The childcare crisis doesn’t seem to affect those of us without young children. However, the lack of childcare and its high costs impact everyone. For employers, it significantly reduces the pool of young talent, especially women, particularly those needing infant care. This is especially true in vital professions like teaching and nursing. Employee availability affects us all through higher costs for employers, which are then passed on to consumers. Sadly, we have done very little in the past 20 years to address this ongoing crisis. Meanwhile, our young families are left to struggle. Access to quality childcare has become more difficult and less affordable than ever. How bad is it, and what can we do about it?
How Bad Is the Shortage? National and Nevada Data
It’s Bad. A 2023 report by Nevada’s Governor’s Workforce Development Board found that 74% of children ages 0-5 lack access to licensed childcare, and if available, it is very expensive. At the same time, a 2024 Lending Tree study found that American families who pay for childcare spend nearly one-fifth of their income on the service. “In Nevada, the costliest childcare state, families spend 32.3% of their household income, an average of $493 a week, for childcare.” The Department of Health and Human Services considers childcare affordable when it costs a family no more than 7% of their household income. Nevada is more than four times that.
Washoe County’s Reality: Infant Care Is Scarce and Costly
In Washoe County, it is no better. According to The Children’s Cabinet, the demand for childcare exceeds 23,400, while the supply is only 10,900, creating a shortage of 12,500 children in households where all available parents work. If you have an infant, you’re really in trouble. The cost to the provider for infant care is three times higher than for a 4-year-old due to class size limitations. Although providers typically don’t pass on the full cost of infant care, they either don’t offer it at all or raise the prices for the other children. That may explain why the infant waitlist exceeds two years.
Why the Market Alone Can’t Fix Childcare
It’s time to stop talking and start taking action on this crisis. Like most complex problems, there is no simple solution. Unfortunately, government requirements and labor shortages prevent the free market from resolving this challenge. Despite the high demand, most centers struggle to survive. Therefore, we need greater involvement from both the business sector and the government. One example is the recent Reno City Council’s proposed changes to its zoning code (Title 18), which aims to make it easier for providers and businesses to open and operate childcare facilities.
Four Actions to Expand Access and Lower Costs
Here are some other steps we should take:
Get HOAs on Board to Allow Licensed In‑Home Care
1. Get HOAs on board. Homeowners associations generally ban in-home childcare services to keep neighborhoods quiet and reduce traffic. However, unlike other neighborhood businesses, the licensed in-home provider caring for six children adds minimal traffic while offering residents quality care close to home. In many states, HOAs are legally prohibited from banning small, licensed daycare homes. Thanks to our local legislative leadership, a recently proposed Assembly Bill 185 would have done just that here in Nevada. Although the legislation was unsuccessful this past session, we must continue to advocate for allowing licensed daycare in homes.
Offer Incentives and Tax Credits to Reduce Costs
2. Offer incentives to lower costs. While the City of Reno is working to remove barriers in this effort, and more work remains, incentives are needed to make more childcare available and affordable. The federal government recently expanded its 45F program of business tax credits, but it still covers less than 40% of the costs for businesses. If state and local governments reduced existing barriers and offered additional tax credits or incentives to companies that invest in on-site childcare, we would see a significant increase in affordable childcare in the region.
Employers: Invest in On‑Site Care and Reserved Slots
3. Employers, time to step up! Investing in childcare not only supports working families but also improves employee retention and productivity, while making the business an “employer of choice.” Providing employees with a childcare subsidy can help, but it does not address the issue of availability, given the current “childcare desert” we are facing. Businesses should utilize space no longer needed (due to remote work or AI) to offer on-site care, and the benefits would be substantial. It also reduces childcare costs by providing rent-free space to the provider, with those savings passed on to the employees. Employers should also consider securing slots in nearby facilities (if available), which helps to sustain the business operations of existing childcare sites. The Children’s Cabinet provides free childcare consultation for employers.
Embrace, Support, and Fund Universal Pre‑K
4. Embrace, support, and fund Universal pre-K. Countless studies document the value of Universal Pre-K. Read It’s time we support universal pre-K on RGJ.com. Enrolling all 4-year-olds in Pre-K benefits them and opens thousands more childcare spots for children aged 0-3.
The Bottom Line: Affordable Childcare Is Essential
The time for talking is over; accessible and affordable childcare is essential. We are already bearing the costs of this childcare shortage through higher prices and employee shortages. Not to mention the toll on our children, who are often shuffled to relatives or friends, or, on too many occasions, are left at home alone or with an older sibling who is forced to miss school. Employees should communicate their needs to their employers. Additionally, we all need to raise awareness and urge governments and businesses to take more action. Consider helping young families in need through church groups or local community organizations. Accessible and affordable childcare is an essential component of our quality of life, and it can be fixed if we all do more!
Check out Confronting Chronic Student Absenteeism: Why Nevada Can’t Afford to Wait and Dyslexia, the Ignored Disability
Mike Kazmierski is the executive director of Strengthen our Community
Strengthen our Community (SoC) is a non-profit (501c3) committed to developing cooperative, caring solutions to regional needs, with a special emphasis on education, families, good governance, and environmental sustainability. SoC is dedicated to confronting the important but complex issues in the region that have been difficult or even impossible to resolve. For more information on Strengthen our Community please get in touch with us at info@socnnv.org or 775-350-1465.
Mike Kazmierski is the executive director of Strengthen our Community.
