Challenges

Access, Worker Issues

Location

North Dakota

Stakeholders

Businesses, Local Government, Nonprofits

Beneficiaries

Parents, Children

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Overview

In Mercer County, North Dakota, eight major employers—including Basin Electric Power Cooperative and Union State Bank—banded together to create the New Bethel Center, the first major daycare center in the county.

Key Impact Metrics

  • 8
    employers from 5 different industries in the cooperative
  • 1.1K
    workers provided childcare

Problem

Mercer County, North Dakota, with a population of about 8,500 people, had a severe childcare shortage. A 2015 study showed the county was short nearly 300 childcare spaces, and existing care met only 40% of demand. Local businesses, particularly in the energy sector, recognized that the lack of childcare was a major barrier to recruiting and retaining employees. Potential new hires were deterred from moving to the area, and existing employees faced challenges in maintaining their work schedules or even staying in the workforce.

Solution

Spearheaded by an employee task force at Basin Electric, a new co-op entity was established, consisting of eight organizations, including Union State Bank, North American Coal Corporation, and Hazen Public Schools. These organizations joined forces to open a childcare center in Mercer County called New Bethel Center, providing capacity for 76 children. They hired a qualified childcare director and staff members, offering above-market wages. Each employer subsidized a portion of the operating cost. The cooperative governance means each company has a say in its board governance.

Results

  • Beneficiary Impact
    76 childcare slots created
  • Employee Impact
    $17/hour average salary
  • Financial Results
    ~$4,000 saved per year on childcare for beneficiaries

Replication Tips

  • Find partners to co-invest with: If one employer can’t shoulder a full center, gather other local employers. This solution saw a consortium of companies from diverse industries, such as healthcare and energy, joining together to open a childcare center.
  • Use cooperative structure: A formal cooperative or nonprofit consortium can manage the center, insulating individual companies from liability and enabling shared decision-making. It also may open up financing options—rural co-ops leveraged USDA zero-interest loans, for example.
  • Leverage grants: Look for state or federal grants for childcare deserts. Showing multi-employer backing strengthens grant proposals.

Suggested Implementation Timeline

~14-18 months

Sources