South Dakota is facing a significant childcare crisis, as revealed by a comprehensive report from the South Dakota Childcare Task Force and additional research from the Hunt Institute. This narrative explores the intricate dynamics of childcare in the heart of South Dakota, particularly focusing on affordability and accessibility challenges faced by families, as well as the innovative measures being taken to alleviate these issues. Senator Tim Reed, a key figure in addressing these challenges, offers crucial insights into potential solutions that could reshape the childcare landscape in the state.
Tim Reed [/caption]Over seventy percent of young children in South Dakota have both parents working, a statistic that underscores the critical need for dependable childcare solutions. Yet, the escalating costs, which can reach $260 per week for a toddler, present a hefty burden for many families. The situation is exacerbated by the lack of available daycare centers, which often struggle to maintain operations under the current wage structures for childcare workers.
Senator Tim Reed, a prominent South Dakotan politician with roots as former Mayor of Brookings, advocates for raising wages for childcare workers. He argues that higher wages would enable centers to open more rooms, thereby increasing capacity and reducing the pressures on existing childcare infrastructure. “We need to be able to increase what we’re paying at the childcare assistance level,” Sen. Reed commented, emphasizing the importance of starting support where it matters most.
Innovative funding models are being explored to address the financial challenges of childcare, including the ‘Tri-share’ system. This model envisions a tripartite financial responsibility shared among parents, employers, and an additional funding source. Notably, Rapid City stands out for its unique approach where philanthropic funds, rather than state resources, constitute the third funding pillar. Janessa Bixel, Executive Director of the South Dakota Association for the Education of Young Children, highlighted, “What’s really unique about the program in Rapid City is that it’s coming from philanthropic funds.”
In Rapid City, the Black Hills Area Community Foundation plays a pivotal role by funding a portion of a childcare program, illustrating the power of community-driven initiatives. Meanwhile, in Madison, TIF (Tax Increment Financing) funding is being leveraged to support the creation of new childcare facilities, showcasing how local authorities are employing innovative financial tools to bolster childcare availability.
However, these efforts must battle the backdrop of budget cuts, which add complexity to funding initiatives. As Sen. Reed notes, “Budget cuts make some of the items that we want to do tougher to get done because they all do cost money.” The fiscal challenges are stark, with reports indicating that the lack of affordable childcare is costing South Dakota approximately $329 million each year.
The John T. Vucurevich Foundation (JTVF) emerges as a crucial ally in this battle. With a focus on enhancing access to high-quality early learning experiences, JTVF has been instrumental in awarding transformative grants across South Dakota. In September 2024, the foundation allocated $587,000 to community-transforming initiatives, including the United Way of the Black Hills’ Black Hills Reads Program. Earlier, in June 2024, JTVF distributed nearly $1 million in grants to address basic and economic mobility needs, and another $1.5 million was granted to local nonprofits and scholarship programs in December 2023.
Particularly noteworthy is the $700,000 two-year grant awarded to the YMCA of Rapid City, supporting its Jump Start Program for early learning. This substantial funding aims to bridge gaps in early childhood education and uplift the community’s youngest members. Furthermore, JTVF has championed the creation of the JTVF Child Care Innovation Fund, designed to fund childcare through a Tri-Share Program. The foundation’s collaboration with businesses and philanthropic sectors underpins a concerted effort to innovate in childcare funding strategies.
As the South Dakota Childcare Task Force, led by Sen. Tim Reed and supported by JTVF, diligently addresses childcare accessibility, the state’s community stakeholders are called to action. Enhanced cooperation and innovative funding solutions are pivotal in ensuring South Dakota’s children have access to the quality care they deserve. Efforts like those in Rapid City and Madison serve as exemplars of how local initiatives can lead the charge toward statewide improvements in childcare.
For families in South Dakota navigating the complexities of childcare, the road ahead necessitates continued advocacy and a collective reimagining of how care is funded and delivered. Thanks to initiatives from organizations like JTVF and the determined leadership of figures such as Tim Reed, there is hope for a future where all children in South Dakota have the opportunity to thrive.