Lack of child care options forces South Dakota families to make tough decisions

LEAD, S.D. – Companies are desperate for employees as the post-pandemic workforce continues to adjust. But when families can’t afford child care costs – or find an option that works for their schedule – someone often stays home.

Kids Count data from the Annie E. Casey Foundation shows 75% of South Dakota families with kids under the age of 6 have all parents working outside the home. In most cases, that’s an economic necessity for those families.

Considering South Dakota’s current historic rate of unemployment, any barrier to workforce participation is a matter of concern to the state’s economic future. This is especially true in high-demand fields like health care – and even child care itself.

Stephanie Wiegand is a registered nurse and her husband is a physician assistant. They moved to Lead with their four young children in the spring of 2020. She found one child care facility in neighboring Deadwood, but its hours didn’t fit their schedules.

“I had 12-hour shifts, (my husband) has 24-hour shifts … there was no way we could drop our kids off between these certain hours,” she explained.

Since the only nearby child care center didn’t meet their needs, Wiegand looked to family providers who offer child care from their homes. She looked to the state Department of Social Services’ online directory – and found nothing.

“I just learned recently, too, that not all day care providers have to register with the state,” Wiegand said. “That was also a little mind-blowing because the state I was in previously, it was more regulated.”

Registering with the state is voluntary for family child care providers with 12 or fewer children. The benefits of state registration include eligibility for grants and other assistance, but it also requires background checks and annual inspections. Unregulated family day cares can list themselves on the state's directory, but only a dozen in the whole state have done so — and none in Lead.

The Weigands moved here for job opportunities – answering an ongoing call from a variety of industries and the governor of South Dakota herself. What they discovered is a challenge that faces nearly every family in the state: finding care they can trust and afford.

“We’re here, but now we’re stuck,” said Weigand. She explained she’s able to pick up an occasional nursing shift now that most of the kids are school-aged, but she had no choice but to stay home for the first two years living in Lead.

Even if parents can find child care that suits their family’s schedule, the cost of care per child is prohibitive for many.

In Sioux Falls, RiAnna Kolovsky also stepped away from her career to care for her kids, 2-year-old Sylvi and 11-month-old Wolfgang.

“Child care was just not feasible,” she said. “This year I would have paid over $27,000 a year to have both of these kids in child care.”

Kolovsky understands the issue better than most because she used to work in child care. She even helped families search for payment assistance opportunities. Few qualify for government subsidies. And fewer still can manage the complexities of the application.

Kalovsky left her job in a child care center to care for her own children, but the profession also faces dismal retention rates due to poor wages that have not kept up with other fields. In 2021, the turnover rate of child care providers in South Dakota was more than 85%.

Today, Kalovsky is a stay-at-home mom. But because her family is down to just one income, they’ve been priced out of their rental property. Now they’re moving 60 miles away to Ethan, where her husband’s family has a house and job waiting for them.

“I don’t see a lot available in the region. And that does make me a little bit anxious,” Kalovsky said. “How am I going to endure the winter – long winter – with two kids at home?”

Since leaving her job, Kalovsky has created the grassroots Campaign for Childcare to push for reform at the state and federal levels.

“I don’t advocate for child care so I can go back to work,” she said. “I do it so my daughter doesn’t have to choose between a career that she probably will have invested in like I have. Four years of education and student loans to now not be doing that because it’s not worth it. ..."

Republican state Rep. Taylor Rehfeldt of Sioux Falls is well-aware of the cost-barrier to child care her constituents face, though neither she nor her husband has had to leave the workforce.

“My daughter, Tallie, she is going to daycare in about six to 10 weeks,” Rehfeldt said in August, “and it’s $275 dollars per week. So it’s $1,100 dollars per month,” she said.

She said the family is looking at $2,000 per month in child care expenses, which as nurses, they can afford. “{But) $24,000 a year is not attainable for most families to be able to pay.”

Rehfledt was among lawmakers who supported a legislative interim study on child care after this year’s session. These studies bring lawmakers and experts together, and often result in proposed law changes. However, the executive board that decides on study topics chose different areas this year, in part because the issues surrounding child care are so broad.

In lieu of a legislative study, Brookings Republican Sen. Tim Reed is leading a group looking into the issue. He’s also CEO of the Brookings Economic Development Corp.

“The No. 1 thing I think we have to do is figure out how we’re gonna raise the rates that are being paid (to child care providers),” Reed said. “And I think that’s gonna be the government taking a look at how we’re subsidizing.”

However, Reed notes projected state revenues are not as lush as they’ve been in recent years thanks to the influx of federal pandemic relief monies. But Rehfeldt believes there's an appetite among her colleagues in Pierre to address the issue as it continues to gain attention.

“When you talk about child care as a workforce issue, people listen,” she said.

— This article was produced by South Dakota News Watch, a non-profit journalism organization located online at sdnewswatch.org.

This article originally appeared on Sioux Falls Argus Leader: Lack of child care options forces SD families to make tough decisions