Examining Nebraska’s childcare crisis

In rural Nebraska many families cannot find reliable, affordable childcare in their local areas. This shortage keeps parents — especially mothers — out of the workforce. It also hurts local businesses and threatens the future of small towns. Over 61 percent of rural Nebraskans view the childcare shortage as a critical problem.

Of Nebraska’s 93 counties, roughly 84 (91 percent) do not have enough licensed childcare spots to meet the demand from working parents. About 10 counties have no licensed providers at all and over a third of the rural population lives in a “childcare desert,” where three or more children compete for every available licensed spot. Statewide, the gap between children who need care (those under 6 with both parents working) and available licensed spaces is around 17,500 spots, though the shortfall has improved since 2020 as capacity has grown modestly and fewer women are in the workforce.

In cities like Omaha and Lincoln where more daycare spots are available, the problem is often high costs and long wait lists. But in rural areas there simply are not enough centers or home-based providers within a reasonable distance. Though once common, home-based daycare has declined. Low pay (often under $30,000 a year for providers) and staffing shortages make it hard to open or keep programs running. Regulations, training requirements and thin profit margins add extra barriers in places with few people and limited resources.

The impact on families is serious with many parents cutting back hours, turning down promotions, missing work when child care falls through or leaving the workforce entirely. Surveys show roughly 30 percent of Nebraska parents with young children have left the workforce because they could not find or afford childcare. Rural residents strongly agree that better access to child care is important for community growth. Without it, families struggle to remain local, which empties schools and weakens the local tax base.

Businesses feel it too. Employers report hiring and retention problems linked to childcare. Workers miss shifts or quit, reducing productivity. Estimates of the statewide economic hit run into hundreds of millions or even over a billion dollars a year in lost earnings, business output and tax revenue. Small rural towns see their population bases aging as young families leave in search of greener pastures.

Communities are responding, however. Groups such as Communities for Kids help local leaders map their gaps and create plans. Some towns pool money, grants and donations to open community child care centers. State grants support new providers and “childcare champions” who help start-ups with advice and encouragement. Workforce training programs aim to recruit and keep educators, especially in rural areas. Employers sometimes partner with providers or offer support. These efforts have added some capacity, but the gap remains large in many counties.

Many small towns have few suitable buildings for daycares, so churches have stepped in by donating or leasing unused space at low or no cost. In Kenesaw, a closing United Methodist church was turned into a childcare center serving about 55 children. In Valentine, churches host forprofit daycares in their buildings, with one charging just $1 a year in rent. In Norfolk, First Presbyterian Church is leasing space for a new center that will serve up to 71 children starting this year.

Churches also provide a ready community hub. Local leaders partner with them because the buildings already exist, are often centrally located and can be renovated more affordably than building new. Some churches run their own faith-based childcare or preschool programs, while others simply provide the physical space so independent providers or nonprofits can open licensed care centers. These efforts add spots where none existed, help parents return to work and keep young families in rural towns.

In simple terms, rural Nebraska has a shortage of safe, nearby places for young children to be cared for while their parents work. As a result of this crisis, many parents stay home or struggle to juggle work schedules causing businesses to lose workers and small communities to lose vitality. While local and state efforts are expanding options, the existence of such childcare deserts is a problem that must be addressed by cooperative effort.

 

Loren Lippincott represents Legislative District 34 in the Nebraska State Senate. Read his column in the Nance County Journal.