Lutheran Social Services of South Dakota will end early childcare services in August

Lutheran Social Services (LSS) of South Dakota announced Tuesday via press release that the organization will no longer provide childcare services to infants/toddlers and preschool-aged children due to “financial sustainability challenges.”

The last day for this decade-long program will be Friday, Aug. 16. School-aged afterschool and summer programs will continue as usual in Sioux Falls, which includes Southern Hills, Hilltop and Here4Youth.

LSS President and CEO Rebecca Kiesow-Knudsen stated this was a “difficult decision” to make and acknowledged the impact on South Dakota families, as well as employees, especially during an ongoing childcare crisis.

More: Four Sioux Falls childcare centers shutting down early next year

"Despite our efforts to balance operational costs with affordable service rates for families, we find ourselves unable to sustain these programs financially,” she said.

During and after the COVID-19 pandemic, many childcare providers received temporary federal government assistance funding. It was through this funding that LSS was able to offer assistance to parents during that time, but now these funds have been depleted, forcing LSS to “reassess” the organization’s capacity to continue services.

According to previous Argus Leader reporting, Kiesow-Knudsen stated the childcare crisis didn’t start with the pandemic, but the pandemic did ratchet up the intensity of the crisis.

LSS has been contacting other childcare providers in the area to help both families and employees find alternative care and employment. Childcare providers are also encouraged to contact LSS if any openings are available.

"Providing families with a transition period is important to us, and we are committed to supporting them during this time," said Kiesow-Knudsen.

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

The press release said although “LSS has provided advocacy on the escalating crisis in childcare and participated in local and statewide initiatives addressing the issue, long-term, sustainable solutions have not developed.”

The Argus Leader reached out to Kiesow-Knudsen for more information and clarification about the situation, but Kiesow-Knudsen responded by saying LSS was not accepting media requests and referred the Argus Leader to the press release.

"LSS infant/toddler and preschool programs are supported by fees from our families," she stated, without answering the following questions asked:

• What’s being done to help displaced employees and parents/children who utilized these services?

• When were parents and employees told?

• When was this decision made and how was it made?

• How were the temporary federal funds “expended” during the COVID pandemic?

• Where did funding come from for early childcare services?

• How many families/kids and employees will be displaced?

• Why cut this program when South Dakota and Sioux Falls are in the middle of a childcare crisis? Were there no other options considered?

• Where can parents seek childcare elsewhere?

• How is LSS going to continue to advocate for childcare in Sioux Falls and SD without these programs?

• Will LSS be looking to cut other programs because of this depleted funding?

Earlier this year, an implementation grant of more than $284,000 from the Governor’s Office of Economic Development’s Community-Based Childcare Grant Program was given to Startup Sioux Falls and LSS to help develop new daycare options in the area, according to a May article from The Dakota Scout.

“The LSS portion of this project has the capacity to support 40 to 50 multi-lingual entrepreneurs in opening registered and licensed family daycares,” said Laura Smith-Hill, an LSS education services supervisor, according to KELOLAND News reporting in May.

“LSS is excited to be a partner in this project,” stated Smith-Hill in a press release about the grant from the city. “This grant will both enhance and increase access to existing education and training offerings at the LSS Center for New Americans, serving more than 600 adult English learners annually. Through collaboration with community partners, LSS has expanded its Introduction to Childcare curriculum to integrate all necessary content for safety and licensure.”

More: Sioux Falls Childcare Collaborative shares in-depth look at childcare crisis, possible solutions

In March 2022, LSS was one of many non-profit leaders in Sioux Falls who participated in a screening and discussion panel for the 2021 documentary “Starting at Zero.” 

“I almost was in tears a few times this morning just thinking about how far behind we are as a state, and the resources that we put into that early childhood education,” Kiesow-Knudsen said in the March 2022 Argus Leader article.

She also said the affordability of childcare is a huge issue for families, and the costs are only increasing as childcare staff wages remain low and staff have left the industry in the last five to six years. The majority of childcare providers do have space for more children, but they need more staff to keep up with student-to-staff ratios.

This article originally appeared on Sioux Falls Argus Leader: Lutheran Social Services of SD ends early childcare services