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After almost 20 years in business, Milestones Preschool in Inglewood closed its doors this month.
It was a decision that preschool director Milena Bice had been putting off for years. She’d turned her family home into a small business, transforming the house on a quiet tree-lined street into a playground of childish delights, complete with a sand pit, fruit trees and even a brood of chicks waddling around a small pen.
Bice loved her preschool. She loved the way it allowed her to care for her own kids when they were little, and how she could continue to apply therapeutic approaches to her work long after they’d outgrown preschool. Over the years, she developed a reputation for her care for children with neurological differences.
But child care is no easy business. Margins were about as slim as can be. When parents couldn’t afford to pay full tuition, Bice felt it was her duty to keep caring for their kids anyway. The question of closing loomed over her as her business survived the ups and downs of the global economy: first, the 2008 recession, and the COVID-19 pandemic more than a decade later.
But this month, Bice finally called it quits. She was sick of charging families high fees and still struggling to pay herself at the end of the month. And for the first time this year, she said her preschool didn’t have anyone on her waitlist. One reason is universal transitional kindergarten — or TK — no-cost public kindergarten that becomes an option for all California 4-year-olds this fall.
“ I can’t compete with free,” she told LAist in a recent interview. “And in this economy, I think a lot of families are hurting.”
Bice’s predicament mirrors a statewide challenge. As families sign their 4-year-olds up for TK, some childcare and preschool providers say they’re losing enrollment and it’s threatening their businesses. While teachers struggle to adjust, childcare remains an unaffordable and unmet need for many families across California, especially with very young children.
Child care is still a major need for CA families
Even as transitional kindergarten expands, there’s no shortage of need for child care. The California Budget & Policy Center estimates that just 19% of infants, toddlers and preschool-aged children who are eligible for state subsidized care are enrolled. The need is especially great for children age 2 or younger — the most expensive age group to care for.
A recent report from the Center for the Study of Child Care Employment found that most early education programs will need to pivot to younger kids to meet the need and stay in business, and that centers and home-based childcares are hurting from declined enrollment since the pandemic.
Anna Powell, the lead author of that report, said early educators struggling to adapt to the changing landscape of their industry are a byproduct of the state’s massive investment in universal TK, but lack of similar investment in others.
“ If one area, for example TK, receives a lot of resources to scale up to reach demand, in theory, that is positive,” she said. “What happens when you don’t invest in all the quadrants at the same time is that there can be these unintended consequences.”
Transitioning to younger kids is a challenge
Powell said that caring for younger kids requires a number of shifts in how child care programs operate. Teaching expertise is different for younger children, and staffing ratios are smaller. The time a provider might expect to have a child enrolled is also shorter, since kids are heading to the public school system earlier. This means early educators could face more turnover.
There’s also the matter of teaching preferences. Caring for a 3- or 4-year-old is very different from taking care of a 1-year-old. In a survey of nearly 1,000 early educators, just 20% said they’d be interested in teaching infants and toddlers.
David Frank, who runs a preschool in Culver City, told LAist in April that he’s also closing his doors this year. He said that 4-year-olds used to make up a third of the school’s students, and his enrollment was down from 34 to 13. His preschool already took 2 -year-olds, but he didn’t want to go any younger. One reason is it would require him to reconfigure the school to create a separate space for the youngest children.
Frank said he’s not against TK, but he couldn’t keep making it work.
“ I’m happy that children will have good, free education,” he said. “But as a person trying to run a business … it’s just no longer a viable plan to stay open anymore.”
Advocates say even more investment is needed
California’s transitional kindergarten is a plan years in the making, and, despite kinks, it has achieved a big goal: offering a free option for every family with a 4-year-old in the state.
That program runs through the public school system, but child care and early education offerings for the state’s youngest children continue to be a patchwork of different types of care with no similar central system. The state funds a public preschool program for 2- to 5-year-olds for low-income families, which has received more money in recent years. Many private programs receive state subsidies for serving low-income families, and the state has increased the number of seats it funds in recent years.
It also bumped up reimbursement rates for 3-year-olds to entice more providers to take younger kids.
Gov. Gavin Newsom’s office pointed to these changes, telling LAist that it has invested heavily in a universal Pre-K program that extends beyond transitional kindergarten.
Some advocates and childcare providers say still more game-changing investment is needed. The state has promised the childcare providers that receive its subsidies to overhaul its payment system to reflect the “true cost” of care, but this year deferred offering them pay bumps. The union representing those workers is currently bargaining with the state, saying providers can’t wait for a raise.
Patricia Lozano, the executive director of advocacy organization Early Edge California, said TK’s ripple effect on early education programs shows that the state needs to do more to provide for its youngest children.
“ TK was one of the key things we’ve been advocating since it was passed,” she said. “But that’s just one piece. I think the whole system itself is problematic. It’s underfunded.”
Lozano pointed to New Mexico as a potential model for California. The state has boosted teacher pay and expanded eligibility for free care by directing gas and oil revenue to state childcare programs. She said this type of consistent source of money is especially important amid threats to federal funding and state budget cuts.
“The bottom line is we need to have that source of funding protected,” she said.
In the meantime, Milena Bice’s preschool in Inglewood is closed. She’s not sure exactly what happens next. She can’t go work at a public school. Despite decades in the business, she doesn’t have a bachelor’s degree or teaching credential.
While she debates the future, Bice is holding onto her childcare license. Who knows? Maybe she’ll want to reopen someday.
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