Fargo-Moorhead Workforce Study Review: Part 4

This is a continuation of the North Dakota Economic Security and Prosperity Alliance’s  (NDESPA) consideration of Fargo-Moorhead’s Workforce Study.  The Fargo-Moorhead Workforce Study repeatedly impresses me every time I pull it out to take a look at it.  The depth and breadth of the study is amazing. 

The focus of NDESPA’s examination of the workforce study is on the BUILD section.  BUILD is dedicated to an effort to “Develop a framework for financial independence and upward mobility for workers in low-wage and basic-skill jobs.” (Study link, p 25)

The study recognizes that 45% of the job openings forecasted to be created between 2014 and 2019 would be low-skill occupations, “in hospitality, food service, and retail which are important contributors to the region’s quality of place.” (Study link, p 25)  Other openings forecasted are in “occupations that are vital supports for families, including child care workers….” (Study link, p 25)

The study goes on to state that, “Valuable skills can be gained in each of these occupations, but a strong framework for financial independence and upward-mobility must be developed to support these workers.” (Study link, p 25)  It goes on to state that without such a framework the region’s economic growth would not be inclusive and residents of low-income would not be in positions to take advantage of economic opportunities. 

Today’s examination impacts one of the vital supports for everyone in the Fargo-Moorhead region, not just families with low income, childcare. 

Childcare is a need throughout the state. Childcare Aware ND’s “Potential Demand for Child Care (2014)” report only 37% of the childcare needs in North Dakota in 2014 were met by licensed childcare providers.   The same report shows that Cass County has 56% of its childcare needs met by licensed childcare providers, but if you include the laborshed as a whole, which consists of Stutsman, Steele, Traill, Grand Forks, Cass and Barnes Counties, only 38% of the childcare needs are being met. 

The study takes a two-pronged approach to increasing the capacity of childcare in the Fargo-Moorhead regions.  The two prongs of the workforce study’s approach are to help interested employers establish near-site child care centers, and exploring creative solutions for meeting childcare needs among workers of low income, such as cooperative models, intergenerational care, or innovative subsidies.

The multi-employer approach to increasing childcare capacity is one that is gaining traction in North Dakota.  This can be seen by the recent announcement from Basin Electric, Sanford, and the Bismarck YMCA to start a cooperative childcare facility with each employer taking a specified number of slots and providing an additional source for childcare slots in Bismarck. 

This model helps revolutionize the childcare business structure, because it provides business support for the largest roadblock for the development of childcare in any area, which is infrastructure costs. 

The second prong of the Workforce study’s plan to increase the childcare capacity in the Fargo-Moorhead region is to explore creative solutions such as cooperative models, intergenerational care, or subsidies. 

It is obvious that creative solutions are going to be necessary to deal with the high level of unmet demand for childcare services across the state.  But, in the development of these solutions North Dakota, and Fargo-Moorhead specifically, cannot shortchange quality of care for quantity. 

If any subsidies are provided from the federal, state, city, or county levels those entities must make sure that the creative solution providers, be they providers who care for children in the provider’s residence or larger centers, provide quality care as defined by Bright+Early, ND’s quality assurance program for child care..  

In the end, the issues with childcare in North Dakota are twofold.  First, North Dakota cannot afford to create a two-tiered system, which continues to leave children of families whose parents have low-wage jobs providing them a lower level of care and education. 

Second, we need to figure out a way to deal with the biggest barrier to the creation of a quality childcare system, the cost of infrastructure.  While the cooperative model is a great start, with current and necessary licensing requirements it is only applicable in larger cities with an employer base able to support it.

An independent licensed childcare provider is required to purchase or rent a building for their location.  Then, they have to make necessary modifications to make it a safe and quality place for the children in their care. 

Current financing mechanisms only allow for loans, which force the provider to make a choice between paying on the loan or paying their staff a living wage.  It really isn’t a choice. 

The Fargo-Moorhead workforce study opens the door to the conversation regarding how to increase the capacity of licensed childcare in their region.  But, this is a conversation that needs to happen on a much larger scale around the state.