Sen. Tim Reed, R-Brookings, listens to testimony during a state Senate Education Committee meeting on Jan. 16, 2024. (Makenzie Huber/South Dakota Searchlight)
The families of roughly 27,000 infants and toddlers qualify for income-based child care assistance in South Dakota, but only 7% actually receive the subsidy, according to a study from South Dakota Kids Count . Another 31,000 school-age children are eligible, yet only 5% receive the subsidy.
The majority of child care providers in South Dakota are unregulated by the state – either because they don’t meet qualifications to be state licensed or choose not to be, meaning they don’t have access to subsidy dollars. Of those who are state licensed, some opt out of the child care assistance program.
There isn’t a financial incentive for providers to participate in the program, because the subsidy doesn’t always cover their costs, said Kayla Klein, director of Early Learner South Dakota.
Child care providers already struggle to keep their doors open, Klein added, often not charging families enough to cover the full cost of care, leading to closures , or not charging enough to retain employees, leading to heavy turnover in the industry.