Report: La. Child Care Providers Lost $245M Due to COVID-19

NEW ORLEANS – The Louisiana Policy Institute for Children has released has released a new report that shows child care providers in Louisiana continue to face cascading challenges resulting from the COVID-19 pandemic, including collective losses totaling almost $245 million. 

“Our most recent findings reiterate what we’ve witnessed firsthand over the last year, namely that further action is necessary to restore the early care and education sector to the level necessary to support businesses, working families and Louisiana’s full economic recovery from COVID-19,” said Dr. Libbie Sonnier, executive director of LPIC. “As we see it, the most immediate next step to create a long-term, sustainable source of funding is to advocate for the allocation of state revenues from sports betting, both in-person and online, to the Early Childhood Education Fund in the upcoming legislative session.”

Other key findings from the survey highlight that the financial outlook for providers remains bleak as losses continue to grow, as most providers borrowed funds to pay for business expenses and experienced families being behind on tuition payments. The financial challenges of remaining open are exacerbated by operational challenges facing providers and temporary closures resulting from potential or confirmed COVID-19 cases. Over the course of the pandemic, providers experienced higher costs for cleaning supplies, difficulty obtaining needed supplies and increased employee absences. These factors, along with lower enrollment rates, leave Louisiana child care providers uncertain of their ability to remain open in the long term.

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Complete findings can be found here.

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