Eligible child care centers can now increase staff wages by $2 per hour, following approval from the Iowa City Council June 7. The $1.5 million agreement with Johnson County and the Community Foundation of Johnson County will allow the city to administer the Child Care Wage Enhancement Program. The fund also pays the increased payroll […]
Eligible child care centers can now increase staff wages by $2 per hour, following approval from the Iowa City Council June 7.
The $1.5 million agreement with Johnson County and the Community Foundation of Johnson County will allow the city to administer the Child Care Wage Enhancement Program. The fund also pays the increased payroll taxes, rather passing on those costs to employers.
Iowa City and Johnson County will commit $250,000 per year for three years, while Johnson County Social Services will administer the program.
The Johnson County Child Care Coalition hopes the business community will support the initiative enough to allow the program to become sustainable after three years.
A prominent local business is already planning to work with the Johnson County Child Care Coalition, revealed council member Megan Alter at the meeting, but the business has not yet been announced publicly.
Businesses will be able to publicize their support of the program with stickers on storefront windows and digital badges on their websites, said Cady Gerlach, executive director for
Better Together 2030.
"I want to thank you on behalf on the coalition," said Ms. Gerlach. "We're looking forward to what the next three years does for child care in our county."
The Johnson County Board of Supervisors
agreed to the Child Care Wage Enhancement Plan May 18. The plan was initially presented to the council March 7 during a work session.
The wage increase, funded by federal American Rescue Plan Act (ARPA) funds, will improve workers’ annual salaries by approximately $4,000, from just over $23,000 to $27,372.
Currently, workers in this industry make less money than any other tracked profession, and there are 552 unfilled child care slots due to a worker shortage.
"The lack of child care does affect the economy," said council member Pauline Taylor. "It'll be interesting to see how this helps that."
"I think the more that can be done to professionalize these workers in our community, the better," Ms. Alter added. "This is an incredibly important effort."
