Challenges

Access, Scalability, Worker Issues

Location

Montana

Stakeholders

Businesses, Nonprofits

Beneficiaries

Children, Parents

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Overview

The port authority in Fergus County, Montana, connected local business leaders with a childcare center, Small Wonder, to support its expansion and increase availability, and develop new strategies to expand regional childcare capacity and affordability.

Key Impact Metrics

  • 43
    childcare spots created
  • $50K
    childcare expansion funded partially through fundraising
  • 12
    childcare spaces added by Fox Den, a group home childcare provider

Problem

In Fergus County, businesses and families discovered a common problem—the lack of childcare availability for parents. Waiting lists frequently exceed 60 children in an area with 620 children under the age of five. Closures and shortages are a profound issue, as dozens of families are left without childcare and sometimes forced to move if they are placed on a waiting list for another facility. Additionally, childcare costs were 19-30% of a family’s income, meaning low-income families could not afford full-time childcare. Childcare centers could not lower prices—profit margins are small, and wages were modest.

Solution

The Fergus County Port Authority connected local business leaders with Small Wonder, one of the only major licensed childcare providers in the area, to support its expansion and development of new childcare solutions, given the delicate situation. As a result, Small Wonder has expanded its capacity by about 40 slots, and other childcare centers have expanded, funded primarily through fundraising initiatives. Cross-sector meetings with childcare operators, officials, and business leaders led to greater communication and the development of initiatives, such as businesses directly purchasing childcare slots for their employees and encouraging competition and the creation of new licensed providers. Businesses have also begun to plan and develop new worker benefits initiatives, such as paid parental leave, stipends, and other childcare benefits, in conjunction with other local businesses in the area.

Results

  • Beneficiary Impact55 total new childcare spots added across multiple programs
  • Employee ImpactWages for providers increased from $8.50 to $10 and $14 for trained workers
  • Financial Results$50,000 expansion into a local Catholic diocese

Replication Tips

  • Identify and convene a core group of influential local business leaders who are impacted by a lack of childcare availability.
  • Facilitate regular roundtable discussions between business leaders, local childcare providers, and community organizations to share needs, challenges, and potential solutions.
  • Encourage business leaders to assess employee childcare needs and promote the development of childcare benefits packages.
  • Highlight successful models from other communities and invite guest speakers to share best practices.
  • Leverage local port authority or other local economic development entities.

Suggested Implementation Timeline

~3-6 months

Sources