DESCRIPTION STORE TYPE AVG. SQ.FT. Supermarkets and Grocery Stores Shoppers’ Goods Walmart 200,550 Costco 114,512 Target 107,694 Kohl's 57,045 WinCo Foods 75,000 Macy's 51,828 Rosauers Food & Drug Center 60,045 Sportsman's Warehouse 44,018 Safeway 56,117 Hobby Lobby 41,796 Smith's 55,000 Bob Ward's Sports & Outdoors 30,495 Albertsons 53,746 Ross Dress For Less 30,130 Whole Foods Market 31,718 REI 25,177 Heebs Fresh Market 26,449 Barnes & Noble 25,000 Town and Country Foods 20,404 Joann 25,000 Building Material and Garden Staples 22,194 Lowe’s 99,440 T.J. Maxx 21,064 The Home Depot 95,337 Michaels 20,372 Murdoch's Ranch & Home Supply 48,904 Universal Athletic 20,000 Ashley HomeStore 30,800 Bed Bath & Beyond 19, 711 Ace Hardware 24,302 Commercial Metals 24,275 Harbor Freight Tools 19,582 Source: CoStar; Economic & Planning Systems 22 Bozeman 2024 Economic and Market Update 31 Notable Projects Gallatin Crossing – The redevelopment of the Gallatin Valley Mall, rebranded as Gallatin Crossing, is a significant retail repositioning project currently in progress Notably, new tenants that opened in 2023 are Whole Foods Market, Intermountain Health (previously SCL Health), and a J Crew Factory store The redevelopment strategy includes an additional 15,000 square feet of retail space, with a general concept of creating public gathering space, a main street feel, and a broad mix of tenants, including healthcare, and entertainment Ferguson Farm is a commercial district covering approximately 50 acres on Bozeman’s west side, located at the intersection of S Cottonwood and Huffine (U S 191) Phase I, which is now complete, includes the Icon Apartments, a 336-unit residential complex; Schedulicity, a global company headquartered in Bozeman; and The Market, a 21,000-square-foot food hall featuring specialty retailers Phase II is planned for an additional 31 acres east of the existing phase, with the potential to accommodate 850,000 square feet of commercial space, including a hotel Photo Courtesy: Bozeman Real Estate Group Economic & Planning Systems, Inc 23 32 Block 3x – Block 3X, part of the North Central development, will feature four commercial buildings between W Beall and W Villard Street Designed with pedestrian alleys, courtyards, and green spaces, it aims to become a vibrant hub for dining, shopping, working, art walks, and festivals The developer also plans for up to 200 residential units available for lease 24 Bozeman 2024 Economic and Market Update 33 This chapter provides a comprehensive overview of the housing market in Bozeman, including an analysis of building permit trends, home prices, the rental market, and key indicators of housing affordability Construction Between 2018 and 2023 the City of Bozeman issued approximately 5,600 residential building permit units (Table 13), which is an average of 1,100 per year The highest year was 2021 with 1,383 new construction permits issued Bozeman is building a range of housing types Since 2018, multifamily construction (apartments and condominiums) have been the largest share of new construction with 3,700 units permitted, or 66 percent of the total Single family detached made up 17 percent of construction, or just under 1,000 new units Single family attached (duplex, triplex, fourplex) were 9 4 percent of construction In 2021, the City started tracking detached accessory dwelling units (ADUs), and 64 have been permitted since then Construction has remained strong in 2023, with 913 new permits issued as of June Table 13. Bozeman Building Permit Unit Trends June 2018-2023 Description 2018 2019 2020 2021 2022 2023 Total Avg.% Single Family 229 167 150 195 116 112 969 194 17.3% Duplex ------106 40 44 190 38 3.4% Triplex ------39 51 63 153 31 2.7% Fourplex ------92 68 24 184 37 3.3% Detached Accessory Dwelling Unit ------25 26 13 64 13 1.1% Multifamily / Condo 593 546 734 866 337 624 3,700 740 66.0% Townhome 37 78 61 60 81 33 350 70 6.2% Total 859 791 945 1,383 719 913 5,610 1,122 100.0% Source: Economic & Planning Systems 4. Housing Economic & Planning Systems, Inc 25 34 Housing Prices Bozeman has experienced unprecedented home price appreciation, with the current median price for a single-family residence at $784,500, more than $400,000 above the median in 2019 The most significant year-over-year increase occurred between 2020 and 2021, with a nearly 30 percent rise (Table 15) This rapid appreciation is partly attributed to amenity migration from large metropolitan areas during the COVID-19 pandemic Since 2016, Bozeman has seen an average annual increase of 11 percent in median sale prices Similarly, surrounding communities and the entire county have witnessed comparable trends, with prices effectively doubling over the past six years This sharp price increase poses challenges for affordability, workforce attraction and retention, and overall quality of life For investors, it signals strong demand, limited supply, and opportunities for development in a robust market The City is exploring ways to responsibly expand housing supply while preserving community health and wellbeing Initiatives include incentives for affordable and workforce housing up to 120 percent of AMI, funding for gap closure, a density bonus program, and the use of tax increment financing through its comprehensive urban renewal program Table 14. Home Price Trends, 2019-2024 Q2 2019-2024 Q2 Description 2019 2020 2021 2022 2023 2024 Q2 Total Ann. % Median Sales Price Bozeman $460,000 $540,000 $700,000 $799,000 $770,000 $784,500 $324,500 12.6% Belgrade $340,950 $375,000 $535,000 $577,720 $605,700 $579,000 $238,050 12.5% Greater Manhattan $416,000 $564,750 $640,000 $737,500 $713,100 $650,000 $234,000 10.4% Gallatin County $397,500 $439,900 $685,000 $790,000 $792,000 $820,000 $422,500 17.5% YOY % Change Bozeman 7.6%17.4%29.6%14.1%-3.6%-1.8% Belgrade 6.5%10.0%42.7%8.0%4.8%0.2% Greater Manhattan 6.9%35.8%13.3%15.2%-3.3%-11.9% Gallatin County 6.1%10.7%55.7%15.3%0.3%3.8% Source: Gallatin Association of Realtors; Economic & Planning Systems 26 Bozeman 2024 Economic and Market Update 35 Apartment Market In Q2 2024, Bozeman had 6,036 apartment units in its inventory (Table 15) Since 2020, the city has added an average of 493 apartment units per year These totals account only for units in apartment buildings and exclude other types of rented homes This means that 78 5 percent of the multifamily inventory in Gallatin County is within Bozeman’s city limits, as tracked by CoStar From 2010 to Q2 2024, Bozeman delivered 3,448 apartment units (Figure 10), which is 84 5 percent of the added growth during that time in Gallatin County On average, vacancy rates have been consistently low over the past decade Because the rental market in Bozeman is undersupplied, the vacancy rates have followed a pattern of increasing when new inventory enters the market, and then quickly decreasing as the units are quickly absorbed, thus explaining the high vacancy rates in 2015, and the current rate of 9 9 percent While Bozeman’s current vacancy rate is up significantly compared to 2020, given that Bozeman just delivered an estimated 550 units to the market in the first half of 2024, and the rental market remains undersupplied, it is likely that these rates will normalize by the end of the year Table 15. Multifamily Summary, 2010-2024 Q2 Description 2010 2015 2020 2024 Q2 Inventory Bozeman 2,588 3,075 4,312 6,036 Gallatin County 3,609 4,134 5,409 7,691 Bozeman as Pct. of County 71.7%74.4%79.7%78.5% Avg. Rent Bozeman $1,455 $1,545 $1,717 $1,979 Gallatin County $1,474 $1,563 $1,735 $1,971 Avg. Vacancy Bozeman 5.7%7.9%5.8%9.9% Gallatin County 5.3%6.9%4.9%11.2% Change 2010-2024 Q2 Change 2020-2024 Q2 Description Total Ann. #Ann. %Total Ann. #Ann. % Inventory Bozeman 3,448 255 6.5%1,724 493 10.1% Gallatin County 4,082 302 5.8%2,282 652 10.6% Pct. of County 84.5%75.5% Avg. Rent Bozeman $523.75 $38.80 2.3%$261.25 $74.64 4.1% Gallatin County $497.50 $36.85 2.2%$235.75 $67.36 3.7% Source: CoStar; Economic & Planning Systems Economic & Planning Systems, Inc 27 36 Figure 10. Multifamily Deliveries, 2010-2024 Q2 0 100 200 300 400 500 600 700 800 900 1,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 units MF Deliveries, 2010-Q2 2024 Bozeman Rest of Gallatin County Source: Costar; Economic& Planning Systems [link to source][link to source][link to source][link to source][link to source][link to source] Q2 From 2023 to the second quarter of 2024, Bozeman delivered eight major (50+ units) apartment buildings, seven of which are market rate and one rent restricted The sole rent restricted apartment building, The Annex of Bozeman, has a total of 134 units, and an average effective rent of $2,207 per unit It combines workforce rental housing, and student housing with rents restricted to households earning between 80 and 120 percent of AMI Of the market rate apartments, average rents range from $1,898 to $2,906 per unit The largest of these apartment buildings with 326 units, Northwest Crossing, built in 2024, has an average rent of $2,455 and an average unit size of 1,082 square feet Built in 2023, the second largest building, with 268 units, The Oxbow has an average rent of $2,278 per unit and an average unit size of 887 square feet And the third largest building, built in 2024, is The Edison at Bozeman Gateway This building consists of 231 units, with an average rent of $2,273 and an average size of 858 square feet 28 Bozeman 2024 Economic and Market Update 37 Table 16. Recent Multifamily Development, Bozeman Notable Deliveries Address Year Built Units Avg. Effective Rent Per Unit Market Rate Northwest Crossing 1595 Twin Lakes Ave 2024 326 $2,455 The Oxbow 4650 W Garfield St 2023 268 $2,278 The Edison at Bozeman Gateway 3100 Technology Blvd W 2024 231 $2,273 Avion Apartments 2235 Tschache Ln 2024 216 $1,898 19th and Graf Apartment Homes 2900 S 21st Ave 2023 195 $2,353 Blackwood Cottages 1502 Scotch Pine Ln 2023 121 $2,906 Haymaker 1624 W Babcock St 2023 95 $2,191 Total/Average 1,452 $2,336 Affordable/Rent Subsidized The Annex of Bozeman 1800 22nd St 2023 134 $2,207 Total/Average 134 $2,207 Source: CoStar; Economic & Planning Systems Northwest Crossing The Oxbow The Edison at Bozeman Gateway Economic & Planning Systems, Inc 29 38 Affordability The rapid rise in housing prices and interest rates has made it difficult for many people to enter the market In 2019, a household earning approximately 116 percent of the HUD area median income (AMI) could afford the median-priced home Today, a household would need to earn 208 percent of the AMI to afford the current median home price of $784,500 This significant price increase is driven by a combination of limited housing inventory, rising construction costs, and an influx of people moving to the area during the pandemic Increasing the housing supply will be crucial in addressing the shortage of affordable and workforce housing Table 17. Required Annual Income to Afford Median Home Price, 2019-2024 Q2 In 2016 the income levels needed to afford the median priced home were at 100 to 120 percent of AMI (Figure 11) In 2024 there are income gaps at all levels of AMI Households earning 180 percent of AMI ($196,200) would still need to earn another $30,962 per year to afford the median priced home (Figure 12) Bozeman Factor 2019 2020 2021 2022 2023 2024 Q2 Median Home Price $460,000 $540,000 $700,000 $799,000 $770,000 $784,500 Mortgaged Amount (less: downpayment)5.0% down pmt $437,000 $513,000 $665,000 $759,050 $731,500 $745,275 Mortgage Interest Rate 3.9% int.3.1% int.3.0% int.5.3% int.6.6% int.6.8% int. Loan Term 30-years 30-years 30-years 30-years 30-years 30-years Monthly Costs Mortgage Payment (Monthly)$2,061 $2,191 $2,804 $4,215 $4,672 $4,859 Less: Insurance $1,500/ Year $125 $125 $125 $125 $125 $125 Less: Property Taxes 1.0%$383 $450 $583 $666 $642 $654 Less: Miscellaneous $500/ Year $42 $42 $42 $42 $42 $42 Total Monthly Housing Costs $2,611 $2,807 $3,554 $5,048 $5,480 $5,679 Required Annual Income 30%$104,448 $112,290 $142,147 $201,902 $219,205 $227,162 100% AMI for Family of 4 $90,300 $90,400 $88,900 $104,700 $126,400 $109,000 AMI for Family of 4 116%124%160%193%173%208% [1] rounded to nearest major AMI category Source: US Census; Economic & Planning Systems 30 Bozeman 2024 Economic and Market Update 39 Figure 11. Income Gap to Afford Median Priced Home, Bozeman, 2019 $59,360 $74,200 $89,040 $111,300 $133,560 $45,088 $30,248 $15,408 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 80%100%120%150%180%Household IncomeAMI (4-person household) AMI (4-person household)Gap Source: U.S.Census; Economic & Planning Systems $104,448 Income Required to Afford Median Home Price (2019) Z:\Shared\Projects\DEN\233070 Bozeman 2023 Market Update\Models\2024 Update\[233070-Income Affordability.xlsx]T-AMIGap Figure 12. Income Gap to Afford Median Priced Home, Bozeman, 2024 $101,120 $126,400 $151,680 $189,600 $227,520$117,395 $92,115 $66,835 $28,915 $0 $50,000 $100,000 $150,000 $200,000 $250,000 80%100%120%150%180%Household IncomeAMI (4-person household) AMI (4-person household)Gap Source: U.S.Census; Economic & Planning Systems $218,515 Income Required to Afford Median Home Price (2023) In housing policy, a household is defined as cost burdened when they are paying more than 30 percent of their income towards rent or mortgage payments Among renters there is a large amount of cost burdened households – nearly half of all renters (48 percent) About a quarter of Bozeman homeowners are cost burdened and the American Community Survey estimates these households declined slightly from 2010 through 2019 The data mostly reflect people who already own their homes and have not caught up with new buyers in the market at the higher prices noted above Economic & Planning Systems, Inc 31 40 Housing Demand In this section, a housing demand projection is presented to guide the City and real estate stakeholders on the anticipated growth and housing needs in Bozeman The projection connects job growth with housing demand, estimating that nearly 1,000 housing units are required annually (Table 18) to match the job growth rate of 2 0 percent per year, compared to the 4 3 percent annual growth experienced over the past five years However, there are additional strong market demand drivers to consider First, Bozeman’s increasing appeal as a destination for second homeowners and part-time residents adds an estimated 10 percent to the demand projection Second, the in-migration of remote workers also contributes to housing demand Although there is no current data specifically tracking remote workers, as their income is often tied to employers outside the Gallatin Valley, we have added another 10 percent to the demand projections to account for their estimated impact on the market We estimate that the City can accommodate the demand for approximately 985 new housing units annually (Tables 18 and 19) To align with the goals of promoting smaller homes and infill construction, a potential housing mix is also suggested, reflecting past construction trends and community objectives Table 18. Bozeman Housing Demand Projection 2023-2033 Description Factor 2023 2033 Total Annual Total Jobs - Gallatin County 2.0%110,000 134,100 24,100 2,410 Less: Proprietor Jobs Overcount [1]-10.0%-11,000 -13,410 -2,410 -241 Employed People 1.10 jobs/empl.90,000 109,718 19,718 1,972 Employed Households 1.30 jobs/household 69,230 84,400 15,170 1,517 Normal Vacancy Adjustment 5%3,640 4,440 Housing Units - Gallatin County 72,870 88,840 15,970 1,597 Baseline Demand - Bozeman Bozeman Market Share 50.0%36,440 44,420 7,980 798 Other Market Influences Part Time Residence Adjustment 10%887 In-migration and remote worker adjustment 10%985 [1] Counting of partnerships and LLCs in Bureau of Economic Analysis data often results in double counting of employees. Source: Economic & Planning Systems Table 19. Bozeman Housing Unit Projection Description Factor 2023-2027 2028-2033 Total Annual New Unit Demand in Bozeman 985/yr.4,926 4,926 9,852 895 Bozeman Construction Projection Single Family (Detached)35.0%1,724 1,724 3,448 345 Townhome/Triplex/Duplex 30.0%1,478 1,478 2,956 269 Multifamily 35.0%1,724 1,724 3,448 345 Total 100.0%4,926 4,926 9,852 985 [1] Mobile homes and other miscellaneous housing types are not included Source: Economic & Planning Systems 32 Bozeman 2024 Economic and Market Update 41 Memorandum REPORT TO:Economic Vitality Board FROM:Brit Fontenot, Economic Development Director SUBJECT:Economic Vitality Board Update on the 2023 Economic Vitality Strategy and the 2 year (2024 - 2025) Work plan. MEETING DATE:September 4, 2024 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Listen to the presentation(s), discuss and ask related questions. STRATEGIC PLAN:2.1 Business Growth: Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. BACKGROUND:Staff will update the EV Board on the work associated with the 2023 Economic Vitality Strategy, adopted in June, 2023 by the Bozeman City Commission, and the 2024 - 2025 EV Board Work Plan. The complete EV Strategy can be found at the link: https://www.bozeman.net/home/showpublisheddocument/13744/638393536886600000 UNRESOLVED ISSUES:None at this time. ALTERNATIVES:As determined by the Economic Vitality Board. FISCAL EFFECTS:None. Attachments: 2023 Economic Vitality Strategy and 2024-2025 Work Plan FINAL 7-31-24.pdf EV Board 2 year workplan 2024 - 2025 v 2 1-12-23.pdf January 3 March 6 and April 18 2024 EV Board Packet Material.pdf Action Matrix- Bozeman Economic Vitality Strategy.pdf Child Task Force Strategic Plan 2024.pdf 42 Report compiled on: July 23, 2024 43 1 2023 Economic Vitality Strategy and 2024-2025 Work Plan Update and Progress Report Economic Vitality Board August 7, 2024 Focus Area 1: Economic Development Goal 1: Provide Opportunity for Gallatin Valley Residents Objective 1.2: Provide comprehensive and coordinated skills development starting with childcare through middle school and higher-ed A. Explore opportunities to amend Montana statute(s) to allow HOAs to permit in-home child care. 1-2 year check in. • Drafted SB376; Zombie Covenant Bill, 2023 Legislative Session. • Supported HB187; Child Care as Residential Use of Property, 2023 Legislative Session. • City Commission adopted Model Covenants that explicitly allow for home-based licensed child care. B. Elevate the issue of childcare as critical infrastructure to support workforce development and promote equitable early education opportunities for underrepresented communities. 1-2 year check in. • CHILD (Cooperative Holistic Innovated Local Design) task force meetings • City ED Staff membership on childcare policy subgroup and employer supported subgroup • Development of county-wide child care strategy funded through a state grant, the City of Bozeman, Gallatin County, and the Bozeman Chamber of Commerce. • Sharing county-wide strategy at public meetings, panels, and other with other groups. C. Engage middle school students (6-8 grades), teachers and administrators in STEAM career opportunity conversations. 1-2 year check in. • Summer Camp and PIR Day focused on career exploration with Gallatin College May 2024 • Photonicon 2023 • Econoquest 2025 • Planning for Photonocon 2024 • Planning for Gallatin College career fair 2025 44 2 D. Evaluate gaps and needs with partnerships between Gallatin Valley’s high schools and higher education leaders and industry to identify and develop opportunities for intentional engagement of students. 1-2 year check in. • Gallatin College K-14 workforce advisory committee quarterly meetings. E. Communicate to 9-12 students opportunities with existing Gallatin College programs pertaining to manufacturing, health care, and cyber-security. 1-2 year check in. • Summer Jobs Program. Focus on high school students includes weekly meetings with vice principals, counselors, and Gallatin college. • Planning 2025 Gallatin College Career Fair has kicked off. F. F. Support youth art programs that promote mental health and encourage creative thinking. 3-4 year check in. • This work has not yet started. Objective 1.3: Improve access to career opportunities for local and surrounding rural residents. A. Promote Montana State University's new Extension Center Master Remote Work Professional Certification that provides training for rural residents. 3-4 year check in. • This work has not yet started. B. Create and support specific workforce development programs in building sciences (construction trades) specializing in green technology. Specifically, consider programs in heating, ventilation, and air conditioning (HVAC) systems, to provide the workers needed to improve the efficiency of existing and future building stock. 1-2 year check in. • Ongoing – Sustainability Specialist Ali Chipouras facilitated a contractors meeting with manufacturers of heat pumps. • Ongoing – Sustainability Efficient Buildings • Ongoing – ED staff continues to promote C-PACE when appropriate • Ongoing ED staff supported the sustainability component of the MSU IC Planned Development Zone entitlement C. Develop virtual small business development programs for rural residents and those that speak English as a second language. 3-4 year check in. • This work has not yet started; however, it will likely be wrapped into the development of a business retention and expansion program in the future. Goal 2: Support a Diverse Economy Objective 2.2: Enhance development of the talent pipeline 45 3 A. Support development of a purpose-built campus for the technical and trades facility at Gallatin College. 1-2 year check in. • Lobbied in support of $23.5mil (HB 5) for Gallatin College Facility. A. Host a photonics/optics event at the County Fairgrounds during the Fall to expose community to career opportunities. Yearly check in. • Gallatin College hosted Photonicon at Fair Grounds in 2023. C. Aid and support local school districts by offering suggestions for developing a working relationship among businesses, labor organizations, and educators. 3-4 year check in. • K-14 Gallatin College Workforce Advisory Committee D. Facilitate the creation of opportunities for students to engage with local businesses, such as internships, apprenticeships, work-based learning and job shadowing. 3-4 year check in. • Summer Jobs Program, year 2. • Econquest Support Objective 2.3: Elevate a growing creative arts industry cluster. A. Support the expansion of film degree programs at MSU to leverage emerging Digital Film industry. 1-2 year check in. • Lobbied in support of the MT Film Tax Credit B. Convene* an arts industry council with broad representation including representation from the BIPOC community, women and other marginalized groups, to leverage all the arts organizations to implement the goals and objectives of the EVS, DEI initiatives, and 1% arts program. 1-2 year check in. • This work has not started. C. Promote and encourage enrollment in the Montana Artrepreneur Program (MAP) 3-4 year check in. • This work has not yet started. D. Explore creative placemaking opportunities within the city. 5 year check in. • Public Art Management Plan in draft currently • RFQ for Swim Center Public Art out now • 1% for Art 1st Installation was on July 15, 2024 • Festival Street completed for community events, festival, etc. • Food Truck Standards in UDC (Midtown) Goal 3: Build a more Resilient Region Objective 3.1: Increase amount and access to housing for all 46 4 A. Ensure that short term rentals (STRs) are licensed and complying with City regulations. 1-2 year check in. • New software (Rentalscape) for platform compliance • Neighborhood Services Division for compliance monitoring/inspection B. Evaluate the potential impacts of STRs on housing availability for the full time resident workforce. 1-2 year check in. • Economic and Planning Systems report on STRs and affordable housing stock B. Explore the feasibility of additional regulatory tools to mitigate the impact of STRs and part- time homes on the housing supply. Specifically examining regulatory fees on STRs and a housing vacancy tax. 1-2 year check in. • City paying close attention to property tax talks at State level. C. Explore a land acquisition policy recognizing funding is barrier. 1-2 year check in. • Land-swap option in Affordable Housing Ordinance • Support of partner research into land-banking. D. Explore building more housing through a cooperative agreement amongst private businesses. 1-2 year check in. • Support for the Gallatin Impact Fund. E. Promote housing down payment assistance program. 1-2 year check in. • This work has not yet started. F. Explore the city zoning restriction on maximum occupancy within a residence. 1-2 year check in. • This work has not yet started. H. Explore creation of a public-private partnership and sub-area plan for redevelopment of the West Side Houses for non-traditional students. 3-4 year check in. • This work has not yet started. Objective 3.3: Foster a culture focused on climate change resilience. A. Develop a Climate Technology industry group to identify existing companies, barriers to growth, and workforce needs. This information will define the Climate Technology industry unique to Gallatin Valley. 1-2 year check. 47 5 • 2023 focus group and individual meetings found very few climate technology companies. B. Advocate for an MSU Agriculture Department initiative to create innovation hub for Western US that aligns research with agriculture producers and advances precision agriculture. 1-2 year check. • This work has not yet started. C. Explore the development of a program that supports and promotes new startup companies (e.g. awards and small grant award) in the defined Climate Technology cluster. 3-4 year check in. • This work has not yet started. D. Explore the development of private incubator that supports the defined Climate Technology cluster. 5 year check. • Engine Worx at MSUIC E. Explore the creation of a regional non-profit Green Bank for funding new climate resilient infrastructure. 3-4 year check in. • This work has not yet started. *Objective 1.2: Provide comprehensive and coordinated skills development starting with childcare through middle school and higher-ed. B. Elevate the issue of childcare as critical infrastructure to support workforce development and promote equitable early education opportunities for underrepresented communities. EVS Objective 3.3 Implement Bozeman specific components of the Gallatin County Childcare Strategy (see GCCS attachment in EV Board packet). Focus Area 2: Community Housing Community Housing Workplan 1. Consolidated Plan a. City Commission – April 16, 2024 b. Economic Vitality Board – April 18, 2024 c. Economic Vitality Board – June 5, 2024 d. Inter Neighborhood Council – June 13, 2024 e. Government Affairs Committee GAR) – June 27, 2024 f. Community Development Board – July 15, 2024 g. City Commission – July 23, 2024 h. HUD Submittal Deadline – August 15, 2024 2. Unified Development Code (UDC) Overhaul 48 6 a. This project is all about implementing the vision and goals established in our City’s guiding documents such as the 2020 Community Plan (aka Growth Policy), the Climate Plan, and strategic priorities like affordable housing. These broad visions, goals, and priorities are implemented through the UDC or “the code.” The UDC sets forth regulations around what kinds of development can occur in which areas through development standards and zoning districts. Economic Development & Community Housing Program are not taking the lead on this project. The Community Development Department will take the lead with input from ED. The UDC will be back on the City Commission agenda before year end. 3. Community Outreach a. Resident Focus Groups (25 participants) b. Stakeholder Consultations (12 interviews) c. Housing & Community Needs Survey (950 respondents) 4. Strengthen Partnerships a. HRDC - $500k Warming Center Grant; $65k PSA b. Headwaters Community Housing Trust - $150k Employee Purchase Grant c. Regional Housing Coalition - $50k Grant i. Permanent Affordability Workgroup ii. Unhoused to Housed Workgroup iii. Land Banking Workgroup 5. Increase Resources for Workforce Housing Preservation a. Community Development Block Grant (CDBG) i. $325k Annual Allocation 1. Year 1: Unhoused (Transitional & Emergency Housing) 2. Years 2-5: Housing Development, Preservation & Rehabilitation b. Section 108 (Loan Guarantee Program) i. $1.6 m in lending authority (20-year payback period) ii. Applications accepted on a rolling basis. c. Low Income Housing Tax Credit (LIHTC) i. Bridger Heights (upcoming project) 1. LIHTC Rehab 2. Section 8 Vouchers 3. 50 units 4. 50% - 70% AMI 49 7 a. Rent = $520/month 6. Community Outreach During our community outreach focus groups sessions we met with: HRDC, Reach, Haven, Family Promise, Ability MT. During our stakeholder interviews we met with: One Valley, NWMT, Headwaters, Age Friendly Bozeman, Habitat for Humanity, Child Care Connections, Eagle Mount, First Security Bank and a handful of others. Additionally, we'll do community outreach around the AHO, UDC, and Section 108. We'll also update the housing webpage with fair housing information and resources for the community (not sure if that counts as outreach, but it is community education, which we said we would work on in the BiB plan). 7. Strengthening Partnerships We are currently working toward strengthening our partnerships with: HUD, Department of Commerce, State Chamber, Bozeman Chamber, School District, MSU, Gallatin College, GAR, industry leaders (SMMP, NRMEDD) Montana Housing Coalition (builds partnerships with housing orgs across the state like: National Low Income Housing Coalition, Trust Montana, Forward MT, Homeword, City of Missoula and Missoula Housing Authority), Prospera, NWMT, Montana Board of Housing, State Legislature?? Under the Regional Housing Coalition bullet there are many organizations we work with: One Valley, HRDC, Family Promise, Headwaters Housing Trust, Thrive, Haven, Greater Impact, GAR, Bozeman Tenants United, Big Sky Community Housing Trust, Gallatin County, City of Belgrade, Three Forks, Manhattan, West Yellowstone. Focus Area 3: Diversity, Equity and Inclusion Implement the Belonging in Bozeman Plan: Implementation of the Belonging in Bozeman Plan can’t occur without the hiring of a Belonging Coordinator to lead and manage efforts. This position was just approved during the adoption of the budget on June 25. Staff are now in the process of working with HR to draft a job description and start the recruitment process. Provide training on how to apply for city contracts/become a vendor: This action item has not yet been worked on due to not having the Belonging Coordinator in place. Develop an equity impacts decision making tool and train on its use: This action item has not yet been worked on due to not having the Belonging Coordinator in place. 50 8 Focus Area 4: Public Art Working on drafting the Public Art Management Plan, delayed since departure of ACM Kira Peters, this remains an ongoing priority. First 1% for Art sculpture installed in BPL during week of July 15th. 51 1 ECONOMIC VITALITY BOARD 2 YEAR WORK PLAN 2024 & 2025 Focus Area 1: Economic Development WP Item Description: Strategic Priorities Connection: Board Time Commitment: Staff Time Commitment: Schedule: Budget Impact: Continue the implementation of the workforce development initiatives of the 2023 Economic Vitality Strategy (EVS) An Innovative Economy ongoing 3 – 5 years ongoing Staff time/unknown EVS Objective 1.2: Provide comprehensive and coordinated skills development starting with childcare through middle school and higher-ed An Innovative Economy ongoing 1 – 2 years ongoing Staff time/unknown EVS Objective 1.3: Improve access to career opportunities for local and surrounding rural residents An Innovative Economy ongoing 1 – 2 years ongoing Staff time/unknown EVS Objective 2.2: Enhance development of the talent pipeline An Innovative Economy ongoing 1 – 2 years ongoing Staff time/unknown EVS Objective 2.3: Elevate a growing creative arts industry cluster An Innovative Economy ongoing 1 – 2 years ongoing Staff time/unknown EVS Objective 3.1: An Innovative Economy ongoing 1 – 2 years ongoing Staff time/unknown 52 2 Increase amount and access to housing for all EVS Objective 3.3: Foster a culture focused on climate change resilience An Innovative Economy ongoing 1 – 2 years ongoing Staff time/unknown Implement Bozeman specific components of the Gallatin County Child Care Strategy An Innovative Economy 12 months 12 months Jan 2024 – Dec 2025 Staff time/unknown Focus Area 2: Community Housing WP Item Description: Strategic Priorities Connection: Board Time Commitment: Staff Time Commitment: Schedule: Budget Impact: Consolidated Plan A Well-Planned City 9 months 9 months Nov 2023 – Sept 2024 $120,000 UDC Overhaul (Community Housing related sections only) City Commission Priorities 2022 6 – 9 months 6 - 9 months March/April 2024 – Dec 2024 $500,000 Increase community outreach and education efforts A Well-Planned City 24 Months 24 Months Jan 2024 – Dec 2025 unknown Strengthen partnerships with local housing organizations (HRDC, Headwaters Community Housing Trust A Well-Planned City 24 Months 24 Months Jan 2024 – Dec 2025 unknown Increase resources for the for the development and preservation of affordable and workforce housing in the community A Well-Planned City 24 Months 24 Months Jan 2024 – Dec 2025 unknown Focus Area 3: Diversity Equity and Inclusion 53 3 WP Item Description: Strategic Priorities Connection: Board Time Commitment: Staff Time Commitment: Schedule: Budget Impact: Implement the Belonging in Bozeman (BiB) Action Plan Safe Welcoming Community 12-24 months 3-5 years Jan 2024 – Dec 2025 unknown BiB Objective 3.2 (Priority #3) Provide training on how to apply for city contracts and become a city vendor, connect experienced city vendors with small business owners to subcontract and gain experience Safe Welcoming Community 12-24 months 3-5 years Jan 2024 – Dec 2025 unknown BiB Objective 5.1 (Priority #1) Develop an equity impacts decision making tool and train elected officials, advisory board members, and staff in its use. Safe Welcoming Community 12-24 months 3-5 years Jan 2024 – Dec 2025 unknown Focus Area 4: Public Art WP Item Description: Strategic Priorities Connection: Board Time Commitment: Staff Time Commitment: Schedule: Budget Impact: Help establish the Public Art Management Plan A Creative Learning Culture 3 – 6 Months 3 – 6 Months Jan 2024 – June 2024 1% of a facility construction budget 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 EVS ACTION MATRIX GOAL 1: PROVIDE OPPORTUNITY FOR GALLATIN VALLEY RESIDENTS Objective 1.1: Enhance the small business development ecosystem Progress Check-in Action 1 - 2 yr 3 - 4 yr 5 yr Priority Outcome Metric (how to measure) Lead Org Partners Notes and/or Potential Resources A. Convene providers to map the various programs available for different business sizes and types to 1) better communicate available resources and 2) determine gaps in service provision. x More small business owners access programs Number of new businesses accessing services City of Bozeman Prospera, NRMEDD, Chamber, DBP Tie to proposed business, retention and expansion (BRE) program identified in Action 2.1.G B. Create a resource guide outlining available programs and contact information. x Small businesses are more likely to succeed and grow Resource guide is created and maintained annually. City of Bozeman Prospera, NRMEDD, Chamber, DBP Staff time C. Convene service providers to determine if there is an opportunity to start a microenterprise service for under- represented businesses. Build off culture and concept of Women Business Center that provides a welcoming safe space for a specific group. x More small businesses are started or grown Capital and technical services are provided to under-represented businesses at no or low cost City of Bozeman Prospera, NRMEDD, MOFI Seed funding can come from Community Development Block Grant (CDBG). MESO of Oregon should be considered as a best case example. https://www.mesopdx.org/ D. Develop a business services roundtable comprised of underrepresented business owners and employees, to advise the City of Bozeman on its business friendliness for small businesses especially owned by under- represented individuals. x Remove barriers to starting a new business Roundtable is created and provides recommendations City of Bozeman Small businesses Staff time Objective 1.2: Provide comprehensive and coordinated skills development starting with child care through middle school and higher-ed Action 1 - 2 yr 3 - 4 yr 5 yr Priority Outcome Metric (how to measure) Lead Org* Partners** Notes and/or Potential Resources A. Explore opportunities to amend Montana statute(s) to allow HOAs to permit in-home child care. x More affordable child care opportunities are available Statute(s) amended City of Bozeman MLCT/MACO Staff time B. Elevate the issue of child care as critical infrastructure to support workforce development and promote equitable early education opportunities for under- represented communities. x More affordable child care opportunities are available An increase in day care providers City of Bozeman MLCT/MACO Staff time C. Engage middle school students (6-8 grades), teachers and administrators in STEAM career opportunity conversations. x Build awareness of future career opportunities to access living wage jobs High-school graduation and dropout rate, including under- represented students Belgrade and Bozeman School District Gallatin College and MSU Specifically consider rural communities. Green text indicates actions developed in collaboration with education partners. 1 of 8 73 D. Evaluate gaps and needs with partnerships between Gallatin Valley’s high schools and higher education leaders and industry to identify and develop opportunities for intentional engagement of students. x Enhance early skills development to prepare for higher-education opportunities New programs identified and implemented Gallatin College MSU, Belgrade and Bozeman School District Superintendents Organizations are already meeting and anticipate draft direction in October E. Communicate to 9-12 students opportunities with existing Gallatin College programs pertaining to manufacturing, health care, and cyber-security x Increase job opportunities, particularly for under- represented individuals, within these industries Report number of jobs within the industries and percentage of under-represented hires Gallatin College and MSU Belgrade and Bozeman School District CTE Program Director Specifically focus on programs for jobs in high demand with good wages and fewer years of education requirements. F. Support youth art programs that promote mental health and encourage creative thinking x Increase youth mental health and career skills Number of programs and students attending Arts Industry Council (AIC) Belgrade and Bozeman School Districts, City of Bozeman Staff time and grants (potentially Montana Arts or NEA) to fund program Objective 1.3: Improve access to career opportunities for local and surrounding rural residents Action 1 - 2 yr 3 - 4 yr 5 yr Priority Outcome Metric (how to measure) Lead Org* Partners** Notes and/or Potential Resources A. Promote Montana State University's new Extension Center Master Remote Work Professional Certification that provides training for rural residents. x Increase participation of rural residents Number of completed certifications City of Bozeman MSU Extension Center Staff time B. Create and support specific workforce development programs in building sciences (construction trades) specializing in green technology. Specifically, consider programs in heating, ventilation, and air conditioning (HVAC) systems, to provide the workers needed to improve the efficiency of existing and future building stock. x Increase job opportunities and improve energy efficiency of building stock. Number of skilled HVAC construction workers in Gallatin Valley Gallatin College City of Bozeman Increasing the amount of this skilled workforce directly supports necessary actions to address climate change. C. Develop virtual small business development programs for rural residents and those that speak English as a second language x Increase opportunities to start small businesses and build wealth Number of people attending classes City of Bozeman Local EDOs and language training providers These programs are currently available through MESO and could be developed locally with new microenterprise program. World Language Initiative may provide services as well. Green text indicates actions developed in collaboration with education partners. 2 of 8 74 GOAL 2: SUPPORT A DIVERSE ECONOMY Objective 2.1: Focus on traded sector industries that are emerging and can increase exports Action 1 - 2 yr 3 - 4 yr 5 yr Priority Outcome Metric (how to measure) Lead Org* Partners** Notes and/or Potential Resources A. Support quantum computing university research and development through continued investments in MonArk labs, Spectrum Labs, and the upcoming NSF Type I application for a Regional Innovation Engine. x Continued university R&D in quantum computing Enhanced research funding MSU and MSU IC City of Bozeman and local EDOs National Science Foundation (NSF) grant B. Support the analysis and development of the quantum computing supply chain and the unique strengths in Gallatin Valley x Supply chain study to define the types of companies needed to support this new industry within Gallatin Valley Study is complete and shared with economic development community. MSU VP of Research and Graduate City of Bozeman and local EDOs This would be part of the Type 1 application, but fund through Economic Development Administration (EDA) or Inflation Reduction Act (IRA) if not awarded. C. Create an incubator with specialized equipment for new private small research companies within the quantum and photonics industries x Private business can share equipment for testing and collaborate to foster innovation. Incubator is established. City of Bozeman NRMEDD, MSU IC, MSU TTO EDA and NSF grant D. Explore the development of biotechnology lab space to support emerging businesses x New biotechnology companies are started or attracted Biotech lab space is created. City of Bozeman Biotech Association, MSUs TTO, and Local EDOs Explore collaborating with new Industry project at MSU IC. Economic Development Administration (EDA) could provide grant for lab space tenant improvements. E. Develop a formal business, retention and expansion (BRE) program in collaboration with partners focused on industries associated with manufacturing: Photonics, Outdoor Equipment, Specialty Manufacturing, and potentially Climate Tech x Understand barriers and opportunities specific to manufacturing to help them stay and grow. Program is defined with identified number of businesses that will be visited. City of Bozeman NRMEDD, Prospera Staff time. BRE of existing companies (instead of recruiting new companies) is the most effective way to grow employment opportunities sustainably. F. Work with MSU and other stakeholders to pursue the CHIPS Act investment grant. x Articulate competative advantage for Montana to support the semiconductor industry Grant application submitted MSU City of Bozeman, NRMEDD, Prospera Staff time Green text indicates actions developed in collaboration with education partners. 3 of 8 75 Objective 2.2: Enhance development of the talent pipeline Action 1 - 2 yr 3 - 4 yr 5 yr Priority Outcome Metric (how to measure) Lead Org* Partners** Notes and/or Potential Resources A. Support development of a purpose built campus for the technical and trades facility at Gallatin College x Training facility provides the necessary workforce Training facility is built Gallatin College City of Bozeman and Local EDOs Staff time. State budget allocation B. Host a photonics/optics event at the County Fairgrounds during the Fall to expose community to career opportunities. x x x Educate community on photonics industry Number of students that attend event. Gallatin College Private photonics firms, City of Bozeman, MSU Consider private company sponsorships C. Aid and support local school districts by offering suggestions for developing a working relationship among businesses, labor organizations, and educators x School districts can provide current information on career opportunities and help develop necessary skills needed by Changes in information provided to students influenced by private business engagement Private industry associations City of Bozeman, Local EDOs, Education partners Explore this type of engagement through BRE outreach businesses Higher-ed students D. Facilitate the creation of opportunities for students to engage with local businesses, such as internships, apprenticeships, work-based learning and job shadowing x discover local job opportunities while in school and are more likely Number of new internships and programs created at private businesses. Private industry associations City of Bozeman, Local EDOs, Education partners Explore this type of engagement through BRE outreach to stay in Gallatin Valley Green text indicates actions developed in collaboration with education partners. 4 of 8 76 Objective 2.3: Elevate a growing creative arts industry cluster Action 1 - 2 yr 3 - 4 yr 5 yr Priority Outcome Metric (how to measure) Lead Org* Partners** Notes and/or Potential Resources A. Support the expansion of film degree programs at MSU to leverage emerging Digital Film industry x Access opportunities with the Digital Film industry Students enrolling in programs. MSU Film Department Local EDOs, City of Bozeman, Montana Film Office, local members of the film industry, supportive state legislators Existing MSU program B. Convene* an arts industry council with broad representation including representation from the BIPOC community, women and other marginalized groups, to leverage all the arts organizations to implement the goals and objectives of the EVS, DEI initiatives, and 1% arts program. * “Convene” in this context means to provide a space for arts and culture advocates to come together for a meeting or activity to organize and/or create an independent arts industry council unaffiliated with the City of Bozeman. x Foster an aligned vision and direction for arts organizations Actions that are implemented City of Bozeman All arts organizations including but not limited to the Symphony, Emerson, Sweet Pea Festival, Ballet, Opera, and Art Museum Staff time to schedule and host meetings. The AIC is responsible for agenda and implementation. C. Promote and encourage enrollment in the Montana Artrepreneur Program (MAP) https://art.mt.gov/map x Provide training for a sustainable business life in the arts Number of artists that receive training AIC Montana Arts Council, City of Bozeman Staff time D. Explore creative placemaking opportunities within the city x Enhance integration of arts with community development Number of projects executed AIC City of Bozeman Staff time Green text indicates actions developed in collaboration with education partners. 5 of 8 77 GOAL 3: BUILD A MORE RESILIENT REGION Objective 3.1: Increase amount and access to housing for all Action 1 - 2 yr 3 - 4 yr 5 yr Priority Outcome Metric (how to measure) Lead Org* Partners** Notes and/or Potential Resources A. Ensure that short term rentals (STRs) are licensed and complying with City regulations. X City recovers administrative and enforcement costs. Neighborhood impacts are managed. Number of STRs licensed STRs. Resident satisfaction with STR programs. City of Bozeman Housing, Code Enforcement, and Legal Departments Staff time B. Evaluate the potential impacts of STRs on housing availability for the full time resident workforce. X Study/documentation of characteristics of STR inventory. Quantification of number of STRs potentially available as full-time residences. City of Bozeman Realtors, property managers, lodging groups Staff time and consultant engagement C. Explore the feasibility of additional regulatory tools to mitigate the impact of STRs and part-time homes on the housing supply. Specifically examining regulatory fees on STRs and a housing vacancy tax. x Housing supply is increased or maintained. Number of STRs, rental rates, rental vacancy rates. City of Bozeman Housing, Code Enforcement, and Legal Departments Staff time and consultant engagement D. Explore a land acquisition policy recognizing funding is barrier. x Increase supply of housing for GV workers Housing units developed by private sector businesses City of Bozeman Private sector partners First Security Bank Housing Fund, potential Prospera Impact Fund E. Explore building more housing through a co- operative agreement amongst private businesses. x Increase supply of housing for GV workers Housing units developed by private sector businesses City of Bozeman & various private sector partners Private sector partners First Security Bank Housing Fund, potential Prospera Impact Fund F. Promote housing down payment assistance program x Increase opportunities to access home ownership Number of residents that have received assistance City of Bozeman HRDC and MOFI MOFI G. Explore the city zoning restriction on maximimum occupancy within a residence. x Increase access to available housing Evaluation of zoning code City of Bozeman MSU Office of Student Engagement Staff time H. Explore creation of a public-private partnership and sub-area plan for redevelopment of the West Side Houses for non-traditional students. x Increase supply of housing for MSU non-traditional and graduate students Number of housing units City of Bozeman MSU Office of Student Engagement, private developers Staff time, private equity Green text indicates actions developed in collaboration with education partners. 6 of 8 78 Objective 3.2: Develop a sustainable city to support climate change mitigation Action 1 - 2 yr 3 - 4 yr 5 yr Priority Outcome Metric (how to measure) Lead Org* Partners** Notes and/or Potential Resources A. Increase support and awareness for the existing City of Bozeman water efficiency program x Reduce water consumption to extend the use of a limited supply of water Increased use of the city's water conservation programs City of Bozeman City residents and businesses Staff time B. Actively promote the existing commercial property- assessed clean energy (CPACE) financing structure that allows building owners to borrow money for energy efficiency projects. x Improves building energy efficiency Number of loans and projects implemented City of Bozeman City residents and businesses Staff time C. Explore the development of an award that recognizes investments in buildings and sites to encourage sustainable development practices. x Recognizes good practices to encourage investment by others Number and type of projects submitted for awards City of Bozeman City residents and businesses Staff time D. Support proposed changes to Bozeman Zoning code to allow for smaller housing units on smaller lots x Provide more housing at a lower price with reduced costs for infrastructure expansion Number of housing units City of Bozeman Bozeman City Commission Staff time E. Support City of Bozeman's investment in multi-modal transportation options, including strategies to support electric vehicle (EV) charging strategies. x Provide residents diverse travel options alternative to a car when appropriate Number of projects constructed City of Bozeman Streamline, MDT, DBA, TCC Staff time F. Work with Northwestern Energy to foster development of non-fossil fuel energy production x Reduce greenhouse gas (GHG) emissions by reducing use of fossil fuel Northwestern Energy fuel source City of Bozeman and Northwestern Energy Local EDOs Staff time and IRA Green text indicates actions developed in collaboration with education partners. 7 of 8 79 Objective 3.3: Foster a culture focused on climate change resilience Action 1 - 2 yr 3 - 4 yr 5 yr Priority Outcome Metric (how to measure) Lead Org* Partners** Notes and/or Potential Resources A. Develop a Climate Technology industry group to identify existing companies, barriers to growth, and workforce needs. This information will define the Climate Technology industry unique to Gallatin Valley. x Develop awareness of climate tech companies and begin to support their growth List of companies and defined needs is created. Businesses meet to share interests and collaboration. City of Bozeman Local EDOs, MSU TTO, Energy Research Institute (ERI), Snow Lab, Optics/Sensing, Precision Agriculture Climate Technology is a broad field that includes data analytics, construction materials, carbon sequestering, agriculture production methods, etc. One "lane" should be defined for GV to make progress. B. Advocate for an MSU Agriculture Department initiative to create innovation hub for Western US that aligns research with agriculture producers and advances precision agriculture x Develop new agriculture practices that reduce water consumption and conserve soil integrity Application for an Innovation Hub is submitted MSU Department of Agriculture City of Bozeman and Local EDOs Staff time C. Explore the development of a program that supports and promotes new startup companies (e.g. awards and small grant award) in the defined Climate Technology cluster. x Actively support local emerging companies and convey to community that climate change is being addressed Number of new climate tech companies promoted City of Bozeman MSU TTO, MSU IC and Local EDOs CDBG, Venture Capital, Foundations D. Explore the development of private incubator that supports the defined Climate Technology cluster. x Develop new technologies to help community adapt to impacts of climate change Number of new climate tech companies created City of Bozeman MSU TTO, MSU IC and Local EDOs EDA, Department of Agriculture, IRA E. Explore the creation of a regional non-profit Green Bank for funding new climate resilient infrastructure. https://greenbanknetwork.org/what-is-a-green-bank-2/ x Facilitate private investment into domestic low carbon, climate resilient (LCR) infrastructure and other green sectors Establish the Bank City of Bozeman Local EDOs IRA may capitalize a national Green Bank that could fund the regional bank through grants or loans. Green text indicates actions developed in collaboration with education partners. 8 of 8 80 CHILD Task Force Strategic Plan for Child Care in Gallatin County 81 02 Table of Contents CURRENT STATE OF CHILD CARE IN GALLATIN COUNTY07 VISION-GOALS-OBJECTIVES43 STRATEGIC DIRECTION and ACTION PLAN44 EVALUATION FRAMEWORK49 EXECUTIVE SUMMARY04 22 CASE STUDIES: ALTERNATIVE CHILD CARE MODELS 82 03 A CLOSER LOOK AT BELGRADE A CLOSER LOOK AT BIG SKY A CLOSER LOOK AT BOZEMAN A CLOSER LOOK AT FOUR CORNERS A CLOSER LOOK AT GALLATIN GATEWAY A CLOSER LOOK AT MANHATTAN - AMSTERDAM - CHURCHILL A CLOSER LOOK AT THREE FORKS - WILLOW CREEK A CLOSER LOOK AT WEST YELLOWSTONE CHILD CARE WORKFORCE DATA FOR GALLATIN COUNTY CHILD TASK FORCE MEMBERS CHILD TASK FORCE VISIONING SESSION: SURVEY FEEDBACK CHILD TASK FORCE VISIONING SESSION: PREP WORK + AGENDA CHILD TASK FORCE VISIONING SESSION: SUMMARY COMMUNITY INPUT: AGENDAS FOR SESSIONS COMMUNITY INPUT: SURVEY ANALYSIS INCLUSIONS OF CHILD CARE IN AREA PLANS LARGEST EMPLOYERS IN GALLATIN COUNTY LICENSED CHILD CARE PROVIDER DATA FOR GALLATIN COUNTY LIST OF CHILD CARE ORGANIZATIONS + PROGRAMS METHODOLOGY + COMMUNITY INPUT PROCESS TYPES OF CHILD CARE IN MONTANA OTHER RESOURCES165 BIG SKY CHILD CARE REPORT - 10.03.23 CCAMPISabstract CHILD TASK FORCE: EMPLOYER SUPPORTED CHILD CARE TOOLKIT DPHHS: MONTANA CHILD CARE DATA - 11.03.23 NAEYC: REPORT FOR MONTANA - 02.24 APPENDIXES 59 83 Executive Summary In 2021, organizations and entities across Gallatin County and beyond came together to form the CHILD Task Force: Cooperative, Holistic, Innovative, Local, Design. Since then, the informal group has been working together to support child care and address its challenges, with the overall vision of having accessible, affordable and thriving child care in Gallatin County. Starting in August 2023, the CHILD Task Force led and facilitated the development of a strategic plan for child care in the greater area. This plan includes an in-depth look at the child care landscape, using the readily available data, gathering extensive input from the community, and working with the community and economic development entities, most of whom are active members of the CHILD Task Force. Through the CHILD Task Force visioning session, community input sessions and online survey, four challenges have been identified: Workforce Retention Affordable and Available Child Care Employer Participation Policies and Subsidies Finding creative ways to address child care challenges has been a nationwide struggle, and Gallatin County is no different. These aren’t easy problems to solve, and there are numerous organizations across the state and the county that are working to address them. The strategic plan outlines four priorities as the CHILD Task Force looks to the future: Solutions for Child Care Businesses Child Care Solutions for Families Child Care Solutions for Businesses Policy and Subsidy Solutions 04 84 As we focus on these priorities, it’s important to first highlight three key learnings that were solidified through the development of the strategic plan. Key Learning #1: Need for Better Data The strategic plan was developed based on community input and community-wide data that’s currently available. However, after thoroughly reviewing all of the existing data, it’s evident that additional data and analysis is still needed to thoroughly identify community needs, including understanding the existing and projected demands for child care throughout each community in Gallatin County. With these additional data-driven insights, the CHILD Task Force will be able to fine tune its strategic plan and prioritize its efforts, building upon the work that’s already been done to develop the strategic plan and prioritizing its actions based on what is known vs. what is assumed. Although data is available at the county-level, Gallatin County has several distinct and isolated smaller communities. It takes 2+ hours to drive from the south end of the county to the more populated areas, and many of the small towns are 40+ miles from Bozeman, the largest town and county seat. Each of these communities has unique challenges and idiosyncrasies, and the existing data of what the demand for child care in each is not truly understood. Anecdotally, during the 8+ community input sessions that were held during the strategic planning process, many families shared that they are “figuring out” child care as the existing options don’t meet their needs. Key Learning #2: Need for Increased Capacity The CHILD Task Force needs ongoing, long-term support to expand its current capacity and ensure the success of its work. Child Care Connections has been leading the charge with this partnership, but it does not have the capacity to continue to make this partnership actionable without expanding its team. Ideally, there would be one person 100% responsible for its success and dedicated to implementing the action items outlined in the strategic plan, facilitating the partnership and collaborating with all of the entities who are working towards understanding and solving the current child care challenges. 05 85 Key Learning #3: Need for Evolving Action Plans Going hand in hand with the first two key learnings is the need to have this strategic plan be continually updated with new data, insights and actions as more information becomes available and as the demand and supply for child care in Gallatin County evolves. With so much happening, it’s critical for the CHILD Task Force to keep an ongoing eye on what others across the county, state and region are being able to accomplish, plus what are the latest data and trends within Gallatin County. These evolving insights will enable the CHILD Task Force to effectively and efficiently support and collaborate with child care businesses, families, employers as well as community leaders. Addressing these key learnings will help the CHILD Task Force achieve the three goals outlined in the strategic plan: Address the most pressing child care challenges in Gallatin County Enhance collaboration among all those involved and impacted by child care Support, complement and expand upon what currently exists The CHILD Task Force’s best strategy is to continue to learn what others are doing, determine whether those successes are applicable to its constituency and then take decisive actions. 06 86 What’s the current state of child care in Gallatin County? What resources do we have? What child care assets currently exist in Gallatin County? What are the existing challenges? What information currently exists about the estimated demands for child care? What’s happening in each of the Gallatin County communities? CURRENT STATE OF CHILD CARE IN GALLATIN COUNTY 07 OVERVIEW: CHALLENGES + OPPORTUNITIES Child care is being hit with the same challenges being experienced throughout Gallatin County: high cost of living; lack of affordable housing; and lack of workers. The CHILD Task Force’s community input sessions and online survey highlighted these themes throughout this project. It’s also important to point out that child care could also be helping to address some of the county’s most pressing challenges by allowing more parents to enter the workforce and help build a stronger economy, if it can be accessible, affordable and thriving. 87 08 AN EVOLVING COMMUNITY OF RESOURCES + ASSETS Although it isn’t currently possible to capture a complete picture of all of the child care providers in Gallatin County, below are maps of the licensed child care providers in each community as of February 2024. One of the newest licensed providers is in Gallatin Gateway, a location that did not have a licensed child care provider at the start of this project. MAPS OF LICENSED CHILD CARE PROVIDERS IN GALLATIN COUNTY 88 09 The CHILD Task Force has already developed multiple, important tools to support accessible, affordable and thriving child care in Gallatin County, including: CHILD CARE WORKFORCE Salary study Professionalizing the field Supports for people entering the workforce FINANCIAL Financial model for child care businesses Innovative financial solutions for child care COMMUNITY INITIATIVES Access to training for child care providers Breaking down child care barriers Shared services for providers BUSINESS SUPPORTS Surveying employers/ employees about child care needs Employer supported tiered implementation FOUR MAJOR CHALLENGES During the CHILD Task Force visioning session, four major challenges were identified. WORKFORCE RETENTION AFFORDABLE AND AVAILABLE CHILD CARE EMPLOYER PARTICIPATION POLICIES AND SUBSIDIES 89 WORKFORCE RETENTION Workforce retention has been an ongoing challenge for the child care industry throughout the nation, and Montana is no exception. Child care workers face multiple challenges, as illustrated below. The hourly wage for an early childhood assistant teacher in Gallatin County, as compiled by the Montana Early Childhood Project, is $16.90. 10 CHILD CARE WORKERS + THEIR CHALLENGES Data provided by the Montana Department of Labor and Industry (MTDLI) shows that early childhood educators are one of the most in-demand occupations in Montana. As noted by DPHHS in its November 2023 Child Care Workforce Narrative, “The Child Care Licensing Program received a total of 2,971 new staff hire applications, an average of 229 per month in 2022. As of January 2023, there were 5,305 active staff members in licensed child care facilities. The 2022 new staff hire applications represent 56% of that total. As shown in the MTDLI 2022-2032 Occupational Employment Projections, child care workers experience higher rates of turnover and labor force exits than the average occupation in Montana.” 90 11 Statewide efforts are underway to address these workforce retention challenges. As outlined by DPHHS in its November 2023 report, work being done by the Montana Early Childhood Project, Higher Education Consortium, DPHHS and Head Start includes: Recognizing a larger array of existing education, training, experience and licensure among child care workers Creating pathways and providing incentives to allow motivated child care workers to quickly move up the levels in the state workforce registry Building a workforce pipeline by recruiting current and former parents As of October 2022, over one-third of Head Start and Early Head Start staff in the state of Montana were parents who currently or previously had children attend a Head Start or Early Head Start program. Additionally, Head Start/Early Head Start programs have been using state and federal resources to increase staff compensation through Federal Office of Head Start initiatives. Head Start’s efforts may be already having an impact at the local level. As shared by the Gallatin County Head Start program, their program had only two out of 30 education and child development staff leave during the 2022-2023 year, both of which were replaced. As of February 2024, the Montana Early Childhood Project is planning to include incentives for professional development in the Montana Bright Futures Birth to Five (BF B-5) funding but nothing has been set in stone yet. The state is looking to create badges for professional development for child care providers, and the incentives will most likely be attached to this. The plan is expected to be confirmed by June 2024. LACK OF AFFORDABLE CARE According to the Child Care Workforce Narrative, distributed in November 2023 by DPHHS, “Montana households averaged $18,940 in child care expenses for children under age five in 2023.” Taking a closer look at Gallatin County, using Gallatin County median household income and the state’s average for child care expenses, it’s estimated that Gallatin County families are spending 23% of their household income on child care. Yet, the U.S. Department of Health and Human Services states that child care is considered affordable when it takes up 7% or less of a household income. The average cost for child care expenses is more than double a year’s tuition at Montana State University and equals more than the median housing costs for renters in Gallatin County. 91 12 LACK OF AVAILABLE CARE The DPHHS’s November 2023 narrative reports: “Licensed child care capacity meets only 50% of the estimated demand for children up to age 6 and 42% of the estimated demand for children under age 2. These calculations are based on 2017-2021 ACS 5-Year Estimates and average licensed child care capacity in July 2022.” According to the November 2023 report, this information is based on: “MTDLI analysis of DPHHS Child Care Under the Big Sky (CCUBS) licensed child care capacity and licensed infant care capacity in 2022; 2017-2021 ACS 5-Year estimates; and National Vital Statistics System (NVSS) county population estimates. Children with working parents are defined as children living in a home where all available parents are participating in the labor market.” The 2023 Montana Child Care Market Rate Survey report, conducted by DPHHS and Montana State University Extension, shares: “The number of children on full-time waiting lists in both home- and center-based programs suggests that the demand exceeds the supply, especially for infant and toddler care. Fifty percent of home-based providers and 65% of center-based providers have waiting lists for full-time children. One limitation to this assessment is that a child may be on a waiting list for one program while enrolled in another program and a child may be on several waiting lists in a community.” COSTS IN MONTANA AND GALLATIN COUNTY Gallatin County Median Household Income (2022)$83,434 Tuition at Montana State University (2023-2024)$8,082 Gallatin County Median Housing Costs (2022)HomeownersRenters $24,768 $16,860 Montana Average Child Care Expenses: Under Age of 5 (2023)$18,940 (23% of HHI) Sources: U.S. Census, ACS 5-Year Estimates, S2503, DP04 http://catalog.montana.edu/expenses/ https://www.govinfo.gov/content/pkg/FR-2016-09-30/pdf/2016-22986.pdf Annual child care expenditures estimated based on weekly child care costs reported by the U.S. Census Household Pulse Survey from January to May 2023. 92 It also should be noted that it’s hard to assess the true demand for child care as some families shared in the community input sessions that they are “figuring it out” and “making things work”, relying on family, friends and non-traditional arrangements to get child care coverage. This type of child care is typically not licensed; thus the true numbers of families in need and the exact number of providers offering care is unknown. EMPLOYER PARTICIPATION The CHILD Task Force has conducted initial outreach to increase interest and participation by additional Gallatin County area employers to help address child care challenges. However, overall feedback is that employers want to see a financial model of how offering onsite and/or slot care impacts their business. The CHILD Task Force conducted an online survey in late 2023 as part of the strategic planning process. The majority of employed parents were interested in accessing employer supported child care. Although it wasn’t the right fit for everyone, there were also employers who were interested in offering employer supported child care. POLICIES AND SUBSIDIES Multiple organizations are working on streamlining and updating policies and subsidies that impact child care. Efforts include the Child Care Licensing Project to streamline licensing regulations and processes. In addition, addressing child care is a part of the City of Bozeman’s Economic Vitality Strategy and its new Belonging in Bozeman Equity and Inclusion plan as well as the Big Sky Resort Area District’s Big Sky Community Capital Improvement Plan. There is also new legislation that was passed, House Bill 352 (HB352) - Targeted Early Literacy Intervention, that will help expand opportunities for offering Pre-K within the public schools. As of February 2024, the Bozeman School Board has voted to expand its existing programming, starting in the summer of 2024. This is an important and exciting next step for offering more structure for three-year-olds and four-year-olds. In addition, House Bill 648 (HB 648) was passed to support the Best Beginnings child care subsidy program which provides scholarships to low-income families who receive child care. Primarily sponsored by Alice Buckley, a Montana House representative from Bozeman, this bill set the new income eligibility level for Best Beginnings scholarships at no less than 185% of the federal poverty level. It also set a copayment requirement not to exceed 9% of the household income for eligible families. In addition, this bill provided reimbursement to child care providers based on enrollment versus attendance.13 93 DPHHS and Montana State University Extension published their 2023 Montana Child Care Market Rate Study in January 2024, offering new insights into child care rates from across the state. Although not a surprise, the study confirmed that tuition rates have increased since 2020. Based on the increase in tuition rates, the reimbursement rates paid by the state to child care providers who care for children receiving Best Beginnings Child Care Scholarships are expected to go up, plus there will be a premium payment for those child care providers who offer care in high growth counties, including Gallatin County. Those new reimbursement rates are expected to go into effect in March 2024. WHAT’S HAPPENING IN GALLATIN COUNTY In the last five years, Gallatin County has continued to see an increase in its population (up 14%) and its median household income (up 23%). The current median age is 33.5, and there are 15% more women who are in their child-bearing years (ages 20-44) living in Gallatin County than there were five years ago. However, total births, based on available data, are only up 3%, and the percentage of the population of children under 5 has decreased from 5.9% in 2018 to 4.92% in 2012. GALLATIN COUNTY (2022 vs. 2018) Population Size 119,685 (up 14%) Median Household Income $83,434 (up 23%) Median Age 33.5 Women in Child-Bearing Years (20-44)23,220 (up 15%) *Women who may also have older children less than 18 years old. Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 14 94 BIRTHS BY YEAR IN GALLATIN COUNTY Year Total Births 2013 1,133 2014 1,168 2015 1,200 2016 1,254 2017 1,234 2018 1,111 2019 1,134 2020 1,145 2021 1,254 2022 1,143 Source: Kids Count Total full-time kindergarten enrollment in the last 10 years has been relatively steady in Gallatin County, with two exceptions: an increase in the 2016-2017 school year and then a decrease in the 2020-2021 school year. KINDERGARTEN ENROLLMENT IN THE LAST 10 YEARS Total births in Gallatin County had been climbing from 2013-2016, but then took a dip in 2017 and 2018, climbed back to 2016 birth levels by 2021, and then took another dip in 2022. TOTAL BIRTHS IN THE LAST 10 YEARS FULL-TIME KINDERGARTEN ENROLLMENT IN GALLATIN COUNTY School Year Full-Time Kindergarten 2013-2014 1,071 2014-2015 1,056 2015-2016 1,053 2016-2017 1,217 2017-2018 1,053 2018-2019 1,110 2019-2020 1,149 2020-2021 995 2021-2022 1,141 2022-2023 1,130 Source: Montana Office of Public Instruction, GEMS 15 95 The communities within Gallatin County all have one thing in common: a predominantly youthful population. The overall median age of Gallatin County residents is 33.5, with Three Forks having the highest median age of 43.6, and Bozeman having the lowest at 28.2 median age. With many residents in their prime working and child-rearing years, it becomes crucial to address the needs of Gallatin County families as their participation in the workforce is a vital component of the community's economic growth and development. As the community has grown, so has the labor force. However, focusing on women with children, some interesting patterns emerge. In Big Sky and Bozeman, there has been a significant drop in the participation rates of women in the labor force, particularly in the year 2022. This decline is especially noticeable among mothers with more than one child, including at least one child under the age of six as shown in the table and graph below. Although it may look like a typo, Bozeman has seen a decrease from 73.1% of women participating in the labor force to 32.1%. A CLOSER LOOK AT WOMEN IN THE WORKFORCE WOMEN IN THE LABOR FORCE WITH MORE THAN ONE CHILD (2013-2022) Montana Gallatin County Belgrade Big Sky Bozeman 2013 68.5%71.2%68.6%75.9%39.3% 2014 68.2%68.3%56.4%76.2%36.7% 2015 66.8%63.7%42.2%69.5%36.9% 2016 67.5%63.3%43.1%69.2%35.3% 2017 67.1%64.1%46.1%85.1%63.7% 2018 68.2%64.7%51.5%86.4%35.6% 2019 68.7%66.7%52.5%95.3%68.2% 2020 69.4%65.0%49.8%96.6%67.2% 2021 69.2%66.4%55.6%96.8%73.1% 2022 70.4%65.1%59.7%85.8%32.1% Sources: Kids Count, U.S. Census, ACS 5-Year Estimates, B23003 16 96 Sources: Kids Count, U.S. Census, ACS 5-Year Estimates, B23003 For working mothers with only one child, and that child is under six years old, there was also a decrease in labor force participation rates in 2022, although the decline is not as noticeable, as shown in the table below. WOMEN IN THE LABOR FORCE WITH ONLY ONE CHILD UNDER 6+ (2013-2022) Gallatin County Belgrade Big Sky Bozeman 2013 73.0%64.8%74.3%58.3% 2014 72.1%66.7%84.0%59.4% 2015 70.9%51.2%75.9%62.1% 2016 71.8%53.3%86.4%68.6% 2017 71.5%52.4%95.3%68.3% 2018 71.6%70.1%95.1%65.3% 2019 73.2%66.2%93.1%69.2% 2020 74.9%73.0%95.3%70.5% 2021 76.7%79.5%95.6%75.9% 2022 73.9%85.3%80.8%71.3% Sources: Kids Count, U.S. Census, ACS 5-Year Estimates, B23003 17 97 The decline in women's labor force participation rates in Gallatin County as a whole, including Big Sky and Bozeman, especially among mothers with more than one child, prompts further exploration. When examining the data of mothers with only one child under the age of six in the labor force, the decrease in participation rates is less pronounced. This raises the question of whether this variation could be attributed to a shift in the balance between the benefits of working and the costs associated with staying at home to care for children. A possible economic explanation could be that the opportunity cost of pursuing employment has dropped below the threshold where it becomes more economically viable or personally preferable for mothers to remain at home with their children, especially when there's more than one child, and at least one is under the age of six. Interestingly, Belgrade is an interesting deviation from the broader trend happening in Gallatin County. Unlike Big Sky and Bozeman, Belgrade seems to be bucking the trend. What factors in Belgrade might be contributing to this situation? Although this question wasn’t explored in this project, it’s interesting to consider. Also, other communities in Gallatin County were not analyzed as their population size does not provide reliable data. In the analysis of the Big Sky Childcare Study recently conducted by the Northern Rocky Mountain Economic Development District, there was a suggestion that the previous high rates of female labor force participation could be linked to both the local high cost of living and the necessity for dual-parent incomes. Without accessible, affordable, and thriving child care options, mothers may be deciding to leave the workforce, resulting in fewer workers available. Ensuring affordable and accessible child care services looks to be beneficial for families and vital for retaining a solid and productive female workforce in the community. COMMUNITY-BY-COMMUNITY OVERVIEW Below is a community-by-community overview with links to closer looks of each community. BELGRADE Belgrade has similar child care-related challenges like many of the other communities throughout Gallatin County including the high cost of living, the need for better pay and better benefits for the child care workforce as well as a lack of places and land to locate child care programs. The Belgrade School District has explored offering onsite child care but multiple concerns were raised, and employee-reported demand is low at this time. 18 98 BIG SKY The Big Sky Childcare Task Force (BSCTF) recently completed a comprehensive report to assess child care in Big Sky. The Big Sky Childcare Report has been used as a source for insights into what is happening in Big Sky and is included in this strategic plan as an appendix. The Big Sky community benefits several larger employers and from the use of resort tax dollars collected and redistributed to organizations to address gaps and needs, including child care. Big Sky Resort Area District (BSRAD) continually invests in the Big Sky Discovery Academy and Morningstar Learning Center to help close the child care funding gap. However, Morningstar Learning Center, the only licensed child care option available in Big Sky, is challenged by attracting and retaining a child care workforce due to the cost of living and lack of affordable housing. Also, the majority of the workforce commutes to Big Sky, often driving 45-60 minutes. One of the larger employers, the Yellowstone Club, is exploring child care in Gallatin Gateway for Big Sky employees who live in the Gallatin Gateway area. One community input session participant noted that although employer-supported child care may be of interest, there is also concern about being tied to one employer and not being able to switch jobs and that child care solutions outside of employment would be beneficial. BOZEMAN Despite its larger population base, Bozeman is not immune to the child care-related challenges being experienced throughout Gallatin County including the cost of living, affordable housing and continued growth. Bozeman is home to some of the largest employers in the county, two of which are offering child care for their employees (and their student parents): the Bozeman School District through the ABCDino Academy program at the high school; and Montana State University and its two programs, the Child Development Center (CDC) and the Associated Students of Montana State Child Care Center (ASMSU). XY Planning Network, another Bozeman-based employer, offers care at its XY Learning Center. Since 2015, the Bozeman School District has operated two Running Start kindergarten programs targeting the early learning needs of four-year-old students. With the passage of HB352 - Targeted Early Literacy Intervention, the Bozeman School Board has voted to implement expanded programming, starting in the summer of 2024. That expansion is expected to include a Bozeman Reads Summer Jump Start Program running 4 days a week, 5 hours per day for 6 weeks with a capacity of 160 students. In addition, there will be a Bozeman Reads Classroom-Based Program starting in August 2024, running 4 days a week, with half day and full day options, for three-year- old and four-year-old students, with a capacity of 72 students.19 99 FOUR CORNERS The Four Corners area has continued to grow and develop, offering places for both businesses and residential homes within a short drive to Belgrade and Bozeman. Zoot Adventure Learning Academy, an onsite daycare at Zoot Enterprises, is located in the area, as well as other licensed daycare offerings. Monforton School offers K-8th grades and hosts the Wildcat Workshops Afterschool Program. Given its geographical location, one community input participant noted the transportation challenges of living in the Four Corners area, including: travel time to/from other communities; left hand turns into traffic; and transportation of kids to other locations for after-school activities. GALLATIN GATEWAY Gallatin Gateway doesn’t currently have any operating licensed child care programs for infants, toddlers and Pre-K, requiring parents and families to explore other options including family, friends and neighbor care, babysitters, and driving into Bozeman to find care. However, the Yellowstone Club is exploring establishing a child care program in the area, and a new license has recently been secured by a provider, as shown in the map. In addition, the Gallatin Valley YMCA is now offering a Later Gators After School Program five days a week for elementary-age kids at the Gallatin Gateway School. The Bridge Church, located in Gallatin Gateway, has explored having child care at its building, but renovations would need to be made first. MANHATTAN - AMSTERDAM - CHURCHILL One of the biggest challenges that the Manhattan - Amsterdam - Churchill area is facing is a lack of a child care workforce. For example, Manhattan Christian Early Learning Center was operating with 6 children in Fall 2023, yet its capacity is 47, and it has since closed. There also may be a lack of awareness of what child care is available and/or a lack of alignment of what is being offered and what families need. For example, during the community input session, the Gallatin Conservation District mentioned offering summer programs and Friday programs, but yet they didn’t reach a maximum number of participants. THREE FORKS + WILLOW CREEK Three Forks and Willow Creek have limited child care options which often require them to bring their children to other larger communities for care. The Three Forks school district offers a four- day school week, and both Three Forks and Willow Creek offer pre-Kindergarten at their schools. In addition, the Three Forks school district provides child care. 20 100 One community input session participant noted that the area may be experiencing a lack of volunteerism among community members, yet volunteers are critical to making small towns run. Another trend may be an increase in homeschooling with families accessing the Three Forks Community Library for story time, lessons, and other activities. WEST YELLOWSTONE The West Yellowstone tourism economy and its 24/7 employment require non-traditional child care offerings. Other challenges include low wages, lack of housing and a geographically-isolated community. In addition, there is a need to recruit young professionals to West Yellowstone to fill critical jobs (teachers, first responders, etc.) and offer affordable and available child care, plus housing options. Little Rangers Learning Center is the only licensed child care provider in West Yellowstone, and it’s been actively fundraising and working with the community to address its budget shortfalls. 21 101 CASE STUDIES: ALTERNATIVE CHILD CARE MODELS ALTERNATIVE CHILD CARE MODELS 22 TAX CREDITS BY STATE For each state, it is noted whether or not the state has tax credits, based on information found at bipartisanpolicy.org. Source: https://bipartisanpolicy.org/report/state-tax-policies-working-parents/ Child and Dependent Care Tax Credit (CDCTC) Credit to offset the cost of child care based on the amount of eligible expenses a parent incurs Employer-Provided Child Care Tax Credit (45F) Credit for employers to offset the cost of providing or subsidizing child care for their employees Child Tax Credit (CTC) Credit for parents with young children, typically based on income and number of children Earned Income Tax Credit (EITC) Credit for low-income workers, with an enhanced credit for workers with young children Below are case studies from other communities and states that have been actively addressing child care challenges, as well as a look at tax credits available for these states. The following communities and states were reviewed. Local: Missoula, Kalispell, Great Falls Regional: Idaho, Colorado, North Dakota, Washington National: New Mexico, Minnesota, Kentucky, Alabama, Louisiana, Michigan 102 Montana Idaho Colorado North Dakota Washington State CDCTC Tax deduction for qualified employment related child care expenses. Expenses may not exceed $2,400 for one dependent, $3,600 for two, and $4,800 for three or more. 100% of the federal CDCTC Taxpayers with incomes under $60,000 who claimed the federal credit, may receive a credit equal to 50% of the federal credit. Not available Not available State 45F Not available Not available Tax credit for 20% of an employer's annual investment in the provision of child care services or the payment to a provider for costs associated with child care services for children of employees receiving public assistance. Not available Not available MONTANA + OTHER NEARBY STATES 23 103 Montana Idaho Colorado North Dakota Washington State CTC Not available $205 per qualifying child under age 17 Families with children under six are eligible for 60% of federal credit. It phases out with income between $25,000- 75,000 of AGI for single filers and $35,000-85,000 for joint filers. Not available Not available State EITC Percent of Federal Credit: 3% Not available Percent of Federal Credit: 20%Not available Percent of Federal Credit: Flat rate based on HH size Other No No Child Care Contribution Tax Credit (CCTC): Taxpayers that make a qualifying monetary contribution to promote child care may be eligible for a nonrefundable credit equal to 50% of the contribution. The maximum credit is $100,000EC Educator Tax Credit: Eligible early childhood educators who hold an active PDIS Early Childhood Credential may be awarded a refundable tax credit of $740-1,500, depending on highest level of credential. Eligible educators have an income less than or equal to $75,000 (individual) or $150,000 (joint).Child Care Center Property Tax Exemption: Eligible child care centers may qualify for property tax exemption for property used as an integral part of a child care center. Property that is used by a tenant or subtenant to operate a child care center may be eligible for the exemption. Property Tax Exemption: The governing body of the city may grant property tax exemption for the portion of fixtures, buildings, and improvements used primarily to provide early childhood services by a corporation, limited liability company, or organization licensed under ND statute. Qualified child care providers do not need to own the property, but the exemption is not available for properties used as a residence. No Source: https://bipartisanpolicy.org/report/state-tax-policies-working-parents/ 24 104 New Mexico Minnesota Kentucky Alabama Louisiana State CDCTC Credit for 40% of compensation paid to a caregiver, not to exceed $8.00 per day. The maximum credit is $480 for one child and $1,200 for two or more. 100% of the federal CDCTC 20% of federal CDCTC Not available Between 50-200% of federal CDCTC depending on quality rating of child care facility the dependent attends. Child care expenses for one star or nonparticipating facilities are not eligible. State 45F Tax credit for 30% of qualified expenses related to operating a child care facility used primarily by a taxpayer's employees. The credit can be prorated across multiple employers jointly taking on qualified expenses. The maximum credit is $30,000 per year and may be carried forward for three years. Not available Not available Not available Refundable tax credit for eligible expenses related to constructing a child care facility or contracting with a provider to reserve slots for a taxpayer's employees for up to $50,000 per tax year. Eligible expenses also include payments made to a child care facility for services to support employees up to $5,000 per child per year. The credit rate for eligible expenses depends on child care facility program rating. OTHER STATES ACROSS THE NATION 25 105 New Mexico Minnesota Kentucky Alabama Louisiana State CTC Families with children under 17 receive $75-175 per child depending on income. This takes effect TY2023-2031. Credit of $3,000 for each child ages 0-5 and $1,000 for each child ages 6-17. The credit phases out by 10% of adjusted gross income greater than $150,000 (married) or $75,000 (single). Taxpayers may elect to receive the payment in six periodic advance payments. Not available Not available Not available State EITC Percent of Federal Credit: 20% for TY2021-22, TY25% for 2023 Percent of Federal Credit: ~44%, but structured as a percentage of income rather than federal credit Not available Not available Percent of Federal Credit: 5% 26 106 New Mexico Minnesota Kentucky Alabama Louisiana Other No No No No Child Care Provider Tax Credit: Child care providers with 2+ stars in the LDE Quality Rating System who serve children in the foster care system or recipients in the Child Care Assistance Program may be eligible for a refundable tax credit of $750-1,500 per eligible child, depending on quality rating. The credit may be taken against individual income tax, corporation income tax, or corporation franchise tax.School Readiness Directors and Staff Tax Credit: Child care directors and eligible staff who have worked for 6+ months in a licensed child care center that participates in the quality rating system and are enrolled in the Louisiana Pathways Child Care Career Development System are eligible for a refundable tax credit of $1,894- 3,787, depending on position. The credit amount is adjusted annually by the percentage increase in the Consumer Price Index.Tax Credit for Donations to Resource and Referral Agencies: Businesses may receive a refundable tax credit for donations made to Child Care Resource and Referral Agencies. The credit rate is 100% and the maximum credit is $5,000. The credit may be taken against individual income tax, corporation income tax, or corporation franchise tax. 27 107 CASE STUDIES The following communities and states offer insights as to how to innovatively address child care challenges. Local: Missoula, Kalispell, Great Falls Regional: Idaho, Colorado, North Dakota, Washington National: New Mexico, Minnesota, Kentucky, Alabama, Louisiana, Michigan LOCAL Source: Missoula Child Care Advantage (MCAA), https://www.missoulachild careadvantage.com/ Background/Situation Increase child care slots in the community Engage sectors not typically involved in child care solutions Stabilize child care sector long term Initiatives include: Shared Services: MCCA is a network of independent child care businesses (Participating Providers) that utilize shared services to streamline operations and improve their bottom line. Wait List and Enrollment Portal: One of these shared services is an Enrollment & Wait List Portal. Business Membership: Companies can pay a fee to MCCA and become Business Members in the network. Their employees then have preferred access to the Enrollment and Wait List Portal, which helps them find child care more quickly. Business membership fees mean shared services are free for participating providers. Public/Private Funding: The City of Missoula, Missoula County, and United Way of Missoula County, co-fund the position of MCCA coordinator through a public/private partnership. Expansion: The network will expand beyond the pilot location in the future. MISSOULA Source: Missoula Child Care Advantage (MCAA), https://www.missoulachild careadvantage.com/ Background/Situation Increase child care slots in the community Engage sectors not typically involved in child care solutions Stabilize child care sector long term Initiatives include: Shared Services: MCCA is a network of independent child care businesses (Participating Providers) that utilize shared services to streamline operations and improve their bottom line. Wait List and Enrollment Portal: One of these shared services is an Enrollment & Wait List Portal. KALISPELL 28 108 Business Membership: Companies can pay a fee to MCCA and become Business Members in the network. Their employees then have preferred access to the Enrollment and Wait List Portal, which helps them find child care more quickly. Business membership fees mean shared services are free for participating providers. Public/Private Funding: The City of Missoula, Missoula County, and United Way of Missoula County, co-fund the position of MCCA coordinator through a public/private partnership. Expansion: The network will expand beyond the pilot location in the future. Background/Situation Great Falls wanted to develop a hybrid method for child care that is open both standard and non-standard hours in a new recreational facility. Goal is to offer greatly reduced and almost free child care. Need to encourage business owners and industry partners to help employees offset child care costs. Implement child care boot camp for providers to get licenses and certifications in a short amount of time. Diversification of revenue for business partners. 15,000 square feet of usable space. Community coop: other providers helping with child care needs because waiting lists are so long, goal to add 200-250 slots. Some discussion over sharing staff but want to grow staff first Initiatives include: Formed a steering committee to take on the project and received a donation of $40K+ In the stages of putting together an investment cooperative for the program. Challenges include: The biggest is getting business owners to the table, making it clear for businesses to help invest in a child care facility not run it just to get people back into their workforce. The state of Montana has a lot of families where one parent stays at home because they can’t find affordable care or there isn’t a facility in their community. What works in Great Falls might not work in other communities because there are a variety of economic drivers. GREAT FALLS 29 109 REGIONAL Background/Situation The state of Idaho created an Early Childhood Care and Education Strategic Plan with the Idaho Association for the Education of Young Children (IDAEYC) to prepare Idaho children ages 0 to 5 for school and life. The strategic plan was developed after an extensive needs assessment that identified the following key takeaways: Many Idaho families face several critical challenges, including poverty, hunger, and housing insecurity, lack of health care, and inconsistent access to the internet or a computer. 1 in 8 children in Idaho were food insecure, especially those in rural areas. Child care is unaffordable for many families. A typical family in Idaho will spend 25% of its annual income on child care for an infant and a 4-year-old. There is a lack of care. Nearly 50% of Idahoans live in communities that either completely lack licensed child care providers or the providers are so scarce that there are more than three children for every child care space. Idaho does not have systems in place to understand which types of early childhood care and education (ECCE) settings are most effective in increasing school readiness and early literacy The mission of the plan: Energize communities to form collaborative and high quality early childhood care and education environments for all Idaho children. Three broad guiding principles guide ECCE in Idaho: Equitable access: Recruitment and outreach strategies are implemented and barriers to access are removed, ensuring those most in need of services connect to and obtain support. Successful implementation: High quality service delivery implemented with fidelity, meeting the needs of those accessing programs, services, and other supports. Improved outcomes: Programs, services, and other supports delivered with the appropriate quality and intensity, achieving desired outcomes. The goals and objectives of the strategic plan include: Communities Engaged and Family-Focused Expand and strengthen local collaboratives. Serve vulnerable, underserved, and rural. Children and Families Prepared, Empowered, and Thriving Support collaborative transition and alignment from birth to the early grades. Empower family choices. Resources for Early Childhood Care and Education (ECCE) Educators Expanded Elevate the ECCE profession. Expand professional development opportunities for ECCE educators. Develop aligned credentials and certifications for ECCE educators. IDAHO 30 110 Increase the number of degreed ECCE educators in Idaho. Support ECCE educators through statewide and local networks. Expand opportunities to improve ECCE quality. Offer financial assistance to ECCE providers to open, expand, and sustain ECCE programs. Timely, Actionable, and Accessible Data Available Strengthen data-driven community planning. Create and use an ECCE dashboard to support Idaho’s young children and their families. The Idaho Association for the Education of Young Children (IDAEYC) has developed guidebooks to help local Early Learning Collaboratives (ELCs) conduct needs assessments and develop community-specific strategic plans to improve access to and affordability of quality care and early education to ensure children are school ready. 25+ communities across Idaho have created bottom-up approaches to addressing their community’s child care needs. American Falls now offers universal preschool, using the campaign “Read. Talk. Play.” to improve kindergarten readiness. The United Way offers scholarships to the five preschool programs in the community — a mix of private and public. All of the preschools use the same vetted curriculum. The school district’s kindergarten readiness scores, measuring early literacy skills, increased from 19.7% proficiency in fall 2019 to 40% in fall 2023. Sources/Links for More Information: Idaho Idaho's Statewide Early Learning Strategic Plan Idaho Association for the Education of Young Children (IDAEYC) Early Learning Collaborative across Idaho IdahoSTARS How A Small Town in A Red State Rallied Around Universal Preschool Background/Situation The state is using federal and state tax deductions and credits, like the Colorado Child Care Contribution Tax Credit (CCCTC), to make child care more accessible and affordable. The CCCTC provides an income tax credit for taxpayers making monetary contributions to support child care, including, but not limited to, licensed child care facilities, unlicensed child care, organizations that provide educator training, referral services for child care, or financial support for parents to access child care. The credit is equivalent to 50 percent of the contribution amount, with a maximum credit of $100,000 per taxpayer, per tax year. COLORADO 31 111 The downside of the tax credit is that records show most taxpayers are contributing to the same child care organization continually and not to providers that may be in need of financial assistance. The Colorado Child Care Assistance Program (CCCAP) helps to provide financial assistance to families with similar systems of income-eligibility to determine financial needs. The Grants for Child Care Sector helps in writing and passing bills in legislative sessions to obtain funds for child care families and providers. According to the 2019 Colorado Shines Brighter report—a birth-through-age-5 needs assessment from the Colorado Health Institute and the Office of Early Childhood—about 40 percent of licensed child care facilities accept CCCAP, and about 8 percent of the income- eligible population is enrolled. CCCAP recipients are also eligible for the Child Care Credit and Low-Income Credit; however, CCCAP recipients can only claim credits based on their out-of- pocket child care expenses not covered by CCCAP. Recent legislation includes: During the 2020 and 2021 Legislative Sessions, the General Assembly passed multiple bills to support the child care sector and to help it recover from the impacts of the COVID-19 pandemic. During the 2020 Special Legislative Session, the General Assembly passed House Bill 20B-1002, Emergency Relief Programs for Child Care Sector. This bill created two emergency relief grant programs to provide financial support to licensed providers in order to maintain operations and capacity, or to open new facilities or expand existing capacity. During the 2021 Legislative Session, the General Assembly passed Senate Bill 21-236 to increase the capacity of quality early childhood education facilities. This bill created four additional grant programs, using state and federal funds, for: The construction, renovation, or remodeling of employer-based child care facilities. Child care centers to cover tuition, fees, materials, credentialing, licensing, and wage increases for early childhood staff for recruitment and retention. Wage increases for early childhood educators working at centers that serve families that are subsidized with CCCAP. Community-based programs that cover tuition subsidies or scholarships, employer-based cost sharing, ensure equitable access for all children, and strengthen child care business practices that improve early childhood outcomes. Sources/Links for More Information: Colorado Child Care Contribution Tax Credit Colorado EPIC: FAQS Early Milestones Colorado Colorado Department of Early Childhood EPIC: Executives Partnering to Invest in Children: Toolkit 32 112 Background/Situation In 2023, new legislation was passed and signed by the North Dakota governor to provide $66 million to support child care services and access, including: $22 million to expand the Child Care Assistance Program (CCAP), increasing the number of families with children ages 0 to 3 who receive help paying for child care from 4,660 to 6,460 by the end of the 2023-2025 biennium. $5 million for an additional 500 families to participate in a pilot project where private employers contribute money to help cover their employees’ child care expenses. Support for child care providers and the child care workforce includes: $15 million to incentivize more providers to deliver child care for infants and toddlers by increasing the CCAP rates for child care centers and group/family child care settings. $3 million to increase support to providers who want to become quality-rated or increase their current quality rating. $2 million in stipends for child care workers pursuing additional training. Support for families includes: Families with low income who meet certain eligibility requirements including participating in an allowable activity: working (paid employment or self-employed); education or training programs; in situations of homelessness, looking for employment, education or training activities, and housing is considered allowable; age limits: once children are determined eligible, they may receive services until the eligibility period in which they turn 13 years old expires; a child with special needs may qualify up to age 19; asset limits: a family’s assets cannot exceed $1,000,000; monthly income from wages, child support, pensions, veteran’s benefits or other sources must be less than the CCAP income limits; copayment: in most cases, families pay a copayment, which is a portion of the child care cost; determined on a sliding fee scale based on a family's income and household size. Challenges include: Limited number of programs that are open on weekends and before and after work hours, making it harder for families with abnormal working hours to find child care. The amount of providers doesn’t match up with the estimated number of children needing child care in the county. Sources/Links for More Information: North Dakota Office of the Governor: North Dakota North Dakota House Bill 1540: Early Childhood Services and Child Care Assistance North Dakota Child Care Assistance Program Child Care Aware of North Dakota NORTH DAKOTA 33 113 Background/Situation Washington’s Fair Start for Kids Act is a $1.1 billion investment to make child care and early learning more affordable for the state’s families by expanding access, capping copays, and providing resources to support child care and early learning providers. The changes made under the Fair Start for Kids Act will help create an integrated system of child care and early learning in Washington State that is accessible, affordable, and in which providers and child care workers can have the support they need to provide quality care. The Fair Start for Kids Act covers many issues that other states are having when it comes to child care. The act reduces copay amounts for families who have lower incomes and creates bonuses for providers who are staying open during non-standard working hours. Support for families includes: Copays through Working Connections Child Care (WCCC) are capped so that: A family of four will pay no more than $115 a month in child care copays if they have a combined income of $64,248 a year or less. That same family will pay no more than $90 a month if their combined income is less than $53,544 a year. Provides a bonus for child care providers to provide care during non-standard hours. More pre-k slots and converting slots for Washington ECEAP. Expanded Washington home-based services offered to expectant parents and families with babies and young children. Adds additional pre-k slots through ECEAP. Funds the expansion of therapeutic care and specialized treatment for children and families furthest from opportunity. Implements the dual language rate enhancement and trauma-informed care supports. Support for child care providers includes: Puts a big emphasis on quality of child care especially when it comes to equal access to all communities including more support towards Spanish and Somali speaking providers as well as establishing new consultants that will focus on mental health for children. Distributes new grants to early learning providers, including: $360 million in child care Stabilization Grants to help providers remain open and able to care for children. $5.1 million in Early Childhood Equity Grants to promote inclusive, culturally responsive learning and enhanced language access, with a focus on Black, Indigenous, and People of Color (BIPOC) communities and providers. $9.6 million in Complex Needs Funds to further support care for children with developmental delays, disabilities, behavioral needs, or other unique needs. Sources/Links for More Information: Washington Fair Start for Kids Act WASHINGTON 34 114 NATIONAL Background/Situation The process for New Mexico families to receive free child care happened through different legislations and actions taken by policymakers and the public over a four-year period. In 2018, OLÉ and the legal group New Mexico Center on Law and Poverty filed suit against the state’s Children Youth and Families Department, alleging that the state arbitrarily and illegally denied families access to child-care assistance. In 2020, the state drew on taxes from oil and gas production of $300 million to create an Early Childhood Education and Care Fund. The endowment, which draws on taxes from oil and natural gas production, is projected to be worth $4.3 billion by 2025. New Mexico became the first state to offer free child care to such a broad swath of its population. In 2022, the governor allowed child care subsidy copays to be waived. This legislation also expanded eligibility so child care was free for one year for an estimated 30,000 residents, including families earning up to 400 percent of the federal poverty level, or $111,000 a year for a family of four. It became the first state to do this. The state waived copays for low-income families and increased eligibility for subsidies to 350% of the federal poverty line. The state also revised the copayment schedule so that families weren’t having to pay most of their income on child care all at once and brought costs down for parents so that they were not spending more than 7 percent of their incomes on child care. New Mexico voters also successfully changed the state constitution to guarantee a constitutional right for children ages zero to five to receive early childhood education. Awareness building initiatives included: Volunteers sent text messages, made calls, knocked on people’s doors, and used social media to get the word out. Parents spoke out about how it would help to make child care affordable, while providers advocated for it as a way to get paid adequately for the critical services that they provide. Support for child care providers includes: With the state taking over the payment of copays, providers are assured of getting money. The state used an additional $10 million in federal funding from the American Rescue Plan to offer grants to people who want to expand or create child care centers as a way to increase the supply of slots, with the goal of creating at least 800 new ones. Reimbursed providers based on how much it actually costs to provide child care, not just on the going market rate. Working with lawmakers to ensure a minimum wage of $18 an hour, with a ladder that allows them to continue to move up in pay and achieve parity with K-12 teachers based on their educational credentials and years of experience. It must be a registered provider or a licensed provider that is rated at 2 stars or above (out of 5). NEW MEXICO 35 115 Challenges for child care providers include: Getting enough staff, especially in rural parts of the state. The Early Childhood Education and Care Department announced it will raise the rates it provides centers for child care assistance, which should allow them to continue to fund a minimum wage of $15 per hour for employees. Support for families includes: Families earning up to 400% of the federal poverty line who have circumstances — such as work or school — that require them to need child care. For a family of four, this means households making less than $120,000. The child care assistance program applies to infants through 3-year-olds, as well as those who need care before or after school from kindergarten through fifth grade. Parents are reporting that many child care providers have long waitlists and many parts of the state are "child care deserts" where there are more than three children who need care for every available slot. The state is working on increasing providers. Sources/Links for More Information: New Mexico New Mexico Center for Law and Poverty Early Learning Nation Early Childhood Education and Care Fund Washington Post Albuquerque Journal National Conference on State Legislatures Office of the Governor: New Mexico Background/Situation The state government has invested $1.3 billion over four years to increase access to affordability of mixed-delivery child care that will result in 3,600 additional children accessing Child Care Assistance Program (CCAP), between 8,000 and 11,000 additional children accessing Early Learning Scholarships, and 12,360 voluntary Pre-K seats funded. Minnesota created one of the first-in-the-nation state-funded programs to increase child care worker compensation and expand child care access including: better access to licensing, child care workforce development scholarships, increases in income to childhood educators, more hours of care given to children whose caregivers suffer from mental health issues, and breakfast and English Language learners provided to preschoolers. Established the Department of Children, Youth, and Families, a new cabinet-level agency that reimagines state government structures to elevate child, youth, and family priorities and funding need. Recent legislation includes: See charts below from Minnesota’s Children’s Cabinet for a list of recent legislation passed that supports both child care providers and families MINNESOTA 36 116 Sources/Links for More Information: Minnesota 2023 Legislative Wins for Children and Families Minnesota House Bill HF 13: Increasing Child Care Assistance Rates Minnesota House Bill HF 150: Child Care Stabilization Grants and Early Learning Scholarships Administration for Children & Families KARE-11 TV News 37 117 38 118 Background/Situation On August 1, 2019, Alabama House Bill 76 — The Child Care Safety Act — went into effect. It made changes to the child care licensing laws to improve the health and safety of children in licensed facilities, provide guidelines to improve conditions in all facilities and programs, and provide incentives for unlicensed programs to become licensed. In September of 2021 the Child Care Stability Grant was passed. Grants were issued to the child care community during COVID to help stabilize costs. The 2023 grant was issued to continue supporting the community after the COVID grants expired. Facilities were encouraged to apply for these grants which is based on the maximum child capacity by type of facility. Eligible programs for this grant are any child care program/classroom that is issued a Child Care Services Division license with the exception of Head Start exclusive programs and non-DHR Early Head Start-Child Care Partnerships. The capacities of excluded programs and/or classrooms shall be deducted from the total licensed daytime capacity to determine the award amount for the facility. Parents are able to apply for financial aid based on income eligibility through the Office of Child Care Subsidy, especially those families who are low-income families and have little access to affordable child care. Sources/Links for More Information: Alabama Alabama Child Care Licensing Overview 2019 Child Care Safety Act Alabama Child Care Service Division Alabama Subsidy Overview CCDF State Plan Income Eligibility Fee Criteria ALABAMA: Background/Situation In Kentucky child care is paid for by the state due to people recognizing how many low-income parents couldn’t afford child People needed child care, but there weren’t any spots as daycares couldn't find anyone to work. Kentucky made day care free for child care workers through a change in licensing regulations. A year later, the number of children receiving state subsidies for child care has jumped up to 40,000. The state pays more than $200 a week in many counties for an infant spot, and less for older children. KENTUCKY: 39 119 Support for child care workforce and families includes: All child care workers are eligible for subsidies regardless of household income. Right now over 3,600 children are being served because they have a parent who's a child care provider. Depending on the county, the state might pay a couple hundred dollars a week for infant care - and less as the kids get older. Child care centers are finally able to fully staff up, which means far more day care slots available, allowing far more parents to go to work. Support for child care providers includes: All child care programs that choose to accept families with the Child Care Assistance Program (CCAP) must complete Billing Basics for Providers training. This online course provides an overview of the billing process for CCAP including information on completing the DCC 94E, Daily Attendance Sheet. Training stresses the importance of completing the provider billing form and reviewing the necessary requirements of the billing process. Sources/Links for More Information: Kentucky Kentucky found a solution to its day care worker shortage NPR Child care worker shortage Kentucky Division of Child care Child Care Assistance program for Families Child Care Assistance Program Providers Kentucky Child Care Laws Background/Situation Gov. Gretchen Whitmer signed into law a package of changes to Michigan’s child care system to reduce red tape and help make child care more widely available. The laws enacted in June of 2022 contain a wide range of measures, from minor procedural fixes to major changes in the state’s method of supporting small, home-based providers. The state recently used federal dollars to invest $1.4 billion in increased payments for child care centers and bonuses for early educators, and to expand the supply of child care in urban and rural communities. The new laws focus on changes to child care regulations, including: Allowing experienced home-based providers to serve as many as seven children, instead of six; group home providers will be eligible to serve up to 14 children instead of 12. Requiring the state to make more information public about special investigations into child care programs. Giving child care providers at least 90 days to comply with new health and safety rules, a formal grace period that doesn’t currently exist. Giving child care providers a path to operate in multi-use buildings, such as a strip mall with multiple storefronts, something that was difficult under previous regulations. MICHIGAN 40 120 The package will also create networks for home-based providers that will offer coaching and technical support to the smallest players in the early education market. The state will pay between $2 million and $5 million to support the networks, depending on how many providers participate. Temporary child care subsidy rate increases ended in Sept 2023 and shifted to rates that are 40% higher than they were pre-pandemic. In addition, federally required Family Contribution (FC) will be reinstated, and child care subsidy billing based on enrollment will continue. Support for child care providers includes: In Fall 2023 Governor Whitmer signed a budget that includes over $700 million in grant funding to support child care providers. Rather than payments based on attendance, provider networks will be given contracts to care for children ages 0-3, ensuring a steady income source even when children are absent. The goal is to incentivize providers to care for younger children, who are most expensive to care for because they require more adult attention. Sources/ Links for More Information: Michigan Child Care Stabilization Grant Looming Child Care Disaster State of Michigan Child Development and Care Handbook Governor Signs Child Care Bills 2022 Child Care Stabilization Grant Presentation Michigan Child Development and Care Website Background/Situation In 2019, the bipartisan commission unanimously approved a bold plan to address the lack of high-quality, affordable child care for vulnerable families. The commission's plan, Investing in Our Future: LA B to 3, calls for the state to invest substantially in high-quality Early Childhood Education (ECE) over the next decade. In 2022, state lawmakers made a historic down payment by allocating new funding for ECE. However, Louisiana is running out of a significant amount of one-time federal dollars, and over 16,000 children are at risk of losing access to high-quality ECE programs. Further complicating the situation, Louisiana also has a record-low unemployment rate of less than 4%, meaning even more families need care for their young children while working. During the June 2023 legislative session, Louisiana lawmakers approved $44 million in new funding to early care and education. The money will go towards the Child Care Assistance Program (CCAP), a state funded program that provides financial assistance to low-income families while they are working or attending school. With child care often representing the largest portion of a family’s budget, and child care breakdowns costing Louisiana businesses over $760 million every year, leaders believe this will help thousands of people across the state. The state was relying on the last bit of COVID relief money to fund the project, but this new investment will save over 3,500 seats in the program. LOUISIANA 41 121 In 2022, the Louisiana State Legislature signaled its commitment to early care and education by allocating $25 million for the Child Care Assistance Program (CCAP) and $18 million to increase four-year-old program rates. Child Care Provider Tax Credit: Child care providers with 2+ stars in the LDE Quality Rating System who serve children in the foster care system or recipients in the CCAP may be eligible for a refundable tax credit of $750-$1,500 per eligible child, depending on quality rating. The credit may be taken against individual income tax, corporation income tax, or corporation franchise tax. School Readiness Directors and Staff Tax Credit: Child care directors and eligible staff who have worked for 6+ months in a licensed child care center that participates in the quality rating system and are enrolled in the Louisiana Pathways Child Care Career Development System are eligible for a refundable tax credit of $1,894-$3,787, depending on position. The credit amount is adjusted annually by the percentage increase in the Consumer Price Index. Tax Credit for Donations to Resource and Referral Agencies: Businesses may receive a refundable tax credit for donations made to Child Care Resource and Referral Agencies. The credit rate is 100% and the maximum credit is $5,000. The credit may be taken against individual income tax, corporation income tax, or corporation franchise tax. Sources/Links for More Information: Louisiana Lawmakers approve millions in funding for low-income families to afford child care Child Care Assistance Program for Families CCAP Eligibility Criteria Child Care Association of Louisiana Funding our Future with LA B to 3 42 122 VISION-GOALS-OBJECTIVES What’s our vision? What are our goals, priorities and objectives? 43 VISION Accessible, affordable and thriving child care in Gallatin County OVERALL GOALS Address the most pressing child care challenges in Gallatin County Enhance collaboration among all those involved and impacted by child care Support, complement and expand upon what currently exists PRIORITIES Solutions for Child Care Businesses1. Child Care Solutions for Businesses2. Child Care Solutions for Families 3. Policy and Subsidy Solutions 4. OBJECTIVES Increase the capacity within the CHILD Task Force Better understand the specific child care needs of the community Continue to support child care providers Focus on child care workforce attraction and retention Engage employers in developing solutions Continue to collaborate with community leaders “We need subsidies for child care providers & low- income families; employers providing child care; affordable insurance for child care providers; relaxed development code and zoning code for child care; prohibit HOA covenants restricting child care; flexible financing options for child care; increased wages for child care providers; more after-school programs for school age children and higher wages for teachers offering after school programs or volunteer opportunities or tax incentives for the schools; child care cooperatives; grant funding; and city/county/state initiatives or support.” Belgrade, Community Leader, Cares about Child Care Options 123 STRATEGIC DIRECTION and ACTION PLAN 44 Increase the capacity within the CHILD Task Force Better understand the specific child care needs of the community Continue to support child care providers Focus on child care workforce attraction and retention Engage employers in developing solutions Continue to collaborate with community leaders OBJECTIVES Solutions for Child Care Businesses1. Child Care Solutions for Businesses2. Child Care Solutions for Families 3. Policy and Subsidy Solutions 4. PRIORITIES Enhance collaboration among all those involved and impacted by child care1. Support, complement and expand upon what currently exists2. Address the most pressing child care challenges in Gallatin County3. OVERALL GOALS Need for increased capacity within the CHILD Task Force Need for better data Need for evolving action plans KEY LEARNINGS What are our strategies to support our vision for the next 5-10 years? Which action items need to be accomplished? 124 GOAL 1: ENHANCE COLLABORATION AMONG ALL THOSE INVOLVED AND IMPACTED BY CHILD CARE OBJECTIVE 1: Increase the capacity within the CHILD Task ForceSTRATEGY 1.1: Explore the feasibility of dedicating a person full-time ACTION PLAN Formalize the established partnership Secure additional public-private funding Create a sustainable full-time position; responsibilities could include: Collaboration Communication Data gathering and analyzing Execution of the strategic plan Ongoing evolution of the strategic plan and its action items GOAL 2: SUPPORT, COMPLEMENT AND EXPAND UPON WHAT CURRENTLY EXISTS OBJECTIVE 2: Better understand the child care needs of thecommunitySTRATEGY 2.1: Build on what’s currently known to assess demand ACTION PLAN Obtain funds through ChildCare Aware of America grant Analyze the population of children under 5: past and projected Analyze school enrollment: Pre-K-5th grade: past and projected Secure birth rate data from Bozeman Health and others Collect and analyze estimated demands for child care: past and projected Present findings to community leaders and evaluate opportunities STRATEGY 2.2: Establish the Gallatin County waitlist program for use by care providers, families and businesses ACTION PLAN Build off what’s already been learned by the Missoula Child Care Advantage Initiative Look to complement and/or understand how the waitlist program fits with what the state is considering Put in place the ability to measure the actual demand for child care 45 125 GOAL 3: ADDRESS THE MOST PRESSING CHILD CARE CHALLENGES IN GALLATIN COUNTY OBJECTIVE 3A: Continue to support child care providers STRATEGY 3.1: Help increase awareness of availability of non- traditional hours and weekend care and assess understanding of the need ACTION PLAN Work with providers to promote availability and better understand what families want and why people are hesitating to use the care that’s offered Conduct an online survey among families who work non-traditional hours Work with employers to share with employees who may be interested Share findings with providers and employers and discuss potential solutions based on findings STRATEGY 3.2: Look for opportunities to simplify steps for child careproviders ACTION PLAN Create a comprehensive view of what each child care organization does and where a provider can go for what types of questions, issues, etc. Distribute the comprehensive view to all of the providers and post to the CCC website Continue to update and distribute the comprehensive view each year OBJECTIVE 3B: Focus on child care workforce attraction and retentionSTRATEGY 3.3: Recognize and provide incentives to the child careworkforce through funding opportunities and community donations ACTION PLAN Create a CHILD Task Force committee focused on workforce attraction and retention and define committee members’ roles and responsibilities Determine opportunities to secure funding to establish program (i.e., nonprofits, companies, grants, community foundations, etc.) Look to promote and provide incentives, grants, housing subsidies, etc. Spearhead campaign to acknowledge and offer child care workforce benefits: community-wide appreciation, freebies, discounts, support 46 126 OBJECTIVE 4: Engage employers in developing solutions STRATEGY 4.1: Provide needed information to employers ACTION PLAN Work with Zero to Five to finalize the financial model and business case for employer- supported child care (cost of care calculator) Reconvene the panel of employers who currently offer employer-supported child care Develop mini case studies to share with prospective employers; update the Employer- Supported Child Care Toolkit; and create FAQs Develop and field a universal survey to ask employers/employees questions - i.e., how many employees have you lost due to child care, etc. STRATEGY 4.2: Conduct outreach initiatives to increase the dialogue ACTION PLAN Create a CHILD Task Force committee focused on outreach to employers and define committee members’ roles and responsibilities Approach large employers in Gallatin County (i.e., Bozeman Health), share financial models and business cases, and brainstorm with them about child care solutions that meet their needs Approach multiple businesses that are located in the same area (i.e., Target, Costco, Town Pump, etc.) and discuss opportunities to collaborate in establishing nearby child care solutions for their employees Meet with Gallatin County to determine steps for offering care in new facility OBJECTIVE 5: Continue to collaborate with community leaders STRATEGY 5.1: Further engage community leaders and decision makers on the importance of child care solutions ACTION PLAN Create a CHILD Task Force committee focused on policies and subsidies Work to ensure that addressing child care needs are part of strategic plans, growth policies, etc. throughout Gallatin County and its communities Take actions outlined during the CHILD Task Force visioning session including: Incentivize employer supported child care (i.e. tax credits) Improve the understanding about the connections between child care and economic vitality Look at the low hanging fruit when it comes to subsidies Address the insurance barriers Collect data to make a case for incentives 47 127 STRATEGY 5.2: Keep child care top of mind for the media and thegeneral public ACTION PLAN Increase the number of people focused on the issue, offering new perspective and addressing lack of knowledge Reach out to media to secure additional coverage about child care challenges Continue to increase awareness through social media posts Develop a database of those interested in child care and share strategic plan updates via email newsletters, etc. 48 128 EVALUATION FRAMEWORK 49 How do we measure and evaluate our strategies and action items? GOAL 1: ENHANCE COLLABORATION AMONG ALL THOSE INVOLVED AND IMPACTED BY CHILD CARE OBJECTIVE 1: Increase the capacity within the CHILD Task Force STRATEGY 1.1: Explore the feasibility of dedicating a person full-time ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Formalize the established partnership CCC Q4 2024 Secure additional public-private funding CCC Q4 2024 Create a sustainable full- time position; define responsibilities CCC Q1 2025 129 GOAL 2: SUPPORT, COMPLEMENT AND EXPAND UPON WHAT CURRENTLY EXISTS OBJECTIVE 2: Better understand the child care needs of the community STRATEGY 2.1: Build on what’s currently known to assess demand ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Obtain funds through ChildCare Aware of America grant CCC Q1 2024 IN PROGRESS Analyze the population of children under 5: past and projected NRMEDD Q3 2024 Analyze school enrollment: Pre-K-5th grade: past and projected NRMEDD Q3 2024 Secure birth rate data from Bozeman Health and others NRMEDD Q3 2024 Collect and analyze estimated demands for child care: past and projected NRMEDD Q3 2024 50 130 GOAL 2: SUPPORT, COMPLEMENT AND EXPAND UPON WHAT CURRENTLY EXISTS OBJECTIVE 2: Better understand the child care needs of the community STRATEGY 2.2: Establish the Gallatin County waitlist program for use by care providers, families and businesses ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Build off what’s already been learned by the Missoula Child Care Advantage Initiative CCC 2024 IN PROGRESS Look to complement and/or understand how the waitlist program fits with what the state is considering CCC 2024 IN PROGRESS Put in place the ability to measure the actual demand for child care CCC Q1 2025 51 131 GOAL 3: ADDRESS THE MOST PRESSING CHILD CARE CHALLENGES IN GALLATIN COUNTY OBJECTIVE 3A: Continue to support child care providers STRATEGY 3.1: Help increase awareness of availability of non-traditional hours and weekend care and assess understanding of the need ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Work with providers to promote availability and better understand what families want and why people are hesitating to use the care that’s offered CCC Q2-Q3 2024 Conduct an online survey among families who work non- traditional hours CCC + CTF Q2-Q3 2024 Work with employers to share with employees who may be interested CCC + CTF Q2-Q3 2024 Share findings with providers and employers and discuss potential solutions based on findings CCC Q3 2024 52 132 GOAL 3: ADDRESS THE MOST PRESSING CHILD CARE CHALLENGES IN GALLATIN COUNTY OBJECTIVE 3A: Continue to support child care providers STRATEGY 3.2: Look for opportunities to simplify steps for child care providers ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Create a comprehensive view of what each child care organization does and where a provider can go for what types of questions, issues, etc. CCC + STATE Q2-Q3 2024 IN PROGRESS Distribute the comprehensive view to all of the providers and post to the CCC website CCC Q2-Q3 2024 IN PROGRESS Continue to update and distribute the comprehensive view each year CCC Q4 2024 53 133 GOAL 3: ADDRESS THE MOST PRESSING CHILD CARE CHALLENGES IN GALLATIN COUNTY OBJECTIVE 3B: Focus on child care workforce attraction and retention STRATEGY 3.3: Recognize and provide incentives to the child care workforce through funding opportunities and community donations ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Create a CHILD Task Force committee focused on workforce attraction and retention and define committee members’ roles and responsibilities CTF Q2 2024 Determine opportunities to secure funding to establish program (i.e., nonprofits, companies, grants, community foundations, etc.) CTF Q2 2024 Look to promote and provide incentives, grants, housing subsidies, etc. CTF Q2 2024 Spearhead campaign to acknowledge and offer child care workforce benefits: community-wide appreciation, freebies, discounts, support CTF Q3-Q4 2024 54 134 GOAL 3: ADDRESS THE MOST PRESSING CHILD CARE CHALLENGES IN GALLATIN COUNTY OBJECTIVE 4: Engage employers in developing solutions STRATEGY 4.1: Provide needed information to employers ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Work with Zero to Five to finalize the financial model and business case for employer- supported child care (cost of care calculator) Zero to Five Q1-Q2 2024 IN PROGRESS Reconvene the panel of employers who currently offer employer-supported child care CCC + CTF Q4 2024 (OCT) Develop mini case studies to share with prospective employers; update the Employer-Supported Child Care Toolkit; and create FAQs CCC + CTF Q4 2024 (NOV) Develop and field a universal survey to ask employers/employees questions - i.e., how many employees have you lost due to child care, etc. CCC + CTF Q1 2025 (JAN) 55 135 GOAL 3: ADDRESS THE MOST PRESSING CHILD CARE CHALLENGES IN GALLATIN COUNTY OBJECTIVE 4: Engage employers in developing solutions STRATEGY 4.2: Conduct outreach initiatives to increase the dialogue ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Create a CHILD Task Force committee focused on outreach to employers and define committee members’ roles and responsibilities CTF Q4 2024 Approach large employers in Gallatin County (i.e., Bozeman Health), share financial models and business cases, and brainstorm with them about child care solutions that meet their needs CTF Q1 2025 (JAN) Approach multiple businesses that are located in the same area (i.e., Target, Costco, Town Pump, etc.) and discuss opportunities to collaborate in establishing nearby child care solutions for their employees CTF Q1 2025 (JAN) Meet with Gallatin County to determine steps for offering care in new facility CCC Q2 2024 56 136 GOAL 3: ADDRESS THE MOST PRESSING CHILD CARE CHALLENGES IN GALLATIN COUNTY OBJECTIVE 5: Continue to collaborate with community leaders STRATEGY 5.1: Further engage community leaders and decision makers on the importance of child care solutions ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Create a CHILD Task Force committee focused on policies and subsidies CTF Q2 2024 Work to ensure that addressing child care needs are part of strategic plans, growth policies, etc. throughout Gallatin County and its communities CTF Q2 2024 Take actions outlined during the CHILD Task Force visioning session Incentivize employer supported child care (i.e. tax credits) Improve the understanding about the connections between child care and economic vitality Look at the low hanging fruit when it comes to subsidies Address the insurance barriers Collect data to make a case for incentives CTF Starting in Q2 2024 57 137 GOAL 3: ADDRESS THE MOST PRESSING CHILD CARE CHALLENGES IN GALLATIN COUNTY OBJECTIVE 5: Continue to collaborate with community leaders STRATEGY 5.2: Keep child care top of mind for the media and the general public ACTION ITEM LEAD + SUPPORTING ORGANIZATIONS TIMING PROGRESS Increase the number of people focused on the issue, offering new perspective and addressing lack of knowledge CCC + CTF ONGOING Reach out to media to secure additional coverage about child care challenges CCC + CTF ONGOING Continue to increase awareness through social media posts CCC + CTF ONGOING Develop a database of those interested in child care and share strategic plan updates via email newsletters, etc. CCC Q1-Q2 2024 IN PROGRESS 58 138 Appendix 59 139 APPENDIX: A CLOSER LOOK AT BELGRADE 60 Desire to create a more positive work environment Interest in free child care for providers Interest in work credits / tuition reimbursement for high school and early childhood development students if they work in licensed child care facilities CHILD CARE WORKFORCE Pre-K is offered at three schools: Ridge View, Saddle Peak, Story Creek Additional summer care options are wanted Lack of flexible options Moving closer to other family members to help raise kids CHILD CARE CURRENT SITUATION Concern about the Belgrade School District working with a private provider Concern about the Belgrade School District competing with private programs Fewer staff at the Belgrade School District are saying they need child care EMPLOYER PARTICIPATION Address HOA restrictions Reduce litigation and over regulation of child care businesses Interest in state-supported child care Need for a higher income threshold to qualify for Best Beginnings Scholarships POLICIES AND SUBSIDIES Belgrade has similar child care-related challenges like many of the other communities throughout Gallatin County including the high cost of living, the need for better pay and better benefits for the child care workforce as well as a lack of places and land to locate child care programs. The Belgrade School District has explored offering onsite child care but multiple concerns were raised, and employee-reported demand is low at this time. OVERVIEW 140 Online Survey Question: What specific challenges and/or nuances need to be considered when it comes to child care in your community? CHALLENGES + NUANCES Key themes: Cost of living Cost of operating child cares Lack of providers Lack of affordable child care Lack of available child care Attraction and retention of child care workforce Need for flexible hours and summer care “We need: subsidies for childcare providers & low-income families, employers providing child care, affordable insurance for child care providers, relaxed development code and zoning code for child care, prohibit HOA covenants restricting child care, flexible financing options for child care, increased wages for child care providers, more after-school programs for school age children and higher wages for teachers offering after school programs or volunteer opportunities or tax incentives for the schools, child care cooperatives, grant funding, city/county/state initiatives or support.” Belgrade community leader 61 141 CHILD CARE + SCHOOL DATA Number of Licensed Providers 28 Licensed Infant Capacity 120 Licensed Preschool Capacity 382 Number of Students: Pre-K (2022-2023) Belgrade Public Schools Ridge View (7) Saddle Peak (2) Story Creek (13) 22 Number of Students: Kindergarten (2022-2023) - Belgrade Public 262 DEMOGRAPHIC CHARACTERISTICS DEMOGRAPHICS (2022) Population Size 10,941 Median Household Income $82,769 Median Age 33.4 Women in Child-Bearing Years (20-44)2,454 Population of Children Under 5 927 (8.5%) Women with Children Under the Age of 6 in the Labor Force* 59.7% Sources: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensing/providersearch https://gems.opi.mt.gov/student-data *Women who may also have older children less than 18 years old. Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 62142 APPENDIX: A CLOSER LOOK AT BIG SKY 63 Lack of affordable housing Low wages and overall challenges with affordability Opportunity for more training Need for better pay / better benefits Need for more staff CHILD CARE WORKFORCE Morningstar Learning Center is the only licensed child care that serves the community and has been struggling with staff attraction and retention The center is not open on Fridays due to lack of staff Pre-K (known as 4K) is offered at Ophir Elementary School Pre-K is also available at Big Sky Discovery Academy, a private Montessori school BASE Camp offers an after school program but no transportation is available from Ophir Availability of year-round care, plus extended care, 7 days a week is critical for Big Sky’s service industry CHILD CARE CURRENT SITUATION The Big Sky Childcare Task Force (BSCTF) recently completed a comprehensive report to assess child care in Big Sky. That report has been used as a source for insights into what is happening in Big Sky and is included in this strategic plan as an appendix. The Big Sky community benefits several larger employers and from the use of resort tax dollars collected and redistributed to organizations to address gaps and needs, including child care. Big Sky Resort Area District (BSRAD) continually invests in the Big Sky Discovery Academy and Morningstar Learning Center to help close the child care funding gap. However, Morningstar Learning Center, the only licensed child care option available in Big Sky, is challenged by attracting and retaining a child care workforce due to the cost of living and lack of affordable housing. Also, the majority of the workforce commutes to Big Sky, often driving 45-60 minutes. One of the larger employers, the Yellowstone Club, is exploring child care in Gallatin Gateway for Big Sky employees who live in the Gallatin Gateway area. One community input session participant noted that although employer-supported child care may be of interest, there is also concern about being tied to one employer and not being able to switch jobs and that child care solutions outside of employment would be beneficial. OVERVIEW 143 Big Sky Resort Area District (BSRAD) uses collected resort taxes to invest in the Big Sky Discovery Academy and Morningstar Learning Center to help close the funding gap FY2022 = $320,000; FY2023 = $549,000; FY2024 = $725,000 Tuition assistance programming is available at Morningstar Learning Center and BASE Moonlight Community Foundation offers two free weeks of summer camp Wellness in Action (WIA) offers camp scholarships POLICIES AND SUBSIDIES Some employers offer flexibility including the Big Sky Chamber of Commerce Big Sky Resort could be possible participant as its parent company, Boyne Resorts, offers options in other areas, plus Big Sky Resort already provides some help Yellowstone Club is exploring options EMPLOYER PARTICIPATION Online Survey Question: What specific challenges and/or nuances need to be considered when it comes to child care in your community? CHALLENGES + NUANCES Key themes: Key themes: Lack of qualified child care workforce Long waitlists Cost of living Lack of affordable housing Lack of affordable child care Lack of available child care Need for flexible hours and summer care Attraction and retention of child care workforce Transportation for kids from school to activities “We need more staff and a larger building! There are more than 30 people on the waitlist who need care!.” Big Sky child care provider “Our challenges include the local cost of living, housing availability, wages, cost of tuition as it relates to ability to pay living wages to staff/teachers. Child care is the cornerstone to a sustainable, thriving community. We must make big changes in order to support this critical cause.” Big Sky resident who cares about child care offerings 64144 DEMOGRAPHIC CHARACTERISTICS CHILD CARE + SCHOOL DATA Number of Licensed Providers 1 Licensed Infant Capacity 12 Licensed Preschool Capacity 32 Number of Students: Pre-K (2023-2024) Ophir 17 Number of Students: Kindergarten (2022-2023) - Ophir 50 Sources: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensing/providersearch https://gems.opi.mt.gov/student-data DEMOGRAPHICS (2022) Population Size 2,825 Median Household Income $94,176 Median Age 37.2 Women in Child-Bearing Years (20-44)1,493 Population of Children Under 5 90 (3.2%) Women with Children Under the Age of 6 in the Labor Force* 85.8% *Women who may also have older children less than 18 years old. Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 65145 APPENDIX: A CLOSER LOOK AT BOZEMAN 66 Lack of affordable housing Low wages and overall challenges with affordability Opportunity for more training Need for better pay / better benefits CHILD CARE WORKFORCE Pre-K is offered at four schools: Emily Dickinson, Hyalite, Longfellow, Whittier After school care is offered at schools through the United Way KidsLINK program Additional summer care options are wanted CHILD CARE CURRENT SITUATION Despite its larger population base, Bozeman is not immune to the child care-related challenges being experienced throughout Gallatin County including the cost of living, affordable housing and continued growth. Bozeman is home to some of the largest employers in the county, two of which are offering child care for their employees (and their student parents): the Bozeman School District through the ABCDino Academy program at the high school; and Montana State University and its two programs, the Child Development Center (CDC) and the Associated Students of Montana State Child Care Center (ASMSU). XY Planning Network, another Bozeman-based employer, offers care at its XY Learning Center. OVERVIEW Some employers are offering flexibility to parents - and more is wanted XY Planning Network created XY Learning Center for its parents and community members Gallatin County may be building a child care for its employees Possible participants include Bozeman Health EMPLOYER PARTICIPATION Need for a higher income threshold to qualify for Best Beginnings Scholarships Interest in state-supported child care Interest in subsidies to cover operations and increase child care workforce benefits Need help in navigating licensing, etc. POLICIES AND SUBSIDIES 146 Online Survey Question: What specific challenges and/or nuances need to be considered when it comes to child care in your community? CHALLENGES + NUANCES Key themes: Cost of operating child cares Licensing challenges Lack of affordable housing Cost of living Families not being qualified for Best Beginnings Scholarships but not able to afford care Lack of affordable child care Lack of available child care Attraction and retention of child care workforce Need for flexible hours and summer care Pre-K at additional schools “Early child care centers should have government support similar to the public school system. I want to be able to keep my job and afford child care without having to sacrifice my career goals and path.” Bozeman parent “I'm so sad to see we have stopped talking about the quality of care. We have standards in place to assure children in child care are provided safe, healthy and developmentally appropriate protections. We need to be protecting the experiences of a child each day, not warehousing them to make it affordable.” Bozeman community member 67 147 DEMOGRAPHIC CHARACTERISTICS CHILD CARE + SCHOOL DATA Number of Licensed Providers (59715)18 Licensed Infant Capacity 154 Licensed Preschool Capacity 469 Number of Licensed Providers (59718 + 59717)41 Licensed Infant Capacity 252 Licensed Preschool Capacity 840 Number of Students: Pre-K (2022-2023) Bozeman Public Schools Emily Dickinson (1) Hyalite (10) Longfellow (5) Whittier (9) 25 Number of Students: Pre-K (2022-2023) Anderson School 0 Number of Students: Kindergarten (2022-2023) - Bozeman Public 530 Number of Students: Kindergarten (2022-2023) - Anderson School 18 Sources: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensing/providersearch https://gems.opi.mt.gov/student-data 68 148 DEMOGRAPHICS (2022) Population Size 53,500 Median Household Income $74,113 Median Age 28.2 Women in Child-Bearing Years (20-44)12,715 Population of Children Under 5 1,782 (3.3%) Women with Children Under the Age of 6 in the Labor Force* 32.1% *Women who may also have older children less than 18 years old. Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 69 149 APPENDIX: A CLOSER LOOK AT FOUR CORNERS 70 Interest in stability and continuity among workforce Desire for those who have a background in early childhood education CHILD CARE WORKFORCE Need for care that starts before 8 am and ends after 4:30 pm based on commute times Interest in more age appropriate options for 4-5 year olds Preschool care that extended beyond 9-12 pm Frustration with expense of child care and inability to use based on illnesses, etc. CHILD CARE CURRENT SITUATION The Four Corners area has continued to grow and develop, offering places for both businesses and residential homes within a short drive to Belgrade and Bozeman. Zoot Adventure Learning Academy, an onsite daycare at Zoot Enterprises, is located in the area, as well as other licensed daycare offerings. Monforton School offers K-8th grades and hosts the Wildcat Workshops Afterschool Program. Given its geographical location, one community input participant noted the transportation challenges of living in the Four Corners area including: travel time to/from other communities; left hand turns into traffic; and transportation of kids to other locations for after-school activities OVERVIEW Zoot Enterprises is offering onsite daycare, plus contracts with other area businesses to provide slots for their employees Often seems to be more work than it’s worth - i.e., restrictions, feasibility, etc. Interest in employer flexibility to accommodate child care needs EMPLOYER PARTICIPATION Need a one-stop shop for setting up child care Interest in child care subsidies for MSU staff and students POLICIES AND SUBSIDIES 150 Online Survey Question: What specific challenges and/or nuances need to be considered when it comes to child care in your community? CHALLENGES + NUANCES Key themes: No public transportation Lack of options after normal work hours Lack of longer hours to accommodate those working full-time Cost of living Lack of affordable child care Lack of available child care Lack of providers Distance to providers “My family cannot get child care for our two year old (it is all too expensive with long waits). Anything to help with that would be appreciated. I would LOVE to work for an employer that helped with child care; it would not only be a huge help to my family, it would reflect the values I want in a workplace.” Four Corners parent DEMOGRAPHIC CHARACTERISTICS CHILD CARE + SCHOOL DATA Number of Licensed Providers 7 (estimated) Licensed Infant Capacity Not known Licensed Preschool Capacity Not known Number of Students: Pre-K (2022-2023) Monforton School 4 Number of Students: Kindergarten (2022-2023) - Monforton School 68 Sources: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensing/providersearch https://gems.opi.mt.gov/student-data 71 151 DEMOGRAPHICS (2022) Population Size 5,631 Median Household Income $107,448 Median Age 34.8 Women in Child-Bearing Years (20-44)** Population of Children Under 5 455 (8.1%) Women with Children Under the Age of 6 in the Labor Force* ** **Statistically unreliable based on size of community Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 72 152 APPENDIX: A CLOSER LOOK AT GALLATIN GATEWAY 73 Challenges in securing elementary school teachers CHILD CARE WORKFORCE No existing licensed child care programs Closest program is Quail Hollow Camps in Bozeman are the best summertime options Interest in Pre-K program at the school CHILD CARE CURRENT SITUATION Gallatin Gateway doesn’t currently have any operating licensed child care programs for infants, toddlers and Pre-K, requiring parents and families to explore other options including family, friends and neighbor care, babysitters, and driving into Bozeman to find care. However, the Yellowstone Club is exploring establishing a child care program in the area, and a new license has recently been secured by a provider. In addition, the Gallatin Valley YMCA is now offering a Later Gators After School Program five days a week for elementary-age kids at the Gallatin Gateway School. The Bridge Church, located in Gallatin Gateway, has explored having child care at its building, but renovations would need to be made first. OVERVIEW Yellowstone Club is exploring options EMPLOYER PARTICIPATION Interest in looking at HB352 - funding opportunities for literacy development Interest in simplifying the licensing process POLICIES AND SUBSIDIES 153 Online Survey Question: What specific challenges and/or nuances need to be considered when it comes to child care in your community? CHALLENGES + NUANCES Key themes: Nothing currently exists Lack of facilities Bilingual child care More affordable options Subsidized child care Continue support of the YMCA Later Gator program “Private industry needs to start offering child care options to attract workers. Pre-K should be offered to 4 year olds throughout the state as part of public school. Assistance should be more readily available for low income families so that parents can both work and have their kid in care (and still make enough money to make working worthwhile).” Gallatin Gateway parent “I have employees in the local area, including myself, that need daycare and after school care options.” Gallatin Gateway business owner / employer and parent 74 154 CHILD CARE + SCHOOL DATA Number of Licensed Providers 1 (new!) Licensed Infant Capacity 0 Licensed Preschool Capacity 0 Number of Students: Pre-K (2022-2023) Gallatin Gateway 0 Number of Students: Pre-K (2022-2023) Cottonwood 0 Number of Students: Kindergarten (2022-2023) - Gallatin Gateway 16 Number of Students: Kindergarten (2022-2023) - Cottonwood 5 Sources: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensing/providersearch https://gems.opi.mt.gov/student-data DEMOGRAPHIC CHARACTERISTICS 75 155 **Statistically unreliable based on size of community Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 DEMOGRAPHICS (2022) Population Size 886 Median Household Income $98,750 Median Age 43.4 Women in Child-Bearing Years (20-44)** Population of Children Under 5 56 (6.3%) Women with Children Under the Age of 6 in the Labor Force* ** 76 156 APPENDIX: A CLOSER LOOK AT MANHATTAN - AMSTERDAM - CHURCHILL 77 Lack of available workforce - hard to reach people to hire Manhattan Christian is offering free child care for its child care workforce Large amounts of training and requirements for providers CHILD CARE WORKFORCE Location challenges Lack of longer hours to accommodate those working full-time CHILD CARE CURRENT SITUATION The Manhattan - Amsterdam - Churchill area is facing similar challenges that others across Gallatin County are facing - including workforce challenges. For example, Manhattan Christian Early Learning Center was operating with 6 children in Fall 2023, yet its capacity is 47, and it has since closed. There also may be a lack of awareness of what child care is available and/or a lack of alignment of what is being offered and what families need. For example, during the community input session, the Gallatin Conservation District mentioned offering summer programs and Friday programs, but yet they didn’t reach a maximum number of participants. OVERVIEW Manhattan Christian is offering 50% off child care for its faculty EMPLOYER PARTICIPATION Interest in less complicated regulations Appreciation for the COVID relief funding Interest in subsidies to cover tuition expense POLICIES AND SUBSIDIES 157 Online Survey Question: What specific challenges and/or nuances need to be considered when it comes to child care in your community? CHALLENGES + NUANCES Key themes: Location Cost of living Lack of affordable child care Operational costs “Many child care options are preschool hours, only open to 3:30 or 4 pm and opening at 8 am or later. Working full time requires more hours.” Manhattan parent “We need to help the child care providers with the constant demands of running a child care facility - weekly food costs and deliveries, business consulting, affordable licensing hurdles, affordable educational requirements for educators/owners, stipends for toys/activities/curriculum.” Manhattan community member 78 158 CHILD CARE + SCHOOL DATA Number of Licensed Providers 4 Licensed Infant Capacity 19 Licensed Preschool Capacity 57 Number of Students: Pre-K (2022-2023) Manhattan School 0 Number of Students: Pre-K (2022-2023) Amsterdam School 0 Number of Students: Kindergarten (2022-2023) - Manhattan School 44 Number of Students: Kindergarten (2022-2023) - Amsterdam School 24 Sources: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensing/providersearch https://gems.opi.mt.gov/student-data DEMOGRAPHIC CHARACTERISTICS 79 159 DEMOGRAPHICS: MANHATTAN (2022) Population Size 1,986 Median Household Income $57,045 Median Age 39.6 Women in Child-Bearing Years (20-44)** Population of Children Under 5 92 (4.6%) Women with Children Under the Age of 6 in the Labor Force* ** **Statistically unreliable based on size of community Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 DEMOGRAPHICS: AMSTERDAM (2022) Population Size 160 Median Household Income $90,625 Median Age 40.5 Women in Child-Bearing Years (20-44)** Population of Children Under 5 16 (10%) Women with Children Under the Age of 6 in the Labor Force* ** **Statistically unreliable based on size of community Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 80 160 DEMOGRAPHICS: CHURCHILL (2022) Population Size 1,081 Median Household Income $90,250 Median Age 40.1 Women in Child-Bearing Years (20-44)** Population of Children Under 5 48 (4.4%) Women with Children Under the Age of 6 in the Labor Force* ** **Statistically unreliable based on size of community Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 81 161 APPENDIX: A CLOSER LOOK AT THREE FORKS - WILLOW CREEK 82 Lack of available workforce Lack of affordable housing Low wages and overall challenges with affordability Opportunity for more training CHILD CARE WORKFORCE Licensed child care options in Three Forks have recently closed or are expected to close There are no licensed child care options listed in Willow Creek The Three Forks school district’s early childhood center has limited capacity based on lack of available workforce Only open Monday-Thursday A Friday care program was offered, but only 2-3 kids attended After school programs offered through United Way are an important asset CHILD CARE CURRENT SITUATION Three Forks and Willow Creek have limited child care options which often require them to bring their children to other larger communities for care. The Three Forks school district offers a four-day school week, and both Three Forks and Willow Creek offer pre-Kindergarten at their schools. In addition, the Three Forks school district provides child care. One community input session participant noted that the area may be experiencing a lack of volunteerism among community members, yet volunteers are critical to making small towns run. Another trend may be an increase in homeschooling with families accessing the Three Forks Community Library for story time, lessons, and other activities. OVERVIEW The Three Forks school district offers free child care to its director Possible participants could include Wheat Montana, GCC Trident Plant and/or Magris Talc America EMPLOYER PARTICIPATION 162 One participant in the community input session noted that they feel regulated to the point that they can’t operate There is interest in state-subsidized salaries for the child care workforce POLICIES AND SUBSIDIES Online Survey Question: What specific challenges and/or nuances need to be considered when it comes to child care in your community? CHALLENGES + NUANCES Key themes: Better hours for working parents More local child care options vs. bringing kids to Bozeman for care Child care needs to be good, clean, safe and staffed appropriately “Many start out as in-home child care, which Three Forks requires a home occupation so they need a conditional use permit in order to legally operate, a business license too, and then provide off street parking for all the vehicles dropping off/picking up and the employees. It is difficult to attain that all on a small residential lot. Perhaps the zoning requirements could be lessened for child care providers?” Three Forks parent 83 163 84 CHILD CARE + SCHOOL DATA Number of Licensed Providers - Three Forks 2 Licensed Infant Capacity - Three Forks 14 Licensed Preschool Capacity - Three Forks 41 Number of Licensed Providers - Willow Creek 0 Number of Students: Pre-K (2022-2023) Three Forks 5 Number of Students: Pre-K (2022-2023) Willow Creek Offered/Unknown Number of Students: Kindergarten (2022-2023) - Three Forks 73 Number of Students: Kindergarten (2022-2023) - Willow Creek 7 Sources: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensing/providersearch https://gems.opi.mt.gov/student-data DEMOGRAPHIC CHARACTERISTICS 164 DEMOGRAPHICS: THREE FORKS (2022) Population Size 1,895 Median Household Income $77,674 Median Age 43.6 Women in Child-Bearing Years (20-44)** Population of Children Under 5 72 (3.8%) Women with Children Under the Age of 6 in the Labor Force* ** **Statistically unreliable based on size of community Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 85 DEMOGRAPHICS: WILLOW CREEK (2022) Population Size 211 Median Household Income $62,188 Median Age 40.7 Women in Child-Bearing Years (20-44)** Population of Children Under 5 32 (15.17%) Women with Children Under the Age of 6 in the Labor Force* ** **Statistically unreliable based on size of community Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 165 APPENDIX: A CLOSER LOOK AT WEST YELLOWSTONE 86 Lack of affordable housing Low wages and overall challenges with affordability Opportunity for more training Need for better pay / better benefits CHILD CARE WORKFORCE Some employers are offering flexibility to parents Little Rangers offers free care to workforce Yellowstone National Park could be a possible participant based on need for employees EMPLOYER PARTICIPATION Little Rangers serves the community but has been struggling financially Community members are offering help Critical to the community as many parents work multiple jobs Pre-K transitional kindergarten is being considered Expanded, flexible hours for care is often needed Summer camps and after school programming are also critical CHILD CARE CURRENT SITUATION The West Yellowstone tourism economy and its 24/7 employment require non-traditional child care offerings. Other challenges include low wages, lack of housing and a geographically-isolated community. In addition, there is a need to recruit young professionals to West Yellowstone to fill critical jobs (teachers, first responders, etc.) and offer affordable and available child care, plus housing options. Little Rangers Learning Center is the only licensed child care provider in West Yellowstone, and it’s been actively fundraising and working with the community to address its budget shortfalls. OVERVIEW Interest in looking at the lodging tax to help fund options Would like support from the city to operate child care Idea of offering free care to teachers, first responders as way to attract larger workforce POLICIES AND SUBSIDIES 166 Online Survey Question: What specific challenges and/or nuances need to be considered when it comes to child care in your community? CHALLENGES + NUANCES Key themes: Seasonal nature of tourist town Lack of affordable housing Cost of living Lack of affordable child care Lack of available child care Need for child care for all ages Lack of a long-term plan for child care, reliability Need for flexible hours and summer care Pre-K at school First-generation speakers and bilingual needs Attraction and retention of child care workforce Lack of qualified child care workforce Leadership and organizational challenges “We are a tourist community, some parents work evenings or switch around their schedule so a parent or family member can help with child care. Many parents have had to quit their jobs because they don’t have anyone to help watch their child.” West Yellowstone parent “The business model at our current daycare does not fit the needs/economics of our current daycare clients. Parents need to be able to pay hourly, not weekly. A professional wage with benefits and housing options need to be available to offer to a qualified director to run the daycare.” West Yellowstone resident who cares about child care offerings 87 167 88 CHILD CARE + SCHOOL DATA Number of Licensed Providers 1 Licensed Infant Capacity 6 Licensed Preschool Capacity 16 Number of Students: Pre-K (2022-2023) West Yellowstone 0 Number of Students: Kindergarten (2022-2023) - West Yellowstone 27 Sources: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensing/providersearch https://gems.opi.mt.gov/student-data DEMOGRAPHIC CHARACTERISTICS DEMOGRAPHICS (2022) Population Size 1,147 Median Household Income $48,750 Median Age 34 Women in Child-Bearing Years (20-44)** Population of Children Under 5 76 (6.6%) Women with Children Under the Age of 6 in the Labor Force* ** **Statistically unreliable based on size of community Sources: Kids Count Montana, U.S. Census, ACS 5-Year Estimates, B23003, S0101, S2503, S1301 168 APPENDIX: CHILD CARE WORKFORCE DATA FOR GALLATIN COUNTY 89 JOB GROWTH AND JOB OPENINGS IN SOUTHWEST REGION OF MONTANA Source: Montana Department of Labor and Industry (MTDLI), 2022-2032 Occupational Employment Projections Although not available on the county-level, MTDLI offers insights on regional-level estimates of job openings. Gallatin County is in the Southwest region as shown below. The annual projected job growth in the Southwest region is estimated at 1.3%. Moreover, MTDLI estimates 178 annual child care workers job openings in the Southwest Region through 2032. The child care industry has one of the top 30 number of job openings, plus its average wages are some of the lowest. ANNUAL PROJECTED JOB GROWTH BY REGION 169 ANNUAL PROJECTED JOB OPENINGS FOR SELECT EARLY CHILDHOOD EDUCATOR OCCUPATIONS IN THE SOUTHWEST REGION Occupation Minimum Education Exits Transfers Growth Total Avg Wage Child care workers High school diploma 77 99 2 178 $26,480 Preschool teachers Associate degree 22 29 6 57 $32,750 Preschool and child care administrators Bachelor's degree 2 3 1 6 $48,950 Kindergarten teachers Bachelor's degree 6 7 1 13 $49,170 Elementary school teachers Bachelor's degree 36 42 6 84 $60,200 Source: Montana Department of Labor and Industry 2022-2032 Occupational Employment Projections in the Southwest Region. Exits refer to openings generated from labor market exits, like retirements. Transfer openings include openings due to employee turnover. Growth openings are generated due to an increase in demand for the occupation. Average wage from Occupational Employment Statistics (OEWS) 2022. https://lmi.mt.gov/Projections WAGES BY POSITION IN GALLATIN COUNTY Position Hourly Wage Director $24.66 Early Childhood Assistant Teacher $16.90 Early Childhood Teacher $21.11 Other Positions $24.02 Substitute Teacher $17.10 Source: Montana Early Childhood Project 90 170 APPENDIX: CHILD Task Force Members Child Care Connections Child care providers throughout Gallatin County City of Bozeman Family Promise Gallatin College Gallatin County Greater Gallatin United Way HRDC Montana Department of Labor & Industry Montana Early Childhood Project Montana State Legislators Montana State University Northern Rocky Mountain Economic Development District Spanish Peaks Community Foundation West Yellowstone Chamber of Commerce Yellowstone Club Big Sky Chamber of Commerce Below is a list of CHILD Task Force members who have been involved in this initiative. 91 171 APPENDIX: VISIONING SESSION: ONLINE SURVEY FEEDBACK To help guide the Child Care Visioning Session held with CHILD Task Force members, Gallatin ECCC members and others, an online survey was sent out to participants in advance. Below is a summary of the feedback received from the survey. Survey Feedback What needs to be done now to achieve accessible, affordable and thriving child care in Gallatin County? Overall Enhanced collaboration between non-profit, for-profit, and local govt. to support service delivery, resource mobilization, and financial support Policies to reduce the cost of providing child care enacted by both government and by employers Increase in Availability Additional quality facilities Additional child care spots Employer supported child care and facilities Child Care Providers Long-term financial support Supportive relationship with licensors Easier access for independent and nonprofit providers Support in developing / maintaining affordable, quality and sustainable care Higher wages Continuing education and required annual training Cap on facility rental fees Workforce incentives Positive "professional" perception of child care providers Families with Children Lower fees / costs for families Reduced barriers for those trying to access aid and support Education on what to expect: turnover, cost, etc. 92 172 Where do we prioritize? Overall Prioritizing at the policy level, perhaps tax incentives for providers or for employers Collaboration between non-profit, for profit and local government Increase in Availability Meeting with organizations who have a large number of employees with children 0-5 Child Care Providers Increasing financial stability for providers Establishing consistent funding from the state Providing infant and toddler spots Additional funding, grants, compensation, etc., for early learning staff Licensing process for new staff Training Families with Children Adjusting Best Beginnings rates Creating a subsidy to balance the gap for Gallatin County Focusing on low to moderate income families - not just low income Helping families that have limited income and struggle with parenting / parent workshops Additional funding areas/opportunities for affordable child care How do you want to be involved? Working on financials Meetings with business owners Representing the school district Strategy, funding, action Working with legislators and legislation, advocacy Funder, service provider, stakeholder, advocate Wherever talents, knowledge, and experience would be most beneficial. 93 173 APPENDIX: VISIONING SESSION: PREP WORK + AGENDA VISIONING SESSION GOALS What are we looking to achieve during this visioning session? Provide input for a shared vision for accessible, affordable and thriving child care in Gallatin County Identify a prioritized list of ways to tackle child care challenges in Gallatin County; overall objectives include: Retain and support existing providers Develop a sustainable provider model Expand affordable child care Confirm what’s not currently known but needs to be understood at the end of the community feedback sessions 94 What do we NOT want to do during this visioning session? We don’t want to focus on the problems and what’s wrong However, we do want to focus on solutions and how we’re going to implement change PREP WORK and GROUND RULES What do you need to know and do to prepare for this meeting? Take this quick survey by Sunday, Sept. 24 to provide us with your input: https://www.surveymonkey.com/r/CTF-2023 Review the agenda and the appendix before the meeting Consider your responses on the topics to be discussed Bring an innovative mindset; be ready to share your opinions and explore the unknowns There are no right or wrong answers; and it’s okay if you don’t have the answers Honest input is critical; there is no judgment, and anything shared is valued 174 AGENDA 12 pm Lunch* and Socializing *Lunch will be provided 12:25 pm Hello and Overview 12:30 pm Topic #1: Update from Zero to Five and Others What’s happening around the state in communities as it relates to child care What innovative approaches have been attempted Others: Anything else that’s new to share that’s of interest 12:50 pm Topic #2: Your Vision + Your Priorities (Survey Results + Discussion) What needs to be done now to achieve accessible, affordable and thriving child care in Gallatin County? Where do we prioritize? How do you want to be involved? 1:45 pm Topic #3: Breakout Groups into Prioritized Topics Break out into prioritized topic groups; topic groups are expected to include: How do we start up new child care businesses? How do we support the workforce? How do we make it affordable to families? How do we get more employers? How do we get more policies in place? Discuss potential solutions and action items for your prioritized topic Summarize and get ready to share your recommended next steps with the larger group 2:25 pm Break 2:30 pm Topic #4: Reports from Breakout Groups Each group to share recommendations based on prioritized topic (5-10 min per group) 3 pm Topic #5: Community Feedback/Workshop Sessions Who do you want to see included in the community feedback/workshop sessions? What topics do you want discussed? What questions do you want to have answered through community input? What do we need to know/have determined at the conclusion of these sessions? 95 175 3:30 pm Topic #6: Defining + Achieving Success What does success look like for the CHILD Task Force? How will we know if we’ve been successful? What needs to happen/be put in place for the CHILD Task Force to succeed? What does our team need to know to succeed? 3:50 pm Wrap Up + Next Steps Anything else that’s top of mind for you? Next steps 4 pm Conclude 96 176 APPENDIX: VISIONING SESSION: SUMMARY + KEY TAKEAWAYS ATTENDEES + NOTES 97 More than 20 people from across Gallatin County, including representatives from Zero to Five, participated in the CHILD Task Force’s Child Care Visioning Session on Sept. 25, 2023. Attendees joined in-person and virtually. In preparation for the visioning session, 12 of the invitees completed a short survey sharing their opinions on the following: what needs to be done now; where to prioritize; and how to be involved. After hearing what is happening around the state and discussing what needs to be done now to achieve accessible, affordable and thriving child care in Gallatin County, attendees agreed that three big areas of focus need to be: Workforce Retention; Employer Participation; and Policies and Subsidies. The attendees broke into three groups to brainstorm solutions and action items for the “three biggies” and reported back their key takeaways to the larger group. Potential solutions and action items are noted below: SUMMARY Workforce Retention Focus on professional development - training Outline the career path opportunities for employees Evaluate training / consolidate / seek state funding Connect staff to the work - emotional connection Access to affordable housing - landowner/developer tax incentives/credits if people living in their rentals/property are child care workers; rent reductions Consider new benefits including providing child care providers/employees with free child care, funded by the state Employer Participation Provide answers to commonly asked questions, FAQs for employer supported child care Insurance, space, licensing, cost, tax credits Transportation, utilization, etc. Develop a universal survey with questions for employers and employees Example: How many employees have you lost due to child care? Example: If you were offered a spot at a child care facility would you utilize it? 177 Build awareness and recognition through consumer education Family friendly businesses - seeing this as a competitive advantage Employees seeing this as a benefit Example: Family Forward Retention, recruitment Host an employer discussion/round table Employers who are interested or want to discuss further What it looks like - what are the barriers, who are the resource partners Launch a campaign with the chambers and Prospera as champions Share and promote existing resources How easy the solutions are Tough questions and issues Conduct a community needs assessment Policies and Subsidies Incentivize employer supported child care (i.e. tax credits) Improve the understanding about the connections/impact between child care and economic vitality Look at the low hanging fruit when it comes to subsidies (i.e., Best Beginnings Scholarship, child support - length of application) Address the insurance barriers Collect data to make a case for incentives Leverage existing and be voice for workforce Increase the number of people focused on the issue, offering new perspective and addressing lack of knowledge, framing up competitive landscape for employers Other Considerations Partnering with banks to invest in child care CRA banking: https://www.federalreserve.gov/consumerscommunities/cra_about.htm In addition, the attendees discussed the upcoming Community Feedback/Workshop Sessions and brainstormed ideas on participants, topics, questions to be answered and desired outcomes. The larger group also defined what success will look like for the CHILD Task Force and what needs to be in place for success to happen. 98 178 Other communities and businesses across Montana and the United States are working on finding solutions to child care challenges. Looking at what others are doing will be an important component of the Child Care Strategic Plan for Gallatin County. The three priority topics identified by the group are Workforce Retention, Employer Participation, and Policies and Subsidies. Initial ideas shared during the visioning session will be used to develop the strategic plan along with ideas from the Community Feedback/Workshop Sessions. As the group looks ahead to the Community Feedback/Workshop Sessions, they want to obtain solutions-focused, preventive-focused and future-focused ideas from the communities around Workforce Retention; Employer Participation; and Policies and Subsidies. A wide range of participants are desired, essentially those who could play a part in finding child care solutions - whether they know it or not. The group also noted that they want to make sure that LEP families and their needs are included. Success was defined in multiple ways by the group including: community-wide engagement; success and sustainability for current child care providers including increased worker retention rates; policy recommendations for local, state, federal, based on data; an established resource; and clear asks of the funders. In order to achieve that success, the visioning session attendees agreed that there will need to be clearly defined roles, expectations, and action items, including establishing committees for the “three biggies”. Next steps include organizing, scheduling and obtaining input from the group on specific people to invite to the upcoming Community Feedback/Workshop Sessions. KEY TAKEAWAYS 99 ATTENDEES Tori Sproles, Child Care Connections Jesse DiTommaso, City of BozemanDean Williamson, HRDC Jackie Haines, NRMEDDRhonda Schwenke, Zero to Five Lacey Bertram, ThriveDawn Zimdars, MTECP Leighann Miner, YCShelby Whelan, Zero to Five, MCCBC Kara Meier, BHMarilyn (Mars) King, BSD7 Mike Van Vuren, BSD7Taylor Boylan, ECP Alice Buckley, MT Legislature Tanya Andreasen, YCCF Sara Savage, HRDCNicole Berg, Gallatin College Jessica Dehn, Explore/DinoKim Hall, Greater Gallatin United Way Jane Gillette, Montana LegislatureBrit Fontenot, City of Bozeman 179 Zero to Five Shelby Whelan Community level support for child care innovation Work one on one with communities that received innovation fund through ARPA (30 grantees) Paced by the communities and FREE to collaborate Community cohort Help them facilitate a community conversation and collect data, gap analysis, facilitation, etc. Help with business planning and action planning to implementation First cohort - 6 communities Red Lodge, Blackfeet Nation, Flathead, Ravalli, Shelby, Toole, Choteau Second cohort - 8 communities Big Horn, Broadwater(2), Cascade, Jefferson, Sanders, Lincoln, Yellowstone Alex: Business Engagement Policies, advocacy and businesses Awareness Community coalition work- community policy building 30 innovation grantees 100 Zero to Five Rhonda Schwenke Grant received through ARPA to state MT Child Care Business Connect Focused on the business end5 arms of the grant Individual business advising and consultationProfessional development Web resource hubFocused on owning and operating a child care business Business accelerator mentorship programOutside industry - startups or expansions 8 mentors paired with 8 protégés Focused on start up 3 open, 3 almost openCommunity Work Family Forward MT initiative - multiple aspectsSupporting employers with family friendly practices NOTES FROM VISIONING SESSION Topic #1: Update from Zero to Five and Others What’s happening around the state in communities as it relates to child care? What innovative approaches have been attempted? Others: Anything else that’s new to share that’s of interest? 180 Topic #2: Your Vision + Your Priorities (Survey Results + Discussion) What needs to be done now to achieve accessible, affordable and thriving child care in Gallatin County? Where do we prioritize? How do you want to be involved? What Needs to Be Done Now: Overall Enhanced collaboration between non-profit, for-profit, and local govt. to support servicedelivery, resource mobilization, and financial support Policies to reduce the cost of providing child care enacted by both government and byemployers Changing the perception that child care is an everyone issue/community issueMore employer participation and engagement in child care Some employers are worried about inequity about providing benefits Need legal counsel for employers Cost barriers Incentivize staff Family Forward is looking at some of these issues as well It would be good to see an employer led coop FSAInvestment coop - child care will hold waitlist spots What Needs to Be Done Now: Increase in Availability Additional quality facilities Additional child care spots Employer supported child care and facilities Sustainability for child care providers What Needs to Be Done Now: Child Care Providers Long-term financial support Supportive relationship with licensors Easier access for independent and nonprofit providers Support in developing / maintaining affordable, quality and sustainable care Higher wages Continuing education and required annual training Cap on facility rental fees Workforce incentives - incentivize the staff Positive "professional" perception of child care providers Additional workforce 101 What Else is Happening at the State Level? Child Care Worker Best Beginnings Scholarship Program 250% FPL, capped copay at $100Best Beginnings Scholarship increased eligibility 185% FPL, 9% copay cap, full enrollment paid vs attendanceChild care licensing packet will be released soon - open for public comment 5 STAR System - Best Beginnings STARS to Quality (State Quality Rating ImprovementSystem) is being revamped currently. Working with nationwide experts. 181 Where Do We Prioritize? Overall Prioritizing at the policy level, perhaps tax incentives for providers or for employers Collaboration between non-profit, for profit and local government Employer participation Increase in Availability Meeting with organizations who have a large number of employees with children 0-5 Employer participation Keeping and creating spots Child Care Providers Increasing financial stability for providersEstablishing consistent funding from the state Providing infant and toddler spots Additional funding, grants, compensation, etc., for early learning staff Licensing process for new staffTraining Workforce retentionAccess to capital Families with Children Adjusting Best Beginnings rates Creating a subsidy to balance the gap for Gallatin CountyFocusing on low to moderate income families - not just low income Helping families that have limited income and struggle with parenting / parent workshopsAdditional funding areas/opportunities for affordable child care How To Be Involved? Working on financials Meetings with business ownersRepresenting school district Strategy, funding, actionWork with legislators, advocacy Funder, service provider, stakeholderWherever talents, knowledge, etc. would be most beneficial What Needs to Be Done Now: Families with Kids Lower fees / costs for families Reduced barriers for those trying to access aid and support Education on what to expect: turnover, cost, etc. Reducing barriers for qualification of subsidies Non-traditional hours Creative solutions on hours Leadership /bBusiness retention activities Culture building Management 102 182 Topic #3: Breakout Groups into Prioritized Topics Break out into prioritized topic groups. Discuss potential solutions and action items for your prioritized topic. Summarize and get ready to share your recommended next steps with the largergroup. Topics Chosen for Breakout Discussions Workforce RetentionEmployer Participation Policies and Subsidies Topic #4: Reports from Breakout Groups Each group to share recommendations based on prioritized topic (5-10 min per group). Workforce Retention Barriers Training - 16 hours - orientation and ongoing Younger employees = parents + spouse Wages, benefits, stability, retirement, health insurance Stability around employers Solutions Professional development - training Support - degrees - who, career - higher education Evaluate training / consolidate State funding to pay for training Connecting staff to the work - mission - training - emotional connection Making it a career path Affordable housing - tax incentives to landowners if they have people living in their rentals/property that are child care workers [HOAs - Texas] - rent reductions Tax credits for developers Child care providers/employees would get free child care funded by the state Workforce Retention Benefits of employer supported child care OnsiteFamily friendly policies Disconnect is translating all the benefits to employersProfit and productivity need to be at the forefront, cost Speak the language of the employersBusiness case for child care What does it cost to “retrain” vs. paying for child care?Challenges Need for year-round care - summer care neededSolutions Commonly asked questions, FAQs for employer supported child careInsurance, space, licensing, cost, tax credits Transportation, utilization, Big Sky - Ophir 103 183 Universal survey that had very detailed questionsExample: If you were offered a spot at a child care would you utilize it? Detailed reasons why How many employees have you lost due to child care? Consumer educationFamily friendly businesses - seeing this as a competitive advantage Employees seeing this as a benefitExample: Family Forward Retention, recruitment Employer discussion/round table Employers who are interested or want to discuss further What it looks like - what are the barriers, who are resource partners Campaign - Chambers, Prospera - championsShare and promote existing resources How easy the solutions are Tough questions and issues Community needs assessment Policies and Subsidies HOAs in Texas Challenge There is not a large appetite/interest to expand subsidies Solutions Employer supported child care More incentives for employers to participate (i.e. tax credits) Improving the understanding about the connections between child care and economic vitality - impact - voices in conversation Low hanging fruit when it comes to subsidy Best Beginnings Scholarship Child support - length of application Looking at addressing insurance barriers Action items Collecting data to make a case for incentives Clear understanding of the economic snapshot/impacts What does it cost a woman when she leaves the workforce/cost of turnover If someone leaves the workforce does it cost more for state subsidies than it would for cost for child care Leverage existing - voice for workforce Tax credits went away because employers weren’t utilizing them We think that the environment has changed and that more employers are looking to support child care and families that work for them More focus from more people - new perspective - lack of knowledge - competitive landscape for employers Things to think about: Partnering with banks to invest in child care CRA banking https://www.federalreserve.gov/consumerscommunities/cra_about.htm 104 184 Topic #5: Community Feedback/Workshop Sessions Who do you want to see included in the community feedback/workshop sessions? What topics do you want discussed? What questions do you want to have answered through community input? What dowe need to know/have determined at the conclusion of these sessions? Who needs to be there? County developersCurrent child care providers Businesses/business ownersBankers Parents: including prenatal and those who are actively family planning Low income families LEP families (limited English proficiency) High schoolers/college students (those who are thinking about family and career) Policy makers - staff and elected officialsEquity and Inclusion: Belonging in Bozeman group Real estate agents / land developers - residential and commercial School districts Montana State - teacher certification oppsForecasters - demographic trends Rental companies - property managers Insurance companies and agents - legal and risk LawyersFaith-based organizations Non-profitsCommunity foundations Related community groupsEarly Childhood Coalitions Diversity in geography What topics do you want discussed? Solutions-focused - vision/future-focused - preventive-focused - looking ahead Start with the three priorities from this groupWorkforce Retention Employer ParticipationPolicies and Subsidies *Note** LEP families + needs are addressed What questions do you want to have answered? What have you already tried? Offer solutions, resources, capital, ideas, etc. Opportunity for connection What’s most important to you? What’s the highest value? What has prevented you from moving forward? Barriers? Who wants to be part of the solution?What part can you play? What resources do you have?What connections do you have? What data do you have to share?What data are you wanting to see? 105 185 What would your community look like? What specific community specific challenges/nuances? Tell the stories - what does the future look like in your industry? Community? What do you want the future to look like? Set up the participants with the “why”, some prep work What’s happening = background information Prevention focused, solution focused, future focused Paint a picture of what “ideal” looks like and how can we get there? Collecting data during the day and share compilation afterward - qualitative Are financial challenges impacting? What do we need to know/have determined at the conclusion of these sessions? How to fix the child care issue? How are we going to fix it?Who is going to help us fix this? Action items: How is this time different?Professional pressure - peer pressure - solve / cause - reason - why Example: City investing in housing Example: Jim at First Security Bank - housing fund Group of influencers - involved - why/individualsWhat would it take to require child care space? Brand new market rate Zoning regulations - limited impact Topic #6: Defining + Achieving Success What does success look like for the CHILD Task Force? How will we know if we’ve been successful?What needs to happen/be put in place for the CHILD Task Force to succeed? What does our team need to know to succeed? What does success look like for the CHILD Task Force? How will we know if we’ve beensuccessful? Helping current providers succeed Retention and sustainability in current child care programming Max out existing child care - workforce Policy recommendations for local, state, federalIncreased worker retention rates New data that will support policy recommendations - employees/familiesResources available for employee Community engagement - collaboration Employer engagement - upfront info Supportive conversations Resource - research Clear asks of fundersCommon language What do we want to fund? 106 186 What needs to happen/be put in place for the CHILD Task Force to succeed? Roles, expectations, action items, qualityThree groups = three topics Establish committees for the “three biggies”Have representation from diverse groups All stakeholdersRotating people/leaders Leadership in each group and clearly defined roles What needs to be known? PrioritizeWhat can be replicated? Why do some things don’t work/ do work? Existing resources 107 187 APPENDIX: AGENDA FOR COMMUNITY INPUT/FEEDBACK SESSIONS Community input and feedback sessions were held across Gallatin County in the following locations: Big Sky Belgrade Bozeman Four Corners Gallatin Gateway Manhattan / Amsterdam / Churchill Three Forks West Yellowstone The agenda that was used to guide the community sessions was based on the outcomes from the visioning session and is included below. Welcome + Overview (3 minutes) What Currently Exists in Your Community (10 minutes) What positive things are already happening in this community that support accessible, affordable and thriving child care? Topic #1: Child Care Workforce Retention (10 minutes) What are the opportunities to better support and retain those who work in child care? What do you see as the future vision for a successful child care workforce? Topic #2: Employer Supported Child Care (15 minutes) Are you aware of any employer supported child care options in this area? Are you interested in offering/accessing employer supported child care? Why/why not? What questions do you have about employer supported child care? What does employer supported child care look like to you? What is needed to make employer supported child care a reality? Topic #3: Policies + Subsidies (10 minutes) Are you aware of any policies and/or subsidies that support accessible, affordable and thriving child care in this area? Are you aware of any policies and/or subsidies that do NOT support accessible, affordable and thriving child care in this area? What policies and/or subsidies do you want to see in place?108 188 Community Specific Challenges (5 minutes) What specific challenges and/or nuances need to be considered for this community? Big Picture (5 minutes) What will your community look like when there are accessible, affordable and thriving child care options? Wrap Up + Conclude (2 minutes) OVERVIEW Who should attend these community feedback/workshop sessions? Anyone who impacts, influences, cares and/or wants child care options: community leaders, policy makers, business owners, employers, child care providers, parents, future parents, schools, bankers, lawyers, insurance agents, non-profits, faith-based organizations, community groups, developers, real estate agents, property managers, etc. Who is hosting these community feedback/workshop sessions? These sessions are being hosted by the CHILD (Cooperative, Holistic, Innovative, Local, Design) Task Force. The task force is made up of members from Child Care Connections, HRDC, Northern Rocky Mountain Economic Development District, MT Early Childhood Project, Big Sky Chamber of Commerce, Spanish Peaks Community Foundation, Gallatin College, Gallatin United Way, Montana state legislators, West Yellowstone Chamber of Commerce, local financial institutions, MT Department of Labor & Industry and more. Why are these community feedback/workshop sessions being held? The CHILD Task Force is seeking community input on how to achieve a shared vision for accessible, affordable and thriving child care throughout Gallatin County. The purpose of these 60-minute sessions is to focus on solutions – now and in the future. The input gathered during these sessions will be used to inform and guide the Gallatin County Child Care Strategic Plan. What do you need to do and know? Bring an innovative mindset; be ready to share your opinions and offer suggestions There are no right or wrong answers; and it’s okay if you don’t have the answers Honest input is critical; there is no judgment, and anything shared is valued What do we NOT want to do during these 60-minute sessions? We don’t want to focus on the problems and what’s wrong However, we do want to hear ideas and solutions on how to implement change 109 189 APPENDIX: COMMUNITY INPUT: SURVEY ANALYSIS More than 420 people from across Gallatin County responded to an online survey and shared their thoughts about child care in Gallatin County. Below is a summary of what was shared. COMMUNITY SURVEY INPUT BY COMMUNITY Q. Select your community. Belgrade 80 Big Sky 40 Bozeman 187 Four Corners 13 Gallatin Gateway 21 Manhattan / Amsterdam / Churchill 14 Three Forks / Willow Creek 7 West Yellowstone 77 COMMUNITY SURVEY INPUT BY CHILD CARE INVOLVEMENT Q. Which of the following best describes you? Care about Child Care Options 179 Want Child Care Options 176 Provide Child Care Options 39 Work Impacts Child Care Offerings 28 110 190 COMMUNITY SURVEY INPUT BY COMMUNITY ROLE Q: Which of the following best describes your role in the community? Parent / future parent 302 Engaged community member 188 School / teacher / administrator / volunteer 64 Business owner / employer 61 Child care provider 46 Non-profit, faith-based organization, community group 41 Community leader 32 Policy maker / local government 11 Banker, lawyer, insurance agent 8 Developer, real estate agent, property manager 8 Healthcare provider 6 Counselor / therapist 4 Other 4 111 191 STEPS TO ACHIEVE ACCESSIBLE, AFFORDABLE AND THRIVING CHILD CARE Q. What needs to be done now to achieve accessible, affordable and thriving child care in your community? Q. What needs to be done now to achieve accessible, affordable and thriving child care in your community? Key themes (from those who provide/impact child care offerings): More funding for child care providers Incentives for child care workers Increased income Decreased cost of living Offer pre-K at the school Public early childhood education Discounts for families with 2 or more kids Key themes (from those who want child care options): More affordable housing options More child care options (database) More affordable options Better funding Continued regulations Better hours for working parents (including summer care) Incentives for employers who provide child care or paid parental leave Scholarships for child care Incentives for child care providers who meet quality criteria and who provide livable rates More flexible options from employers (i.e., four-day work weeks) Offer work credit to those in early childhood development majors if provide child care Conduct audit to determine where spaces are available for child cares (i.e., churches) Child care tax credit/stipend to help pay livable wages to child care workers BELGRADE “Whole community, region, state and national support. We must all chip in or contribute in some way to support providers so we can grow the number of high quality spots available. This is especially true for those with large amounts of money, resources and influence like big businesses, the wealthy, county and state governments. They must contribute funds, resources, spaces, strategic planning support, and their influence to address this incredibly complex challenge we all face.” Belgrade, Parent / Future Parent, Wants Child Care Options 112 192 Key themes (from those who care about child care options): Decrease costs of child care (more affordable options) Increase options Education on what it takes to license a child care Subsidize child care Increase threshold for Best Beginnings Scholarships Provide more tax benefits and reimbursement options Offset staffing and regulation costs Support and educate those who want to start child care options (sponsor/partners) Employer provided child care More background checks Reinstatement of child tax credit Livable wages for all Professional development Less expensive locations Zoning considerations “Subsidy for child care providers & low-income families, employers providing child care, affordable insurance for child care providers, relaxed development code and zoning code for child care, prohibit HOA covenants restricting child care, flexible financing options for child care, increased wages for child care providers, more after-school programs for school age children and higher wages for teachers offering after school programs or volunteer opportunities or tax incentives for the schools, child care cooperatives, grant funding, city/county/state initiatives or support.” Belgrade, Community Leader, Cares about Child Care Options Q. What needs to be done now to achieve accessible, affordable and thriving child care in your community? Key themes (from those who provide/impact child care offerings): Retain staff Better pay / better benefits Housing Larger facility Funding Decrease cost of living expenses (food, housing) Co-operative child care by parents in the community Pre-K available at the school BIG SKY 113 193 Key themes (from those who want child care options): Better pay / better benefits More options for infants and toddlers More options for days, times, part-time, etc. Subsidized child care Housing for child care providers Key themes (from those who care about child care options): Funding Subsidized care by employers More options for days, times, etc. Better pay / better benefits Housing for child care providers New facility HOAs to allow home-based options Q. What needs to be done now to achieve accessible, affordable and thriving child care in your community? Key themes (from those who provide child care offerings): Better pay / better benefits More workforce Higher income threshold to qualify for subsidies Easier to get licensed Child care options (database) Funding; state-supported child care Perks for long-term employees Cost of renting spaces, employees, insurance BOZEMAN 114 194 “To achieve accessible, affordable, and thriving child care in our community, several crucial changes are imperative, considering the challenges faced as a daycare owner. First and foremost, there's a looming concern about the future difficulty in addressing this issue. Drastic and swift measures are essential. One major hurdle I encounter is the exorbitant cost of renting properties in this area. As a preschool operating in a group child care home, the licensing limits the number of children to 15, contributing to higher tuition rates due to the restricted capacity. To alleviate this, there should be a reconsideration of licensing regulations, allowing for a higher number of children based on available space in residential locations. The affordability struggle is compounded by the impracticality of regulations set by the Department of Public Health and Human Services (DPHHS). The process of hiring qualified staff is hindered by a lengthy approval period, which can take up to 1.5 months. This delay poses a significant challenge, especially in emergencies when immediate staffing is crucial. There's a pressing need for a more efficient and flexible system, perhaps incorporating a grace period between document submission and approval to enable timely workforce adjustments. Furthermore, the issue of teacher compensation is paramount. Competing with jobs offering higher wages, such as cleaning services with rates of $25 per hour, is challenging. While I don't have a definitive solution, it's evident that increased financial support, possibly from government initiatives, is necessary to ensure fair compensation for the vital role teachers play in child care. This is a systemic issue that cannot be solely addressed by private child care businesses but requires government intervention to establish sustainable solutions. In essence, for accessible, affordable, and thriving child care, a comprehensive review of licensing regulations, efficient staffing procedures, and financial support for educators is essential to create a more robust and equitable child care system in our community.” Bozeman, Child Care Provider / Business Owner Key themes (from those who do work that impact child care offerings): More child care options More affordable options Better pay / better benefits Provide transportation for rural students Offer before and after school options on campuses Education / professional development Sliding fee scale More training Key themes (from those who want child care options): Address cost of living, cost of housing More child care options More affordable options More infant care options Free preschool for all families with children ages 4 and up Incentives for providers who are licensed, continuing education, etc. 115 195 Better pay / better benefits Subsidies to cover operations, water, electricity, property taxes, etc. Subsidies for retrofitting locations for centers Subsidies to supplement staff pay, tax credits for child care expenses, housing subsidies Flexibility from employers, employer supported options Address HOA restrictions for in-home care After school care Summer care Increased state funding for licensed child care providers to retain staff and provide safe care with appropriate staff to child ratios Better hours for working parents, non-traditional hours Lower the threshold for Best Beginning Scholarships “Please set up infant to 5 year old child care at each elementary, middle and high school. There would be advantages to parents, child care staff, community members who are not wanting child care centers in their backyards and most importantly, for the children. This would aid parents with more than one child in the school system, aid specialists who need to work with these children and their caregivers, and provide the community with a centralized, easily supervised location. There are many more reasons but it’s late, and I’m too tired to list them here now. Contact me! Laurie at 707 599-6622 Thanks!” Bozeman, Parent / Future Parent, Wants Child Care Options “Early child care centers should have government support similar to the public school system. I want to be able to keep my job and afford child care without having to sacrifice my career goals and path.” Bozeman, Parent / Future Parent, Wants Child Care Options Key themes (from those who care about child care options): More child care options More infant care options More affordable options More high quality options Year-round schools Streamline licensing and background checks; reduce barriers to opening and operating a child care business; lower the barrier to entry for providers, both regulatory and financial by leveraging local, state and fed govt programs to fund/subsidize child care for the workforce More state funding Assistance in paying tuition Subsidize child care (tourism tax) 116 196 Better pay / better wages (without impacting families) Better hours for working parents, non-traditional hours Partnerships among organizations, schools, providing access, grants, and City, funding to support quality child care Offer pre-K at the school Affordable housing Employer support “I'm so sad to see we have stopped talking about the quality of care. We have standards in place to assure children in child care are provided safe, healthy and developmentally appropriate protections. We need to be protecting the experiences of a child each day, not warehousing them to make it affordable.” Bozeman, Engaged Community Member, Cares about Child Care Options Q. What needs to be done now to achieve accessible, affordable and thriving child care in your community? Key themes: More child care options More affordable options Subsidized child care Tax breaks for developers providing land for child care More support and training for child care providers Public transportation to access offerings Better hours for working parents, non-traditional hours FOUR CORNERS Q. What needs to be done now to achieve accessible, affordable and thriving child care in your community? Key themes: Nothing currently exists More child care options More affordable options Subsidized child care Continue supporting the YMCA Later Gator program GALLATIN GATEWAY “1. Private industry needs to start offering child care options to attract workers 2. Pre-K should be offered to 4 year olds throughout the state as part of public school 3. Assistance should be more readily available for low income families so that parents can both work and have their kid in care (and still make enough money to make working worthwhile).” Gallatin Gateway, Parent / Future Parent, Want Child Care Options 117 197 Q. What needs to be done now to achieve accessible, affordable and thriving child care in your community? Key themes: Subsidies for daycares Lower rent for providers Better pay for providers More child care options Incentivize new child care businesses Support child care businesses Offer pre-K at the school More affordable: provide scholarships for those who can’t afford to pay for pre-K Lack of child care workforce MANHATTAN / AMSTERDAM / CHURCHILL “We need to help those business owners with the constant demands of running a child care facility -- weekly food costs and deliveries, business consulting, affordable licensing hurdles, affordable educational requirements for educators/owners, stipends for toys/activities/curriculum.” Manhattan / Amsterdam / Churchill, Community Member, Who Wants Child Care Options Q. What needs to be done now to achieve accessible, affordable and thriving child care in your community? Key themes: More child care options Better hours for working parents More affordable THREE FORKS Q. What needs to be done now to achieve accessible, affordable and thriving child care in your community? Key themes (from those who provide/impact child care offerings): Affordable housing Better pay / better benefits Training Funding Incentives WEST YELLOWSTONE 118 198 Key themes (from those who want child care options): More options Support from the city to operate Subsidize the child care, support current caregivers Website/group/resource that links parents to caregivers Lack of consistent care Availability Affordability Affordable housing Accredited administrators and teachers Better pay / better benefits Pre-K at the school Free child care for teachers Offer more scholarships Attract and retain providers Expanded hours Funding options Key themes (from those who care about child care options): Affordable Reliable Housing Better pay / better benefits Staffing Attract and retain quality professionals Cost of child care Positive work environment Funding More options Community support After school program 119 199 SUPPORT FOR THOSE WHO WORK IN CHILD CARE Q. What are the opportunities to better support and retain those who work in child care? Q. What are the opportunities to better support and retain those who work in child care? Key themes (those who provide/impact child care offerings): Better pay / better benefits Funding Less trainings / more efficient trainings / trainings based on experience Incentivize training and education Community support BELGRADE Key themes (those who want child care options): Better pay / better benefits Free child care for providers Work credits for high school and early childhood development students if they work in licensed child care facilities Tuition reimbursement Professional development Affordable housing Key themes (those who care about child care options): Better pay / better benefits Free child care for providers Positive work environment Flexible hours Educational and school repayment opportunities Reduce litigation and over regulation of child care businesses Professional development, continuing education Q. What are the opportunities to better support and retain those who work in child care? Key themes (those who provide/impact child care offerings): Better pay / better benefits Housing Training More child care options Training More staff to reduce stress BIG SKY 120 200 Key themes (those who want child care options): Better pay / better benefits Child to teacher ratios Flexibility Cost-of-living stipends Housing Assistance with child care Key themes (those who care about child care options): Housing New child care center Better pay / better benefits (balanced by higher costs) Offer discounts and perks to child care providers Mental health support Flexible schedules Q. What are the opportunities to better support and retain those who work in child care? Key themes (from those who provide child care offerings): Better pay / better benefits Grant opportunities Free child care for employees Training Incentives College tuition repayment for service BOZEMAN “Help streamline the process for getting approved on a facility list through the licensing office. Take into consideration other degrees and job fields that work with Early Childhood to count towards levels in ecp. Make it an easier process for somebody to become lead qualified. Reimbursement for completing certain classes.” Bozeman, Provide Child Care “Child care is HARD. I work 50 hour weeks (not counting curriculum prep, cleaning, shopping, and setup). I have no sick leave. My vacation days have to be scheduled far in advance. I’m alone with 6-8 kids aged 4 and under, and it’s lonely and isolated. Covid dramatically changed how kids relate to each other, and they now have to be taught how to play with other kids. Parents don’t appreciate child care workers and often arrive early to drop off their children and are late to pick up their children. I'm raising other people’s children and looked down on for not doing something with more social capital. I don’t know how to retain people in this line of work, because I plan to get out when both of my kids enter elementary school.” Bozeman, Provide Child Care 121 201 Key themes (from those who do work that impact child care offerings): Better pay / better benefits Training (stipends) Resources Lower rent Key themes (from those who want child care options): Affordable housing Subsidized housing - https://www.nytimes.com/2023/09/30/nyregion/child-care-teachers- housing-connecticut.html) Better pay / better benefits Training Time off Perks from the community Paid continuing ed Grants in exchange for accepting low income families Offer incentives for continued work Larger workforce - support sick/personal days - substitute pool Mental health support Student loan forgiveness programs Tax credit for all teachers with certain accreditations/ trainings Tax incentives for commercial landlords to reduce rent costs Government support Work-study grants through MSU Free child care Key themes (from those who care about child care options): Better pay / better benefits Enhanced training Educating parents State funding support Subsidies Cost of living, of operations Affordable housing Support Free child care More facilities Enough staff to cover sick leave Professional development opportunities Hire MSU students w child development majors for child care in exchange for independent study class credits 122 202 Q. What are the opportunities to better support and retain those who work in child care? Key themes: Days off / mental health support Subsidies for those who meet certain standards of care Better pay / better benefits Free child care for the employees Flexible schedules FOUR CORNERS Q. What are the opportunities to better support and retain those who work in child care? Key themes: Living wages / better pay / better benefits (balanced with high child care prices) Affordable housing Government support Scholarships for higher education Free child care for the employees Benefits from other businesses Days off / mental health support Training GALLATIN GATEWAY Q. What are the opportunities to better support and retain those who work in child care? Key themes: Better pay / better benefits (balanced with high child care prices) More efficient and supportive state certification process for independent providers Training Grants to help with supplies / equipment / better facilities Subsidies MANHATTAN / AMSTERDAM / CHURCHILL Q. What are the opportunities to better support and retain those who work in child care? Key themes: Better pay / better benefits Training Support More staff for increased flexibility THREE FORKS 123 203 Q. What are the opportunities to better support and retain those who work in child care? Key themes (from those who provide/impact child care offerings): Better pay / better benefits Affordable housing Free / discounted child care for providers Free training Mentors for providers / teachers Translators Key themes (from those who want child care options): Better pay / better benefits Supportive funding Training Affordable housing Resort tax, nightly rental tax Better support Key themes (from those who care about child care options): Better pay / better benefits Training More staffing Housing Funding Better legislative financial support More resources Help navigate state laws to retain child care workers Welcoming environment for staff will also help retention Community support WEST YELLOWSTONE “Maybe all of the child care facilities in Gallatin Co and become a co-op type of entity and have better healthcare options for staff.” West Yellowstone, Cares about Child Care Options 124 204 Q. Please take a moment to explain your response. YES, INTERESTED IN ACCESSING “MSU, where I work, should offer more child care options to campus employees, and do so at a reduced rate to incentivize jobs here and attract and retain employees. People turn down positions here because they cannot find child care here.” Gallatin Gateway, Parent / Future Parent, Wants Child Care Options “My family cannot get child care for our two year old (it is all too expensive with long waits). Anything to help with that would be appreciated. I would LOVE to work for an employer that helped with child care; it would not only be a huge help to my family, it would reflect the values I want in a workplace.” Four Corners, Engaged Community Member, Parent / Future Parent, Wants Child Care Options Accessing: Yes, I’m interested in accessing employer supported child care.127 Accessing: No, I’m NOT interested in accessing employer supported child care.11 Offering: Yes, I’m interested in offering employer supported child care.16 Offering: No, I’m NOT interested in offering employer supported child care.10 125 ACCESSING EMPLOYER SUPPORTED CHILD CARE Q. Are you interested in accessing employer supported child care? OFFERING EMPLOYER SUPPORTED CHILD CARE Q. Are you interested in offering employer supported child care? 205 Q. Please take a moment to explain your response. YES, INTERESTED IN OFFERING “I have employees in the local area, including myself, that need daycare and after school care options.” Gallatin Gateway, Business Owner / Employer, Parent / Future Parent, Engaged Community Member, Wants Child Care Options NO, NOT INTERESTED IN OFFERING “We don’t have enough employees to make this feasible.” Four Corners, Business Owner / Employer, Parent / Future Parent, Engaged Community Member, Cares About Child Care Options Q. What specific challenges and/or nuances need to be considered when it comes to child care in your community? Key themes (those who provide/impact child care offerings): Cost (of child care) More funding for child care providers Higher pay for providers Early intervention for speech, occupation and physical therapy Lack of affordable options Lack of high enough wages for child care providers Key themes (those who want child care options): Cost (of housing, of child care, of living) Lack of infant care Lack of quality care Lack of access Lack of knowledge about quality providers Lack of options for full-time care / limited hours and days Offer pre-K at the school BELGRADE 126 CHALLENGES + NUANCES TO BE CONSIDERED Q. What specific challenges and/or nuances need to be considered when it comes to child care in your community? 206 “As with everything in Gallatin County, costs are going up, and child care is no exception. Many families want their providers and teachers to be compensated not only fairly, but in a way where they can stay in their roles as a career. I feel that the burden can no longer be solely on parents and providers to figure this out. I personally love the idea of public day care and preschool. As a parent I pay about $13,000 a year in child care (the lower end for Gallatin County) and I would love for the government and taxpayers to invest in our future and current workforce. A government system may offer some protection and consistency for providers and parents alike. That’s not to say current private centers couldn’t exist, but costs are becoming untenable for many families and providers alike.” Belgrade, Parent / Future Parent, Engaged Community Member, Wants Child Care Options “A lot of the challenges of child care could be lessened or mitigated with better paid parental leave policies.” Belgrade, Parent / Future Parent, Engaged Community Member, School / Teacher / Administrator, Wants Child Care Options “I personally think that employers are the ones that can have the biggest impact. For many jobs, there is no need to enforce a 9-5 policy. While there is a lot of focus on employer-provided maternity leave and child care, I think what most parents want is more time with their children and rightfully so. Us as employers need to rethink how we do business and assess if our standard ways of doing things, like employee schedules, are really necessary.” Belgrade, Parent / Future Parent, Engaged Community Member, Business Owner / Employer, Wants Child Care Options Key themes (those who care about child care): Lack of providers Cost (of child care, of living, for workforce, for operations) Distance to providers Lack of options after normal work hours Quality options Q. What specific challenges and/or nuances need to be considered when it comes to child care in your community? Key themes (those who provide/impact child care offerings): Cost of living Lack of providers / staff Lack of housing Low wages Cost of care BIG SKY 127 207 Key themes (those who want child care options): Only one option Not open 5 days a week due to staffing challenges Lack of training among some providers Lack of summertime care Retaining employees Affordability Lack of options after normal work hours Key themes (those who care about child care options): Lack of housing Consistency in child care offerings Lack of options for full-time working parents Seasonal challenges Better access to pediatric care Transportation for kids to and from school to activities Lack of options Q. What specific challenges and/or nuances need to be considered when it comes to child care in your community? Key themes (from those who provide child care offerings): The time it takes to process fully and onboard staff under state licensing The high cost of living in this area Affordable housing Quality care - teacher-child ratio Cost of training Cost of operations Cost of child care is greater than rent/mortgage Pay competition for easier jobs Key themes (from those who do work that impact child care offerings): Cost (of living) Availability Inclusion of students with disabilities Finding and retaining quality teachers BOZEMAN 128 208 Key themes (from those who want child care options): Lack of longer hours to accommodate those working full-time Cost (of living, of child care) Staff shortages and staff turnover Affordability Availability Long wait lists Traffic - child care options within 20 minutes of home or work After school care Transportation Unlicensed day care centers Summer care Housing Key themes (from those who care about child care options): Traffic and distance Availability Accessibility Affordability Affordable housing Lack of retention Lack of training Quality Hours Cost (of child care) Waitlists Lack of generational support Flexible scheduling Caregiver to child ratio Q. What specific challenges and/or nuances need to be considered when it comes to child care in your community? Key themes: No public transportation Lack of options after normal work hours Lack of longer hours to accommodate those working full-time Cost (of living, of child care) Lack of providers Distance to providers FOUR CORNERS 129 209 Q. What specific challenges and/or nuances need to be considered when it comes to child care in your community? Key themes: Lack of providers Lack of facilities Transportation after school to after school care Bilingual child care Cost (of living, of child care) GALLATIN GATEWAY Q. What specific challenges and/or nuances need to be considered when it comes to child care in your community? Key themes: Location Cost (for families, for leases, for workforce, for operations) Lack of longer hours to accommodate those working full-time Lack of providers MANHATTAN / AMSTERDAM / CHURCHILL Q. What specific challenges and/or nuances need to be considered when it comes to child care in your community? Key themes: Child care workers are not paid enough to live here Child care needs to good, clean, safe and staffed appropriately Local child care options vs. bringing kids to Bozeman for care THREE FORKS “Many start out as in-home child care, which Three Forks requires a home occupation so needs a conditional use permit in order to legally operate, a business license too, and then provide off street parking for all the vehicles dropping off/picking up and the employees. It is difficult to attain that all on a small residential lot. Perhaps the zoning requirements could be lessened for child cares?” Three Forks, Engaged Community Member, Parent / Future Parent, Cares about Child Care Options Q. What specific challenges and/or nuances need to be considered when it comes to child care in your community? Key themes (from those who provide/impact child care offerings): Cost of living Lack of affordable living First-generation speakers Workforce WEST YELLOWSTONE 130 210 Key themes (from those who want child care options): Lack of a long-term plan Flexible hours All ages Retention Affordable housing Bilingual needs Leadership Availability Staff Reliability Key themes (from those who care about child care options): Flexible hours Summer care Housing Workforce Resources Organizational challenges Seasonal nature of tourist town Cost of living, cost of care Pre-K at school Lack of qualifications “The business model at our current daycare does not fit the needs/economics of our current daycare clients. Parents need to be able to pay hourly, not weekly. A professional wage with benefits and housing option need to be available to offer to a qualified director to run the daycare.” West Yellowstone, Care about Child Care Offerings Any other thoughts you want to share? “Child care costs as much as a mortgage payment and living in this community costs a fortune. If you make any more than minimum wage then you do not qualify for any of the government grants.” Three Forks, Parent / Future Parent, Wants Child Care Options “Thank you for organizing this survey. I have lost 11 staff members in the past three years due to affordable child care and affordable housing. The two are intricately linked for those working class families with children.” Bozeman, Parent / Future Parent, Engaged Community Member, School / Teacher / Administrator, Wants Child Care Options 131 211 “I would like a better directory of child care options that includes hours, pricing, current openings, care philosophy, daycare size, ages allowed…” Bozeman, Parent / Future Parent, Wants Child Care Options “Is it feasible to establish a union or cooperative of child care providers to collectively tackle the numerous challenges affecting various aspects of our business? If so, how should we commence this collaborative approach?” Bozeman, Child Care Provider 132 212 CITY OF BOZEMAN, ECONOMIC VITALITY STRATEGY (EVS) Source: City of Bozeman, Economic Vitality Strategy (EVS), April 2023 NATIONAL TRENDS: EARLY LEARNING/CHILD CARE (Page 21) Child care is critical infrastructure for working parents, but it also enables children to be in a setting that promotes their healthy development and school readiness (while their parents work). In this way, child care not only has a direct impact on the economy today, but also impacts the economy of tomorrow. Rigorous evidence from studies of random assignment to high-quality preschool suggests that early childhood policy interventions have wide-ranging long-term impacts. Nobel Prize winning University of Chicago Economics Professor James Heckman’s work outlines the great gains to be had by investing in the early and equal development of human potential. He finds that investing in comprehensive birth-to-five early childhood education is a powerful and cost-effective way to mitigate negative consequences on child development and increase adult opportunity. “The gains are significant because quality programs pay for themselves many times over. The cost of inaction is a tragic loss of human and economic potential that we cannot afford.” Unfortunately, while wages are stagnating as indicated in Figure 9, the cost of organized child care is increasing and presents a substantial financial hurdle for many working parents with children, especially those working for low wages. APPENDIX: INCLUSIONS OF CHILD CARE IN AREA PLANS Child care has been an important topic in plans throughout the area. Below are direct excerpts from three of those plans: City of Bozeman’s Economic Vitality Strategy (EVS), April 2023, Big Sky Resort Area District’s Big Sky Community Capital Improvement Plan, Sept. 2023 and City of Bozeman’s Belonging in Bozeman Equity and Inclusion Plan, Dec. 2023. 133 13 14 Diane Whitmore Schanzenbach Ryan Nunn Lauren Bauer Megan Mumford Audrey Breitwieser, Seven Facts on Noncognitive Skills from Education to the Labor Market, October 2016 García, Jorge Luis, James J. Heckman, Duncan Ermini Leaf, and María José Prados. “The Life-cycle Benefits of an Influential Early Childhood Program.” 2016 13 14 213 134 The cost of care in the Gallatin Valley remains a barrier for many parents seeking to enter or stay in the labor force. The average annual cost of child care in Montana for an infant is $9,096 in a child care center and $7,440 in a family child care home. Subsidized child care can encourage parents working in lower-paid occupations to maintain their connection to the labor force or to upgrade their skills through education, thereby contributing to economic growth and productivity over the longer term. Since 2010, the number of family child care homes in Montana has declined from 2,323 to 1,633 in 2016 – a decline of 29.7 percent. For working families, the decline in home-based care reduces the availability of the least expensive care option for families. In addition to the growing demand for child care and an increasing scarcity of affordable facilities, is a need for more workers. According to the U.S. Bureau of Labor Statistics, there are approximately 330 child care workers in Southwest Montana, which includes Gallatin Valley. With a ratio of 2.41 workers/1,000 people, the talent pool is similar to the national average (LQ: 1.0). Recruiting qualified workers for this sector is also more difficult due to low wages; the average annual salary is $38,890 – the average national median wage is $49,150. 16 17 15 18 214 Increasing the supply of child care is critical for the economy to maximize the full potential of the available workforce. More importantly, providing early learning is an important investment in communities that help ensure they can realize their human and economic potential. GOALS AND OBJECTIVES (Page 29) Based on the key findings, values and guiding principles, the City of Bozeman and stakeholders identified the following goals and objectives to guide economic vitality actions implemented by regional stakeholders, which are outlined in a separate Action Matrix document, over the next three to five years. Goal 1) Provide Opportunity for Gallatin Valley Residents Objective 2) Provide comprehensive and coordinated skills development starting with child care through middle school and higher-ed (Page 30) Improving the skills of individuals not only improves the employment base, but also develops future civic and business leaders needed to guide the region. Providing early learning child care is an important community investment, helping to develop the necessary skills that allow a community to realize its human and economic potential. This is especially true for underrepresented children. Engaging students in middle school to prepare the future workforce is necessary. Higher-education leaders can build off this engagement and provide necessary skills development through trades training, one-year certifications, and 2- and 4-year college programs. ATTACHMENT B: EVS Action Matrix (Page 1-2) 135 Montana Fact Sheet 1312019.pdf (ced.org) Ibid U.S. Bureau of Labor Statistics https://www.bls.gov/oes/current/oes211021.htm Ibid18 17 16 15 215 BIG SKY SCHOOL DISTRICT: BSSD CAPITAL IMPROVEMENT PLAN (Page 21) Based on the enrollment projections and available capacity, there are no immediate facility expansions to add general education seats. However, a large expansion could be anticipated after the 2029-2030 school year when enrollment nearly reaches the ideal capacity limit. With that said, there are other capital expansion projects in the BSSD CIP. A modernized gym is needed to support the community at the same level of other comparable school districts. Also, the first year of pre-k was a success and there is a demand to expand the grade level. The expansion would allow BSSD to serve 50 students. Other private education facilities in Big Sky have indicated that demand for their early childhood programs has far surpassed their capacity as well. BSSD expanded pre-k would alleviate pressure on these other agencies as well. The nature of Big Sky residential development and possible transition to more full-time households in the area make it difficult to attribute the CIP costs to Madison and Gallatin County. However, there will be direct and indirect demand on the school district from growth. Housing development will generate students to BSSD, albeit at a lower rate than state average. Indirect demand will come from the economic activity generated by additional development which will necessitate more employment and households moving to Big Sky bringing students into the district. BIG SKY RESORT AREA DISTRICT BIG SKY COMMUNITY CAPITAL IMPROVEMENT PLAN Source: Big Sky Resort Area District, Big Sky Community Capital Improvement Plan, Sept 2023 DISCOVERY ACADEMY (PAGE 22) Big Sky Discovery Academy is a non-profit, private school providing education from ages 3 – grade 12. The majority of students are between the age of 3 to 8 years old. The following section details their current demand and related facility expansion needs. Current Level of Service The current enrollment at Discovery Academy is 80 students. The current facility is at capacity. There is additional demand that is not able to be served because of the capacity limitations at the facility. Furthermore, the capacity issues are requiring staff to reorganize the facility every school year. 136 216 Projected Growth-Related Needs It is anticipated that the demand for schooling will continue to grow as the Big Sky area attracts full-time families. Additionally, as employment grows in the area, those new employees in Big Sky will be seeking schooling as well. Conservatively, based on enrollment projections for Big Sky School District, a 20 percent increase in demand is anticipated, furthering the waitlist. An additional early childhood classroom is anticipated in the next school year addressing community needs. Discovery Academy Capital Improvement Plan Based on Discovery Academy analysis there is a need for another 15,000 square feet to serve current and future demand. The new facility would include expanded early childhood classrooms. This expansion may require the organization to move, bringing a partnership opportunity with the Big Sky Town Center development. Drop-off/pick-up benefits and synergy with other tenants at Town Center allows for this opportunity to have a wider public benefit. The overall expansion is estimated to cost $10 million. In the future, BSRAD will be focusing on funding early childhood facilities. Based on current enrollment (18 early childhood students of the 80 total enrollment), 22.5 percent of the $10 million is included in the CIP. Similar to BSSD, there will be direct and indirect demand on the schooling from growth. Housing development will generate students and indirect demand will come from the economic activity generated by additional development which will necessitate more employment and households moving to Big Sky bringing students into the area. MORNINGSTAR LEARNING CENTER (Page 23) Morningstar Learning Center is a private full-time daycare, the only such organization in Big Sky. Morningstar provides early child care services to students up to five years old. The following section details their current demand and related facility expansion needs. 137 217 Projected Growth-Related Needs It is anticipated that the demand for child care will continue to grow as the Big Sky area attracts full-time families. Additionally, as employment grows in the area, those new employees in Big Sky will be seeking child care as well. Conservatively, based on enrollment projections for Big Sky School District, a 20 percent increase in demand is anticipated for the Morningstar Learning Center through 2030, furthering the deep waitlist. Morningstar Learning Center Capital Improvement Plan The organization is exploring facility expansion options. The expansion would address the current and future demand on their waitlist, but also provide expanded aftercare service. The Center is currently open until 5:30pm and expanded aftercare service could include more and different operating hours such as nights, weekends, and drop-in care that would be operated by an operator renting the facility from Morningstar. This service has the potential for multiple partnerships including Big Sky School District and the BASE Community Center. Importantly, to expand enrollment would require additional staffing. The facility expansion may include some housing for staff, but there will be a need for further housing options to attract the full staffing needs. Similar to BSSD, there will be direct and indirect demand on early child care from growth. Housing development will generate students and indirect demand will come from the economic activity generated by additional development which will necessitate more employment and households moving to Big Sky bringing students into the area. Current Level of Service Presently, Morningstar has an enrollment of 50 students with a waitlist that includes 30 additional students. The current facility has a 50-student capacity. Thus, the organization is at 100 percent utilization and Big Sky demand is 160 percent of capacity. Morningstar staff indicated that the demand may be even higher and the length of the waitlist deters others from joining. 138 218 CITY OF BOZEMAN, BELONGING IN BOZEMAN EQUITY AND INCLUSION PLAN Source: https://www.bozeman.net/home/showpublisheddocument/13760/638398654280100000 In Bozeman’s 2021 Equity Indicators Report, early childhood care and education was identified as a large or moderate need across all demographic subgroups. An April 2023 article published by Bozeman radio station The Moose ran with the headline, “How on earth do Bozeman families afford preschool or daycare?” In addition to affordability, availability is limited. The current number of licensed child care providers and the number of available preschool and infant spots only meet about half of the demand for child care in Gallatin County (Child Care Connections). This plan envisions a City of Bozeman in which programming for children and youth is affordable, of excellent quality, inclusive of young people of varied backgrounds, and accessible to all. To this end, the plan’s co-authors have identified the following goals: reducing barriers for underserved children, increasing program capacity, increasing program and provider subsidies, and recruiting and retaining quality staff. CHILDCARE + YOUTH PROGRAMMING GOALS AND RECOMMENDATIONS Goal 1. Reduce barriers to out-of-school opportunities and programs for underserved children. 1. Evaluate and address barriers around participation in out-of-school programs, including transportation and cost. 2. Support participation in city programs and activities for families of children with disabilities. 3. Explore opportunities to integrate indigenous food systems, languages, and culture into summer and after school programs. Goal 2. Increase capacity of after-school and summer programs. 1. Perform an equity impact analysis of the city’s enrollment processes, level of subsidy, and scholarships for recreation programs and youth camps. 2. Establish and continue partnerships with governmental and non-profit organizations for free use of space access, subsidies, and other mechanisms to support youth programming within Gallatin Valley. 3. Develop a quick response plan for providing child care in the case of emergency school closure or other community emergencies. Goal 3. Increase subsidy for child care programs and providers. 1. Lobby for additional local, state, and federal funding/subsidy of quality child care. 139 219 IMPLEMENTATION WORKBOOK (Page 59) 140 Goal 4. Recruit, develop, and retain quality staff. 1. Support efforts to recruit multilingual and multicultural staff for recreational programming. 2. Implement a mentorship and training program for youth who want to work as future recreation/camp leaders. 3. Spotlight the value and contributions of child care and youth programming employees through a communications campaign. 220 APPENDIX: LARGEST EMPLOYERS IN GALLATIN COUNTY Source: Montana Department of Labor and Industry https://lmi.mt.gov/Employment/qcewTop 1,000+ Employees* Bozeman Health 250-499 Employees Kenyon Noble Lumber and Hardware Oracle Town Pump Wal-Mart *Presumably Montana State University is also one of the largest employers in Gallatin County but is not listed in the data obtained from the Montana Department of Labor and Industry. 141 221 APPENDIX: LICENSED CHILD CARE PROVIDER DATA FOR GALLATIN COUNTY Number of Licensed Child Care Providers in Gallatin County + Capacity by Age Group Source: Child Care Connections, February 2024 Licensed Providers Licensed Infant Capacity License Preschool Capacity Big Sky 1 12 32 Belgrade 25 120 382 Bozeman (59715)18 154 469 Bozeman (59718 + 59717)41 252 840 Gallatin Gateway (59730)1 (new!)0 0 Manhattan 4 19 57 Three Forks 2 14 41 West Yellowstone 1 6 16 TOTAL 92 577 1837 142 Total Programs Family Group Center 92 16 34 42 Total Number of Licensed Child Care Programs in Gallatin County by Provider Type Source: Child Care Connections, February 2024 222 APPENDIX: LIST OF CHILD CARE ORGANIZATIONS + PROGRAMS Multiple organizations and programs are involved in various aspects of child care in Montana and in Gallatin County. Below is an overview of these entities including excerpts taken directly from their websites. 143 DPHHS MONTANA DEPARTMENT OF PUBLIC HEALTH & HUMAN SERVICES (DPHHS) DPHHS Annual Strategy 2023 Objective: “Increase access to quality child care for working families” Key Measure: “5% increase in the number of licensed child care providers participating in the Best Beginnings Scholarship program.” Early Childhood and Family Support Division (ECFSD) Source: https://dphhs.mt.gov/ecfsd/ ECFSD provides coordinated services and resources to promote the well-being, health, and development of children, individuals, families, and communities encompassing over many activities, spanning prenatal to adult services. ECFSD's programs target early care and education, food security and nutrition education, violence and neglect prevention, family support, and preventative health care. The division is committed to supporting consistency, efficiency, and better-coordinated services for children and families across the state of Montana. Vision: Children, youth, and families are healthy and thriving. Mission: The Early Childhood and Family Support Division provides coordinated services and resources to promote well-being and support the health and development of children, individuals, families, and communities. Guiding Principles: Families are honored as the expert of their child and recognized as their child’s first and most influential teacher. We recognize that children, individuals, families, and communities have diverse backgrounds, experiences and needs. We value collaborative partnerships and our work with community agencies. We recognize and address equity and inclusion in our service delivery and program structure. 223 We promote prevention programs striving to ensure the health and safety of children and families while working to build individual resiliency and family strength. We strive to use data to inform our decisions and program design. We are committed to staff and workforce development to support professional growth and ensure our programs are administered innovatively and effectively. We commit to administer programs intentionally and sustainably, with integrity and accountability. Early Childhood Services Bureau Source: https://dphhs.mt.gov/ecfsd/childcare/Index The Mission of the Early Childhood Services Bureau is to improve the quality, affordability and accessibility of early care and education in Montana, with focused efforts on coordinated systems to best meet the needs of young children, their families, and the professionals who work on behalf of young children and families. Child Care Under the Big Sky (CCUBS) CCUBS is the database that the state uses for licensing, including ECSB and ECFSD. Child Care Licensing Source: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensing/index The role of the Child Care Licensing (CCL) program is to monitor, inspect, and support licensed and registered child care facilities, as well as those working to become licensed or registered. Additionally, CCL establishes regulations for the health, safety, and well-being of the children in these facilities. All licensed or registered programs receive a pre-inspection prior to providing care, ongoing monitoring and an annual inspection, and complaints are followed up on. Child Care Licensing Project Source: https://dphhs.mt.gov/ecfsd/childcare/childcarelicensingproject Project Purpose Examine and improve child care licensing requirements and processes to understand how we can better support the child care system to provide quality care Increase capacity of Montana’s child care system so we have high quality care available for all of Montana’s children 144 224 Project Scope Assess child care licensing strengths and gaps Analyze and recommend and implement opportunities to clarify, streamline, align, or otherwise improve statutes, regulations, and policies Conduct value stream and business process mapping and develop re-engineering recommendations Look at data systems and how they could better support business process improvements Develop policies and procedures Support organizational change management work Assessment The 2022 Montana Child Care Licensing Assessment analyzes stakeholder input about strengths and gaps in the state’s child care licensing program. The assessment is a foundational component of a broader project to improve child care licensing for the state, which includes improvements to child care licensing regulations, policies, procedures, and data systems. Regulations Updates in progress. Staying Informed Updates in progress. Best Beginnings Child Care Scholarships (BBCCS) Source: https://dphhs.mt.gov/ecfsd/childcare/BestBeginningsScholarships The Early Childhood Services Bureau (ECSB) offers Best Beginnings child care scholarships (BBCCS) to qualified low-income families whose child receives care from a licensed child care center, licensed group or family child care home, or Family, Friend, and Neighbor (FFN) child care provider. Each family participates in the cost of that care by making a copayment based on a sliding fee scale. Scholarships are available to working families whose income is at or below 185% of the Federal Poverty Guidelines and families who get cash assistance through the Temporary Assistance for Needy Families (TANF) program. The program helps to pay for care when parents are not available to care for their children: During working hours; During school or training hours, if meeting work requirements; If they are a teen parent attending high school; or If they are a parent receiving TANF who is participating in family investment agreement activities. Child care scholarships are available if the applicant is a working caretaker relative with children receiving TANF child-only grants. 145 225 Montana Child and Adult Care Food Program Source: https://dphhs.mt.gov/ecfsd/childcare/cacfp/index The Child and Adult Care Food Program (CACFP) is a federally funded program of the Food and Nutrition Services (FNS) of the United States Department of Agriculture (USDA). The Department of Public Health and Human Services (DPHHS) is the State agency which administers the CACFP in Montana and ensures that program requirements are followed. CACFP plays a vital role in assuring the nutritional quality of meals and snacks served to eligible children and adults attending non-residential child or adult care programs, and making care more affordable for many low-income families. A variety of different eligible programs qualify to participate in the CACFP. A variety of programs that are licensed or approved receive reimbursement at free, reduced, or paid rates for eligible meals and snacks served to enrolled children. These programs can include: Child Care Centers, Head Start programs, Adult Day Care Centers, outside school hours programs, and at-risk afterschool programs. The reimbursements help providers supplement the cost of providing nutritious meals and snacks to infants, children, and adults. Best Beginnings STARS to Quality Source: https://dphhs.mt.gov/ecfsd/childcare/stars/index Best Beginnings STARS to Quality Program is a continuous quality improvement program for early childhood education in Montana. STARS to Quality is currently in a Redesign phase and is not currently accepting new applications. The rebuilt Quality Recognition System (QRS) has a projected launch date of October 1, 2025. Quality resources can still be accessed through this website. STARS Trainings continue to be free and accessible. Mission: To support high quality early care and education programs for child care and education through a quality rating and improvement system that strengthens programs and practitioners with continuous improvement strategies and assists families to make informed decisions. Vision: A quality rating improvement system to support early childhood education programs in continuous quality improvement. Montana Bright Futures Birth to Five (BF B-5) Source: https://dphhs.mt.gov/ecfsd/childcare/montanaearlychildhoodsystem DPHHS launched Montana Bright Futures Birth to Five (BF B-5), a continuation of the previous Strengthening Montana’s Early Childhood System Project which began in 2019. The 2023-2025 BF B-5 project will continue its focus on developing the state’s comprehensive early childhood system. 146 226 Grant Activities Update needs assessment Revise strategic planning Maximize parent and family engagement Support the early childhood workforce and disseminate best practices Support overall quality improvement systems Enhance quality and expand access to existing and new programs Monitor, evaluate, and use data for continuous improvement Desired Outcomes Montana’s families with young children have increased access to, and participation in high quality early care and education across a mixed delivery system Montana’s early childhood workforce is confident and effective, due to enhanced ECE professional development The early childhood system is coordinated to support effective family assessment, system navigation, care coordination, and use of data Montana’s families are engaged and valued as partners in the early childhood system Montana’s communities make early childhood a priority, and act to support children’s health, learning, and well-being Montana’s early childhood system is structured to support policy alignment, strategic financing, continuous improvement, and accountability Partners Montana believes strong collaboration is essential to success. In writing the Bright Futures B-5 Grant, the state renewed its commitment to hear from and work with a variety of stakeholders, including families, and private and governmental partners. Below is a list of stakeholders engaged in the grant writing process and who signed a letter of commitment. We are excited to galvanize current and new stakeholders in the work needed to accomplish grant objectives. Child and Family Services Division (CFSD) Department of Labor and Industry (DLI) Healthy Mothers, Healthy Babies (HMHB) Montana Child Care Resource and Referral (CCRR) agencies Montana Early Childhood Advisory Council (MECAC) Montana Early Childhood Project (ECP) Montana Head Start Association (HSA) Montana Infant and Early Childhood Home Visiting (MIECHV) program The Office of Public Instruction (OPI) Raise Montana Zero to Five Montana 147 227 Child Care Resource and Referral Agencies and Regions (CCR&R) Source: https://dphhs.mt.gov/ecfsd/ChildCare/ChildCareResourceandReferral The Early Childhood Services Bureau contracts with regional CCR&R agencies to offer the following services: Help low-income families find and pay for child care Offers referrals to licensed and registered child care facilities for families of all income levels Offer training, technical assistance, and support for child care providers Initiate projects to build quality child care Inform policy makers, businesses, and the public on child care related issues Advocate for child care providers and for families with children Services to Families Child Care Resource and Referral agencies provide referral services to families seeking child care. This includes providing parents with information regarding: Child Care openings, Location of care, Type and quality of care, Special circumstance information, such as does the provider offer extended hour service, has he/she completed accreditation process, or does he/she serve infants and toddlers. Eligibility for the Best Beginnings Scholarship Program. Services to Providers Child Care Resource and Referral agencies: Work with the local licensing specialists to present quarterly orientation sessions for new providers and provide technical assistance to providers who have been referred by licensing specialists for corrective action. Develop and present regular training to child care providers in the areas of: Child Development Health and Safety Infant and toddler care Sound business practices Referral Services The goal of referral services is to provide a high quality, seamless referral program to families and the community regarding child care options, types of care available, fees, and the common child care business practices. Referral services are provided by the CCR&R in each of the 7 regions. For more information, contact your local CCR&R. 148 228 Distance Learning Child Care Resources provides distance learning to child care providers through ChildCareTraining.org. CCR&Rs in each region are available to provide support to providers completing online coursework through ChildCareTraining.org. Technical problems related to specific website concerns should be directed to ChildCareTraining.org. CCR&Rs have computers available to take an online course if needed. Montana Child Care Resource & Referral Network Montana Child Care Resource & Referral Network is a statewide network of 6 regional Child Care Resource & Referral Agencies who work to improve the quality, accessibility, and affordability of child care for all Montana's families. Child Care Connections Source: https://cccmontana.org/ Child Care Connections is a 501(c)(3) nonprofit serving Gallatin, Park, Meagher, Lewis & Clark, Jefferson, and Broadwater counties. We offer critical support to families and early childhood professionals in our community to improve the quality of and access to child care. Child Care Connections supports families and the local economy by encouraging quality child care and safety. Mission Statement: Child Care Connections advocates for the well-being and quality care of children by supporting early childhood professionals, families, and the communities we serve. Child Care Connections is one of seven Child Care Resource and Referral Agencies (CCR&R) in Montana. Together we form the Montana Child Care Resource and Referral Network delivering support to early childhood professionals and families across Montana. Child Care Connections is here to help families find and afford child care. We also offer one-on- one family support helping families access other resources to make their child’s first years the best they can be. Child Care Connections offers Providers professional development, technical assistance, guidance through the STARS to Quality Program, and assistance opening or expanding care facilities. Early Childhood Community Council Source: https://www.greatergallatinunitedway.org/eccc Gallatin Early Childhood Community Council (ECCC) is a collaborative effort of 130 individuals and over 60 community organizations — parents, child care workers, policy makers, civic leaders, and experts—under the roof of Greater Gallatin United Way to promote thriving, healthy children. 149 229 Greater Gallatin United Way is committed to support the infrastructure of collective impact across Gallatin County. In an effort to create long-term systemic change, we have remained the backbone organization for ECCC for over 26 years, providing: vision + strategy platform to aligned activities establish shared measurement practices build public will advance policy mobilize funding The council meets 1-2 times a month to host community events, coordinate training and support for early child educators, provide education and advocacy for parents, and educate the community on the importance of healthy development of children. ECCC members take the data we’ve collected as a group to inform their individual organizations-- leveraging each other’s work to feed common goals. We believe that to ensure every child has access to a supportive community; every adult is responsible to make that happen. Council Partners ASMSU Child Care Center, A.W.A.R.E. Inc., Belgrade Community Library, Belgrade Public Schools, Big Brothers Big Sisters of Gallatin County, Bozeman Public Library, Bozeman Public Schools, Child Care Connections, Child Development Center, Children’s Museum of Bozeman, City of Bozeman Recreation Department, Community Health Partners (Gallatin & Park Counties), Family Promise, Family Outreach, Gallatin City-County Health Department, Gallatin Mental Health Center, Gallatin Valley Food Bank, Gallatin Valley YMCA, Greater Gallatin United Way, HRDC Head Start, Livingston Public Schools, Montana Team Nutrition, Montana State University Child Development Center, Montana State University College of Education, Health & Human Development, Montana State University Early Childhood Project, Museum of the Rockies, Park County Community Foundation, Thrive and Youth Dynamics. Montana Early Childhood Education Knowledge Base Source: https://dphhs.mt.gov/assets/ecfsd/childcare/documentsandresources/MTEarlyChildhoodKnowle dgeBase.pdf The Montana Early Childhood Education Knowledge Base (2022) represents a core body of knowledge, skills, values and dispositions all early childhood educators must demonstrate to effectively support the development, learning and well-being of all young children and their families. The Knowledge Base is a workbook to guide self-reflection and professional growth by 150 230 describing what early childhood educators need to know, understand, and be able to do at all levels of professional practice. The Knowledge Base is also used to guide program planning in early childhood teacher education at Montana’s tribal, community, and four-year institutions of higher education. Montana Early Childhood Advisory Council Source: https://dphhs.mt.gov/ecfsd/MontanaEarlyChildhoodAdvisoryCouncil The strategic goal of the Montana Early Childhood Advisory Council is to ensure Montana has a comprehensive, coordinated, early childhood system that provides a governance structure and leads to strong collaboration in order to best meet the needs of Montana’s youngest citizens. It has previously been known as the Best Beginnings Advisory Council. The Montana Early Childhood Advisory Council is coordinated through the Early Childhood Family Support Division (ECFSD) of DPHHS with a council chair nominated from council membership. Committees: Expansion/Business Development: This committee focuses on challenges and opportunities in bridging the needs of the business community and early childhood services. Retention and Quality: This committee focuses on retention and quality improvement recommendations for the early childhood and family support system, with specific focus on accessibility, affordability, and quality of services. Workforce Development: The committee focuses on workforce development strategies for the early childhood and home visiting workforce. Family Support: This committee focuses on how to engage and support families through a universal family engagement framework that can be implemented at a local and state level. Raise Montana Source: https://www.raisemt.org/ We support member organizations, advance the early childhood profession, and improve the quality, affordability, and accessibility of child care. We provide resources and coordination support to regional Child Care Resource and Referral agencies. We initiate projects to build child care supply and quality in urban and rural areas such as Montana Shared Services (MTSS) and the Substitute Service. We educate policy makers, businesses, and the public on child care issues. We advocate for child care professionals and families.151 231 Offers: CCR&R Locator Professional Development Emergency Preparedness Shared Services (MTSS): Free Resource Library ECE Friendly Business Directory Discounts & Grants Our ECE Community ECE Job Board Shared Services (MTSS): With Fees Telehealth through Ally Health Substitute Service Home Child Care Provider Business Toolkit Resources for Families Paying for Child Care - info on Best Beginnings Child Care Scholarships Finding Child Care - info on CCR and R Locator Quality Child Care - info on STARS to Quality program Concerns about Child Care - access to DPHHS Child Care Complaint Form Other Resources Trauma Informed Resources MONTANA EARLY CHILDHOOD PROJECT Montana Early Childhood Project Source: https://www.mtecp.org/ Since 1985, the Montana Early Childhood Project (ECP) has been dedicated to improving the quality of programs and services for Montana's young children and their families. We are an outreach program within Montana State University's Department of Health and Human Development. Since 1995 the ECP has facilitated the creation and implementation of a state plan for early care and education career development. We are funded through the Montana Department of Public Health and Human Services Early Childhood Services Bureau from the federal Child Care and Development Fund. We work closely with partner organizations across the state to promote early childhood professional development. On a national level, we are actively involved in The National Workforce Registry Alliance and other organizations to promote a knowledgeable and skilled early childhood workforce. Our office is located in Bozeman, MT and we have seven dedicated individuals committed to our ECP mission and goals. We frequently employ MSU students and supervise student internships. 152 232 Quarterly Report Source: https://www.mtecp.org/media/qyepnmfx/ecp-quarterly-report-q1-fy23.pdf Goal 1: Promote professional development options for early childhood practitioners at all levels on the Career Path and in all settings and programs through the Professional Development Approval System Goal 2: Promote and incentivize workforce development, professional recognition, and program quality improvement through The Practitioner Registry Goal 3: Enhance data collection and reporting capabilities to more effectively inform policy and practice around professional development and the workforce Goal 4: Collaborate with partners to promote an early childhood comprehensive system in Montana Goal 5: Maintain MSU relationships and operate within MSU policies and procedures Maintains the Practitioner Registry Offers professional development Offers apprenticeship program: Montana Early Childhood Apprenticeship Program Childcare Development Specialist The Montana Early Childhood Apprenticeship Program (MECAP) aims to support and increase retention of early childhood education (ECE) providers through on-the-job training, mentorship, and college coursework. Upon completing the program, apprentices are awarded the Child Care Development Specialist Certificate from Montana’s Department of Labor and Industry and reach Level 4 on the Montana Practitioner Registry. MECAP is a Registered Apprenticeship Program (RAP). A RAP is a government-run, on-the-job, paid training program model that is validated through the U.S. Department of Labor or a state agency. Traditionally, RAPs have been developed to support a range of industries and occupations across the country, including skilled trade- related occupations (e.g., electricians or carpenters). Offers incentives and accreditation scholarships Organization Accreditation Scholarships National Association for Family Child Care (NAFCC) Accreditation The intent of this scholarship program is to promote NAFCC accreditation for state registered family and group child care homes. 153 233 National Association for the Education of Young Children (NAEYC) Accreditation The NAEYC accreditation process is designed for child care centers, preschools, school-age programs, and kindergartens. The Family and Group Child Care Business Series is a 10-week series offered to new and existing home-based child care businesses designed to support business practices of home-based child care. Participation is free and those who complete the entire series receive 30 hours of continuing education credit through the MT Early Childhood Project. Topics include: Contracts, Policy Handbook Development, Recording-Keeping, Time/Space Percentage, and Deductions. Improvements in understanding of business practices demonstrated through pre- and post-test assessments. Career Development Advisory Board Meeting twice a year, the board guides the direction and operations of the Early Childhood Project. The Advisory Board grew out of the initial task force convened to envision and plan for an Early Care and Education Career Development program. Representation includes: Montana Child Care Resource and Referral Network Early Childhood Higher Education Consortium Montana Association for the Education of Young Children Head Start State Collaboration Project Head Start Association Child Care plus+ Center on Inclusion in Early Childhood (UM) Child and Adult Care Food Program Montana Department of Labor and Industry Apprenticeship Program and Training Montana Department of Public Health and Human Services Early Childhood Services Bureau Quality Assurance Division Office of Public Instruction ZERO TO FIVE Zero to Five Source: https://zerotofive.org/ Zero to Five Montana is a statewide early childhood organization focused on increasing access to early care and education, supporting and strengthening families, uplifting voices, and empowering small businesses and communities. We are nonpartisan and focused on solutions that work toward a Montana dedicated to every child. 154 234 Our promise is to stabilize, innovate, and build the early childhood system in Montana so all families and communities can thrive. Zero to Five Montana (ZtFMT) was founded in 2018 with seed funding through the Headwaters Foundation. ZtFMT is a fiscally sponsored 501(c)3 organization through Intermountain Children’s Home. In 2022, ZtFMT launched Montana Child Care Business Connect (MCCBC) with funds from the American Rescue Plan Act (ARPA), granted through Montana Department of Health and Human Services in accordance to the MT ARPA Health Advisory Commission. Montana Child Care Business Connect Source: https://childcarebusinessconnect.com/ Montana deserves a successful child care system. That’s why Montana Child Care Business Connect exists. We are contributing to successful futures in Montana by providing small business support which will create a big community impact. We know better child care systems mean thriving communities. And that matters for everyone. As Montana’s statewide hub for child care business development and innovation, we are working to support the success of existing child care providers, and inspire other entrepreneurs, employers, and leaders to invest in and support child care systems in their communities. Zero to Five Montana’s Child Care Business Connect (MCCBC) supports starting, growing, and expanding providers and community initiatives thanks to funding from the American Rescue Plan Act (ARPA), granted through a Montana Department of Health and Human Services (DPHHS) competitive process awarded in May 2022. As part of the vision to stabilize, innovate, and build early childhood systems, Zero to Five Montana has developed the Montana Child Care Business Connect (“Connect”) program – Montana’s statewide hub for child care business development and innovation. Connect is dedicated to working with community partners, employers, child care business entrepreneurs, and business owners to build and stabilize programs to help meet the demand for child care across the state. Uniting robust tools and resources, a team of experts, and partners from across the nation, Connect is the child care business development champion for Montana. Connect aspires to make a lasting change in our state by supporting the success of existing child care providers, inspiring entrepreneurs, employers, and communities to take action, and creating respect for the vital importance of the child care provider industry. Mission: Montana Child Care Business Connect (MCCBC) supports the start, viability, and expansion of high-quality, early child care businesses in Montana and helps cultivate child care 155 235 business stability and sustainability. Connect is contributing to successful futures in Montana by providing small business support which will create a big community impact. Core Competencies MCCBC will work with individuals and communities to bolster businesses by providing: Interactive Workshops Individual Consultation Community Capacity Building Peer Business Mentoring Web-based Resource Center Differentiators MCCBC provides free, comprehensive resources to Montana child care businesses and partners. Business and industry experience Helping communities and providers reduce risk and uncertainty Knowledge to assist in identifying market-facing opportunities Problem solving of complex business issues in the child care industry Proven history of creating pathways to goal achievement Strengthen branding as family-friendly and workforce friendly living destinations Network of contacts to identify financial savings and business viability 156 236 MONTANA HEAD START Source: https://www.mtheadstart.org/ Our Mission. The Montana Head Start Association brings together families, staff, directors and friends of all Head Start and Early Head Start programs in Montana, to provide leadership, education, information and advocacy on behalf of young children, pregnant women, and families throughout Montana. The Montana Head Start Association is a statewide membership organization with membership including Early Head Start and Head Start programs, staff, and families. Montana Head Start programs serve children from zero to five, expectant parents and work with families to support children who thrive and are ready for school. Programs currently are offered in 37 counties, including 5 Tribal programs and serve thousands of Montana children and families. Comprehensive services include: Quality Education that is Developmentally Appropriate Health & Nutrition Services Family Support Services/Connection to Community Resources Parent Engagement Activities Services for children with special needs/disabilities Head Start is a comprehensive nationwide child development program that has served children and families since 1965. These needed-based, child-focused programs serve children 3 to 5 years of age. Head Start provides a range of individualized services in the areas of education and early childhood development; medical, dental, and mental health; nutrition; and parent involvement which are responsive and appropriate to the development, cultural and linguistic heritage and abilities of each enrolled child and family. There are 19 Head Start programs in Montana. What is Early Head Start? The Early Head Start serves infants and toddlers under the age of 3 and pregnant women nationwide. Early Head Start provides early, continuous, intensive, and comprehensive child development and family support services to infants and toddlers and their families, and pregnant women. There are 11 Early Head Start programs in Montana. School Readiness: Children have better physical health, improved social skills, and increased math, language, and literacy skills that prepares them for school. 157 237 Social-Emotional Development: Head Start children show fewer behavioral problems, are less hyperactive, and are less aggressive. In the long-term, Head Start children are less likely to engage in criminal activities as young adults. Child Welfare: Head Start are children less likely to be involved in the child welfare system and experience lower rates of abuse and neglect. For children already involved in the child welfare system, Head Start participation decreases subsequent encounters and enhances school-readiness and social- emotional outcomes. Parent Advancement: Head Start enhances parents’ education level, employment status, and income. It also improves parents’ skills, reduces parental stress, and improves overall family stability and self sufficiency. Success in Early Head Start: Early Head Start children perform better on a wide range of cognitive measures, have better social skills, and exhibit significantly fewer behavioral problems and incidents of aggression. These children have better access to health care and parental engagement. HRDC Early Childhood Education Source: https://thehrdc.org/early-childhood-education/ HRDC’s Early Childhood Education is a high-quality education program for preschool aged children three to five years old. Our program is funded through a Head Start grant to serve 152 children in Gallatin and Park Counties. Our focus provides for the healthy development of children and the strengthening of families including early learning services in education, health, nutrition, mental health, and disabilities, and support services for families such as housing and food assistance, education opportunities and financial coaching. We encourage parents to be actively engaged in their child’s preschool experience, becoming strong advocates for their child’s continued education, healthy development, and later success in school and in life. Our classrooms are located in Belgrade and Bozeman, and in Livingston through our recently announced partnership with the Livingston School District. Offering classes Monday-Thursday with five & seven hour classes. Healthy, nutritious, dietician approved meals (breakfast, lunch, and snack). 158 238 Developmental assessment and screenings including growth, development, vision, hearing, and speech. Parent education opportunities and family events. Inclusive learning environment for all children including children with disabilities. Play based learning with natural environments. Individualized curriculum for every student. Child Care Licensed centers & a STARS to Quality program. Qualified teachers with bachelor degrees in early childhood education. Gain an understanding of essential educational milestones and ways to support your child in this development. Family Services to assist in identifying family strengths, interests, needs, and goals. Information on other community resources and agencies. Parenting information, education opportunities, resources, and support groups based on requests. A.W.A.R.E., Inc. Source: https://www.aware-inc.org/ecs AWARE offers early childhood services to families and children zero to eight. These services are available to families of all social and economic statuses. Our programs include Child & Family Counseling and Early Head Start. Children with disabilities are welcome. Early Head Start Programs Center-Based Services AWARE Early Head Start is a grant-funded child development program for eligible children and their families. AWARE Early Head Start provides children with services that encourage and promote social, emotional, physical growth and development, and cognitive skills. Learning is designed to respond to the individual strengths and needs of each child. Children of all abilities are welcome. By focusing on evidence-based best practices, Early Head Start improves children’s lives by providing family-focused child development and school readiness services. These include health, behavioral health, education, and nutrition services. Early Head Start receives the Child and Adult Care Food Program reimbursement to provide nutritious meals when the child attends the center- based option. Parent involvement is a cornerstone of Early Head Start and is key to the quality services we provide. Parents have many opportunities to participate in their child’s education and development. Families are further supported by social, behavioral health, and disabilities services. 159 239 We serve pregnant women, children ages birth to three, and their families. There is no cost to qualified families enrolled in Early Head Start. Early Head Start center-based services are offered in Butte, Helena, Belgrade, and Billings. Child Care Partnerships AWARE’s Early Head Start Child Care Partnership program works with local child care agencies in Billings, Belgrade, Bozeman, Butte, East Helena, and Helena to provide Early Head Start services. AWARE contracts with these local child care facilities to reserve Early Head Start slots in their centers. AWARE serves 80 children and families through the Child Care Partnership program grant. Families must be eligible for state child care subsidies and meet the same income guidelines for all Early Head Start families. The purpose of Early Head Start Child Care Partnership is to: Increase the quality and capacity of child care through partnerships with community child care providers Provide continuity of care for children birth to age three Offer comprehensive family services, recognizing the parent as the child’s first teacher Increase child and family school readiness Services and benefits to families: Consistency in child care regardless of change in finances Diaper and formula supplies while child is in care Opportunity to participate in Early Head Start Policy Council Yearly, two education home visits and two annual parent teacher conferences Regular home visits with Early Head Start support staff to assist with developing family goals and activities and to connect with other community professionals Learning opportunities pertaining to child development, health, nutrition, behavioral health and family Leadership opportunities Behavioral health consultation with a licensed therapist to support children in their social and emotional growth Services and benefits to child care providers: Once a child is enrolled, they are guaranteed an Early Head Start slot until the child’s third birthday Child care slots are paid for according to a joint agreement Training and coaching for teachers on the Creative Curriculum Training and coaching for teachers on social emotional development of children, based on the Pyramid model Assistance helping teaching staff grow professionally 160 240 Early Head Start support staff available to provide family support, intervention, and assistance with health issues, challenging behaviors, attendance, and nutrition Transition planning for individual children MONTANA KIDS COUNT Source: https://montanakidscount.org/ Montana KIDS COUNT is a leading resource for data on child and family well-being in the state. We make this information available to child advocates, policymakers, and Montana citizens to encourage informed and responsible decision-making to improve the lives of children. We are a member of the national KIDS COUNT Network through the Annie E. Casey Foundation. Montana KIDS COUNT is a project of the Montana Budget & Policy Center. The Montana Budget & Policy Center (MBPC) is a nonprofit, nonpartisan organization providing in-depth research and analysis on budget, tax, and economic issues. More information about MBPC can be found at www.montanabudget.org. What We Do: Compile and share current, comprehensive data on child and family well-being in each of our state’s 56 counties. Our data addresses six domains: demographics, health, education, family and community, economic well-being, and safety. Make available high-quality data from public sources and publish it on the KIDS COUNT Data Center. Work with partners to advance public policies that improve the lives of children. Provide presentations and trainings on trends in child well-being. 161 241 APPENDIX: METHODOLOGY + COMMUNITY INPUT PROCESS The Gallatin County Child Care Strategic Plan was developed during a six-month process that involved extensive community input as well as review of other child care models. The following approach and actions were taken in developing the plan. Case Study of Alternative Child Care Models Researched and summarized how others have structured relevant child care opportunities including other successful child care models across the nation including those with non- traditional hours, business models, etc. Provided a summary of findings Half-Day Visioning Session with CHILD Task Force Members, Gallatin ECCC Members and Others Distributed an online survey in advance of the visioning session to understand what was top of mind for participants Summarized online survey findings and shared with session participants Facilitated a half-day visioning session to articulate a shared vision for: retaining and supporting existing providers; developing a sustainable provider model; and expanding affordable child care in Gallatin County Also used the time to confirm what’s not currently known but needs to be understood at the end of the community feedback sessions Captured thoughts and summarized key takeaways Provider Feedback Hosted a feedback/workshop session with Gallatin County area providers Asked providers for their feedback and perspectives on key questions Community Feedback/Workshop Sessions Conducted community feedback/workshop sessions with community-focused audiences Worked with the task force to identify participants and secure individual participation Worked with the task force to promote the feedback/workshop sessions Asked workshop participants for their input and feedback on key questions Communities included: Belgrade (in person - included media coverage) Big Sky (in person - included media coverage) 162 242 Bozeman (in person) Four Corners (via Zoom) Gallatin Gateway (in person) Manhattan / Amsterdam / Churchill (via Zoom) Three Forks (in person) West Yellowstone (via Zoom) Community Survey Created an online survey based on key questions from the workshops Promoted the survey through email distribution, media outreach and social posts Secured 439 respondents to the survey 163 243 APPENDIX: TYPES OF CHILD CARE IN MONTANA FOUR TYPES OF CHILD CARE IN MONTANA Source: https://www.raisemt.org/home-based-child-care Montana's child care system recognizes four types of child care, and requires that anyone caring for more than four (4) unrelated children on a regular basis become registered by the state. A Family Child Care Home has one child care provider with a total of eight (8) children, three (3) of whom can be under the age of two years old. A Group Child Care has two (2) child care providers with a total of twelve (12) children, six (6) of whom can be under the age of two years old. A Child Care Center has 13 or more children depending on facility size, with child-to-adult ratios varying on age of children. A Family, Friend, and Neighbor or Relative Caregiver is a family member or friend who cares for up to four (4) unrelated children, OR any size sibling group, for state payment purposes. Care may be provided in the child's home in certain circumstances. 164 244 Other Resources 165 245 I GSKY 246 Introduction Summary Overview Data Collection Methods Data Limitations Existing Providers in Big Sky State of The Industry Demand - Consumers/Families Accessiblity Affordability Supply - Providers Financial Assistance Programs Financial Model Laws and Regulations Funding Federal State Private and Local Community Collaborations Employers Conclusion Page 02 Page 03 Page 04 Page 04 Page 04 Page 05 Page 06 Page 08 Page 10 Page 15 Page 16 Page 16 Page 18 Page 21 Page 22 Page 23 Page 23 Page 24 Page 24 Page 25 Page 26 TABLE OF CONTENTS 247 1Economic Policy Institute (n.d.). Child Care Costs in the United States. https://www.epi.org/child-care-costs-in-the-united-states/#/MT 2 Childcare Community Needs Survey 2 | Big Sky Childcare Report Across the United States, childcare is a pressing issue affecting millions of families. Access to affordable and high-quality childcare remains limited, leaving many parents struggling to findsuitable options for their children. Rural communities are particularly affected, exacerbating theimbalances already present in our country. The average annual cost of infant care in Montana is $9,518, 40.3% more per year than in-state tuition for a four-year public college1. In Big Sky, the average annual cost of childcare is $20,795, over double the state average2. This costdemonstrates the necessity for childcare solutions that address affordability and accessibility.The dual emphasis on affordability and accessibility serves the immediate needs of families and plays a pivotal role in sustaining a thriving and productive local workforce. This study focuses on assessing the childcare industry in Big Sky by addressing the challenges of affordability and accessibility surrounding childcare in Big Sky and neighboring communities. To address these challenges, the Big Sky Childcare Task Force (BSCTF) was established, consisting of members from the Yellowstone Club Community Foundation, Northern RockyMountain Economic Development District, Spanish Peaks Community Foundation, Big SkyChamber of Commerce, childcare providers, and local employers, and other stakeholders. With a data-driven approach, the BSCTF aims to develop solutions that not only cater to the needs of working families but also contribute to the long-term viability and prosperity of localbusinesses. Employing an economic framework, this analysis deconstructs the study into two integral facets: Demand and Supply sides. This approach facilitates a comprehensive exploration of the childcare landscape, providing insights into the preferences and requirements of families(Demand) as well as the operational challenges and capacities faced by childcare providers (Supply). The first step in addressing the challenges of affordability and accessibility lies in acquiring a comprehensive understanding of the current state of childcare in Big Sky. This endeavor involved the collection of data through community and workforce surveys, and the utilization of publicly available information. Furthermore, data from existing childcare businesses wasutilized to underscore the financial needs of childcare enterprises and the available resourcesfor fostering the childcare industry’s growth. INTRODUCTION 248 Big Sky Childcare Report | 3 SUMMARY 244 - Total Survey Respondents 56% of survey respondents living in Big Sky prefer a childcare facility near their home, whereas 67% of respondents living in the Gallatin Valley (but working in Big Sky) prefer childcare near their residence. 20% of Big Sky families utilize childcare offered by family members, friends, or in-home care. 16% of the Big Sky community does not currently utilize formal childcare services. 75% of Big Sky’s population is of working age, with a median age of 36 years old. 84% of Big Sky’s population is part of the labor force, compared to Gallatin’s 71% and Madison’s 53%. 176% population increase occurred in Big Sky from 2010 to 2020. 79% of two-parent families have both parents in the labor force, compared to Gallatin’s 65% and Madison’s 57%. 96% of women with children that are living in Big Sky participate in the labor force compared to Gallatin’s 66% and Madison’s 51% Primary barriers: Cost, Hours of Operations, Wait Lists, Location, Quality Financial and workforce constraints of childcare providers in Big Sky prevent Friday availability of care, and survey respondents express the need for childcare beyond “standard” business hours. Childcare providers recognize the need for continuous support and resources to improve the quality of care. Financial constraints impede providers’ capacity to attract and retain a qualified professional workforce, subsequently impacting the overall quality and availability of care. $1,733 is the average monthly childcare cost for Big Sky families, representing 16.2% of their median income. $700 or 47% is the average childcare cost reduction considered significant by Big Sky respondents from its current price. 73% of respondents reported that their ability to work has been affected due to the limited childcare options in the area. Over 25% of the respondents indicated that they are either pregnant or planning to have children soon. Parental fees alone are insufficient to cover basic operational costs, necessitating the presence of subsidies or offsetting programs. 94% of survey respondents living in Big Sky prefer a new childcare location in Big Sky. Whereas, of the survey respondents living in the Gallatin Valley (but working in Big Sky), 36% prefer a new location in Big Sky and 32% prefer a new location in Gallatin Gateway. 249 4 | Big Sky Childcare Report Data Collection Methods In addition to the survey data, publicly available data from various reputable sources wereincorporated into the research. This included data from government agencies, educational institutions, and non-profit organizations that provided relevant information on demographictrends, socioeconomic indicators, and existing childcare infrastructure in the community. This study presents publicly available data and data collected from community surveys. The Big Sky community is unincorporated, so publicly available data is limited. To account for this,this study employed a collaborative approach involving the active participation of the Big SkyChildcare Task Force and several key community partners to deploy a community survey tocollect additional information. By leveraging collective expertise and resources, BSCTF aimed to comprehensively address the childcare needs within Big Sky and surrounding communities. The primary data collection method utilized was the Community Childcare Needs Survey togather comprehensive insights into the childcare requirements and challenges faced by thecommunity. This survey was thoughtfully designed to elicit valuable feedback from parents, guardians, childcare providers, and other relevant stakeholders. The survey covered various topics, including childcare availability, affordability, quality, and preferences. The data obtainedfrom this survey helped form the foundation of the study’s analysis and recommendations. This survey was sent throughout the community, by large employers, the Big Sky Chamber of Commerce, and other non-profits. A total of 244 responses were collected. While this study makes a good faith effort to evaluate the best available data, there arelimitations to the data that we must consider. Due to Big Sky being a small, unincorporatedcommunity, publicly available data is more limited compared to larger cities and counties. Since Big Sky is unincorporated and has a population of under 5,000, the U.S. Census Bureau draws a designated boundary around the community called a “census-designated place” or CDP. Due tothe small population size, this means the publicly available data for Big Sky is subject to higherlevels of variability. Using surveys for economic analysis comes with several limitations that warrant consideration.Respondent bias and the possibility of misreporting may introduce subjectivity, potentiallyimpacting the accuracy and reliability of the data. Response bias comes in multiple forms; examples include respondents knowingly reporting false information because they are uncomfortable with reporting the honest answers, or the phrasing of the question getsmisconstrued. Surveys often involve subjective questions, such as preferences or opinions, soaccurately quantifying and analyzing these responses for economic insights can be challenging. Furthermore, non-response bias may emerge, potentially skewing the representation of specific Community Survey Publicly Available Data Community Survey Data Limitations Data Limitations OVERVIEW 250 Big Sky Childcare Report | 5 Many publicly available data sets that are typically relied on,such as the Bureau of Labor and Statistics, are not available at the community level and only provide county-level data. This study uses the Census Bureau’s American CommunitySurvey (ACS) to get localized data. The ACS is an annual,nationwide survey that varies from the decennial census by surveying smaller sample sizes than all housing units and people in the nation. Due to the smaller sample size, there is a degree of sampling error known as the margin of error. Toanalyze details for smaller unincorporated geographic areas, the Census Bureau creates an informal boundary known as the “census-designated place,” or CDP. ACS 5-year estimatesare the only option available for the Big Sky CDP and are thus used in this study. ACS 5-year estimates have a smaller margin of error when compared to the ACS 1-year estimates but are less current than the 1-year estimates used for largerpopulation areas. Big Sky has one main childcare provider, Morningstar Learning Center, that operates during regular working hours,along with two afterschool early childcare providers, BASE Camp and United Way. BASE Camp offers afterschool care as well as summer care, while United Way offers only summer care.Additionally, there are two preschools available: one publiclyfunded and the other a private Montessori school. Morningstar Learning Center (MLC) is Big Sky’s only licensedchildcare provider. They operate year-round and specialize in providing care for infants and toddlers. Morningstar operates Monday through Thursday, from 8:30 am to 5:30pm. Previously, they also offered care on Fridays butdiscontinued this service due to staffing limitations. One alternative considered was providing shorter hours from Monday to Friday, but families expressed a preference for maintainingfull- day care from Monday to Thursday. MLC provides childcare for children aged six months to five years old. demographics or viewpoints if certain groups are more or less likely to participate in the survey. A standard critique ofusing surveys for economic analysis is that certain groups ofpeople are more likely to respond to surveys and vice versa. For example, adults with children who have dropped out of the labor force due to lack of childcare options are challengingto collect data on through traditional channels. However,understanding this population is important when analyzing the childcare industry. Big Sky Discovery Academy (BSDA) is a private Montesorrischool that service pre-K through 12th grade. BSDA operatesfrom Monday to Friday, 8:30 am to 3:30 pm. Currently, they are not open during summer hours. They offer a pre-K classroom that served 18 children in school year 2022-2023. Formerly, BSDA operated its own after-school program, butdue to staffing limitations discontinued operations. Currently BSDA utilizes BASE Camp’s after-school program by allowingstaff to escort students who utilize these services to the BASEfacility two blocks away. It is important to note that not allstudents who attend BSDA use BASE for after-school care. The Big Sky community has one public elementary school. They serve children aged three through fifth grade. In 2023-2024, there were 188 students enrolled. Ophir began operating a pre-K classroom (known as 4K) in 2021, which has the capacity to serve 20 three and four year old children.Children aged three must have an individualized education program (IEP) to enroll, but children aged four can enroll with or without an IEP. For school year 2023-2024, Ophir only enrolled 17 children, leaving three slots unfilled. Forschool-aged children, transportation to access after-school programming is an on-going issue. All classrooms at Ophir operate from 8:30 am to 3:30 pm, and the facility is not experiencing any space constraints. Currently, Ophir operates two bus lines, down from 4-5 bus routes in previous years. This is due to the lack of workers and applicants for the bus driving position. Students must beregistered as an eligible bus rider to be able to utilize this form of transportation to and from school. Big Sky Community Organization (BSCO) is a community based non-profit that fills several roles within area. BSCOoperates BASE; a community facility that provides a range ofservices, which include a fitness center, a rock climbing wall,and other programs, classes and leagues. The facility operates seven days a week. It’s hours are Monday throughFriday, 6:00 am to 8:00 pm, and weekends, 9:00 am through 6:00 pm. Children aged 12 and older can be in the facility without a parent or guardian present, although a BASE pass isrequired for access. For winter 2023, BASE is looking toextend it’s operating hours into the evening to support thosein need of late-night programming. BASE Camp is an after-school program operated at the BASEfacility by BSCO staff. It follows the Ophir Elementary Schoolcalendar, and is open to the public and does not require a BASE facility pass to access. BASE Camp provides astructured environment for children Monday through Friday,from 4:00 pm to 6:00 pm. While BSDA staff walk students over Morningstar Learning Center Publicly Available Data Limitations Ophir Elementary School Big Sky Discovery Academy BASE / BASE Camp / Camp Big Sky Existing Providers in Big Sky 251 PERCENT OF NEED PERCENT OF NEED 3The “Big Sky” area includes West Yellowstone and Ennis respondents 4The “Gallatin Valley” area includes respondents from Bozeman, Belgrade, Four Corners, and Gallatin Gateway. 6 | Big Sky Childcare Report State of the Industry The Greater Gallatin United Way offers a summer programthat operates within Ophir Elementary School. Services are offered from 8:30 am to 5:30 pm, Monday through Friday. It caters to children aged four and five, providing pre-K focusedprogramming. after school, there is not specific transportation from Ophir Elementary to BASE Camp. If students are assigned a seat onthe bus and are part of the after-school program, BASE Campstaff will greet students at the nearby bus stop. There are many families who want to join BASE Camp but do not have any form of transportation to get their children from school toBASE. Camp Big Sky, operated by BSCO, is a summer program at the Community Park that accommodates children of different agegroups. The Pioneers program caters to children in grades oneto three and operates from Monday to Friday. The Explorers program serves children in grades four to six and runs from Monday to Thursday. Hours of care are from 8:30 a.m. to 3:30pm, with an aftercare option that extends until 5:30 p.m. It is crucial to fully understand the current condition of the childcare industry in Big Sky before analyzing the facets of supply and demand. This section relies heavily on results from the Community Childcare Needs survey. Results weresegregated based on Big Sky3 and Gallatin Valley4 respondents to identify potential preference variations. Respondents were questioned about their children’s ages and whether they required care, aiming to comprehend the cohort requiring childcare. Figures 1 and 2 present visual representations of this demographic distribution. Initially, thisstudy did not intend to capture narrative from communitymembers who are family planning or currently pregnant, but these figures highlight the significance of this group. Implications of the large representation of family planning willbe discussed in Identification of Barriers: Wait Lists section. Planning/Pregnant Planning/Pregnant Infant/Toddler (0-2) Preschool(3-5) Schoolage (6+) Infant/Toddler (0-2) Preschool(3-5) Schoolage (6+) 0 0 5 10 10 20 15 30 20 40 25 50 30 60 35 United Way Figure 1: Childcare Need by Age - Big Sky Respondents Figure 2: Childcare Need by Age - Gallatin Valley Respondents 252 LEVEL OF SATISFACTION LEVEL OF SATISFACTION Big Sky Childcare Report | 7 None Childcare Center Family/Friend/In home Nanny/au pair 29% 6% 49% 16% Figure 3: Childcare Use by Families with Children Aged 0 to 5 - All Respondents Figure 5: Satisfaction with Current ChildcareOption - Gallatin Valley Respondents Figure 4: Satisfaction with Current Childcare Option - Big Sky Respondents Figure 3 demonstrates the trends of childcare utilization for all community survey respondents with children ages 0 to 5. Among the various care types available, childcare centersemerge as the most commonly chosen option, with 49% of families relying on their services. The survey also spotlights the influence of familial and socialnetworks, as 29% of families select care offered by family members, friends, or in-home care. Nanny and au pair services represent an alternative choice for 6% of families.Strikingly, 16% of the community does not currently utilizeformal childcare services. Respondents were asked to rate their satisfaction with theircurrent childcare, using a likert scale from one to five, with one being the least satisfied. Satisfaction levels varied, with no significant trend. Figure 4 shows responses from respondents living in Big Sky, and Figure 5 shows resultsfrom respondents living in the Gallatin Valley but working inBig Sky. 40 30 20 10 0 40 30 20 10 0 1 1 2 2 3 3 4 4 5 5 NUMBER OF RESPONDENTSNUMBER OF RESPONDENTS253 Year US (2020) 2015 2016 2017 2018 2019 2020 2021 Population 16 and older 261,649,873 2,238 2,326 2,373 2,572 2,610 2,641 2,616 In Labor Force 165,902,838 1,776 1,965 1,999 2,120 2,171 2,220 2,200 Civilian Labor Force 164,759,496 1,776 1,965 1,999 2,120 2,171 2,220 2,200 Employed 155,888,980 1,623 1,851 1,916 2,051 2,120 2,167 2,147 5 U.S. Census Bureau, American Community Survey 5-year Estimates, Table B23008 8 | Big Sky Childcare Report Unemployed 8,870,516 153 114 83 69 51 53 53 Not in Labor Force 95,747,035 462 361 374 452 439 421 416 Labor Force Par- ticipation Rate 63.0% 79.4% 84.5% 84.2% 82.4% 83.2% 84.1% 84.1% Unemployment Rate 5.4% 8.6% 5.8% 4.2% 3.3% 2.3% 2.4% 2.4% This section discusses the multifaceted dimensions of childcare demand, specifically focusing on accessibility and affordability. To provide a comprehensive understanding, the discussionbegins by examining general community demographics, offering insight into the contextualfactors that influence childcare dynamics within Big Sky. Following this, the investigation explores the challenges and opportunities surrounding childcare accessibility, concentrating onbarriers identified by the community and ideal childcare center locations. The analysis extendsto affordability, illustrating the financial assistance programs accessible to families and childcareproviders. The predominance of the tourism industry in Big Sky over the last decade has brought increased business demand, along with a growing workforce. In 2020, Big Sky’s year-roundpopulation was 3,854 people. Approximately 75% of the population is of working age, and the median age is a youthful 36 years old. Big Sky’s labor force participation rate is 84%,significantly higher than Gallatin (71%) and Madison County (53%). Over the last ten years, Big Sky has experienced rapid growth – from 2010 to 2020, the community’s population hasincreased by 176% (from 1,398 to 3,854). Table 1 shows a detailed break down of the Big Sky labor force over time. DEMAND –FAMILIES/CONSUMERS Table 1: Big Sky Labor Force Source: ACS DP03 5-Year Estimates 254 YEAR Big Sky Childcare Report | 9 A median age of 36 means the community has a young With many residents in their prime working and child- population focused on working, building a family, raising rearing years, it becomes crucial to address the needs of thechildren, and not near retirement. Due to population growth labor force, particularly the mothers of Big Sky. Women’s and the youthful median age, managing the working class’s participation in the workforce is a vital component of the rapid growth requires childcare investment. High living costs community’s economic growth and development. Figure 6 and the necessity for dual-income households in the area mean demonstrates that in Big Sky, the labor force participation that many families rely on both parents’ incomes to maintain rate for women with children is 96%, demonstrating a a livable wage. With 79% of two-parent families having both significant presence of mothers actively contributing to the parents in the labor force and single parents also showing local economy. We can safely assume that the high labor force a 100% labor force participation rate5, access to quality participation rate of mothers translates to high demand forchildcare is paramount. Parent labor force participation is childcare services and available hours. We suspect the highsignificantly higher in Big Sky than in neighboring communities. female labor force participation rates are attributed to the Gallatin County’s labor force participation rate for both high local cost of living, and thus the need for dual-income parents in the labor force is 65%, and Madison County’s is households. Without sufficient childcare options, working57%. If the demand for childcare continually goes unmet, mothers may face challenges maintaining their careers young families wishing to start a family will likely relocate, and achieving work-life balance. Ensuring affordable and hindering and shrinking the community’s labor force.accessible childcare services is benefitical to families and vital for retaining the current workforce in the community. Figure 6: Labor Force Participation of Women With Children in Household 100 90 80 70 60 50 40 30 20 10 0 2010 2011 2012 Big Sky 2013 2014 Montana 2015 2016 2017 Gallatin County 2018 2019 Madison County 2020 2021 96.8% 69.2% 66.4% 51.4% U.S Census Bureau ACS 5-Year Estimates Table B23003 PERCENT OF PARTICIPATION255 10 | Big Sky Childcare Report PERCENT OF RESPONSES Accessibility Cost Operating Hours/Days Identification of Barriers Figure 7: Barriers Faced When Accessing Childcare - All Respondents The Big Sky Community Childcare Needs survey analysis identified the six barriers that parents face when seekingchildcare services. Cost, days and hours of operation, and waitlists ranked as the top three issues. Figure 7 details surveyresponses regarding barriers to accessing childcare. The survey results underscored the significance of financialconstraints as a primary barrier for families seeking childcareservices. The implications and struggles of high childcare costs faced by Big Sky residents will be expanded on further in the Affordability section. In short, many respondents expressedtheir concerns about the high costs of childcare, stating howdifficult it is becoming to afford childcare on top of an inflated housing market. Another major challenge reported by community memberswas the limited operating hours and days of childcare facilities.A specific issue brought to light by the survey is the main careprovider in the community does not operate on Fridays. While traditional 9-5 schedules may be common, it’s crucial to recognize that many individuals work non-standard hours, including nights, weekends, and irregular shifts. To ensure that childcare services cater to the needs of all communitymembers, regardless of their work schedules, flexibility in hours becomes essential. In Big Sky, the service and hospitality sector plays asignificant role in the local economy, employing a substantialportion of the workforce. However, these industries often operatebeyond standard business hours, with employees workingduring evenings, weekends, and holidays. Overlooking thechildcare needs of the workforce in this essential industry can have significant consequences. It impacts the well-being of working parents within these sectors and presentschallenges for employers as they struggle to retain a stableand productive workforce. The construction industry is another significant sector in Big Sky’s economy. For parents in construction, the need forreliable and flexible childcare solutions cannot be understated. Their work often starts early in the morning andmay extend into the late afternoon or early evening, making itchallenging to align their schedules with traditional childcarecenter hours. Hours/Days of Operation Location Quality Wait List Cost Before/ After School Transportation 0 10 20 30 40 50 60 70 80 90 100 Source: Community Childcare Needs Survey 256 FLEXIBLE/VARYING EXTENDED STANDARD BUSINESS HOURS WEEKEND MON-FRI 9AM-5PM ANY REQUEST MENTIONING WEEKEND HOURS DROP-IN/PART TIME BEFORE/AFTER STANDARD HOURS Big Sky Childcare Report | 11 60% Weekend Flexible/Varying 11% 17% 12% Extended Standard Business Hours The Big Sky Community Childcare Needs survey included anoption for respondents to select “quality” of childcare. This did not emerge spontaneously as a theme, and there is notsubstantial evidence indicating inadequate quality of childcarein Big Sky. The survey illustrated the prevalent issue of long wait lists for childcare services in Big Sky. The insights from interviewswith various childcare providers echoed this sentiment, with providers unanimously acknowledging the extensive wait times experienced by families. Sometimes, families wait multiple years to secure a spot for their children in a childcareprogram. A detailed discussion on wait lists can be found in theAvailability section of this report. Figure 8 shows that although 59% of Big Sky’s residentsexpressed that childcare during standard work hours (Monday through Friday, 9-5) would be sufficient, asignificant population expressed the need for additional carehours outside of that timeframe. When considering hours of operation, it is also important to account for commute time. For example, the Big Sky workforce that lives in GallatinValley expressed a need to drop their children off atchildcare by 7:00 am to arrive to work in Big Sky on-time by8:00 am. Definition Of Variables Survey respondents indicated that parents and caregiversdesire childcare services that offer a safe and nurturing environment and facilitate their children’s holistic development. Interviews with childcare providers highlightedthe commitment of many providers in striving to meet thestandards of excellence. However, they also acknowledged the need for ongoing support and resources to enhance thequality of care they can offer. Conversations with childcare providers shed light on the challenge posed by candidates rejecting job offers within thechildcare sector. This issue is often attributed to the prevailingconditions of low wages and the burden of high housing costs.While providers are devoted to their roles, these financial limitations hinder their ability to attract and retain qualifiedprofessionals, ultimately affecting the overall quality of care. When evaluating factors that play a role in determining quality childcare, Big Sky residents and surrounding communitymembers shared insights into the elements shaping theirdecisions. According to the Childcare Survey, employeebackground checks emerged as the top priority, closely followed by providers being licensed and employee education/training. Figure 9 shows the various factors that surveyrespondents take into account when selecting a childcareprovider. In the community’s discussions about providing qualitychildcare, it’s important to recognize the role of state laws.These laws require childcare employees and providers to undergo proper training and background checks, all toensure the safety and well-being of the children they care for.Following these laws helps childcare centers maintain higherstandards of professionalism and competence, building trust and confidence among parents and caregivers. These laws willbe discussed further in the Laws and Regulations section. Quality Wait List Figure 8: Requested Care Hours - All Respondents Source: Community Childcare Needs Survey 257 12 | Big Sky Childcare Report PERCENT Employee Education/Licensing Provider Requires Vaccinations Curriculum Taught Provider is Licensed Employee Background Checks 0 10 20 30 40 50 60 70 80 90 100 Childcare Center Location Figure 9: Dimensions of Quality Considered When Choosing Childcare - All Respondents The Big Sky Community Childcare Needs survey askedquestions regarding parents’ desired location of childcareservices. The results provide valuable guidance inunderstanding the community’s preferences and priorities regarding the respondent’s desired childcare location. Resultswere segregated based on Big Sky and Gallatin Valley4respondents to identify potential preference variations.First, the survey explored the preferences of the Big Sky workforce regarding childcare proximity to their residence.Specifically, the survey inquired about workers’ preference forchildcare services to be located near their place of residenceor their workplace. Figures 10, 11, and 12 detail responses by group. Responses were segregated into two groups: those living and working in Big Sky, and those working in Big Sky and living in the Gallatin Valley. Interestingly, both groups of respondentspreferred childcare services near their residence. It wasanticipated that the geographic barrier of the Gallatin Canyon might lead to considerable disparities in parental decisions regarding childcare location. However, the survey resultsrevealed that no matter where the worker lives, parents preferchildcare near their home. Second, the survey gathered respondents’ perspectives on the most suitable location for a new childcare facility. AmongBig Sky respondents, there was a distinct preference (94%) for another childcare facility within the Big Sky area. However, among the respondents living in Gallatin Valley, only 36%prefer a new facility in Big Sky, while 32% prefer GallatinGateway, followed by another 16% preferring a Four Corners location. Figures 13, 14, and 15 illustrate these responses. Source: Community Childcare Needs Survey 258 Source: Big Sky Community Childcare Needs Survey Source: Big Sky Community Childcare Needs Survey Source: Big Sky Community Childcare Needs Survey Source: Big Sky Community Childcare Needs Survey Source: Big Sky Community Childcare Needs Survey Big Sky Gallatin Gateway Bozeman Four Corners Source: Big Sky Community Childcare Needs SurveyBig Sky Childcare Report | 13 Figure 12: Proximity to Workplace - Gallatin Valley Respondents Figure 10: Proximity to Workplace - All Respondents Figure 11: Proximity to Workplace - Big Sky Respondents Figure 13: Ideal Childcare Location - All Respondents Figure 14: Ideal Childcare Location - Big Sky Respondents Figure 15: Ideal Childcare Location - Gallatin Valley Respondents Workplace Residential 56%44% Workplace Residential 67% 33% Big Sky Gallatin Gateway 6% 94% Workplace Residential 60% 40%13% 4%4% 80% Big Sky Gallatin Gateway Four Corners Bozeman 16% 16% 32% 36% 259 14 | Big Sky Childcare Report Source: Big Sky Community Childcare Needs Survey COMMUTE TIME BY COST SAVINGS Drive Time Figure 16: Adjusted Commute Time Based on Childcare Cost Savings - All Respondents Figure 16 provides insights into how the Big Sky workforce is willing to adjust their commute time in response to varying childcare cost reductions. These statistics, specifically related to childcare cost reductions for Big Skyresidents, will be discussed later in the Affordability section. As expected,when childcare costs decrease or are offset by supportiveprograms, Big Sky workers become more willing to extend their commute times. 100 90 80 70 60 50 40 30 20 10 0 0-9 Minutes Market Price 10-19 Minutes Partial Subsidy 20-29 Minutes Full Subsidy 30+ MinutesPERCENT OF SUBSIDY260 6U.S. Census Bureau, American Community Survey 5-year Estimates, Table S1901 59716 Zip Code 59716 59718 59715 59730 59714 59729 59741 59758 59752 59740 59720 59741 59718 #of Employees 912 465 272 134 123 64 17 16 14 6 2 Big Sky Childcare Report | 15 Geographical Distribution of Workforce Figure 17: Big Sky Employee Residence by Zip Code According to the U.S. Department of Health and HumanServices, childcare is affordable if it costs no more than 7% ofa family’s income1. Survey respondents reported an average of $1,733 per month in childcare costs, making up 16.2% of a family’s median income in Big Sky2,6. This highlights aconcerning disparity between the recommended affordabilitythreshold for childcare costs, and those faced by families in the local and surrounding regions of Big Sky. The averagechildcare cost reduction that Big Sky survey respondentsdeemed significant is $700, or 47% of its current price2. Areduction of this amount would lower costs to 7% of median family income, in alignment with the U.S. Department ofHealth and Human Services affordability factor. Figure 17 is a heat map of the location of Big Sky employees,generated using zip code data from several large employerswithin Big Sky. This information was derived from thepermanent addresses of employees, offering insights into the origins of Big Sky’s workforce across Montana. When used in conjunction with the survey results regarding childcareplacement, this visualization aids in identifying the moststrategic locations for childcare services that would effectively cater to the needs of Big Sky workers. As revealed through open-ended survey responses, severalrespondents articulated that the high costs have influencedtheir decision to start a family, stating that they cannot affordto have children if they want to continue living in Big Sky. This insight holds particular significance when consideringstrategies for retaining and expanding the local workforce.This is expanded on in further detail at the end of this reportunder the “Other Solutions for Considerations” section. Affordability 5 9 937 5 9 831 5 9 840 5 9 761 5 9 901 5 9 911 5 9 860 5 9 8025 9 823 5 9 858 5 9 711 5 9 843 5 9 417 5 9 725 5 9 759 5 9 754 5 9 749 5 9 755 5 9 632 5 9 602 5 9 425 5 9 474 5 9 720 5 9 752 5 9 644 5 9 730 5 9 758 5 9 714 5 9 715 5 9 442 5 9 047 5 9 030 5 9 446 5 9 011 5 9 068 5 9 019 5 9 230 5 9 301 5 9 330 Powered by Bing© GeoNames, Microsoft, TomTom Big Sky Employee Residence Map 5 32 5 9 720 5 9 752 5 9 730 5 9 758 5 9 714 5 9 715 5 9 047 5 9 030 261 16 | Big Sky Childcare Report 7https://dphhs.mt.gov 8Federal Poverty Guidlines can be found here: https://www.projusticemn.org/fedpovertyguidelines/ SUPPLY -PROVIDERS Transitioning from the examination of the community’s demand for childcare services, the focus now shifts to the supply side of the equation. The conversation surroundingdimensions of childcare supply begins by exploring childcarecosts and financial assistance programs. Then, the discussion shifts to examine availability, specifically the operational aspects of childcare services in Big Sky, including their capacityto accommodate children. Following that, we depict thefinancial challenges that childcare providers struggle with done by evaluating the financial models of existing providers. Additionally, a thorough exploration of laws and regulationsspecific to health and safety will provide insight into regulatoryenvironment in which providers operate. Moving beyond this, we discuss the intricate web of funding sources available to the childcare industry. This encompasses funding fromfederal, state, private, and local entities, with allocations aimedeither directly at families or benefiting childcare providers. This analysis is concluded with suggestions for non-monetary support and community solutions for consideration. The Early Childhood Services Bureau (ECSB) is a state program that provides Best Beginnings childcare scholarships (BBCCS) to eligible low-income families. The program wasestablished to provide scholarships to qualified low-incomefamilies whose children receive care from a licensed childcare provider or daycare facility. These scholarships use a sliding fee scale7, ensuring that each family contributes to the cost ofcare based on their financial capacity. Qualified families withincomes at or below 200% of the Federal Poverty Guidelines8 are eligible for the Best Beginnings Scholarship. Recipient families are required to make a copayment towards the cost of childcare. The copayment amounts are established based on the family’s income level as follows: (1) Families with qualifying incomes less than 100% of the federal poverty level must pay $10 monthly, (2) Families with qualifying incomesbetween 100% and 200% of the federal poverty level will havetheir copayment calculated using a sliding fee scale, with the maximum limit set at 7% of their monthly income. The state pays the scholarship directly to the childcare provider, with thecopayment coming from families to the provider. The Best Beginnings Scholarship, while suitable for some communities in Montana, falls short of meeting the needs of Wellness In Action (WIA) is a non-profit organization within the Big Sky community that facilitates access to a scholarship resource network. With 18 years of dedicated service, WIA strives to empower children with transformative experiencesthrough its scholarship offerings. During the Summer of 2023, WIA granted 31 camp scholarships totaling $31,617. Similarly, in Winter 2022/2023, WIA awarded 31 scholarships for winter camp programs, including ski and hockey lessons,totaling $16,930. WIA operates on a sliding scale based onfederal poverty levels to address families’ financial challenges. They have designed a sliding scale calibrated at 500% of poverty levels, which accommodates a family of three,comprising two parents and one child, with an income of up to$124,3008. This approach makes the assistance program much more applicable to the specific needs of Big Sky. However, despite its relevance, the program faces limitations due toresource constraints. While WIA exceeded its budgetedscholarship awards this year, the program typically operates with a limited grant budget of $25,000. Considering the average cost of childcare in Big Sky, this amount is not enoughto cover even four children on half scholarship. Big Sky Discovery Academy (BSDA) is a Montessori school and early childhood care provider. Discovery Academy doesnot receive state funding, relying instead on communitysupport. In the coming year, the academy plans to allocate scholarships to enhance accessibility for students. BSDAraises funds from various sources, including resort tax contributions andcommunity foundations. BSDA conducts three significant fundraisers yearly to support its scholarship initiatives. Through these fundraising efforts, Big Sky DiscoveryAcademy aims to foster an inclusive educational environmentby providing essential scholarship support to its students and educators. Big Sky residents. The income eligibility criteria, limited to 200% or below the federal poverty guidelines, exclude manyBig Sky residents facing childcare cost challenges. Due to highcosts of living translating to higher wages, Big Sky’s median annual family income is $128,506, equivalent to approximately $10,708 monthly5. This is well above the federal poverty level– for a family of three, 200% of the Federal Poverty Guidelinescalculates to an annual income of $46,060 or a monthly income of $3,8388. The Best Beginnings Scholarship’s eligibility criteria do notallow for families to access this resource to help offset the childcare cost challenges many Big Sky residents face. A notable gap exists in meeting the needs of working familiesseeking affordable childcare options. Financial Assistance Programs Best Beginnings Childcare Scholarships Wellness In Action Big Sky Discovery Academy 262 Big Sky Childcare Report | 17 General childcare availability is pivotal in supporting parents’ ability to maintain employment while fostering a nurturingenvironment for children to learn and grow. Without worrying about childcare, parents can confidently focus on their professional responsibilities, leading to increased job satisfaction and productivity. Beyond the workforceadvantages, the availability of nurturing and stimulatingchildcare environments positively impacts children’s early development. Early childhood is a crucial period for cognitive, social, and emotional growth, and qualitychildcare programs can provide a supportive setting forchildren to explore, learn, and build essential skills. According to the findings from the Community NeedsSurvey, it becomes evident that childcare availabilityconstraints have a notable impact on employees in Big Sky. A significant 73% of respondents reported that their ability to work has beenaffected due to the limited childcare options in the area.The survey also unveiled future implications, as over a quarter of the respondents disclosed that they are either pregnant or planning to have children soon. The data highlights thenecessity for comprehensive and accessible childcare solutions in Big Sky, supporting the working population and anticipating the needs of families in the coming years. Despite these impressive fundraising efforts, it’s important to note that the scholarship funds raised apply only to enrolledor prospective students and staff of Discovery Academy,making the effectiveness of these scholarships very localized. Morningstar Learning Center (MLC) is a year-round earlychildhood education program. MLC is not state-funded and relies on community support, including Resort Tax, community foundations, and individual fundraisers. Even withthe substantial backing from these entities, MLC’s tuitionrates are too high for most families to consider affordable. To keep high-quality early education accessible, MLC raisesfunds annually for its need-based Tuition AssistanceProgram. All MLC families can apply annually through a third- party platform, ensuring that decisions are based solely on objective financial information. Upon introducing thisprogram, MLC observed a 25% increase in days enrolledamong recipients, demonstrating the impact of need-based financial aid in Big Sky. Throughout the 2022-2023 school year, MLCdiscounted tuition for 67% of enrolled families and awardedover $300,000 in tuition assistance. Two years ago, Ophir Elementary School began to offer apre-K classroom, also called 4K. In school year 2022-2023,Ophir had full enrollment of 20 children. However, for the 2023-2024 school year, Ophir only had 17 children enroll in the program, leaving 3 available slots for children aged 3-4years old. This waitlist also operates using a priority-based procedure.Parents can submit an intent to return in January of each year, and any open spots are filled from the current waitlist. The priority order for enrollment is as follows:1) Siblings of current students 2) Legacy (if the first child in a family has enrolled and finished, the next child receives priority) 3) Year-Round Big Sky Resident 4) Big Sky Business Owner 5) Big Sky / Town Center Employee 6) Referral Parents turned down in one year and placed on the waitlistretain their priority status for the following year, alongside siblings. Staff reports indicate that typically, by the time they reach the priority listing for Big Sky residents, all spots arealready filled. When families inquire, they can pay a $75 application fee tobe entered into the care center’s system and added to thewaitlist. The waitlist operates using a priority-basedprocedure. The priority order for enrollment is as follows: 1) Morningstar Learning Center Staffs Children2) Siblings of Currently Enrolled Children3) Children of Locally Employed Families4) Children of Full-Time Residents Who Are Not Locally Employed5) Not-Full-Time Residents Who Are Not Locally Employed Morning Star Learning Center has 54 available slots when fully staffed and currently operates on a waitlist. Morning Star Learning Center Ophir Elementary School Big Sky Discovery Academy Summary of Available Slots Morning Star Learning Center Availability Available Slots and Waitlists Child Age 0-2 Year Olds 3-4 Year Olds 5+ Year Olds Provider MLC MLC, Ophir, Discovery MLC (5 y.o. only) Ophir, Discovery Slots 24 68 58 263 9A center model serves 13+ children and the number of staff are dependent upon the ratios of children, the group model serves 2-15 children, typicallyin a home-based setting and staff are dependent upon the ratios of children, and the family model serves up to 8 children with one caregiver, typically in a home. 18 | Big Sky Childcare Report Financial Model With a fully staffed team, United Way can serve up to 30 children. On average, across eight weeks, 17 families areparticipating each week. However, it is essential to note thatthe total number of families involved in the program is 25, assome families may not utilize it for its entire duration. On a weekly basis, the program has an average of 13 students inattendance. The school has allocated 36 slots for children aged 3 to 5, 17 for students in grades 1 to 3, 15 for those in grades 4 to 6, and30 for grades 7-12. However, these slots’ availability dependson having a fully staffed facility. The BASE Community Center is accessible to the public,although a BASE pass is necessary for entry. Children who are 12 years and older can use the Community Center without supervision. It is important to clarify that while a pass isnecessary to access BASE’s fitness center and participate in itsvarious programs, classes, and leagues, BASE Camp and Camp Big Sky are exceptions. Their afterschool service is open to the entire community without a pass requirement. Enrollment forBASE Camp is limited to 20 children, a restriction attributed to spatial constraints. For Camp Big Sky, 50 positions are open for students in grades 1-3, and an additional 30 spots are available for those in grades 4-6. In order to illustrate the intricate financial challenges thatchildcare providers grapple with, this study examined the financial statements of 14 providers, located throughout the region, for the year 2022. The goal is to offer a concise analysisof their income and expenditures, aiming to simplify the intricate financial structures that childcare providers navigate. It is important to note that this financial modeling is not meant to be complex or account for details that providers considerwhen making financial decisions. This analysis is intentionallyoverly simplistic in order to understand the challenges of the business model that childcare providers face, and present a starting place for deeper discussion to begin. This analysis is crucial given that childcare providers frequently operate with minimal or no profit margins. It aims to emphasize the importance of public support andinvestment for these providers. Lacking such backing couldmake it challenging to cover operational expenses and offer competitive wages—essential for attracting a skilled workforce—without resorting to significant fee increases for parents. Across all the examined businesses, it becomesevident that parental fees alone are inadequate to cover basic operational expenditures without the presence of subsidies or Revenue Per Child Average Parent Pay Average Subsidy Cost Per Child Margin Average Wage Family $977.33 $748.00 $229.33 $993.00 $(15.67) $16.79 Group Center $891.75 $1,217.00 $492.00 $1,189.00 $399.75 $28.00 $890.25 $1,252.50 $1.50 $(35.50) $16.57 $20.45 Center-Based Childcare Infant $13,087 $10,004 Toddler $11,451 $8,753 Preschool $11,451 $8,753 School-Age $11,451 $8,753 Average Center $11,860 $9,066 Based Cost Home-Based Childcare Infant $10,081 $7,503 Toddler $9,409 $7,003 Preschool $9,409 $7,003 School-Age $9,409 $7,003 Average Home Based Costs $9,577 $7,128 This section examines 14 childcare providers’ financial reportsacross three different types of service provider models. The three service provider models examined are a center model, a group model, and a family model.9 The financial statementsfrom providers in each service delivery model are averagedtogether. This allows for average revenue per child and programs to offset expenses. The following section will analyze childcare providers’ costs averaged over those using the sameoperating model, followed by a cost comparison of surveyrespondents and publicly available data. United Way BASE / BASE Camp / Camp Big Sky Regional Financial Comparison Table 3: Average Annual Cost by Age Table 2: Average Financial ModelBy Service Delivery Type Source: Cost of Care Financial Models Source: Department of Labor, Women’s Bureau, National Database of Childcare Prices Gallatin County Madison County 264 10STAR incentives are the voluntary quality program described in the funding section of this report. 11CACFP payments are the Child and Adult Care Food Program, a reimbursement program described in the funding section of this report. Big Sky Childcare Report | 19 Cost Comparison Big Sky Community Survey Average Cost Avg. Center Based Cost (DOL) - Gallatin Avg. Center Based Cost (DOL) - Madison Avg. Center Based Cost (Local) Avg. Home Based Cost (DOL) - Gallatin Avg. Home Based Cost (DOL) - Madison Avg. Family/Home Based Cost (Local) Annual Cost $20,796 $11,860 $9,066 $15,030 $9,577 $7,128 $11,916 average cost per child to be compared. We also calculate the average hourly employee wage within each service deliverymodel, shown by Table 2. It is important to note that theChildcare Center service delivery model has more staff, and typically a center director will have a higher wage than an assistant teacher or other less experienced staff. Table 2 demonstrates the results of the averaged financial reports within each service delivery model. In this calculation, revenues include tuition, fees, and costs that parents pay for their child, along with any subsidies, incentives, or grantsthat the provider receives. Costs include all operating costs the provider pays, such as rent, utilities, transportation, supplies, food, wages and fringe, insurance, and training costs. The margin per child shows the difference betweenaverage revenue per child minus the average cost per child. As illustrated, the family and center childcare models have negative profit margins, while the group service delivery model has a narrow positive margin of $1.50 per child. Tovisualize revenues and expenses, Figure 18 demonstrates the composition of revenues or expenses for each childcare model. In each of the models, personnel expenses representa large majority of the expenses providers face. We can seefrom Table 2 that despite personnel being the bulk of expenses, employees are not being paid high wages in comparison with other industries. In both the family andgroup models, the average hourly wage of employees hoversaround $16.00 per hour, with the center model having a slightly higher average hourly wage at $20.45 per hour. These wages are modest and as mentioned several times inthis report, are not high enough to competitively recruit newstaff to fill labor shortages faced by providers. When examining average revenues per service delivery type, parent pay (including tuition, fees, etc.)constitute the bulk of revenues. Additional revenues for eachmodel include STAR incentives10, CACFP payments11, and other subsidies. These additional revenue sources, while small, are crucial to closing the gap between revenues andcosts that providers face. Without these programs, thenegative profit To perform the cost comparison analysis, several sources of data were used to compare the estimated annual costs of childcare. First, the U.S. Department of Labor Women’s Bureau provides costs estimates by childcare type for 2023.Table 3 shows these estimates for Gallatin and MadisonCounties. These numbers are broken out by a center model versus a home-based model. Home-based providers tend to have lower costs because of the need for less staffing, andspace costs are significantly less than centers. To simplify for comparison, the averages across the county were also provided. This data shows that infant care is more expensive than older children, however it does not convey the subtletiesof price changes as children get older. It is clear from this datathat annual costs of childcare are higher in Gallatin County than in Madison County in both home-based and center care models. margin increases, further forcing providers to either increase the cost to parents or cease operations. For each model, we calculate the average parent pay per month and the average subsidies received by providers per month. Please note that this is the average across all agegroups, but typically rates for infants and toddlers are higherdue to a lower staff to child ratio required by the providers, and rates tend to decrease as the child gets older because staff to child ratios increase, thus making it a bit moreeconomical to provide care for older children. For the family model, the average parent pay per month is $748 and the average subsidies received are $229 permonth. If family providers did not receive subsidy programs,parent pay would have to cover this gap, increasing to $977.33 per month. For the group model, the average parent pay is $492 per month, with average subsidies received equating to $399.75 per month. As in the family model, if the average subsidies went away, parents would have to bear the increase of monthly costs up to $891.75. The Center modelreceives the highest average of parent pay, equating to $1,189 per month, and the lowest of the available subsidies, totaling to an average of only $28 per month. Without subsidies, parentpay would increase to $1,217 per month. This modeling demonstrates: 1.) most childcare providers do not face large profit margins, if any profit margin at all, andoperate on minimal net profits. 2.) while a majority ofexpenses are comprised of personnel costs, hourly staff wages are not at the top end of competitive wages. 3.) Despite the highcosts that parents face, without additional support in theform of grants, subsidies, or other public programs, parent pay would increase or childcare operators would be forced to close their doors. Table 4: Regional Childcare Annual Cost Comparison Regional Cost Comparison 265 20 | Big Sky Childcare Report Figure 18: Snapshot of Average Monthly Financial Model by Service Delivery Type $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Center Parent Pay Subsidy STAR CACFP Group Other Food Personnel Other Operations Family Rent Utilities When comparing costs, it is important to remember that these cost estimates are averaged across the entire county –where personnel and space costs are radically different in atown such as Three Forks, MT when compared to Big Sky, MT. It is also important to keep in mind that publicly available datafor rural areas such as Montana can have large margins oferror. These numbers should only serve as a baseline in establishing a cost comparison. Table 4 shows the annual cost comparisons across the region and to Big Sky. First, the average cost of childcare that survey respondents gave is provided. This cost averaged tobe $1,733 monthly or $20,796 annually. Then, data from thecenter and family providers in Table 2 were annualized and provided in Table 4 as “Average Center Based Cost (Local)” and “AverageFamily/Home Based Cost (Local).” From this comparison, we can see that annual childcare costs in Big Sky are significantly more than across the region.This is likely due to higher wages and personnel costs thatproviders in Big Sky face, along with higher facility costs. This cost comparison demonstrates a need for additional technical financial analysis that examines costs versus revenues forproviders that investigates how the financial model variesbased on the age of the child, and their attendance. 266 12https://leg.mt.gov/bills/2023/billhtml/HB0422.htm 13 https://leg.mt.gov/bills/2023/billhtml/HB0187.htm 14 MCA: 37.95.108 15 MCA: 52-2-721, Amended https://leg.mt.gov/bills/2023/billhtml/HB0556.htm 16 MCA: 37.95.622 Big Sky Childcare Report | 21 Childcare facilities in Montana are subject to specific licensing and registration requirements. Family or group childcare facilities must be registered, while childcare centers must be licensed14. These regular certificates and licenses, issued by the department, are valid for up tothree years. However, under House Bill 55615, facilities with fewer than six children are exemptfrom licensing. Montana’s Childcare facilities must adhere to specific personnel and training standards16. Acomprehensive background check by the Montana Department of Justice and the FederalBureau of Investigation is mandatory for all individuals seeking employment in a childcare facility. This check must be conducted before employment commencement and repeated every five years thereafter. Childcare facilities must also ensure their staff meets stringent The Montana state legislative session of 2023 made multiple significant changes in childcare law. House Bill 42212 aims to revise childcare ratios within childcare centers for enhancedoperational efficiency. The modifications entail larger ratios for younger children, specificallythree to five years olds. This bill balances childcare quality and capacity, reflecting age-appropriate supervision ratios and group sizes in childcare settings. Another essential change is introduced by House Bill 18713, designating home-based child careas a residential property use. This is significant for communities like Big Sky, grappling withspatial constraints and high building costs. This designation might encourage innovative land use practices and solutions to optimize available spaces. However, effective implementationhinges on proactive communication with local Homeowners’ Association (HOA) boards to alignin-home child care with existing regulations. Previously, this report mentioned different quality factors families consider when choosing a childcare program. The top responses to the question regarding quality dimensions said employee background checks and education, facility/center licensing, curriculum taught, and vaccination requirements. Montana has established a comprehensive framework of laws and regulations governing various childcare operations. Encompassing a broad spectrum, from in-home facilities to childcare centers, these regulations are pivotal in ensuring the safety, well-being, and quality of childcare services. This section is dedicated to shedding light on the latest amendments to childcare laws resulting from the most recent state legislative session. Moreover, it will provide a concise overview of significant elements within the existing legal framework, focusing specifically on health and safety regulations. Recent Law Changes Important Regulation - Health & Safety LAWS AND REGULATIONS 267 22 | Big Sky Childcare Report 17MCA: 37.95.60218 https://www.oecd.org/els/family/database.htm educational and training benchmarks. Directors, early childhood teachers, and assistant teachers must completeannual training to maintain a current status on the EarlyChildhood Practitioner (ECP) registry. By law, childcare facilities must meticulously craft andimplement a program that aligns with each child’s distinctivejourney of growth and well-being. This program must encompass a balanced mix of active and passive learning experiences, all executed under the direct supervision ofqualified adult staff17. Despite research overwhelmingly demonstrating that investment in childcare has multiple and layered positive economic impacts, the United States invests fewer public dollars in earlychildhood education (relative to gross domestic product) than other developed countries. The U.S. ranks 35th out of 37th in countries tracked by the Organization for Economic Co-Operation and Development (OECD)18. The average country in the EU spends $4,700 per infant aged 0 to 5, and the U.S. only invests $2,400. Discussing available funding forprogramming is complex and layered. Below, we attempt to provide a structured approach to outline available funding to support childcare, from both a family perspective and a childcare provider perspective. Access to funding occurs through three channels: at the federal level,state level (which may vary by state), and within the local private community. To wrap up thissection, we present non-monetary recommendations for employers to support their workforce in managing childcare responsibilities. It’s important to acknowledge the complexity surrounding childcare licensing. Many childcare providers may not have afull grasp of the entirety of licensing rules and regulations. Thiscomplexity could inadvertently result in gaps in compliance or a lack of awareness about specific requirements. The role of organizations like Community ChildcareConnections (CCC) within our community is significant. Through its guidance, CCC plays a crucial role in assisting providers in meeting the required legal standards, therebyenhancing the quality and safety of childcare services forchildren in our community. FUNDING 268 https://dphhs.mt.gov/ecfsd/childcare/Index https://www.irs.gov/publications/p503 https://dphhs.mt.gov/ecfsd/ChildCare/stars/index Big Sky Childcare Report | 23 Federal State Families Providers Providers There is only one federal program that provides direct support to families seeking relief from the high costs of childcare. TheInternal Revenue Services offers a Child and Dependent CareCredit that parents can claim on their annual federal tax filing.Individuals with children are eligible to claim the tax credit if Programs provide direct and indirect support. Federally, thereare four main sources of funding that support childcare - TheChild Care and Development Fund (CCDF), Headstart, theSocial Services Block Grant (SSBG), and Temporary Assistance for Needy Families (TANF). The CCDF is distributed directly to states, territories and tribes. In Montana, CCDF funds go to the Montana Department of Public Health and HumanServices (DPHHS)19. Direct programs offered by the federal government to support childcare providers are few and far between. Oneprogram is the Child and Adult Care Food Program (CACFP), which provides reimbursements for nutritious meals and snacks to eligible children enrolled at participating childcarecenters and daycare homes. To receive this funding, for-profitchildcare centers must have at least 25% of their enrollment or licensed capacity, whichever is less, at the free or reducedreimbursement rate, and parents must fill out income eligibilityforms. Nonprofit child care centers can pursue an onlineapplication through the Montana CACFP website. The U.S. Department of Health and Human Services alsoprovides grants to local public and private nonprofit andfor-profit agencies through the Head Start and Early Head Start programs that provide early learning services to children in low-income families. Locally, the Human ResourceDevelopment Council of District IX (HRDC) provides HeadStart and Early Head Start programming to Gallatin and Park Counties. They are funded to provide services to 152 children,and they served 113 during the 2021–2022 school year.Eligibility is based on family income at or below the FederalPoverty Guidelines (FPL). Children in foster care, homeless children, and children from families receiving public assistance(TANF or SSI) are eligible regardless of income. They may enroll up to 35% of families who are between 100% – 130% ofFPL. Unfortunately, as discussed earlier, most Big Sky families do not qualify for this programming. However, there might beopportunities to collaborate with HRDC’s Head Start programto offer the quality programming that has been provensuccessful in raising children’s school readiness outcomes. they have earned income and paid for expenses for the care of a qualifying child, which is a child under the age of 13 or a dependent of any age who is incapable of self-care. It is anonrefundable tax credit on qualifying expenses up to $3,000 for one child or up to $6,000 for two or more qualifying children. The maximum credit is 35% of related costs if anindividual’s adjusted gross income is below $43,000. Above$43,000, the maximum credit is 20% of related expenses. For more information, please see IRS Publication 50320. Resources at the state level to support childcare are largelyprovided through Montana DPHHS. The child and family services that DPHHS oversees are child support, childcare,early childhood, adult protective services, and child protectiveservices. The Office of Public Instruction oversees schoolingand education for children in Montana, with some resources allocated to afterschool programs. The Early Childhood Services Division (ECSD) of DPHHS oversees various programs, giving services to providers and families. These programs include the Best BeginningsChildcare Scholarship, the STARS to Quality program, childcare licensing, childcare referral agencies, Headstart, and the Montana Milestones program. These programs primarilyoffer financial support and resources to childcare providers.The first option is the Best Beginnings Scholarship, which has been detailed earlier in this study. The second resource available to childcare providers is the STARS to Quality Program. It is a voluntary quality rating program and improvement system that aligns quality indicators with support and incentives for early childhoodprograms and professionals. Five levels (STARS) evaluate and promote education, qualifications, training, leadership, program management, quality supportive environments, and family and community partnerships. Participating childcareproviders receive a financial incentive that increases at eachlevel and is larger depending on the size of the provider. STARS incentives can be used for continuous quality improvement, staff support, salaries, professional development, equipment,etc. STARS incentives may not be used for construction. Formore information, please visit the ECSB website 21. Another resource available to certain childcare providers is the 21st Century Community Learning Center grant throughthe Montana Office of Public Instruction (OPI). This grant provides funds to local education agencies and community-based organizations. Grants amount to a minimum 19 20 21 269 22 https://opi.mt.gov/Leadership/Academic-Success/After-School-Programs#10699812176-resources23 https://cccmontana.org/24 https://mcdc.coop/ 24 | Big Sky Childcare Report Private and local resources largely bear the brunt of helping offset the high childcare costs. Especially in the BigSky community, where residents rarely qualify for publicfunding support, local nonprofits, community foundations, and other resources shoulder the burden of supporting familiesand providers. There are very few state programs offered directly to familiesto support the reduction of childcare costs. Many states around the U.S. provide specific state-wide childcare tax credits, similar to the federal credit. Interested parents couldtalk to their state representatives to advocate for the creationof a tax credit accessible to Montana families. Locally, Child Care Connections (CCC)23 is one of seven Child Care Resource and Referral Agencies (CCR&R) in Montana. Together, they provide support to early childhood professionals and families across Montana. CCC is a nonprofitthat serves Gallatin, Park, Meagher, Lewis & Clark, Jefferson,and Broadwater counties by providing critical support to families and childcare professions to improve the quality of and access to childcare. The Big Sky Resort Tax District (BSRAD) has significantly invested in local childcare providers over the past several years. BSRAD was established as a resort tax district in 1992,and since then, approximately $80 million has been reinvestedback into the community. The collections are 4% of sales on eligible “luxury” industries, primarily focused on tourism. Of the 4% tax collected, 1% must be invested in infrastructure.The remaining 3% of tax collections are reinvested back intothe community. The BSRAD collects and manages these funds. In fiscal year 2024, BSRAD committed over $21 million to over 30 organizations, investing in health and safety, publicworks, recreation and conservation, arts and education,economic development, and housing. BSRAD has offered consistent and increasing support in the way of funding to both Discovery Academy and Morningstar Learning Center. In fiscal year 2022, BSRAD reinvested $320,000 in these two childcare programs. This funding increased in fiscal year 2023 up to $549,000. Currently, in fiscal year 2024 BSRAD of $50,000 for five years, aimed at providing academic enrichment during out-of-school hours and fostering literacyand educational development for students and families. Thereare several levels of eligibility criteria to qualify to receive this funding. To learn more, please visit the Montana OPI website22. invested $725,000 in childcare in Big Sky. This demonstrates the ongoing community need for childcare while alsodemonstrating the important funding gap that is filled by thelocal community. Aside from nonprofit grants and donations, communitymembers seeking to support childcare can explore additional options for their workforce. These options are presented from two distinct angles: first, from a community perspective,highlighting strategies that community collaborations could address collectively, and second, from an employer perspective, focusing on ways businesses can support the parents within their workforce. One program that employers could consider offering to their employees is a dependent care flexible savings account (FSA).Employees should consider advocating for this program,further details are discussed below. Another option for communities to consider is a co-op modelof childcare. This allows for sharing costs and managementacross all members within a co-op. Employers, childcare providers, or even parents can establish a co-op childcare. In Montana, the Montana Cooperative Development Center hasexpertise and resources to help communities develop co-opsthat help to advance economic vitality24. The first option to examine is a discussion with various homeowner’s associations (HOAs) in the market. Home-basedchildcare is the most affordable option to provide childcare toa local community. However, a large majority of HOA’s restrictbusiness activity within a neighborhood. One way to solve this issue is to work with HOAs to allow for exceptions forhome-based childcare operations, as mentioned before by thepassage of House Bill 187. Currently, there are a few options that community collaborations can tackle that might help to ease the strain thatthe expense of childcare puts on the community. Providers Families HOAs Families Cooperatives Other Solutions for Consideration Private and Local Community Collaborations 270 25 https://home.treasury.gov/system/files/136/The-Economics-of-Childcare-Supply-09-14-final.pdf26 Four states were studied, Iowa, Idaho, Mississippi, and Pennsylvania. Source: U.S. Chamber of Commerce Foundation. 2020. “Untapped Potential: Economic Impact of Childcare Breakdowns on U.S. States.” https://www.uschamberfoundation.org/reports/untapped-potential-economic-impact-childcare-break-downs-us-states 27 Child and Adolescent Health measurement Initiative, Data Resource Center for Child and Adolescent Health. “2018-2019 National Survey of Children’s Health data query.” https://www.childhealthdata.org 28 From Washington Center for Equitable Growth. “Working by the Hour: The Economic Consequences of Unpredictable Scheduling Practices.” by Heather Boushey and Bridget Ansel, September 2016. And “Extensive Nonstandard Work Hours Among U.S. Low-Income Mothers Hinder Their Kids’ Enrollment in Center-Based Childcare.” by Cesar Perez, August 2019. Big Sky Childcare Report | 25 Employers Employers have many reasons to consider increasing support to employees with children. Research shows that access to childcare is a significant determinant of whether parentsremain in the labor force, especially when considering female labor force participation25. Employers also face the repercussions of childcare accessibility challenges, including increased employee turnover, staffing shortages, and theassociated expenses of training and retraining. The U.S.Chamber of Commerce Foundation estimates costs to employers ranging from $375 to $500 per working age adult due to childcare-related absences and turnover26. Nationally,from 2018 to 2019, over two million parents under the age of five had to quit a job, not take a job, or change their job because of problems with childcare27. One easy way employers can support employees in coveringchildcare costs is to establish a dependent care account foremployees and allow them to elect this option as a part of theirbenefits package. A dependent care account must be set up through an employer where employees can withhold agreedamounts from their paychecks to fund the account. Thesecontributions allow individuals to reduce their taxable incomeby up to $5,000 or $2,500 if married filing separately. Eligible expenses cover a range of childcare options, including in-homecare such as a nanny or babysitter, as well as institutional carelike childcare services, summer camps, before- and after-school care, and caregiver-provided transportation, among others. This allows families to save pre-tax dollars to cover theexpenses related to childcare. Research finds that, increasingly, many workers are subject tounpredictable scheduling practices due to the implementation of scheduling software that creates employee schedules based on projected consumer demand28. Most often, theseunpredictable schedules are found in retail and serviceindustries. The ability for workers to have regular and predictable schedule allows them to enroll children in routine care and plan adequately for care needs to be covered.Additionally, irregular schedules can indirectly impact families’ability to receive childcare subsidies. Employers could consider easing the burden of childcare on parents by providing their employees with regular, predictable scheduling so those withchildren can plan for their childcare needs ahead of time. Stable Schedules Benefits and Dependent Care Account 271 26 | Big Sky Childcare Report This study has thoroughly examined the childcare landscape in Big Sky, informed by publicly available data and insights gathered through our Childcare Needs Survey. We began byreviewing the primary hurdles faced by parents, notably the challenges related to costs,limited operating hours, and waitlists. Moving beyond these barriers, we explored the preferences of Big Sky’s employees, revealing a solid desire for childcare facilities near their residences and a notable demand for extended service hours, including weekends. Many preferred operatinghours from 7 a.m. to 6 p.m. Monday through Friday, with significant requests for weekend care. Our cost analysis finds that most families currently pay an average of $1,773 monthly inchildcare costs, equating to 16.2% of the average family’s income. Survey results find a significant reduction in costs to the average family would be $700 per month, reducing monthly expenses to about $1,000. When asked if parents would be willing to extend theircommute time to access childcare if a subsidy was available, respondents indicated they would be ready to drive up to 30 minutes extra if they could receive full assistance on their childcare costs. Next, our analysis of childcare provider financial statements highlights the critical need for subsidies and community support. These support programs help narrow the profit margin gap that providers face. Without such assistance, childcare costs for parents would significantlyincrease. Although some financial assistance programs exist, they are not accessible to mostBig Sky families. Fortunately, the extensive community support provided by nonprofits, BSRAD, and local residents enables existing providers to sustain their operations. However, it’s important to note that these operations still operate with slim profit margins and faceadditional challenges in recruiting and retaining a qualified workforce. This analysis provides a beginning step for future in-depth financial analysis to occur, with the aim being to provide further understanding into the complex business model that providers face when delivering childcareservices. In looking toward the future, several promising developments are on the horizon. The Yellowstone Club has hired a director of childcare with plans to expand childcare services in the community. The YC is also taking steps toward developing a new care center.Additionally, this study is a foundational step towards a more comprehensive childcare best practices study already in motion. This report provides valuable insights that can guide future childcareinitiatives for other resort towns. However, it’s crucial to acknowledge that predictingchildcare demand remains challenging, especially without access to fertility or birth rate data. To address this issue and more, one potential avenue for further research involves implementing an annual needs survey encompassing a broader range of community needsbeyond childcare. Such a survey could provide a holistic understanding of the evolving needs of Big Sky residents, assisting community leaders in making well-informed investment decisions to support the thriving future of this unique community. CONCLUSION 272 Montana State University CCAMPIS Background: Montana State University (MSU), founded in 1893, is the state’s land grant university committed to a teaching, research, and service mission. With over 16,000 students enrolled and an estimated 500 student parents, we are the state’s largest university. Need: Available childcare options for student parents on campus and in the surrounding area are limited and cannot meet the growing demand for childcare. Compounding the problem is a workforce shortage of qualified childcare professionals. Project activities: We propose an innovative approach to supporting student parents, their children, and early childhood professionals. Our ultimate aim is to support student parent success and increase degree attainment. Our four project activities are: 1. Offer extended hour, evening, and/or weekend childcare by partnering with existing licensed center, family and group childcare programs in and around campus (Absolute Priority 1) 2. Provide childcare tuition assistance for low-income student parents using a sliding scale fee structure (Absolute Priority 2) 3. Provide wrap-around services to student parents, including financial counseling, mental health support, nutrition resources, and assistance in finding childcare in on-campus facilities or nearby licensed childcare centers, family and group programs (Invitational Priority 3) 4. Enhance the early childhood education undergraduate academic program and improve the professional preparation of the early childhood workforce, including providing skills training and mentored practice in infant and toddler care to interested students as well as stipend support for participation in the CCAMPIS project (Invitational Priority 2) Populations to be served: MSU student parents and their children are the primary beneficiaries of the MSU CCAMPIS project. We estimate offering tuition assistance to 50 student parents and to increasing enrollment of children of student parents on campus by 100%. Undergraduate students preparing for careers in early childhood education and child development will also receive increased wages as incentive to enter the profession. Contributions related to research, policy, and practice: The evaluation plan of the proposed project includes the collection of a variety of quantitative and qualitative data. Analysis of the data will help measure the success and impact of our project activities, and also provide keen insight into the unique needs of student parents. Policy outcomes have already begun in our on campus childcare programs to better support student parents by reserving enrollment and offering reduced tuition. In practice, expanding partnerships with neighboring childcare programs will provide increased opportunities to MSU undergraduates pursuing careers in early childhood education and child development. 273 Employer Supported Child Care Toolkit 274 02 Employer Supported Child Care Toolkit Getting Started Furthering the Cause Resources and Support Step 3: Adding Child Care Slots Why Child Care Matters for your Business Step 2: Employer Assisted Childcare Step 1: Family Friendly Policies in the Office 03 04 06 07 08 09 11 This toolkit is modeled after the Family Forward Montana Innitiative. 275 1. FAMILY FRIENDLY PRACTICES 2. EMPLOYER ASSISTED CHILD CARE 3. ADDING SLOTS Getting Started Employer Supported Child Care Changes in workplace dynamics, housing costs, and the lack of available affordable child care have converged to create an overwhelming need to work collectively on creative solutions to the shortage of child care options in our region. Child Care Connections, HRDC, and NRMEDD are working with local public and private entities to create family forward workplaces that will attract and retain employees. Our efforts focus on three clearly defined steps that businesses implement based on their existing and future child care requirements. The steps build upon each other, beginning with actionable items that can be instituted with minimal cost and effort. The Three Steps 03 276 Before we dive deeper into the nuances of each step, we will work with your organization to clarify: Getting Started 04 Future child care needs Existing child care needs Timing, budget, and viability Existing family friendly practices 277 Why This Matters 65% of parents work schedules are affected by child care challenges an average of 7.5 times over a six-month period Unscheduled absenteeism costs U.S. employers $3,600 per hourly employee per year. Research estimates an annual economic cost of $57 billion in lost earnings, productivity, and revenue every year in the U.S. due to child care 45%30%60% Over a six month period, 45% of parents are absent form work at least once due to child care breakdowns, missing an average of 4.3 days. 54% of employers report that access to child care services reduced missed workdays by as much as 30% An on-site child care program can reduce employee turnover by 60% 05https://www.childcareaware.org/our-issues/research/the-us-and-the-high-price-of-child-care-2019/ https://www.americanprogress.org/issues/early-childhood/reports/2019/03/28/467488/child-care-crisis- keeping-women-workforce/278 Family Friendly Practices in the Office 01 Consider your options We recommend Working through the following action items as applicable for your organization Adding workplace policies and practices that benefit parents reduces employee stress, increases employee productivity, and allows parents to have a more meaningful relationship with their children which results in goodwill towards their employer Kids at work Family friendly events Family wellbeing leave Remote or virtual work Tuition/education supports Family Medical Leave PTO/Sick/Vacation Time Maternity/Paternity Leave Flex time/flex scheduling Health Benefits Elder Care Emergency leave 1.Review your current employee handbook and benefits package 2.Review family friendly policies (see options below) for fit and budget 3.Speak with your advisors and colleagues about their results implementing similar practices 4.Review our family friendly budget models to determine potential cost savings of enacting family friendly practices that attract and retain employees 5.Poll existing workers to identify what is important to them 6.Incorporate your new policies and practices into your employee handbook and benefits package 7.Promote your family friendly workplace that values parents, children, and your community. 06 279 Employer Assisted Childcare02 Consider your options. For organizations with existing child care needs, we recommend the following actions: Child care referrals, reserved child care placements for employees, and/or calculated child care subsidies allow new parents to return to work after giving birth, attract potential employees, and aid retention and productivity. Offer a dependent care assistance plan (DCAP) Offer family paid leave Reserve slots in existing child care programs Voucher or reimbursement system Flexible Spending Accounts (FSA)Child care subsidies to quality child care Provide families information about financial assistance in the community 1.Child care referrals- contact Child Care Connections in Bozeman at 406-587-7786 or visit their website at cccmontana.org 2.Review our family friendly budget models to determine potential cost savings of enacting family friendly practices that attract and retain employees 3.Reserving child care slots for employees at existing child care programs 4.Provide calculated child care reimbursements to employees 07 280 Consider your options Investing in child care facilities, building in-house solutions, and/or creating co-op child care with like-minded businesses gives your organization more control over your current and future child care requirements. Adding slots can come in many different forms! For organizations that want to minimize variability and increase worker satisfaction and productivity we recommend the following: Offer sick child care Provide off-site child care Coordinate back-up or emergency child care Purchase child care spaces for employees Employer assisted cooperative child care Provide on-site child care Employer child care consortium Provide backbone support to a local child care business Adding Child Care Slots03 1.Invest in existing child care facilities to increase wages, expand services, and/or space 2.Partner with other businesses to create a child care co-op 3.Establish in-house child care solutions via new construction or repurposing existing space 08281 Further the Cause What is good for your community is good for your organization. Family friendly policies and practices benefit your organization can benefit your business as well as your community. By extension, more organizations implementing similar policies and practices will expedite gains. If you are dedicated to providing a family friendly workplace, consider thinking bigger, and how you can assist other organizations in your community to follow suit. Here are some steps to consider Decide where to start- select business partners within a chosen industry, a geographic boundry, etc. Determine importance- conduct polls, surveys, questionnaires to identify issues to focus on Research- results of policies implemented elsewhere, and possible policies to add locally Calculate- potential costs and benefits to implementing new policies and practices Framing-focus on how these policies are wins for employees, employers, and communities Challenges-what possible objections will you encounter, what alternatives are available, can you assist with cooperative solutions? Communicate- share what is working with labor unions, media, chambers of commerce, professional associations, and policy makers. 09 282 Influence Policy Makers Public policy and legislation impact the accessibility and affordability of child care in Montana. Limited access to child care impacts the ways that families can participate in the workforce. Talking to your legislators in an important way to advocate for early childhood issues and support the families that work in your community. Another step you may consider is persuading business, professional, or trade associations (the Chamber of Commerce, for example) to issue policy statements supporting family friendly practices and policies. Ultimately you may find that legislative advocacy is the most powerful tool to enact positive community change. Some examples include personal contact with legislators and aides, a full- scale legislative campaign, or both. The goal could be a law-such as FMLA- that mandates family-friendly policy, or simply government support and backing for family friendly policies. 10 Further the Cause A d v o c a t e 283 Helpful Resources 11 CostofChildcare.org Provider Cost of Quality Calculator Use this Employee Child Care Needs Assessment, created by Colorado EPIC (Executives Partnering to Invest in Children) to determine your team's child care needs. Do your current practices support your employee's child care needs? Conduct a Business Self-Assessment to evaluate your organization's family friendly practices. Experts from your local Child Care Resource and Referral Agency (CCR&R) can help you navigate the child care licensing process, offer technical support, and guidance for what is needed to operate a child care program. Find your local CCR&R. Experts from your local Child Care Resource and Referral Agency (CCR&R) can help your team search for child care, access scholarships, and explore resources available for them. Find your local CCR&R. Learn more about how other organizations are supporting the childcare needs of their staff and how these practices influence productivity, retention, and the bottom line. Watch this recording of the Employer Supported Child Care Panel where local businesses share what adding child care slots influences: Workforce Demographics Finances Operations Calculate the Cost Finding Child Care Evaluate your current practices Navigating Child Care Licensing What are other businesses doing? Assess your employees' child care needs 284 Early care and education (ECE) is an essential component of our economy. Many parents need child care to be able to go to school or work. Child care businesses need to hire staff/educators to care for children. Low child care wages, particularly when combined with high costs of living and a competitive job market, create a significant staff shortage for child care businesses. DPHHS and its partners are focused on strengthening the child care workforce, which in turn strengthens the general workforce with children, who need access to child care to work. This document provides recent data related to: • Child care capacity across the state. • The child care workforce who staff child care programs, with a focus on compensation and retention. • The cost of providing care for child care programs. • The impacts of child care on the general workforce with children who need access to child care to work, including capacity shortages and high costs. The capacity of licensed child care providers is not enough to meet demand, despite growing to exceed pre-pandemic slots. Licensed child care capacity meets only 43% of the estimated demand in the state for children up to age 6.1 Demand for child care includes children living in households where all available parents are working. Child care shortages exist in every county, with 59% of counties identified as child care deserts – meaning supply meets less than a third of estimated demand.2 About 16% of all children under 6 with working parents live in a child care desert. Figure 1 shows licensed child care capacity by county as a percentage of estimated demand. CHILD CARE WORKFORCE NARRATIVE NOVEMBER 3, 2023 OVERVIEW EARLY CARE AND EDUCATION PROVIDER CAPACITY 1 Calculation based on 2017-2021 ACS 5-Year Estimates and average licensed child care capacity in July 2022 as reported by Montana Department of Health and Human Services. 2 DPHHS child care licensing data 2022 annual average capacity. 2017-2021 ACS 5-Year Estimates. 285 There is less capacity for licensed child care providers to serve children ages 0 to 2. Licensed care capacity only meets 31% of the estimated demand in Montana for children up to 24 months, qualifying the state as a child care desert for this age group. Figure 2 shows the capacity to serve children under age 2 as a percentage of estimated demand by county, where demand is the number of children under two living in working parent households. 2 Figure 1. Child care capacity as a percent of children under age 6 with working parents by county Figure 2. Child care capacity as a percent of children under age 2 with working parents by county Source: MTDLI analysis of MT DPHHS CCUBS licensed child care capacity in 2022, 2017-2021 ACS 5-Year estimates, and National Vital Statistics System (NVSS) county population estimates. Children with working parents are defined as children living in a home where all available parents are participating in the labor market. Source: MTDLI analysis of MT DPHHS CCUBS licensed infant care capacity in 2022, 2017-2021 ACS 5-Year estimates, and National Vital Statistics System (NVSS) county population estimates. Children with working parents are defined as children living in a home where all available parents are participating in the labor market. 286 Child care is expensive for many Montana families. On average, Montana households paid $350 a week in 2023 for care for children under the age of five, which translates to roughly 33% of the state’s average weekly wage.3 The US Department of Health and Human Services benchmark for affordable child care is expenses amounting to 7% of household income.4 In 2023, Montana households averaged $18,940 in child care expenses for children under age five. Annual child care expenses in 2023 were equivalent to 28% of the state’s median household income, far exceeding the US Health and Human Services benchmark for affordable care.5 Child care centers serve the largest proportion of children in Montana. In 2014 child care centers were serving 59% of children in licensed care. This increased to 69% in 2020 and 2021 and came down slightly in 2022. 2022 saw an increase in group programs6 as well as family, friend, and neighbor care. Home-based providers (group, family, and FFN) provide options for families needing care outside of typical business hours, needing infant care, seeking care for children with special needs, or needing care in rural/frontier communities. The modest increase in home-based care providers over the last few years is a positive sign of market diversification to provide needed options to more families. 3 Figure 3. Licensed capacity and percentage of total capacity by provider type, 2019 – 2022. 3 Average weekly wage as reported by the Quarterly Census of Employment and Wages in Q1 2023. Child care expenditures reported by the U.S. Census Household Pulse Survey from January to May 2023. 4 https://www.govinfo.gov/content/pkg/FR-2016-09-30/pdf/2016-22986.pdf 5 Annual child care expenditures estimated based on weekly child care costs reported by the U.S. Census Household Pulse Survey from January to May 2023. Median household income reported by 2022 1-Year Estimates American Community Survey (in 2022 dollars). 6 Some of this increase in group providers and decrease in centers may be a result of providers changing from center to group when provider definitions changed in 2021. Centers were previously defined as serving 13 or more children. This increased to programs serving 16 or more children. Group programs currently care for 9 to 15 children, increasing from 7 to 12. Date 2022 (9-30) 2022 (6-30) 2021 (6-30) 2020 (6-30) 2019 (6-30) Center 14,478 (67%) 14,175 (67%) 13,734 (69%) 14,359 (69%) 13,863 (68%) Group 5,516 (25%) 5,292 (25%) 4,634 (23%) 4,773 (23%) 4,812 (24%) Family 1,386 (6%) 1,432 (7%) 1,173 (6%) 1,258 (6%) 1,284 (6%) Family, Friend, and Neighbor 143 (1%) 70 (0%) 73 (0%) 72 (0%) 165 (1%) Relative Caregivers 214 (1%) 226 (1%) 255 (1%) 259 (1%) 300 (1%) Total 21,737 21,195 19,869 20,721 20,424 80% 70% 60% 50% 40% 30% 20% 10% 0% 68% 24% 6% 2019 (6-30) Ce nte r 69% 23% 6% 2020 (6-30) G ro up 69% 23% 6% 67% 25% 7%6% 67% 25% 2021 (6-30)2022 (6-30)2022 (9-30) Family FFN RCE 25,000 20,000 15,000 10,000 5 ,0 00 0 1,284 4,812 13,863 1,258 4,773 14,359 1,173 4,634 13,734 1,432 5,292 14,175 1,386 5,516 14,478 Capacity by Provider Type Center Group Fam i ly Capacity by Provider Type FFN RCE 2019 (6-30)2020 (6-30)2021 (6-30)2022 (6-30)2022 (9-30) 287 238 68 7 24 151 1 19 2 1 10 545 176 20 57 335 Child care workforce impacts child care capacity Early childhood educators (ECE) are one of the most in-demand occupations in Montana, according to the Montana Department of Labor and Industry (MTDLI) 2022-2032 employment projections. The MTDLI estimates 545 annual job openings for child care workers through 2032, placing the occupation in the top 30 for the number of openings. Over half (56%) of these openings are projected to occur due to employee turnover. Retirements are estimated to generate an additional 43% of the job openings for child care workers. ECFSD provided American Rescue Plan Act stabilization and innovation grants to child care businesses to increase statewide capacity. The division awarded stabilization grants to 715 licensed or registered programs in 51 counties and 31 innovation grants. Zero to Five Montana is providing specialized training and technical assistance to larger child care businesses in addition to supporting community capacity building to support innovative, collaborative approaches to increasing the supply of child care. Raise Montana provides training and technical assistance to new and existing home-based child care businesses in addition to shared services7 for these home-based programs. As of January 2023, 27 home-based child care providers completed the Family and Group Child Care Business Series8 and Raise Montana funded 50 premium child care management software licenses for providers through the Brightwheel Partnership. The Child Care Licensing project is streamlining licensing regulations and processes to increase the number of licensed child care providers. 4 EFFORTS TO INCREASE SLOT CAPACITY • • • • EARLY CARE AND EDUCATION WORKFORCE CAPACITY AND STABILITY Figure 4. Early childhood education, kindergarten, and elementary teachers annual job openings through 2032 7 Montana Shared Services (MTSS) currently offers nine services to Montana child care providers. The free services offered include the ECE Resource Library, ECE Friendly Business Directory, Discounts & Grants, Our ECE Community and the ECE Job Board. The Substitute Service, Telehealth program, and Payroll services have associated fees. 8 The Family and Group Child Care Business Series is a 10-week series offered to new and existing home-based child are businesses designed to support business practices of home-based child care. Participation is free and those who complete the entire series receive 30 hours of continuing education credit through the MT Early Childhood Project. Topics include: Contracts, Policy Handbook Development, Recording-Keeping, Time/Space Percentage, and Deductions. Improvements in understanding of business practices demonstrated through pre- and post-test assessments. Source: Montana Department of Labor and Industry 2022-2032 Occupational Employment Projections. Exits refer to openings generated from labor market exits, like retirements. Transfer openings include openings due to employee turnover. Growth openings are generated due to an increase in demand for the occupation. Occupation Child care workers Preschool teachers Preschool and child care administrators Kindergarten teachers Elementary school teachers Minimum Education High school diploma Associate degree Bachelor's degree Bachelor's degree Bachelor's degree Exit Transfer 306 89 12 32 174 Growth Total 288 Child care wages are low. The average child care worker wage is $12.73/hour or $26,480/year.11 This is 54% of the average kindergarten teacher's and 44% of the average elementary school teacher's annual salary. More ECE graduates are needed to meet the demand for preschool and kindergarten teachers as well as child care workers. Over 80% percent of ECE graduates work in Montana a year after graduation. However, their earnings fall below average for their educational attainment.9 Addressing this income discrepancy would encourage more students to pursue an ECE degree, and thus help increase child care capacity. Forty-two percent of the 627 Child Care Licensing Assessment survey respondents ranked child care worker pay as the first and second most important factor impacting child care capacity.10 5 Figure 6. Mean and median wages by educator occupation, 2021. Figure 5. Ranking of factors that limit child care capacity and access to child care in Montana 9 Amy Watson, Montana Department of Labor and Industry, Montana Post-Secondary Workforce Report: A Report on Workforce Needs and Labor Market Outcomes of Graduates, October 2022. https://lmi.mt.gov/_docs/Publications/LMI-Pubs/Special-Reports-and-Studies/MTCollegeReport2022.pdf. 10 Kristal Jones and Kirsten Smith, Bloom Consulting, Child Care Licensing Assessment: Stakeholder Perspectives to Support Regulator and Systems Improvement, April 2022. https://dphhs.mt.gov/assets/ecfsd/childcare/MTCCLProjectAssessment.pdf. 11 Montana Department of Labor and Industry, 2022 Montana Informational Wage Rates by Occupation, May 2022. https://lmi.mt.gov/_docs/Publications/LMI-Pubs/Labor-Market-Publications/OEWS-2021-Pub.pdf. 12 Montana DLI, 2022 Wages and Office of Head Start, Program Information Report, Summary Report 2022 – State Level. 12 Occupation Child care worker Head Start classroom teacher Preschool teacher (not special education) Kindergarten teacher (not special education) Elementary school teacher (not special education) Median Annual $26,720 Not listed $31,000 $46,340 $60,150 Cost (overall rank=1)7%11%12%17%29%24% Caregiver pay (overall rank=2)15%8%19%16%17%25% Ability to meet child's specific orspecial needs (overall rank=3)11%14%22%24%12%17% Convenience (overall rank=4)21%12%15%20%17%15% Child care licensing regulations (overall rank=5)14%28%17%13%13%14% Facility requirements (overall rank=6)30%25%13%10%13%9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6 (least important)54321 (most important) How important is each factor in increasing child care capacity and access to child care? Mean Annual $26,480 $30,318 $32,750 $49,170 $60,200 289 In 2019, the poverty rate for early educators in Montana was 24.7%, higher than for Montana workers in general (12.7%) and eight times higher than for K-8 teachers (3.1%).13 Child care workers’ wages vary slightly by geography, with Billings and western Montana having the highest average wages, and east-central Montana the lowest. Child care workers’ wages vary slightly based on their position, with assistant teachers reporting to the Early Childhood Project an average hourly rate of $12.76 and lead teachers reporting an average hourly rate of $14.19.15 Montana’s child care providers and Head Start programs used a significant proportion of their American Rescue Plan Act stabilization grant awards to pay for staff. Child care stabilization grantees report using over $53 million of funds for personnel between January and September 2022. This is approximately half of the funding paid to child care providers in that timeframe. The ECE workforce has significant turnover. New child care workers enter the field continuously as others leave. In calendar year 2022, the Child Care Licensing Program received a total of 2,971 new staff hire applications, an average of 229 per month. As of January 2023, there are 5,305 active staff members in licensed child care facilities. The 2022 new staff hire applications represent 56% of that total. Head Start staff also experienced significant turnover with 328 staff members leaving in 2022 out of a total 1,380 staff members (24% turnover); 78 reported leaving for higher compensation.16 As shown in Figure 4 above, MTDLI estimates 99% of the 545 annual job openings for child care workers are due to employee turnover and retirements. Child care workers experience higher rates of turnover and labor force exits than the average occupation in Montana.17 Low compensation hinders broad professionalization of the child care workforce. There is a tension between the need to provide high-quality early learning and development experiences to children through highly trained, educated, credentialed, and experienced staff, and the low wages paid in 6 Figure 7. Child care worker wages by area, 2022. 13 Center for the Study of Child Care Employment, UC Berkeley, State Profiles: Montana. https://cscce.berkeley.edu/workforce-index- 2020/states/montana/. 14 MTDLI, 2022 Wages. 15 Montana Early Childhood Project, Montana State University, Profile Summary Fact Sheet, Q3 2022. 16 Head Start, 2022 Program Information Report. 17 MTDLI 2022 – 2032 Occupational Employment Projections. 14 Area Montana Billings MSA West (balance of state) Southwest (balance of state) Missoula MSA Great Falls MSA East-central (balance of state) Mean Hourly $12.73 $12.97 $12.91 $12.65 $12.60 $12.77 $12.37 Median Hourly Mean Annual Median Annual $12.84 $12.60 $12.97 $12.84 $12.65 $13.11 $12.14 $26,480 $26,980 $26,860 $26,300 $26,200 $26,570 $25,720 $26,720 $26,210 $26,980 $26,720 $26,310 $27,270 $25,260 290 The ECE certificate program has created an important pipeline for ECE staff to enter the workforce. Retainment in the Montana workforce one year after certification is 96%, the highest of any certification Post-secondary ECE graduates have high retention in the Montana labor market. ECE Associate’s degree earners have higher retention rates than ECE Bachelor’s graduates. Over 85% of ECE graduates work in Montana a year after graduation, compared to 69% retention among graduates across all programs. ECE graduates with higher levels of education also report earning more income. The income premium for bachelor’s degree attainment compared to an associate degree is 20% one year after graduation and 34% after ten years.20 the sector. Overall, less than one-third of ECE staff in the statewide registry have a degree beyond a high school diploma.18 One percent (1%) of practitioner registry participants had a director’s credential.19 Among staff on the statewide ECE registry as of October 12, 2022, 40% were participating at Level 1, as shown in the figure below. Level 1 participants must have at least high school diplomas or equivalent and are working in ECE settings, but do not have additional related training or education. 7 Figure 8. Number of registry participants by Career Path level Figure 9. Early childhood education post-secondary workforce outcomes by degree type Source: DOR, OCHE, RMC, CC, UP, and apprenticeship income data match summarized by MTDLI. Real income reported in 2021dollars using the CPI-U. Percent filing resident or non-resident Montana income taxes. 18 Montana Early Childhood Project, Montana State University, Profile Summary Fact Sheet, Q3 2022. 19 Montana Early Childhood Project, Montana State University, ECP Quarterly Report, Q4 2021-2022. 20 Amy Watson, Montana Department of Labor and Industry, Montana Post-Secondary Workforce Report: A Report on Workforce Needs and Labor Market Outcomes of Graduates, October 2022. https://lmi.mt.gov/_docs/Publications/LMI-Pubs/Special-Reports-and-Studies/MTCollegeReport2022.pdf. Membership Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Level 9 Level 10 Degree Certificate (CDA) Associate degree Bachelor's degree 311 (8%) 178 (5%) 164 (5%) 47 (2%) 48 (2%) 181 (5%) 67 (2%) 4 380 (8%) 1354 (27%) 1 Year After 10 Years After 1997 (40%) Annual Income Growth Rate 3% 3% 3% Number of staff by level of certification on the statewide ECE registry % Filing Median 96% 89% 87% Median Income $22,869 $24,760 $30,213 % Filing Median 73% 81% 74% Median Income $29,605 $32,026 $40,331 291 We do not have data on the true cost of providing child care in Montana. Montana uses a market rate study to understand the advertised cost of care (fees charged to parents), from which the child care subsidy reimbursement rate is calculated (75% of the market rate, with the intention that families using subsidies would have access to 3 out of 4 available child care slots or programs22). The market rate relies on centers and home-based providers reporting their full-time and part-time advertised rates for infants, toddlers, pre-school age, and school-age children throughout the state. Montana’s reimbursement rates are shown in the table below. The Early Childhood Project, Higher Education Consortium, and DPHHS are updating the career ladder to recognize a broader array of education, training, experience, and licensure. These updates are in response to consistent feedback from child care staff and directors about frustration with the current structure not reflecting the diversity of training and experience that Montana’s ECE staff bring to child care programs. Expanding the combinations education, training, or experience that allows people to be hired into and move along an ECE career path will provide a pathway for increased earnings as well as increased stability in the workforce over time. Within this career work, ECP, DPHHS, and partners are creating pathways for motivated individuals to move along the ECE career ladder quickly can encourage staff retention, increase wages, and improve quality. The low starting salaries and staff retention challenges in the ECE profession make it all the more exciting for child care directors when they find skilled, motivated staff who want to move along the career ladder. However, providers are frustrated by their inability to support staff in moving more quickly up the levels in the state workforce registry, especially when it comes to being able to promote them to lead teacher and offer an associated wage increase. Providing incentives, accelerated professional development and training programs, and other opportunities for more rapid advancement through levels would support career development for motivated individuals and increase stability in the ECE workforce. DPHHS, CCRRs, Head Start, Raise Montana, and Zero to Five Montana are coordinating their systems work around the child care workforce to maximize impact and efficiency. Head Start and Early Head Start build a workforce pipeline by recruiting current and former parents. As of October 2022, over one-third of Head Start and Early Head Start staff in the state of Montana are parents who currently or previously had children attend a Head Start or Early Head Start program. Additionally, Head Start/Early Head Start programs are braiding state and federal resources to increase staff compensation through Federal Office of Head Start initiatives. program in the state. However, wages for ECE certificate holders start lower than any other profession with a certification program and the income growth rate over 10 years is among the slowest in any profession.21 8 EFFORTS TO INCREASE ECE WORKFORCE CAPACITY AND STABILITY • • • • COST OF PROVIDING CARE 21 Amy Watson, Montana Department of Labor and Industry, Montana Post-Secondary Workforce Report: A Report on Workforce Needs and Labor Market Outcomes of Graduates, October 2022. https://lmi.mt.gov/_docs/Publications/LMI-Pubs/Special-Reports-and-Studies/MTCollegeReport2022.pdf. 22 Bipartisan Policy Center, Early Childhood Initiative, The Limitations of Using Market Rates for Setting Child Care Subsidy Rates, May 2020. https://bipartisanpolicy.org/download/?file=/wp-content/uploads/2020/06/Limitations_of_Market_Rate_Surveys_for_Child_Care_Brief_FINAL1.pdf. 292 While market rates provide important information, they do not necessarily represent the true or full cost of providing care. Programs must charge what families can pay to fill slots, which does not usually include the full costs required to meet staff, health, and safety requirements. The 2020 Bipartisan Policy Center report cites two national studies comparing the estimated cost of infant care and the price charged to families for that care as: Cost of care varies by service model, but more funding does not mean higher wages or less staff turnover. Certain models of ECE, like those that focus on family engagement, integrated health, and social-emotional development, cost more to provide. Providers that are supported by federal funds, like Head Start and Early Head Start, receive more financial support per child than is charged on average by centers or home-based providers. For example, Early Head Start in Montana receives over $17,000 per child from Head Start25, one of the highest rates in the country, and Head Start receives around $12,500 per child.26 However, despite receiving more financial support more per child, Head Start and Early Head Start staff salaries are commensurate with those of all other ECE staff in the state. A Head Start teacher in Montana is required to have a bachelor’s degree and yet makes less than $30,000 per year on average. Low wages contribute to Montana having one of the highest staff turnover rates (over 20%) for both Head Start and Early Head Start staff.27 Home-based providers face the opposite problem, with many fixed costs despite offering a different model of care and charging less on average than centers. Home-based providers are required by federal and state law to take on many of the same costs as larger centers, including insurance, adaptation of facilities to meet safety and quality standards, and training and professional development investments. However, home-based providers generally charge less than centers. Reduced requirements for home-based facilities that align with the reality of home-based providers could decrease some of these costs. 9 Figure 10. Montana Best Beginnings Child Care Scholarship reimbursement rates effective July 1, 2021 Figure 11. National estimated cost of infant care compared to market rates charged to parents in center and home-based provider settings24 23 https://dphhs.mt.gov/ecfsd/childcare/ecsbproviders. 24 Bipartisan Policy Center, Limitations of Using Market Rates. 25 Head Start and Early Head Start programs are free for families. 26 Friedman-Krauss, A. H., Barnett, W. S., & Duer, J. K. (2022). The State(s) of Head Start and Early Head Start: Looking at Equity. New Brunswick, NJ: National Institute for Early Education Research. https://nieer.org/states-of-head-start-early-head-start-looking-at-equity. 27 Ibid. 23 Center Group Family FFN RCE Base-level infant care High-quality infant care Full day $45.00 $35.00 $35.00 $29.75 $26.25 Cost of care $14,700 $27,100 Ages 3 up to 6 Center fee $11,444 ($3,256 below cost) $11,444 ($15,656 below cost) Ages 6 and older Home-based fee $8,348 ($6,352 below cost) $8,348 ($18,752 below cost) Half day $27.00 $21.00 $21.00 $17.85 $15.75 Ages 0 up to 3 Half day $24.00 $19.80 $21.00 $17.85 $15.75 Full day $40.00 $35.00 $35.00 $29.75 $26.25 Half day $22.80 $19.80 $19.80 $16.83 $14.85 Full day $40.00 $33.00 $30.00 $25.50 $22.50 293 Child care availability impacts workforce participation. The 2020 survey of Montana households with children under 6 showed that many parents are unable to fully participate in the workforce because of child care challenges (high cost of care, care availability/adequacy), specifically in the previous year:28 • 62% of respondents missed time from work. • 26% declined further education or training. • 22% turned down a job offer. • 15% changed from full-time to part-time work. • 12% quit their job. 28 Providing shared services and discounted purchasing can decrease costs, especially for home-based providers. Discounts negotiated for groups of child care providers can decrease the cost of care. Raise Montana provides shared and discounted purchasing for many common supplies and services needed by all types of child care providers. Currently, most discounts are for food, books, and educational supplies. Shared services like substitute teacher placement and software licenses can improve the efficiency of child care businesses. Raise Montana provides a substitute service that any licensed child care provider can use to find qualified substitutes. Raise also offers discounted rates on child care management and family engagement software as well as on payroll services. Pooled costs for employee benefits can improve ECE staff retention. Raise Montana provides a low-cost telehealth service that child care providers/owners can offer to their employees as an additional benefit. For home-based providers, who generally have only a few employees, the cost is $10/month (up to 9 employees). For the largest centers (those with 20-29 employees) the cost is $100/month. Both medical consultations and behavioral sessions are available through telehealth. The ARPA child care stabilization and innovation grants discussed were used to support child care programs in paying part of the cost of care to stabilize the market and provide opportunities for innovative approaches to service delivery. Zero to Five Montana is leading work to develop collaborative, public-private strategies to increase investment in child care. Various community frameworks and toolkits are being implemented including child care cooperatives and child care business hobs of resources. Nine communities participated in the Community and Employer Innovations Pilot project, which brings together community stakeholders and the business community to identify sustainable solutions to expanding child care capacity and thus stabilizing the local workforce. Montana Child Care Business Connect is a statewide resource hub for employers, community members, and child care providers. Eleven communities are participating and reporting a positive impact on child care capacity. 10 EFFORTS TO REDUCE COST OF CARE • • GENERAL WORKFORCE IMPACTS OF LIMITED CHILD CARE CAPACITY BBER, Lost Possibilities. 294 The table below shows the impacts by household type, with the most significant differences existing between households with lower and higher incomes as well as by race. Over half of the employers who responded to the 2022 Child Care Licensing survey say that child care availability (or lack thereof) limits employee recruitment (63%) and retention (55%). Employers who invest in child care consistently cite a return on that investment, with the main benefits being “loyalty” and lower turnover, which saves employers money in training and new staff.30 The chart below shows the impact of family obligations for the workforce with children under 6 on their ability to participate in the labor force over time, specifically showing the percentage of parents who left the labor force or are working part-time or reduced hours. Parent participation has improved since the height of the pandemic but remains less than pre-pandemic levels. In 2022, an average of 22,800 Montana parents were unable to participate in the labor force due to family responsibilities and a lack of child care. 31 An additional 45,000 Montana parents were underemployed or reported working reduced hours in 2022 – which translates to 8% of the state’s labor force.32 Parents make up a significant and underutilized segment of the state’s workforce, many of whom would like to be more fully engaged in the labor market but are limited by a lack of access to consistent, affordable, high-quality child care. 11 a Difference significant at the 95% confidence level. Figure 12. Child care-related work problems experienced during the past year, by household type 29 BBER, Lost Possibilities. 30 Kristal Jones and Kirsten Smith, Child Care Licensing Assessment. 31 Current Population Survey, IPUMS monthly extract December 2022. Number of Montana parents who were not in the labor force due to family responsibilities. 32 Current Population Survey, IPUMS monthly extract December 2022. Number of Montana parents who reported working reduced hours in the past week. 29 Missed time from work Declined to pursue further education ortraining Turned down job offer Changed from full-time to part-time Quit job Declined a promotion American Indian 56% 47%a 37% a 18% 27% a 7% White 64% 24% a 22% a 15% 10% a 6% Urban 62% 26% 24% 17% 12% 5% Rural 62% 27% 19% 11% 10% 7& High 1/3 income 69% 21% a 12% a 10% a 5% a 5% Total 62% 26% 22% 15% 12% 6% Low 1/3 income 57% 38% a 36% a 24% a 26% a 8% 295 In total, nearly 70,000 parents were either not in the labor force, working part-time instead of full-time, or working reduced hours because they were taking care of family/ lack of child care. The number of parents unable to fully engage in the workforce has come down slightly since its peak in late 2020 but remains elevated compared to its pre-pandemic level. The workforce landscape has changed in the last three years. COVID-19 has changed what work looks like for some Montanans, with more remote and online work options available. Individuals who can work remotely are often choosing to work from home at least some of the time, despite workplaces reopening.34 Despite these changes, parents’ child care needs are the same. 12 Figure 13. Impact of inconsistent child care on parent participation in labor force 2017-2022 33 MTDLI analysis of U.S. Bureau of Labor Statistics Current Population Survey, IPUMS monthly extract through December 2022. 34 Kim Parker, Juliana Menasce Horowitz, and Rachel Minkin, Pew Research Center, COVID-19 Pandemic Continues to Reshape Work in America, February 2022. https://www.pewresearch.org/social-trends/2022/02/16/covid-19-pandemic-continues-to-reshape-work-in-america/. 33 296 There are significant efforts underway to address child care challenges related to capacity, child care workforce, cost of care, and the general workforce. These efforts are collaborative across DPHHS, Zero to Five Montana, Raise Montana, Child Care Resource and Referral Agencies, the Early Childhood Project, Head Start/Early Head Start programs, the Montana Head Start Association, businesses and business interests, and others. These efforts outlined in the sections above to increase child care workforce compensation, increase professional capacity, and address/reduce the cost of providing care will collectively increase child care capacity. 13 SUMMARY OF EFFORTS TO ADDRESS CHILD CARE CHALLENGES 297 In January 2024, more than 10,000 early childhood educators (ECE) from all states and settings—including centers, family child care homes, faith-based programs, Head Start, and public preschool programs—responded to a new ECE field survey from NAEYC. The survey results and accompanying stories illustrate the ongoing challenges facing this field, the exhaustion of providers, the clear benefits of public funding, and the need for additional support following the loss of federal funding that helped stabilize the sector before it expired in September 2023. 1/2 The problems are clear: As federal investments that have sustained the child care and early education sector expire, the structural challenges that have always plagued the sector have remained and grown. Program costs are rising, staff burnout and turnover remains high as wages remain too low, and already stretched families are having to pay more for the care they need. The result of these challenges is a reduced supply of high-quality care that everyone in our society—from families, to businesses, to communities—relies on to be successful. The solutions remain clear: Public investments in child care and early learning remain necessary to build an early childhood education system that works. Congress should follow the example of the 11 states and District of Columbia that have invested new and significant state funding to support early childhood educators and stronger state systems by passing robust, sustained investments that ensure programs and educators have the support they need to provide high quality care for all families with young children. “We Are NOT OK” MONTANA Early Childhood Educators and Families Face RisingChallenges as Relief Funds Expire February 2024 Here are some reflections from survey respondents in MT (Montana): “We can’t keep staff because they want more than we can pay. We can’t pay them what they are worth without raising tuition beyond what families can afford. The cost of living in Missoula has more than doubled.” - Director/Administrator “The ARPA money ended, and we raised tuition again. Normally we increase 2-3% each year to keep pace with the cost of living, but in the past two years, it has gone up 10-15% and we are pricing out the lower -middle income bracket.” - Director/Administrator “The cost of food has grown so much, and parents aren’t paying their bills on time anymore.” - Director/Administrator “We have no guaranteed income. When families are faced with not being able to pay for care our income decreases rapidly even though we are still working 5 consecutive 12-hour shifts. It’s a lose-lose for everyone.” - Early Childhood Educator Check out all of NAEYC’s surveys of the early childhood education field online at NAEYC.org/ece-workforce-surveys. 298 2/2Early Childhood Educators and Families Face Rising Challenges as Relief Funds Expire Here’s a brief summary of the survey data from MT (Montana): AMONG ALL RESPONDENTS: STATE AMONG CHILD CARE CENTER DIRECTORS AND FAMILY CHILD CARE OWNER/OPERATORS: NATIONAL Over the last 6 months... Compared to this time last year... Total sample size Total employed in family child care homes Total employed in child care centers Total sample of center directors and family child care owner/operator respondents working in child care centers and family child care homes 88 19 38 33 52% 45% 29% 74% 65% 49% 36% 60% 78% 60% 12% 55% 53% 51% 30% 55% 56% 48% 36% 49% 53% 46% 16% 32% 3,815 10,128 1,450 5,084 % indicating they are more burned out now % indicating their economic situation has improved % indicating their economic situation has worsened Supply % indicating their program was under-enrolled relative to capacity in the last 6 months % indicating that they raised tuition Staffing % indicating their program is experiencing a staffing shortage % indicating that they raised wages Co st s % indicating their rent costs went up % indicating their liability insurance costs went up % indicating their property insurance costs went up Supply % reporting at least one child care program in their community OPENING over the last year % reporting at least one child care program in their community CLOSING over the last year Methodology This online survey, created and conducted by NAEYC using SurveyMonkey, represents the responses of a non-randomized sample of 11,154 individuals working in early childhood education settings who completed the survey in English or Spanish between January 8-22, 2024. To generate a more representative national sample from the pool of responses, a probability proportional to size (PPS) methodology was used to pull samples by state that are benchmarked to the share of the total early childhood workforce by state. These shares were calculated by the authors from the Bureau of Labor Statistics May 2022 Occupational Employment and Wage Statistics (Codes: 11-9031, 25-2011, 25-2051, 39-9011). The final sample size for the national-level analysis is 10,128. In contrast, for the state-level analysis, the entire sample of responses from each state were used. We are unable to supply detailed analysis in states for which there are very small sample sizes across sub-groups. The survey links were shared widely through email newsletters, listservs, social media, and via partnerships, and 10 randomly selected respondents were provided with a $100 gift card and another 10 randomly selected respondents were provided complimentary registration to NAEYC’s February 2024 Public Policy Forum for participation in a sweepstakes. Given the constantly changing and widely varying nature of the crisis, the broad analysis from this survey is intended to present the experiences of the respondents, as captured in the moment that they take the survey, with extrapolations for the experiences of the field and industry at large. Additional information available at www.naeyc.org/ece-workforce-surveys 299