As Pennsylvania begins to reopen, child care centers worry about the financial impacts COVID-19 has had and will continue to have on their industry.
"Centers are being asked to reopen so the economy can recover," said Becky Flaherty, Shady Lane School Executive Director. "But for us to reopen is a terrible business decision."
Flaherty was one of several who testified in the State Senate and House Democrat Policy Committees hearing on child care centers and funding. She says, since forced to close in March, her center has lost $250,000. Even as counties move to yellow and green, child care centers worry about the future.
"We are at a point where we've exhausted our line of credit, we operate on very thin margins," said Flaherty. "So, we can't make payroll unless we have more support."
Flaherty says, to reopen her child care center on June first, she's looking at a loss of about $50,000 a month. Only about 20 percent of children are expected to return to child care centers in the coming months, but having more expenses by adding more staff and cleaning measures to meet CDC guidelines makes their future look uncertain.
"We can survive on what we have through June, maybe mid-July," said Flaherty. "But, after that point we don't know."
Flaherty's concerns were echoed by several other child care center executive directors in the hearting. They all say, they need CARES Act funding for their centers released now but, say, all federal money coming to their programs will not be enough to keep them afloat.
"There is not enough money to revive the child care sector," said one unnamed testifier. "You will see child care centers close."
All of the testimony from Wednesday's hearing will be used to push legislation through the State House that would guarantee more money to the child care industry.