Why We Offer Paid Family Leave

Healthy children. Happy parents. A positive work culture. Engaged, productive and loyal employees who feel valued and supported to do their very best work. These are just a few of the many reasons the Permanent Fund for Vermont’s Children chooses to offer paid family leave. We believe offering paid family leave is not only good for young children and their families—it’s good for Vermont overall.

Research documents that paid family and medical leave has health benefits for children and parents and also benefits employers via increased worker productivity and employee retention. But before getting into statistics, let’s consider how paid family leave impacted the life of one Vermonter—our Director of Innovation, Molly.

Molly is a hard-working, highly-valued employee. She’s the kind of passionate, talented and dedicated professional that a mission-driven organization like ours relies upon to get things done. Molly loves her job and it shows. The same can be said of her husband, Tom, who works full time at a nonprofit promoting a healthy environment. The couple shares a lifetime professional commitment to improving Vermont communities.

Molly and Tom also share another passion: family. They were already raising a 2-year-old and working hard to cover expenses when the couple discovered Molly was pregnant with twins. They considered the option of one parent dropping out of the workforce to take care of the children, but realized that would mean sacrificing income needed to support a growing family. For one of them, it would also have meant giving up valued work and falling behind in a career that took decades to build.

The Permanent Fund’s family leave policy made it possible for Molly to take the time she needed at home to bond with her newborn twins without sacrificing income or leaving a career she loved. Molly was able to take 12 weeks of fully paid leave and a second 12 weeks with 40% salary coverage. In addition, the Permanent Fund offers employees an annual child care scholarship of $2,500 per child, capping at $5,000.

When Molly returned to work, she was ready to dive back in with renewed commitment and enthusiasm. She continues to be a highly productive and engaged employee.

Molly’s story is just one example of how family-friendly work policies aren’t just good for employees–they’re also good for employers. In our case, 100% of parents who have taken leave have returned to work at the Permanent Fund, saving us costs in recruiting and training, as well as productivity lost during additional position vacancy.

We all agree that parents need to be able to care for and bond with newborn children, but the reality is that more than 70% of Vermont children under age 6 live in households with all of their parents in the workforce. Because they can’t access paid family leave, too many of these families are forced to choose between their natural desire to provide their children the best start in life and their ability to keep a good job and make ends meet. This problem is exacerbated by Vermont’s shortage of high-quality, affordable child care.

A study on the feasibility of a family and medical leave insurance program in Vermont, released last month by the Vermont Commission on Women, found that the implementation of a paid leave program could save Vermont more than $500,000 annually (as much as $270,000 from reduced public assistance among working women with a recent child birth in addition to almost $280,000 from healthcare savings due to an increased number of Vermont’s newborn infants who are healthy and have normal birthweights).

We need to ensure we have systems in place that allow Vermonters to balance work and family rather than forcing parents to choose between them. Access to paid family and medical leave, coupled with access to high-quality, affordable child care when parents return to work, would boost Vermont’s economy by attracting more young talented people to the state and encouraging young families to stay here, which ultimately helps attract new businesses and helps our current small business community thrive.

What does child care have to do with Vermont’s economy?

A new study, led by neuroscientists at Children’s Hospital Los Angeles and Columbia University Medical Center, has shown that family income and parental education affect child and adolescent brain development. The study highlights that too many children are well-behind their peers in cognitive, social and emotional development by the time they reach the age of three. Having a significant segment of our young population not getting off to a strong start has serious budgetary and economic implications for Vermont.
 
The Permanent Fund is now focusing on the following four messages related to strengthening the Vermont economy:
 
1. Pay now or pay later. 
Health and human services-related costs have been far outpacing the rise in inflation and the growth of our economy. Special education costs alone have risen from approximately $150 million to $300 million in the last 20 years largely due to increased behavioral issues linked to social-emotional development, while general student enrollment was decreasing. Sound research has shown that high-quality early care and learning reduces the need for special education services. A recent study out of Duke University found that an investment of $1,100 per child in high-quality early care and education reduced children’s odds of needing special education by 39% in third grade.  This smart investment would allow us to save significantly on a wide variety of costs which are putting a tremendous strain on our state’s budget year after year.
 
2. Making Vermont the best place in the nation in which to raise a family is a savvy economic development strategy. 
Over the past 20 years, Vermont births have been steadily declining and enrollment in K-12 has decreased by 18,000 students. These are troubling statistics as we need more, not fewer, young people entering the state’s workforce and contributing to a strong economy. A system of high-quality, affordable child care will create a favorable environment for parents to have children and, as important, for those children to thrive. Chambers of Commerce tell us that when small businesses and young families are considering a move to Vermont, the top three questions they ask are related to the quality of our education system, the affordability of housing and access to high-quality, affordable child care.
 
3. Since our children will become the engine that drives the economy, we cannot afford to give up on any of them.
We know that 90% of the core development of a child’s brain occurs by the age of five and that, by far, the highest return on investment in education is in the very early years. When children show up at kindergarten prepared for school they have a chance to have success in school, continue on to higher education and contribute to a skilled workforce. We are at a point now in Vermont when we must pay attention to the research and invest our available funds where they will produce the highest returns.
 
4. Access to high-quality, affordable child care contributes to workforce development. 
We can’t be our best at work if we’re worried about who is going to care for our children. Vermont businesses’ ability to recruit and retain productive employees is greatly enhanced when parents in the workforce have access to high-quality, affordable child care.
 
In addition to the public awareness efforts of Let’s Grow Kids and the systems-building work of Vermont Birth to Five, here are two areas of innovation where we will focus in 2017:
 
1. The early childhood professional as a key member of the population health care team.
By recognizing that child care providers can play a critical role in the health of children and even their families, we make it possible to both streamline services and cut down on health care costs down the road. For more on the connection between high-quality child care and cost effective approaches to health care, go to: http://www.permanentfund.org/healthcare-integration/.
 
Alan Guttmacher, recent director of the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD), has joined the Permanent Fund team and will assist Aly Richards, our CEO, in forwarding this effort. With his extensive experience in pediatric research and commitment to improving health outcomes for children and families, we are so lucky to have Alan working with us on this important initiative.
 
2. The Shared Services model as a way to make child care more cost effective. 
Vermont, as a small, rural state with small and widely-dispersed child care programs, is challenged to take advantage of the cost-efficiencies associated with larger child care centers. A Shared Services Network is a community-based partnership comprised of child care programs working together to share services such as bookkeeping, billing and collections, purchasing, insurance, access to nurses, mental health consultants and substitutes.
 
Our focus on a statewide systems change presents quite different challenges than investing individually in good programs and requires a determined patience. At the same time, our short, now 8-year, timeframe creates a sense of urgency for the Permanent Fund team and all associated with this movement. We would not have begun to accomplish what we have without the enduring commitment of our supporters and now, more than ever, we appreciate that continued support.
 
There is a noticeable buzz and increase in momentum in the child care movement from where we were a year ago. Aly will keep you up to date on the details of Permanent Fund progress as we work toward our goal of all Vermont children having access to high-quality, affordable early care and learning by the year 2025.

Recognizing Unsung Heroes: Vermont Early Childhood Educators

A beautiful fall day in Burlington arrived for the presentation of Vermont’s second Early Educator of the Year Award this October. The appropriateness of holding the award ceremony during the VAEYC Conference was reinforced as the best choice for recognizing the important work being done in Vermont’s early childhood community. This is the annual event where the early childhood community comes together to share ideas and experiences, learn from one another, and celebrate their work..

Reno and Apgar 2016 early educator of the year finalists with Aly Richards CEO Permanent Fund

Aly Richards (center), CEO of the Permanent Fund for Vermont’s Children, with the Early Educator of the Year Award winner Jacquelyn Reno (left), and finalist Kathi Apgar (right), at the VAEYC Annual Conference 2016.

In an earlier post, Rick Davis explained why the Permanent Fund created its Early Educator of the Year Award. But it’s worth repeating: Besides parents, early educators are the first teachers our children have and their work lays an important foundation at the most crucial time of development in our children’s lives. The Permanent Fund created the Early Educator of the Year Award to recognize and celebrate excellence in the teaching of Vermont’s young children to bring attention to the importance of high-quality care and early education.

Early educators are working in what we believe is Vermont’s most important profession. By honoring those who are doing great work, we are demonstrating to all Vermonters what high quality early care and learning looks like.

In this video, we give you a look at the two providers (and their programs) that we honored with this year’s award for center-based programs. The award winner, Jackie Reno, Burlington resident and educator at the Janet S. Munt Family Room, was named 2016’s Early Educator of the Year. New Haven resident Kathi Apgar of the YMCA at University of Vermont Medical Center Early Childhood Program was the award finalist.

Early Childhood Education Professionals Deserve More

early_educator

Research tells us that the most important component of high-quality early care and education is the quality and consistency of the caregiver or teacher. Unfortunately, the early childhood field does not offer the wages or professional support necessary to effectively attract and retain the very best early educators.

The US Bureau of Labor Statistics Effect

One factor contributing to these limitations is the fact that many early care and education professions are classified by the US Bureau of Labor Statistics as service professions, rather than education professions. This matters because data collected by the US Bureau of Labor Statistics is used by individuals, businesses, community organizations, state and federal agencies, and policymakers to make important decisions about workforce development, including the compensation levels necessary to recruit and retain workers within a given industry.

That’s why the Permanent Fund for Vermont’s Children and our initiatives, Let’s Grow Kids and Vermont Birth to Five, are calling on the US Bureau of Labor Statistics to reconsider its recent rejection of a proposal that would have reclassified early childhood care and education professionals as education occupations, like elementary school professionals.

Early childhood professionals are educators. Their understanding of early learning and development allows them to provide young children with activities that promote healthy cognitive, social and emotional development in safe and nurturing environments, which lays the foundation for success in school, relationships and life. But as long as early childhood care and education professions are listed as service industry occupations, it will be difficult to compensate them for skills and knowledge that more closely aligns with their elementary education counterparts than with employees in the service industry.

Vermont’s New Child Care Licensing Regulations

Vermont’s early childhood care and education providers play a critical role in our state’s education and child development system. This is recognized in the recent development of Vermont’s new child care licensing regulations. The state established high education and professional development criteria for its early childhood care and education workforce. This is entirely appropriate because in Vermont, as in the rest of the country, child care workers, preschool teachers, teacher assistants and early childhood program administrators are helping to build the brains of children and prepare them for kindergarten and beyond.

Even though early childhood professionals have educational, professional development and training requirements similar to those of their counterparts in public schools, Vermont child care workers earn an average annual salary of less than $25,000, often without benefits. Think about that. The people who spend their days providing Vermont’s youngest children with safe, nurturing learning experiences are struggling to cover their basic expenses and to support their own families. This is unacceptable.

Vermont Early Childhood Workforce “Stalled”

A state-by-state review of workforce policies and practices in the early childhood field, called the “Early Childhood Workforce Index 2016,” rated Vermont as “stalled out” when it comes to compensation strategies. The review was done by researchers at the Center for the Study of Child Care Employment at the University of California, Berkeley. Researchers found that those working in the early care and education field are among the lowest-paid employees in the nation. The report calls for a transformation of early childhood jobs and early childhood policies and infrastructure. Absent this change, the report warns, “We will continue to witness educators leaving the field in search of employment that offers a livable wage, rewards their educational attainment, and provides the respect that is their due. And the next generation of young women and men will continue to eschew jobs teaching our youngest children.”

In Vermont, we’re losing dedicated and passionate early childhood professionals at an alarming rate. From May 2010 to May 2016, the number of regulated child care programs in Vermont decreased by 12.5%. The Vermont Department of Labor has projected that between 2012 and 2022, almost 70% of child care worker positions that become available in Vermont will be due to turnover, placing child care in the top 10 occupations in the state with the highest number of openings, on average, per year.

Vermont Has a Child Care Challenge

While more than 70% of children under age six have all available parents in the workforce, a recent report by Let’s Grow Kids found that almost half of Vermont infants and toddlers likely to need care don’t have access to any regulated child care programs and almost 80% don’t have access to high-quality programs.

High-quality child care is of utmost importance in preparing our future workforce, and high-quality care depends on highly-qualified professionals. In order to achieve the recognition early childhood professionals need, we must acknowledge their important roles.

The Permanent Fund for Vermont’s Children has a mission to ensure every Vermont child has access to high-quality and affordable early care and education by 2025. In order to achieve this goal, we need to support our early childhood workforce. We also need to make high-quality care more affordable to parents and providers.

Vermont’s Blue Ribbon Commission on Financing High Quality, Affordable Child Care—which includes business representatives, policymakers, parents and child care providers—will issue a report in late November that will recommend financing strategies to support high-quality, affordable child care in Vermont. It will be up to Vermont’s next governor and legislative body to act on the Commission’s recommendations and to implement policies aimed at solving Vermont’s child care challenge.

Vermont Can Lead the Nation

The Permanent Fund for Vermont’s Children believes our state can lead the nation on this critical issue. I encourage Vermonters to join our efforts to make high-quality, affordable child care a reality for every Vermont child who needs it.

Join the campaign at www.letsgrowkids.org to get involved.

Linking Climate Change and Early Childhood Development

I was greatly honored when I heard I would receive the Vermont Lifetime Achievement Award from the Vermont Council on Rural Development (VCRD). But I was surprised when I realized I would be accepting this award during the organization’s second Summit on Vermont’s Climate Economy. What would someone from an organization that has made high-quality early childhood education its mission say to a group of climate change advocates? After learning the Summit’s theme was “Ideas to Action,” I understood the parallels between the Permanent Fund’s work and the climate summit. The two are more closely related than one might think.

children at play on beach

Climate science and brain science: Neither is rocket science

Climate science is credible, reliable and offers a clear picture of what contributes to our changing climate and how we can reverse the trend. The brain science is equally compelling, irrefutable and offers a clear blueprint for a child’s healthy brain development and what contributes to unhealthy development. Amazingly, the brain science shows us that 80% of a child’s brain is developed by the age of three—telling us that we must act in the very early years to get it right.

Inaction or missteps will lead to serious consequences

There are serious consequences for Vermont if we don’t reverse the effects of climate change. More extreme weather events (think, Tropical Storm Irene) are an example. In early childhood, our extreme weather event is represented by the dramatic increase in special education costs, which have increased by $137 million, a doubling in the last 15 years, while enrollment has decreased by 20,000 students. Early identification of developmental delays and improved nutrition can help. We must work to identify at-risk children earlier—from birth to five—so we can start services earlier when the developing brain and body are most receptive to these interventions. As I mentioned in a previous blog post, starting services earlier can in some cases reduce the need for costly services during the school years or eliminate the need for them altogether.

We’re on an unsustainable path

With climate change, melting glaciers and rising waters tell us that we are not on a sustainable path. With early childhood development, nearly 50% of our kids are showing up at kindergarten “not ready to learn” and it’s likely that same 50% are not going on to college. Like other rural states, Vermont has one of the highest rates in the nation of kids not going to college! This is not sustainable. With an aging demographic in Vermont, we cannot afford to give up on any of our children. We need all of them in a trained workforce contributing to a healthy economy.

Time is of the essence: Act now or pay (much more) later

With climate change, we cannot afford to wait—we have to act now. The same is true of early childhood development in Vermont—it is no longer a case of whether or not we can afford to make these strategic investments in the early years….we cannot afford not to make them. We must act now or we will pay dearly later. We know that the investment we make during the earliest years of life (from birth to age five) will provide a much greater return than any dollars we invest later.

One difference between climate change and early childhood

While the work Vermont is doing on climate change is extremely important and we SHOULD be a leader in addressing this issue, the effects of climate change are largely influenced by the actions of other states and other countries. The environmental and economic impacts of climate change pose global challenges. With early childhood development in Vermont, we have full control of our destiny. By following the science, making smart, strategic investments in the early years and acting swiftly, we will improve outcomes for all our children and create a healthier Vermont.

Building stronger communities

While on the surface we may seem like different organizations, both the VCRD and the Permanent Fund for Vermont’s Children are working toward the same end: building stronger, more sustainable, Vermont communities. The success of both organizations relies on bringing great ideas to the table, pulling together the right people and organizations and developing collaborations and partnerships to turn “Ideas to Action.”

 

Comparison Table between Climate Change and Child Care

Click on the image to download a PDF file.