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Tough Times: Day cares starting to feel pinch of economy

February 16, 2009|DAVID BROCK

As the national decline in jobs becomes evident in a weakening economy, the effects are starting to trickle down to local child day-care centers.

While directors at many established centers say they are as full of children as ever, others say that job losses and layoffs already are having an impact on business.

A Children's Place in Danville, which is operated by Ephraim McDowell Health, has seen a significant drop in numbers.

"Over the past several months there has been approximately a 10-percent drop in daily attendance," said Harry Nickens, vice president for community relations and development with McDowell.

"That is due primarily to having a parent who is now available to provide child care."

Nickens believes these spots have been vacated by families who have recently lost jobs in the volatile manufacturing and retail markets.

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Kids Learn and Play in Harrodsburg has encountered a similar drop. Director Malanie Qualls said it is clear that jobs lost at local manufacturers, such as Trim Masters and Bay West, have directly impacted business.

"We have lost six kids in the past month," she said. "Parents have had to take their kids out because they lost their jobs. We have never had this many people come through the door and say they had to take their child out because they were laid off."

Qualls feels fortunate that most of the vacated spots have been filled but said there are other indicators that do not bode as well.

"We always have five to six calls a week inquiring about whether we have any spots and usually have to say we are full. There have been very few, if any, calls over the past couple of months, though."

Lisa Cook, who owns Countryside Daycare in Stanford, pointed out that fluctuation in attendance can be attributed to seasonal factors.

"Day care is different than a lot of other businesses, because you see many of the kids out during November, December and January and then it usually picks up," she said. "You can tell that this year, though, that it is the economy. We know that parents are being laid off."

True in Harrodsburg also

Louise Renner, who runs A Spot for Tots in Harrodsburg, said the sputtering economy has impacted her business in ways she has never seen before.

"We have had six or seven entire families who have had to stop coming, and it has gotten lower than it has ever been here," she said.

"People are losing their jobs or having to take lower-paying jobs. Work is hard to come by, and a lot of these families need help."

Assistance for child care is available through the state for those who qualify.

One of the main requirements to get child care assistance is that a parent be employed part time or be enrolled in school.

Susan Vessels, director of Community Coordinated Child Care in Northern Kentucky, points out that day-care centers face unique challenges as businesses during bad economic times.

"Child care is one of those businesses with a very small amount of profit to begin with," she said. "When you see drop in enrollment, unfortunately you sometimes see people letting go of staff, or even shutting down. It is not a situation where you can just consolidate your activities and put the youngest kids together with the older kids."

While she remains hopeful that the economic situation will allow her business to maintain its current structure, Qualls is wary of further job loss.

"It is concerning," she said. "You just hope that factories and other businesses don't have to continue to let people go. None of our staff has been affected yet, but we understand that if we don't have kids, we don't have a job."

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