SIOUX FALLS S.D. (KELO) — The South Dakota Department of Social Services (DSS) has put out its most recent child care cost analysis. According to the study, in most cases, annual expenses for many South Dakota child care centers are outpacing their revenue sources.
The analysis breaks down annual costs and revenue for different-sized child care programs, dividing them based on the type of program, the age groups served and geographic location.
The model for a Licensed Child Care Center assumes a full-time equivalent enrollment of 100 children. The model for Family Day Care assumes that a program serves 12 children. The model also assumes three different geographic regions in South Dakota, namely urban, suburban, and rural areas.
Expenditures on average were just short of $1 million while revenue remained lower at around $900,000. The chart below breaks down the modeled costs, revenues and net revenues, and the estimated cost per child for each of the three areas.
Wages for teachers and other positions in child care are also broken down in the study. According to the analysis, the average full-time teacher pay between all 3 areas is $32,000 per year or roughly $15 an hour.
The wage assumptions illustrated below represent the average midpoint between the highest and lowest wage for each position in each of the three regions of rural, suburban and urban.
The primary source of revenue for most providers is private tuition paid by families. According to the study, the cost of care estimates are similar to those found in other states in the region.
In South Dakota, the estimated cost of full-time care in child care centers across all regions ranges from $14,190 to $16,113 for infants and toddlers, and from $9,377 to $11,729 for preschool. The cost of full-time family day care in South Dakota ranged from $5,924 to $6,666 across all age groups.
The study said it did have some limitations and an “average-sized” program may not reflect all child care programs.
“The models did not consider “in-kind” donations or contributions from community organizations or school districts that child care programs may rely on to defray operating costs – e.g., donated or discounted facility space, meals or maintenance services provided by other organizations,” the DSS study said under “limitations.”
The tables show the baseline costs for programs that meet basic licensing and certification standards, and also the cost of meeting the requirements for the highest level of quality in the QRIS, as well as the additional revenue provided through quality grants for programs operating at that level.
Market rate study also completed
In addition to the 39-page cost of child care analysis, an 11-page market rate report was completed by DSS.
The cost of care analysis noted
The study doesn’t include unlicensed and unregistered in-home day cares. According to DSS, there were 772 providers surveyed, including 351 State Registered Family Day Care, 299 Licensed Child Care Programs and 122 Licensed Before and After School Care Programs.
“Informal, in-home, and relative providers known to DSS are not included in the study population as part of the ‘priced’ child care market since they are not considered to have an ‘arm’s length transaction’ as part of their child care relationship,” the DSS study said.
The true number and capacity needs for child care is unknown and DSS said it doesn’t maintain to unregulated day care providers.
“State unregulated providers are not included in the study population since DSS does not maintain or have access to a comprehensive universe of these providers,” the DSS study said.
Last year, child care advocate Kayla Klein said 60% of South Dakota’s child care market is unregulated.
The full study can be found below.
